BILL NO. 57
(as introduced)
1st Session, 62nd General Assembly
Nova Scotia
63 Elizabeth II, 2014
Cemetery and Funeral Services Act (amended)
and
Embalmers and Funeral Directors Act (amended)
The Honourable Mark Furey
Minister of Service Nova Scotia
First Reading: April 17, 2014
Second Reading: April 22, 2014
Third Reading: April 28, 2014 (LINK TO BILL AS PASSED)
Explanatory Notes
Clause 1 amends the Cemetery and Funeral Services Act by
(a) adding a definition of "funeral home licence";
(b) adding a definition of "insurance-funded plan";
(c) adding a reference to co-operative associations in the definition of "operator" to clarify that they may be issued licences to operate cemeteries and crematoria;
(d) replacing the definitions of "pre-arranged funeral plan" and "pre-need cemetery plan" so that they encompass the price payable for the plans being funded under an insurance policy; and
(e) adding a definition of "trust-funded plan".
Clause 2 amends the Act to
(a) refer to the two types of licences that are issued; and
(b) require that sellers of pre-arranged funeral plans and pre-need cemetery plans continue to be licensed while they continue to be required to hold funds for the plans in trust.
(a) provides that a licence is subject to any restriction imposed pursuant to the Act;
(b) requires an applicant to hold a funeral home licence in order to be issued a licence to sell pre-arranged funeral plans; and
(c) permits the Registrar of Cemetery and Funeral Services to impose restrictions on a licence issued pursuant to the Act and makes such a licence subject to the restrictions.
Clause 4 requires
(a) every person who is licensed to sell pre-arranged funeral plans to display the licence in public view at the funeral home;
(b) every person who is licensed to sell pre-need cemetery plans to display the licence in public view at the person's business premises; and
(c) every person who sells insurance for insurance-funded plans to comply with the Insurance Act.
(a) removes the requirement for ministerial approval when the Registrar of Cemeteries and Funeral Services cancels a permit; and
(b) permits the Registrar to suspend or cancel a person's licence if satisfied that the person has failed to comply with a written undertaking provided pursuant to the Act.
(a) provides that the Registrar of Cemeteries and Funeral Services may accept a written undertaking from a licensee who has contravened the Act or the regulations; and
(b) adds authority for the Registrar to publish certain information about licences and licensees.
(a) sets out the requirements for purchase agreements; and
(b) prohibits a seller from accepting money for the future delivery of funeral merchandise or services, or cemetery goods or services, without a purchase agreement.
Clause 8 requires that certain documents be attached to the purchase agreement for an insurance-funded plan.
Clause 9 provides that
(a) the 10-day cooling-off period for a purchaser to cancel a purchase agreement applies regardless of where the purchase agreement is entered into; and
(b) a provision respecting refunds for voided purchase agreements applies only to trust-funded plans.
Clause 10 provides that a provision that permits a personal representative to make payments to prevent cancellation of a plan applies only to trust-funded plans.
(a) provides that a provision respecting plans that are cancelled, terminated or discontinued applies only to trust-funded plans; and
(b) requires disclosure in purchase agreements for insurance-funded plans of the effect of cancellations.
(a) clarifies procedures to be followed by a seller if a purchaser of a trust-funded plan defaults;
(b) provides for the assignment of a pre-arranged funeral plan between licensed sellers;
(c) sets out how a licensee must notify purchasers and the Registrar of Cemeteries and Funeral Services of an intended sale, move or cessation of operations of a funeral home; and
(d) deals with issues related to the cancellation of a pre-arranged funeral plan that is a trust-funded plan if a funeral home is ceasing operations.
(a) clarifies that administrative fees are chargeable only with respect to trust-funded plans; and
(b) limits the times when the fees may be charged.
(a) sets out the requirements for converting a trust-funded plan to an insurance-funded plan; and
(b) provides for the disposition of unclaimed trust money.
Clause 15 repeals a Section that deals with displaying merchandise as this will now be addressed in the Embalmers and Funeral Directors Act.
Clause 16 sets out the requirements for containers used for the cremation of human remains.
Clause 17 amends the regulation-making authority in the Act
(a) to reflect amendments made by this Act;
(b) with respect to bonds referred to in the Act; and
(c) with respect to advertising related to funeral merchandise or services or cemetery goods or services.
Clause 18 amends the Embalmers and Funeral Directors Act by
(a) removing the requirement to publish the names of members and officers of the Board of Registration of Embalmers and Funeral Directors in the Royal Gazette; and
(b) replacing the requirement to publish the Board's financial statements in the Royal Gazette with providing the statements to the Minister.
(a) requires the Board of Registration of Embalmers and Funeral Directors to prepare and publish a code of ethics; and
(b) requires compliance with the code.
Clause 20 standardizes the spelling of the word "licences" in a provision that is being amended and permits the publication of certain information with respect to persons who are issued licences by the Board of Registration of Embalmers and Funeral Directors.
(a) provides that the Registrar of Embalmers and Funeral Directors rather than the Minister is authorized to issue funeral home licences; and
(b) clarifies that co-operative associations may be issued funeral home licences.
(a) prohibits anyone from selling insurance other than insurance to fund pre-arranged funeral plans as permitted by the Cemetery and Funeral Services Act, at a funeral home;
(b) provides that the Registrar of Embalmers and Funeral Directors may accept a written undertaking from a person who holds a funeral home licence and who has contravened the Act or the regulations; and
(c) permits the publication of certain information with respect to persons who are issued licences pursuant to the Act, in the form and manner considered appropriate by the Registrar.
(a) provides that the Registrar of Embalmers and Funeral Directors rather than the Minister is authorized to cancel or suspend funeral home licences; and
(b) permits the Registrar to cancel or suspend a funeral home licence if the holder of the licence has failed to comply with a written undertaking provided pursuant to the Act.
Clause 24 provides that written notice of an intended sale, change in location or cessation of operations of a funeral home must be provided to the Registrar of Embalmers and Funeral Directors.
(a) provides display and catalogue requirements with respect to caskets and urns on offer at a funeral home; and
(b) prohibits a handling fee for the use of a casket, urn or other container provided by a customer unless the same fee is charged for caskets, urns and containers sold at the funeral home.
Clause 26 amends the regulation-making authority in the Act to
(a) authorize the Board of Registration of Embalmers and Funeral Directors to determine the course of training and education for embalmers, apprentice embalmers and funeral directors;
(b) reflect amendments made by this Act;
(c) authorize regulations respecting the form and content of applications, and information required from applicants for, licences issued pursuant to the Act; and
(d) authorize regulations respecting standards for the premises, facilities and equipment of funeral homes.
Clause 27 provides for the coming into force of this Act.
An Act to Amend Chapter 62
of the Revised Statutes, 1989,
the Cemetery and Funeral Services Act,
and Chapter 144 of the Revised Statutes, 1989,
the Embalmers and Funeral Directors Act
1 Section 2 of Chapter 62 of the Revised Statutes, 1989, the Cemeteries and Funeral Services Act, is amended by
(a) adding immediately after clause (e) the following clause:
(c) adding ", including an association incorporated pursuant to the Co-operative Associations Act" immediately after "corporation" in the fourth line of clause (m);
(d) striking out clause (n) and substituting the following clause:
(ii) the price payable being funded out of the proceeds of an insurance policy to be paid directly or indirectly to a person who holds a funeral home licence,
(ii) the price payable being funded out of the proceeds of an insurance policy to be paid directly or indirectly to an operator of a cemetery or crematorium,
(f) adding immediately after clause (s) the following clause:
2 (1) Subsection 7(1) of Chapter 62 is amended by adding "as a seller or as a salesperson of a licensed seller" immediately after "licensed" in the second last line.
(2) Section 7 of Chapter 62 is further amended by adding immediately after subsection (2) the following subsections:
(a) has entered into a pre-arranged funeral plan; and
(b) continues to be required to hold funds with respect to the plan in trust pursuant to this Act or the regulations,
must continue to hold a licence issued by the Registrar pursuant to Section 8 regardless of whether the person continues to be required to be licensed pursuant to clause (1)(a).
(4) Every person who as a seller
(a) has entered into a pre-need cemetery plan; and
(b) continues to be required to hold funds with respect to the plan in trust pursuant to this Act or the regulations,
must continue to hold a licence issued by the Registrar pursuant to Section 8 regardless of whether the person continues to be required to hold a licence pursuant to clause (1)(b).
3 (1) Subsection 8(1) of Chapter 62 is amended by adding "this Act or" immediately after "by" in the second last line.
(2) Section 8 of Chapter 62 is further amended by adding immediately after subsection (1) the following subsection:
(3) Subsection 8(3) of Chapter 62 is amended by adding "and any restrictions imposed by the Registrar pursuant to subsection (4)" immediately after "regulations" in the last line.
(4) Section 8 of Chapter 62 is further amended by adding immediately after subsection (3) the following subsection:
4 Chapter 62 is further amended by adding immediately after Section 8 the following Sections:
(2) Every person who holds a licence to sell pre-need cemetery plans shall display the licence in public view at all times at the person's business premises.
8B Every person who is selling insurance for insurance-funded plans shall comply with the Insurance Act.
5 Section 9 of Chapter 62 is amended by
(a) striking out ", or with the approval of the Minister," in the first and second lines; and
(b) adding immediately after clause (b) the following clause:
6 Chapter 62 is further amended by adding immediately after Section 9 the following Sections:
(a) an undertaking to comply with this Act and the regulations;
(b) an undertaking to refrain from engaging in an act or practice;
(c) an undertaking with respect to the form, content and maintenance of trust accounts, records, purchase agreements or other documents.
9B (1) The Registrar may publish
(a) a list of licensees, including their names and business addresses;
(b) any terms, conditions or restrictions to which a particular licence is subject;
(c) information relating to the status of a particular licence, including whether the licence has been cancelled or suspended; and
(d) any other information prescribed by the regulations.
(2) The Registrar may publish the information referred to in subsection (1) in whatever form and manner the Registrar considers appropriate.
7 Section 10 of Chapter 62 is amended by adding "(1)" immediately after the Section number and adding the following subsections:
(a) be approved by the Registrar; and
(b) comply with the requirements, if any, set out by the regulations.
(3) No seller shall accept money for the future delivery of funeral merchandise or services for an individual who is alive at the time the money is accepted unless the seller and the purchaser have entered into a written purchase agreement for a pre-arranged funeral plan.
(4) No seller shall accept money for the future delivery of cemetery goods or services for an individual who is alive at the time the money is accepted unless the seller and the purchaser have entered into a written purchase agreement for a pre-need cemetery plan.
8 Chapter 62 is further amended by adding immediately after Section 10 the following Section:
(a) the insurance policy or the enrolment or other documents that confirm the purchase of the insurance; and
(b) the document designating the holder of the funeral home licence or the operator of the cemetery or crematorium as the beneficiary of the insurance or assigning the proceeds of the insurance to the holder of the funeral home licence or the operator of the cemetery or crematorium.
9 (1) Subsection 11(1) of Chapter 62 is amended by striking out "entered into in a place other than a funeral home or a place other than the seller's business premises" in the first, second and third lines.
(2) Subsection 11(3) of Chapter 62 is amended by striking out "If this agreement is entered into in a place other than a funeral home or a seller's business premises, you" in the fourth, fifth and sixth lines and substituting "You".
(3) Subsection 11(5) of Chapter 62 is amended by adding "for a trust-funded plan" immediately after "agreement" in the fourth line.
10 (1) Subsection 12(1) of Chapter 62 is amended by striking out "pre-arranged funeral plan or pre-need cemetery" in the first and second lines and substituting "trust-funded".
(2) Subsection 12(2) of Chapter 62 is amended by striking out "pre-arranged funeral plan or pre-need cemetery" in the first and second and in the fifth and sixth lines and substituting in each case "trust-funded".
11 (1) Subsection 13(2) of Chapter 62 is amended by adding "trust-funded" immediately before "plan" in the first line.
(2) Section 13 of Chapter 62 is further amended by adding immediately after subsection (3) the following subsection:
12 Chapter 62 is further amended by adding immediately after Section 13 the following Sections:
(2) Where payment is not received within the thirty-day period referred to in subsection (1), the seller may cancel the plan by giving written notice of cancellation to the purchaser and refunding to the purchaser all money paid under the plan, minus all income earned and minus the percentage retained by the seller on account of administrative expenses pursuant to subsections (2) and (3) of Section 15.
(3) The notices required by subsections (1) and (2) must comply with the requirements, if any, set out by the regulations.
(4) The plan is not cancelled and the seller shall honour the prices and the funeral merchandise or services, or the cemetery goods or services, contracted for under the purchase agreement if
(a) the purchaser pays any unpaid balances that are due within the thirty days from the date of the demand and notice sent pursuant to subsection (1); or
(b) the seller does not provide the written notices as required by subsections (1) and (2) and refund the money as provided for in subsection (2).
13B (1) A pre-arranged funeral plan may be assigned to another licensed seller of pre-arranged funeral plans in accordance with the regulations by
(a) the seller who entered into the plan, with the written consent of the purchaser;
(b) the purchaser on the purchaser's own behalf or on behalf of any other person for whom the plan was purchased;
(c) the person for whom the plan was purchased; or
(d) the personal representative of the deceased person for whom the plan was purchased.
(2) Where an assignment of a pre-arranged funeral plan is made to another licensed seller, the seller who entered into the plan shall transfer all money held in trust to the other licensed seller, and the other licensed seller shall continue to hold the money in trust in accordance with this Act and the regulations.
(3) Neither the seller of a pre-arranged funeral plan who assigns it nor the seller to whom it is assigned shall charge the purchaser
(a) any penalty or other fee relating to the assignment; or
(b) any percentage on account of administrative expenses, if a percentage has been retained by any person pursuant to subsections (2) and (3) of Section 15.
13C (1) The seller of a pre-arranged funeral plan shall give written notice to the purchaser at least thirty days in advance of an intended cessation of operations of a funeral home from which the funeral merchandise or services contracted for under the plan were to be provided.
(2) A licensee shall give written notice to the purchaser within thirty days after a sale or change in location of a funeral home from which the funeral merchandise or services contracted for under the plan were to be provided.
(3) The notices required by subsections (1) and (2) must comply with the requirements, if any, set out by the regulations.
(4) The seller of pre-arranged funeral plans shall file with the Registrar, at least thirty days in advance of an intended sale or cessation of operations of a funeral home operated by the seller,
(a) an interim report that meets the requirements, if any, in the regulations, respecting the pre-arranged funeral plans and trust accounts held by the seller;
(b) a report that sets out how the pre-arranged funeral plans and trust accounts will be dealt with as part of the intended sale or cessation of operations; and
(c) in the case of an intended sale, the name of the proposed purchaser.
(5) The Registrar may require the seller to provide additional information and particulars with respect to any report filed with the Registrar pursuant to subsection (4).
13D Where a pre-arranged funeral plan that is a trust-funded plan is cancelled because the funeral home from which the funeral merchandise or services contracted for under the plan were to be provided is ceasing to carry on business, the seller of the plan
(a) shall not retain the income that has accrued on the principal;
(b) shall refund to the purchaser the principal and all income earned, minus any amount expended in accordance with the plan and minus the percentage retained by the seller on account of administrative expenses pursuant to subsections (2) and (3) of Section 15; and
(c) shall deliver to the purchaser any funeral merchandise or other things acquired by the seller on behalf of the purchaser.
13 (1) Subsection 15(2) of Chapter 62 is amended by striking out "pre-arranged funeral plan or pre-need cemetery" in the first and second lines and substituting "trust-funded".
(2) Section 15 of Chapter 62 is further amended by adding immediately after subsection (2) the following subsections:
(3) The seller of a trust-funded plan may retain the percentage on account of administrative expenses referred to in subsection (2) only at one of the following times:
(a) where payment is by lump sum, when the seller deposits the lump sum payment in trust;
(b) where payment is by instalments, when the seller deposits the first instalment payment in trust;
(c) where the pre-arranged funeral plan or pre-need cemetery plan is cancelled, when cancelled.
(4) The seller of an insurance-funded plan shall not charge any fee or amount on account of administrative expenses.
14 Chapter 62 is further amended by adding immediately after Section 15 the following Sections:
(a) obtains prior written consent from the purchaser to cancel the trust-funded plan and replace it with an insurance-funded plan;
(b) contracts in the insurance-funded plan to provide the same funeral merchandise or services or the same cemetery goods or services, at the same prices, as were contracted for in the trust-funded plan; and
(c) does not charge the purchaser any additional fee or amount for the insurance-funded plan.
15B (1) Money held in trust by a seller for a pre-arranged funeral plan or a pre-need cemetery plan becomes unclaimed trust money if the seller
(a) has been unable to determine whether the person for whom the plan was purchased is deceased and has reasonable grounds to believe that the person for whom the plan was purchased would be one hundred and twenty years old or older; or
(b) has reasonable grounds to believe that another person has provided the funeral merchandise or services or the cemetery goods or services,
and the funeral merchandise or services or the cemetery goods or services that are mentioned in the plan have not been provided and the seller has been unable to locate the purchaser or a personal representative of the purchaser.
(2) Once money held in trust by a seller becomes unclaimed trust money pursuant to this Section, the seller shall transfer the money and income to the Minister within fifteen days.
(3) Money paid to the Minister pursuant to subsection (2) must be held in trust by the Minister for two years.
(4) All interest earned on money paid to the Minister pursuant to subsection (2) accrues to Her Majesty in right of the Province.
(5) Every person who makes an application to claim money paid pursuant to subsection (2) shall
(a) make the application in a form approved by the Registrar; and
(b) provide the Registrar with any information requested by the Registrar.
(6) Within one hundred and twenty days after an application and any information required by the Registrar is received pursuant to subsection (5), the Registrar shall consider the application and may either
(a) allow the claim, if the Registrar is satisfied that the applicant has a valid entitlement to the money; or
(b) deny the claim, if the Registrar is not satisfied that the applicant has a valid entitlement to the money.
(7) Where the Registrar does not receive an application for money paid pursuant to subsection (2) by a person who the Registrar is satisfied is validly entitled to it within two years from the time that the money is paid to the Minister,
(a) the money defaults to Her Majesty in right of the Province and must be paid into the General Revenue Fund of the Province; and
(b) all claims to the money by any person entitled to it are extinguished.
15 Section 20 of Chapter 62 is repealed.
16 Chapter 62 is further amended by adding after Section 25 the following Section:
(a) is of sufficient strength to hold and conveniently transfer the remains;
(b) prevents the remains from posing a health hazard; and
(c) meets the requirements, if any, set out by the regulations.
17 Subsection 28(1) of Chapter 62, as amended by Chapter 1 of the Acts of 2004, is further amended by
(a) adding immediately after clause (c) the following clauses:
(cb) prescribing an amount, or a formula for calculating the amount, of the bond referred to in subsection (2) of Section 8;
(cc) providing for the forfeiture of bonds and for the distribution of the proceeds of bonds;
(cd) respecting advertising in relation to funeral merchandise or services or cemetery goods or services, including prohibiting practices with respect to advertising;
(ce) for the purpose of subsection (1) of Section 9B, prescribing information that the may be published by the Registrar;
(cf) respecting the requirements for purchase agreements and the terms and conditions of purchase agreements, or any class of purchase agreements;
(cg) requiring reports or other information respecting insurance-funded plans or insurance policies to be filed with the Registrar by sellers of insurance-funded plans;
(ch) requiring records to be kept by sellers of insurance-funded plans respecting insurance-funded plans or insurance policies;
(b) adding immediately after clause (f) the following clauses:
(fb) prescribing records or other information with respect to trust funds or trust accounts that must be provided to purchasers of trust-funded plans;
(fc) for the purpose of subsection (3) of Section 13A, respecting the requirements for the notices to a purchaser required pursuant to subsections (1) and (2) of Section 13A, including, without limiting the generality of the foregoing, the manner in which the seller must provide the notices to the purchaser and the form and content of the notices;
(fd) respecting the assignment of pre-arranged funeral plans pursuant to Section 13B, including, without limiting the generality of the foregoing, respecting the transfer of the money held in trust;
(fe) for the purpose of subsection (3) of Section 13C, respecting the requirements for the notices to the purchaser of a pre-arranged funeral plan, including, without limiting the generality of the foregoing, the manner in which the notices must be provided and the form and content of the notices;
(ff) for the purpose of clause (a) of subsection (4) of Section 13C, respecting the requirements for the interim report to be filed with the Registrar with respect to pre-arranged funeral plans and trust accounts held by a seller;
(e) adding "or other information" immediately after "reports" in the second line of clause (q); and
(f) adding ", or requiring forms to be in the form prescribed by the Registrar," immediately after "forms" in the first line of clause (x).
18 (1) Subsection 7(4) of Chapter 144 of the Revised Statutes, 1989, the Embalmers and Funeral Directors Act, is amended by striking out "in the Royal Gazette before the first of April in each and every year" in the first and second lines and substituting "annually".
(2) Subsection 7(5) of Chapter 144 is amended by striking out "publish in the Royal Gazette" in the first and second lines and substituting "provide to the Minister".
19 Chapter 144 is further amended by adding immediately after Section 11 the following Section:
(2) Every person who holds a funeral director's licence, an embalmer's licence or a licence issued to an apprentice embalmer shall comply with the code of ethics.
20 Section 19 of Chapter 144 is amended by
(a) adding "(1)" immediately after the Section number;
(b) striking out "licenses" in the third line and substituting "licences"; and
(c) adding the following subsection:
(a) a list of persons who hold licences issued by the Board, including their names and the communities where they reside;
(b) the type of licence issued to a licensee;
(c) information relating to the status of a particular licence, including whether a licence has been cancelled or suspended;
(d) where a licensee works at a funeral home, the name and address of the funeral home.
21 (1) Subsection 27(1) of Chapter 144 is amended by striking out "Minister" in the first line and substituting "Registrar".
(2) Subsection 27(2) of Chapter 144 is amended by striking out "Minister" in the first line and substituting "Registrar".
(3) Section 27 of Chapter 144 is further amended by adding immediately after subsection (3) the following subsection:
22 Chapter 144 is further amended by adding immediately after Section 28 the following Sections:
28B Where the Registrar has reason to believe that a person who holds a funeral home licence has contravened this Act or the regulations, the Registrar may accept from the person a written undertaking in the form and containing the terms or conditions that the Registrar considers appropriate in the circumstances, including, without limiting the generality of the foregoing, one or both of the following:
(a) an undertaking to comply with this Act and the regulations;
(b) an undertaking to refrain from engaging in an act or practice.
28C (1) The Registrar may publish any of the following information with respect to funeral home licences:
(a) a list of persons who hold funeral home licences, including their names and business addresses;
(b) any terms, conditions or restrictions to which a particular funeral home licence is subject;
(c) information relating to the status of a particular funeral home licence, including whether a licence has been cancelled or suspended;
(d) any other information prescribed by the regulations.
(2) The Registrar may publish the information referred to in subsection (1) in whatever form and manner the Registrar considers appropriate.
23 Section 29 of Chapter 144 is amended by
(a) striking out "Minister" in the first line and substituting "Registrar"; and
(b) adding immediately after clause (c) the following clause:
24 Chapter 144 is further amended by adding immediately after Section 30 the following Section:
25 Chapter 144 is further amended by adding immediately after Section 32 the following Sections:
(a) a display of full or partial replicas of caskets and urns on offer, including full or partial replicas of the least expensive options on offer; or
(b) an up-to-date catalogue with pictures and descriptions of the caskets and urns on offer, including pictures and descriptions of the least expensive options on offer.
(2) Descriptions referred to in clause (1)(b) must meet the requirements, if any, prescribed by the regulations.
32B No person who holds a licence shall charge a handling fee for the use of a casket, urn or other container that is provided by the customer unless the person who holds the licence charges the same handling fee for the caskets, urns or other containers, as the case may be, that are sold by the person.
26 Subsection 33(1) of Chapter 144 is amended by
(a) adding immediately after clause (b) the following clauses:
(bb) prescribing the form and content of applications for funeral home licences, or requiring the form and content of applications for funeral home licences to be as required by the Registrar;
(bc) requiring applicants for funeral home licences to provide such information as the Registrar may require;
(c) adding immediately after clause (c) the following clause:
(d) adding immediately after clause (j) the following clause:
(e) adding immediately after clause (p) the following clauses:
(pb) respecting the requirements for the catalogue descriptions of caskets and urns for the purpose of Section 32A;
27 This Act comes into force on such day as the Governor in Council orders and declares by proclamation.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2014 Crown in right of Nova Scotia. Created May 1, 2014. Send comments to legc.office@novascotia.ca.
