Important Information for all Alberta Funeral Business Managers

Transcription

1 Important Information for all Alberta Funeral Business Managers The Funeral Services Act General Amendment Regulation was proclaimed by the Government of Alberta on July 13, This Regulation will be effective August 31, 2011, however the Alberta Funeral Services Regulatory Board will work with funeral businesses in order to implement these amendments in a timely manner. Service Alberta expects that the Alberta Queen's Printer will have the revised regulation available sometime in September. We have developed the following two-part spreadsheet showing the old General Regulation and the new General Amendment Regulation. The spreadsheet will identify the changes to legislation that will directly affect your funeral services business. You may direct any questions or comments about the revised regulation to the Alberta Funeral Services Regulatory Board office at or

2 . Funeral Services Act General Regulation (old) Funeral Services Act General Amendment Regulation (new) Section 7 Name of business If a funeral services business carries on business under a name or style other than its corporate name, the corporate name must be clearly disclosed to the public on the letterhead, contracts and price lists of the business. Section 7 Name of Business If a funeral services business carries on business under a name or style other than its corporate name, the corporate name must be clearly disclosed to the public (a) on the business s letterhead (b) in the business s contracts (c) in advertising, and (d) on the business s price list. Section 8 Requirements of funeral services contract A funeral services contract shall Section 8(1) Requirements of a funeral services contract A funeral services contract shall

3 (a) be in writing, (b) be signed by the purchaser and by (i) a funeral director of the funeral services business, or (ii) a pre-need salesperson of the funeral services business, if it is a pre-need funeral services contract, (c) contain a detailed listing of the goods and services to be provided by the funeral services business and the cost to be charged to the purchaser for each of those goods and services including, without limitation, where applicable: (i) the professional service charge; (ii) the facility charges; (iii) the transportation costs; (iv) the cost of the casket; (v) the cost of the outer receptacle; (vi) the cost of cremation; (vii) the cost of the cremation container; (viii) the cost of the urn; (ix) the amount or amounts, if any, set aside for the payment of taxes; (x) the itemized cost of other disbursements not included in subclauses (i) to (ix); (xi) the total cost of all items referred to in subclauses (i) to (x); (d) contain a statement of cancellation rights in accordance with section 9, if it is a pre-need funeral contract. (a) be in writing (b) be signed by the purchaser and by (i) a funeral director of the funeral services business, or (ii) a pre-need salesperson of the funeral services business, if it is a pre-need funeral services contract, (c) contain a detailed listing of the goods and services to be provided by the funeral services business and the cost to be charged to the purchaser for each of those goods and services including, without limitation, where applicable: (i) the professional service charge (ii) the facility charges; (iii) the transportation costs; (iv) the cost of the casket; (v) the cost of the outer receptacle; (vi) the cost of cremation; (vii) the cost of the cremation container; (viii) the cost of the urn; (ix) the amount or amounts, if any, set aside for the payment of taxes; (x) the itemized cost of other disbursements not included in subclauses (i) to (ix); (xi) the total cost of all items referred to in subclauses (i) to (x); (c.1) contain a list of the current locations where embalming, and cremation services are to be performed and contain a statement that the final location of these services may be subject to change and, if changed, a list of the then current locations will be provided at the time these services are required; (d) contain a statement of cancellation rights if it is a pre-need funeral contract. (e) contain a statement, to be initialled by the purchaser, that cremated remains not claimed within 5 years after the date of cremation will be disposed of in a manner as not to be offensive or to create a nuisance.

4 Section 8(2) At the time a funeral services contract is entered into, the funeral services business must disclose to the purchaser, in writing, whether or not refrigeration is available at the location where the funeral services will be provided. Where a funeral services business does not have refrigeration facilities available at the location where the funeral services will be provided, and (a) the funeral services contract does not provide for embalming services, and (b) final disposition will not occur within 72 hours from the time the funeral services business takes possession of the deceased s remains, the funeral services business must disclose in writing, at the time the funeral services business takes possession of the deceased s remains, the location of any refrigeration facilities to which the funeral services business has been provided access. Section 8.1 Copy of the Funeral Services Contract A funeral services business must provide a copy of the signed funeral services contract immediately after the contract is signed. Section 11 Maximum administration Fee For the purposes of section 6(1) of the Act, the maximum administration fee that may be charged is (a) in a case where the licensee elects to charge the fee under section 6(1)(a) of the Act, 15% of the total cost of the pre-need funeral services contract disclosed in the contract as required under section 8(c), or (b) in a case where the licensee elects to charge the fee under section 6(1)(b) of the Act, 15% of the amount held in trust on the date of the Section 11 Maximum administration Fee For the purposes of section 6(1) of the Act, the maximum administration fee that may be charged is (a) in a case where the licensee elects to charge the fee under section 6(1)(a) of the Act, 15% of the total cost of the pre-need funeral services contract disclosed in the contract as required under section 8(c), or (b) in a case where the licensee elects to charge the fee under section 6(1)(b) of the Act, 15% of the amount held in trust on the date of the cancellation or

5 cancellation or assignment, including interest earned on that amount. assignment, including income on that amount. Section 11.2(1) Pre-Need Funds Not Claimed (1) Money held by a funeral services business pursuant to a pre-need funeral services contract becomes unclaimed trust money where (a) the funeral services business has been unable to determine whether a contract beneficiary is deceased and has reasonable grounds to believe that the contract beneficiary would be 120 years old, or (b) the funeral services business has reasonable grounds to believe that another funeral services business has provided the funeral services, and it is also the case that (c) goods and services that are the subject of the contract have been provided, and (d) the funeral services business has been unable to locate the purchaser or personal representative. (2) Once money is held by a funeral services business pursuant to a pre-need funeral services contract becomes unclaimed trust money, the funeral services business shall (a) notify the authorized trustee in writing and direct the trustee to transfer the money and income to the Minister of service Alberta within 15 days, (b) notify the Minister in writing of the transfer, and (c) provide the Minister with any other information requested by the Minister. (3) Money paid to the Minister will be held in trust for 2 years and then go to a Consumer Assistance Fund. (4) Investment income on money paid to the Minister under subsection (2) Accrues to the Crown.

6 (5) A person who makes an application to claim money paid under subsection (2) shall (a) make the application in a form approved by the Minister, and (b) provide the Minister with any information requested by the Minister. (6) The Minister shall, within 120 days after an application is received under subsection (5), consider the application and may (a) allow the claim, if the Minister is satisfied that the applicant has a valid entitlement to the money, or (b) deny the claim, if the Minister is not satisfied that the applicant has a valid entitlement to the money. (7) If the Minister does not receive a valid application for money paid under subsection (2) by a person entitled to it within 2 years from the time that the money is paid to the Minister, (a) the money shall be paid to the Board, and (b) all claims to the money by the person entitled o it are extinguished. Section 11.3(1) Consumer assistance fund (1) No money shall be paid to the Board until a consumer assistance fund has been established. (2) All money paid to the Board under section 11.2 shall be paid into the consumer assistance fund and that money shall be used for the purposes of advancing funeral services, including, without limitation, providing funeral services to low income persons, consumer education and grief counselling, as directed by the Minister.

7 (3) No money shall be paid from the consumer assistance fund before January 1, (4) Section 11.4(1) Investments (1) The Board may invest money in the consumer assistance fund only in investments in which trustees are permitted to invest trust funds as provided for under Schedule 3 (2) Investment income earned on deposits of the consumer assistance fund accrues to and forms part of the consumer assistance fund. Section 11.5(1) Annual statement (1) The Board must ensure that an audited financial statement on the consumer assistance fund containing the information required by the Minister is prepared for each fiscal year by the Board. (2) The Board must submit an audited financial statement prepared in accordance with subsection (1) to the Minister by July 31 following the fiscal year for which it is prepared. Section 11.6(1) Winding-up of fund (1) The consumer assistance fund may not be wound up without an order of the Minister. (2) If the consumer assistance fund is wound up, the consumer assistance fund must (a) first, be used to pay all costs incurred in the winding-up of the consumer assistance fund, and (b) second, be disposed of in accordance with an order of the Minister.

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9 Section 12(1) Transfer of money to authorized trustee For the purposes of section 8(1) of the Act, the period within which a licensee shall transfer money in trust to an authorized trustee is 5 business days from the date on which the cancellation period under section 5 of the Act expires. Section 12(1) Transfer of money to authorized trustee For the purposes of section 8(1) of the Act, the period within which a licensee shall transfer money in trust to an authorized trustee is 5 business days from the date on which the cancellation period under section 10 expires. Section 12.1(2) Assignment of pre-need contract by licensee After the Director has approved a proposed assignment under subsection (1), the assigning licensee shall give to the purchaser of the contract a notice in writing in a form acceptable to the Director setting out the purchaser s option to, within a period of 30 days, either (a) agree to the assignment and to the transfer to the other licensee of (i) the contract, and (ii) all money paid under the contract and interest earned on it that is held by the authorized trustee, subject to any agreement between the assigning licensee and the other licensee as to the disposition of any administration fee to which the assigning licensee is entitled, Section 12.1(2) Assignment of pre-need contract by licensee After the Director has approved a proposed assignment under subsection (1), the assigning licensee shall give to the purchaser of the contract a notice in writing in a form acceptable to the Director setting out the purchaser s option to, within a period of 30 days, either (a) agree to the assignment and to the transfer to the other licensee of (i) the contract, and (ii) all money paid under the contract and income on it that is held by the authorized trustee, subject to any agreement between the assigning licensee and the other licensee as to the disposition of any administration fee to which the assigning licensee is entitled, Section 12.2 Assignment of pre-need contract by purchaser, etc. The following applies where a person assigns a pre-need funeral services contract under section 11(1)(b), (c) or (d) of the Act: (a) the person shall give written notice to the assigning licensee of his or her wish to have the contract assigned, and the notice must indicate the name and address of the licensee to whom the Section 12.2 Assignment of pre-need contract by purchaser, etc. The following applies where a person assigns a pre-need funeral services contract under section 11(1)(b), (c) or (d) of the Act: (a) the person shall give written notice to the assigning licensee of his or her wish to have the contract assigned, and the notice must indicate the name and address of the licensee to whom the contract is to be assigned;

10 contract is to be assigned; (b) the assigning licensee shall forthwith (i) transfer the contract to the other licensee, and (ii) ensure that money held in trust is transferred as required under the Act and the regulations, subject to the assigning licensee s right, if any, to charge an administration fee under section 6 of the Act; (c) subject to any changes to the contract that are agreed on by the person and the new licensee, the new licensee becomes the licensee under the contract with the person and assumes all of the rights and obligations of the assigning licensee. (b) the assigning licensee shall (i) transfer the contract within 7 days of receiving written notice under clause (a) to the other licensee, (i.1) provide written notification to the authorized trustee within 5 business days of receiving written notice under clause (a) stating the money held in trust is to be transferred as provided for under the Act and this Regulation, and (ii) ensure that money held in trust is transferred as required under the Act and the regulations, subject to the assigning licensee s right, if any, to charge an administration fee under section 6 of the Act; (c) subject to any changes to the contract that are agreed on by the person and the new licensee, the new licensee becomes the licensee under the contract with the person and assumes all of the rights and obligations of the assigning licensee. Section 12.3 Change in Location of a Trust Account A funeral services business shall inform the Director in writing prior to any changes respecting the location where a trust account is held. Section 13(3) Embalming A funeral services business that offers embalming shall have at least one room that is used exclusively for keeping, embalming and preparing human bodies for disposition. Section 13(3) Embalming A funeral services business that offers embalming shall have at least one room that is used exclusively for keeping, embalming and preparing dead human bodies for disposition. Section 13.3 Section 13.3

11 Fixed Business Location A funeral services business licensee shall carry on the funeral services business only from a fixed business location. Fixed business location A funeral services business must have a fixed business location. Section 14 Notice to the Director of Changes Every funeral services business licensee shall within 10 days give written notice to the Director of (a) any change of address for service (b) any change in the officers or members of the company or partnership, and (c) the date on which the funral services business or any of its locations goes out of business or otherwise stops operating. Section 14 Notice to the Director of Changes Every funeral services business licensee shall within 10 days give written notice to the Director of (a) any change of address for service (b) any change in the officers of the company or corporation or partners of a partnership, and (c) the date on which the funeral services business or any of its locations goes out of business or otherwise stops operating. Section 15(1) Records Every funeral services business shall (a) maintain full and adequate records of the business operation Section 15.(1) Records Every funeral services business shall (a) maintain full and adequate records of the business Operation (a.1) retain a copy of all funeral services contracts entered into and trust account information obtained for a minimum period of 7 years after the trust money has been transferred to the Minister in accordance with section 11.2.

12 Section 15(2)(b)(viii) Records the amount held in trust under section 7 of the Act, broken down as to principal and interest earned; Section 15(2)(b)(viii) Records 15(2)(b)(viii) the amount held in trust under section 7 of the Act, broken down as to principal and income; Section 15(2)(c )(vii) Records the name of the person to whom the deceased s body or the cremated remains were released, if applicable; Section 15(3) Records Notwithstanding subsection (1)(b), the information in the registers referred to in subsection (2)(b) and (c) must be maintained indefinitely. Section 16(1) Annual Pre-Need Trust Report The licensee of a funeral services business that enters into pre-need funeral services contracts or holds money in trust pursuant to sections 7 & * of the Act shall annually provide to the Director within 120 days of its fiscal year end a report of its financial affairs for the preceding year in the form set by the Director and completed by a public accounting firm registered under the Regulated Accounting Profession Act. Section 16(2) The Director may charge a fee of $100 to any funeral services business that is late in providing the report referred to in subsection (1). Section 15(2)(c )(vii) Records the name and address of the person to whom the deceased s body or the cremated remains were released, if applicable; Section 15(3) Records 15(3) Repealed Section 16(1) Annual Pre-Need Trust Report The licensee of a funeral services business that enters into pre-need funeral services contracts or holds money in trust pursuant to sections 7 & * of the Act shall annually provide to the Director within 120 days of its fiscal year end a report of its financial affairs for the preceding year (a) within 120 days of its fiscal year end, (b) in the form set by the Director, and (c) completed by a public accounting firm registered under the Regulated Accounting Profession Act. Section 16(2) The Director may require the report under subsection (1) to be audited by an independent auditor within the time specified by the Director.

13 Section 17.1 Unfair practice It is an unfair practice for the purposes of section 13 of the Act for any person to make, in information that is published by any means, a statement about any matter related to the operation of a funeral services business that might reasonably be interpreted as being misleading or deceptive. Section 17.1 Unfair Practice Repealed Section 18(7) Business Manager The business manager shall within 5 days give to the Director (a) written notice of the date of commencement and termination of the employment of every salesperson at the funeral services business, and (b) a change of sponsorship notification concerning any funeral director, embalmer, or pre-need salesperson hired by the funeral services business. Section 18(8) A funeral services business shall notify the Director immediately if there is a change in the appointment of its business manager and provide the Director with the name of the replacement business manager. Section 18(7) Business Manager The business manager shall within 7 days give to the Director (a) written notice of the date of commencement and termination of the employment of every salesperson at the funeral services business, and (b) written notice of the date of commencement and termination of employment of any funeral director, embalmer or pre-need salesperson hired by the funeral services business Section 18(8) A funeral services business shall provide written notification to the Director within 7 days if there is a change in the appointment of its business manager and provide the Director with the name of the replacement business manager. Section 19(a) A funeral director licence authorizes the licensee to (a) enter into on behalf of the funeral services business any funeral services contracts, including pre-need funeral services contracts, that the business is authorized to enter into by the terms of its funeral services licence, and arrange or direct funeral or memorial Section 19(a) A funeral director licence authorizes the licensee to (a) solicit to enter into or enter into on behalf of the funeral services business any funeral services contracts, including pre-need funeral services contracts, that the business is authorized to enter into by the terms of its funeral services licence, and arrange or direct funeral or memorial services

14 services at all the business locations of the funeral services businesses that employ the licensee. at all the business locations of the funeral services businesses that employ the licensee. Section 21 Pre-Need salesperson Licence A pre-need salesperson licence authorizes the licensee to enter into preneed funeral services contracts Section 21 Pre-need salesperson Licence A pre-need salesperson licence authorizes the licensee to solicit to enter into or enter into pre-need funeral services contracts Section 22(1) Application for funeral director, embalmer or pre-need salesperson licence A person applying for a funeral director licence, an embalmer licence or a pre-need salesperson licence shall make application to the Director on the form set by the Director and the application shall be accompanied with (a) the name of the business manager who has agreed to sponsor the applicant, (b) a list of all the business locations of each funeral services business at which the applicant intends to work as a funeral director, an embalmer or a pre-need salesperson, as the case may be, Section 22(1) Application for funeral director, embalmer or pre-need salesperson licence A person applying for a funeral director licence, an embalmer licence or a pre-need salesperson licence shall make application to the Director on the form set by the Director and the application shall be accompanied with (a) the name of the business manager who has agreed to employ the applicant either as an employee or contractor, (b) a list of all the business locations of each funeral services business at which the applicant will be actively engaged in the operation of the funeral services business as a funeral director, an embalmer or a pre-need salesperson.

15 Section 25 Change in employment A funeral director, an embalmer or a pre-need salesperson who changes employers shall notify the Director in writing of the change in employment within 5 days of commencing the new employment. Section 25 Change in employment A funeral director, an embalmer or a pre-need salesperson who changes employers shall notify the Director in writing of the change in employment within 7days of commencing the new employment. Section 26 (1) Investigations, etc. (1) On completing an investigation or inquiry in respect of a funeral services business under section 18 of the Act, the Director shall prepare a report on the funeral services business that was investigated or inquired into and provide a copy of the report to the business manager of the funeral services business. (2) In a report referred to in subsection (1) the Director may direct the funeral services business to take such steps as are necessary in the Director s opinion to correct any deficiencies found during the investigation or inquiry. Section 26 (1) Investigations, etc. (1) On the completion of an inspection or investigation in respect of a funeral services business by an inspector, the inspector shall provide a summary of the inspector s findings to the Director. (2) The Director shall provide a copy of the summary of the inspector s findings to the funeral services business and shall indicate whether any deficiencies were found during the inspection or investigation. (3) If any deficiencies were found during the course of the inspection or investigation, the Director may direct the funeral services business to take such steps as are necessary in the Director s opinion to correct them. Section 33 Registers The Director shall maintain registers showing the name of (a) each funeral director, (b) repealed AR 345/2003 s26, (c) each embalmer, (d) repealed AR 345/2003 s26, (e) each pre-need salesperson, (f) repealed AR 345/2003 s26, (g) each funeral services business, (h) each funeral services business that is licensed to enter into pre-need funeral services contracts, Section 33 Registers The Director shall maintain registers showing the name of (a) each funeral director, (b) each embalmer, (c) each pre-need salesperson, (d) each funeral services business, (e) each funeral services business that is licensed to enter into pre-need funeral services contracts, (f) each funeral services business that offers embalming, and (g) the business manager for each funeral services business.

16 (i) each funeral services business that offers embalming, and (j) the business manager for each funeral services business.

17 Section 34 Complaints The Director may accept and investigate complaints. Section 34 Complaints The Director may accept complaints. Section 34 (3) Complaints A person employed by the Director for the purpose shall (a) investigate the complaint, (b) attempt to resolve the complaint and record all efforts made to resolve the complaint, and (c) provide the record to the Director. Section 34 (3) Complaints Repealed Section 35(1) Mediation or arbitration (1) The Director may offer mediation or arbitration in accordance with the Arbitration Act if (a) a complaint is not resolved under section 34(3), (b) mediation or arbitration would, in the Director s opinion, be an appropriate dispute resolution mechanism, and (c) the parties to a complaint agree to mediation or arbitration. Section 35(1) Mediation or arbitration Repealed (2) If the parties to a complaint agree to mediation, the Director shall appoint an independent mediator who has training in mediation. (3) If the parties to a complaint agree to arbitration, the Director shall appoint an independent arbitrator who has training in arbitration.

18 Section 36(2) Who may control disposition The right to control the disposition of human remains or cremated remains vests in and devolves on persons in the following order of priority: Section 36(2) Who may control disposition Subject to an order of the Court, the right to control the disposition of human remains or cremated remains vests in and devolves on persons in the following order of priority: Section 36.1(4) Possession of cremated remains by Director If cremated remains in the possession of the Director under this section are not claimed within one year by a person with the right to control the disposition of the cremated remains under section 36, the Director may dispose of the cremated remains in such a manner as not to be offensive or to create a nuisance. Section 36.3 Disposition of remains If cremated remains are not claimed within one year from the date of the cremation and if the funeral services business has been unable to arrange for disposal by a person with the right to control the disposition of cremated remains under section 36, the funeral services business may dispose of the cremated remains in such a manner as not to be offensive or to create a nuisance. Section 36.1(4) Possession of cremated remains by Director If cremated remains in the possession of the Director under this section are not claimed within 5 years by a person with the right to control the disposition of the cremated remains under section 36, the Director may dispose of the cremated remains in such a manner as not to be offensive or to create a nuisance. Section 36.3 Disposition of remains (1) Any cremated remains that are not claimed within 5 years from the date of the cremation must be disposed of by the funeral services business in a manner that is not offensive and that does not create a nuisance as specified in the funeral services contract. (2) If the funeral services business possesses cremated remains at the time this section comes into force, and the cremated remains are not claimed within 5 years from the date this section comes into force, the funeral services business must dispose of the cremated remains in a manner that is not offensive and that does not create a nuisance. (3) Prior to disposing of any cremated remains under this section, the funeral services business must make reasonable attempts to contact the persons with the right to control the disposition of cremated remains under section 36 by registered mail to the last known address

19 of the person, by advertisement in a newspaper of local circulation or by any other traceable method available to the funeral services business. Section 37 Section 37 (12) The fee for an appeal made pursuant to section 16 or 34.2 of the Act is $1000. (13) If an applicant is successful, the appeal fee shall be returned to the applicant. Section 37.21(1) Section 37.2(1) Powers of Board (1) The Board has the capacity and, subject to the Act and this Regulation, the rights, powers and privileges of a natural person. (2) The Board has the capacity to exercise a natural person's rights, powers and privileges in any jurisdiction outside Alberta to the extent that the laws of that jurisdiction permit.

20 Section 37.3(3)(b) Board membership A person is eligible to be or to remain an industry member only if that person (a) is a resident of Alberta, and (b) is actively engaged in the day-to-day operation of a funeral services business or a crematory licensed under the Cemeteries Act as an owner, a part owner, a business manager or a shareholder. Section 37.9(3)(b) Resignation and removal (b) apply by originating notice to a judge of the Court of Queen s Bench, if the member is an industry member, for Section 37.3(3)b Board membership A person is eligible to be or to remain an industry member only if that person (a) is a resident of Alberta, and (b) is actively engaged in the day-to-day operation of a funeral services business or a crematory licensed under the Cemeteries Act as an owner, a part owner, a business manager, a funeral director, an embalmer or a shareholder. Section 37.9(3)(b) Resignation and removal (b) apply to a judge of the Court of Queen s Bench, if the member is an industry member, for Section 37.92(1) Compensation Fund (1)The Board may create a compensation fund for the purpose of the payment of claims to a claimant in respect of a funeral services business. (2) When a compensation fund has been established under subsection (1), a purchaser or a personal representative of a purchaser who has entered into a pre-need sales contract with a funeral services business is eligible for compensation from the compensation fund in accordance with subsection (3). (3) A purchaser or a personal representative of a purchaser has a claim against the compensation fund if the purchaser suffers a loss because of any one or more of the following: (a) a funeral services business failed to comply with the provisions of the Act or regulations that apply to the business; (b) a funeral services business failed to comply with a pre-need funeral

21 services contract between the purchaser and the funeral services business; (c) a funeral services business s fraud, breach of trust, misrepresentation, theft, conversion, negligence or default with respect to the goods or services sold or any money collected in relation to a pre-need funeral services contract; (d) a funeral services business s failure to comply with a condition of the funeral services business licence (e) the funeral services business s bankruptcy or insolvency and the services provided for in the pre-need funeral services contract have not been performed. Section 37.93(1) Investments (1) The Board may invest the money in the compensation fund only in investments in which trustees are permitted to invest trust funds as provided for under Schedule 3. (2) Investment income earned on deposits of the compensation fund accrues to and forms part of the compensation fund. Section Additional purposes of compensation fund When the compensation fund exceeds $2 000,000,the portion of the fund exceeding $2 000,000 may be used by the Board for the purpose of (a) providing information relating to the funeral services business to consumers and persons engaged in the funeral services business, and (b) paying the costs of investigations for which the Director is responsible. Section 37.95(1) Claims against compensation fund

22 (1) Subject to subsection (2), a purchaser or the personal representative of a purchaser of a pre-need funeral services contract may make a claim against the compensation fund if (a) the funeral services business was licensed at the time that the purchaser aid for a part or all of the services in accordance with the terms of the pre-need funeral services contract, and (b) the purchaser has made a demand to be reimbursed for the money paid under the pre-need funeral services contract or for goods or services that were not provided for in accordance with the pre-need funeral services contract. (2) A purchaser is not entitled to claim for any amount that exceeds (a) the amount due in accordance with the Act, if the purchaser has requested a cancellation or assignment of the pre-need funeral services contract, (b) the amount paid plus income due in accordance with the Act, if the purchaser has not requested a cancellation or assignment of the preneed funeral services contract, or (c) in all other instances the amount paid plus interest, calculated in accordance with the rate set in the Judgment Interest Act. (3) For the purposes of calculating interest in subsection (2)(c), the Board may use the rates set out in the Judgment Interest Act. (4) A purchaser is not entitled to compensation (a) for funeral services that were provided or made available or for alternate and equivalent funeral services that were provided or made available, (b) based on the cost, value or quality of alternate and equivalent funeral services provided, (c) for any consequential or indirect damages arising from the alternate funeral services provided, or (d) for amounts the purchaser has otherwise been compensated for. Section 37.96

23 Time limit for claim against compensation fund A claim against the compensation fund may be made (a) within 6 months from the date the purchaser or the purchaser's personal representative receives notice of the bankruptcy or insolvency of the funeral services business, or (b) where the purchaser has made a demand to be reimbursed for the money paid under the contract or for goods or services that were not provided for in accordance with the contract, within 6 months from the date a demand for payment or a demand for services was made, whichever occurs first. Section 37.97(1) Application (1) A purchaser may make an application for a claim from the compensation fund (a) in a form and manner acceptable to the Board, and (b) by providing any other documents the Board may require within 30 days from the date the Board makes its request or any longer period of time specified by the Board. (2) If a claimant does not comply with a request under subsection (1)(b) within the specified period of time, the Board may dismiss the claim. Section 37.98(1) Maximum amount payable from compensation fund (1) In this section, "compensation event" means (a) the bankruptcy or insolvency of a funeral services business, regardless of the number of funeral services locations that business has, or (b) as determined by the Board, the transaction or series of transactions, including all related transactions, for or in respect of a funeral services business and its licensees.

24 (2) The maximum amount payable from the compensation fund is the lower of (a) $2000 per person who made the payments under the contract or the person for whose benefit the contract was entered into or that person's personal representative, or (b) the claimant's portion of $ per compensation event regardless of the total number of claimants. (3) If subsection (2)(b) operates to limit the amount that would otherwise be paid to a claimant under subsection (2)(a), each claimant shall receive a proportionate share of the amount that would be paid but for the operation of subsection (2)(b). (4) The Board shall not make a payment from the compensation fund that exceeds the amount of money in the compensation fund. (5) If a claim exceeds the amount of money in the compensation fund, each claimant shall receive a proportionate share of the amount in the compensation fund. Section 37.99(1) Notice of claim (1) The Board shall give the licensee involved notice of the application for a claim made against the compensation fund within 15 days of receiving the application. (2) The licensee involved may only respond to the application within 15 days of receiving notice of the application. Section Hearings On receipt of an application for a claim against the compensation fund, the Board may make its decision based on written submissions or an oral hearing. Section

25 Reimbursement to compensation fund If the Board pays an amount to a claimant from the compensation fund in respect of a funeral services business or any other licensee, the business or other licensee is liable to the Board for the amount of the payment and the Board may collect the amount by civil action for debt in a court of competent jurisdiction. Section (1) Decision of Board (1) Subject to subsection (2), the Board shall provide the applicant and the licensee with a written copy of its decision within 90 days from the receipt of an application under section (2) The Board may extend the time period referred to under subsection (1) and shall notify the applicant and the licensee in writing that the time period is being extended, with reasons why the time period is being extended. (3) A decision of the Board to pay or not to pay an amount to a claimant from the compensation fund in respect of a funeral services business is final. Section (1) (1) Annual statement The Board must ensure that an audited financial statement on the compensation fund containing the information required by the Minister is prepared for each fiscal year of the Board. (2) The Board must submit an audited financial statement prepared in accordance with subsection (1) to the Minister by July 31 following the fiscal year for which it is prepared. Section (1)

26 Winding-up of compensation fund (1) The compensation fund may not be wound up without an order of the Minister. (2) If the compensation fund is wound up, the compensation fund must (a) first, be used to pay all costs incurred in the winding-up of the compensation fund, (b) second, be used to discharge all liabilities of the compensation fund, and (c) third, be disposed of in accordance with an order of the Minister.

27 Section 43 Expiry For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be re-passed in its present or an amended form following a review, this Regulation expires on November 30, Schedule 1 Purchaser s Right to Cancel 2 After the penalty-free 30-day cancellation period is over, the seller will place all of your payment in trust but if you cancel, the seller will charge a non-refundable administration fee of % of the total cost of the goods and services to be provided under this contract and interest earned on funds held by the authorized trustee. Section 43 Expiry For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be re-passed in its present or an amended form following a review, this Regulation expires on November 30, Schedule 1 Purchaser s Right to Cancel 2 After the penalty-free 30-day cancellation period is over, the seller will place all of your payment in trust but if you cancel, the seller will charge a non-refundable administration fee of % of the total cost of the goods and services to be provided under this contract and income on funds held by the authorized trustee. Section 4(5) Schedule 3 Section 4(5) Schedule 3 Restrictions on investments Investments made by the testator or settlor and retained by the authorized trustee under the authority of the trust instrument that come within any of the classes authorized by section 3(e), (h) or (i) may, notwithstanding subsection (4), be retained by the authorized trustee under the authority of the trust instrument. Restrictions on investments 4(5) Repealed Schedule 3 Court approved trustee investments 5 In addition to the investments authorized by section 3 or by the trust instrument (except when that instrument expressly prohibits the investment), an authorized trustee may invest funds in any other securities that the Court of Queen s Bench on application in any Schedule 3 Court approved trustee investments 5 Repealed

28 particular case approves as fit and proper, but nothing in this section relieves the authorized trustee of the trustee s duty to take reasonable and proper care with respect to the investments so authorized.

29 Section 8(1) Schedule 3 Statutory powers of authorized trustee (1) The powers conferred by this Schedule relating to trustee investments are in addition to the powers conferred by the instrument, if any, creating the trust. (2) Nothing in this Schedule relating to trustee investments authorizes an authorized trustee to do anything that the authorized trustee is in express terms forbidden to do or to omit to do anything that the authorized trustee is in express terms directed to do by the instrument creating the trust. Schedule 3 Section 8(1) Statutory powers of authorized trustee 8 Repealed Section 9(2) Schedule 3 Section 9(2) Schedule 3 Variation of investments No authorized trustee is liable for a breach of trust by reason only of the authorized trustee s continuing to hold an investment that since its acquisition by the authorized trustee has ceased to be one authorized by the instrument of trust or by this Schedule Variation of investments No authorized trustee is liable for a breach of trust by reason only of the authorized trustee s continuing to hold an investment that since its acquisition by the authorized trustee has ceased to be one authorized by this Schedule. Section 11(1) Schedule 3 Subscription for securities (1) If any conditional or preferential right to subscribe for any securities in any company is offered to an authorized trustee in respect of any holding in the company, the authorized trustee may, as to all or any of the securities, (a) exercise that right and apply capital money subject to the trust in payment of the consideration, or renounce the right, or (b) assign for the best consideration that can be reasonably obtained Schedule 3 Section 11(1) Subscription for securities Repealed

30 the benefit of that right, or the title to it, to any person, including any beneficiary under the trust, without being responsible for any loss occasioned by any act or thing so done by the trustee in good faith. (2) Notwithstanding subsection (1), the consideration for any such assignment shall be held as capital money of the trust. (3) The powers conferred by this section may be exercised only with the consent of any person whose consent to a change of investment is required by law or by the instrument, if any, creating the trust. Administrative Penalties The Funeral Services Act General Amendment Regulation gives the Board the ability to charge penalties for violations to the Act and Regulation. Schedule 4 Administrative Penalties Penalty for 1 st Contravention Penalty for 2 nd Contravention Funeral Service Act Section 10(1) Each funeral services business must provide to the director in the form set by the director information relating to each pre-need funeral contract entered into by that business, including a statement from the authorized trustee in the form set by the director. $1,000 $2,500 Sections 3(1.1), (2), (3), (4), (5), 5(3), 12(1) and 13(1) Funeral Contract Violations $1,500 $5,000 Sections 3(1) Prohibitions $5,000 $20,000

31 No person shall unless that person holds a funeral service business license solicit to enter into a contract under which that person promises to provide, or to arrange for the provision of funeral services, to another person. Section 8(1) Transfer of money to an authorized trustee Money held in trust by a licensee pursuant to section 7 must be transferred to an authorized trustee within the period prescribed in the regulation. $5,000 $20,000 Funeral Service Amendment Regulation Sections 8.1, 9, 12.2(b), 13.1, 14, 15(1), 17, 18(7) and (8), 25, 36.1(2) and 36.2(1) Funeral contract violations Violations regarding pre-need contract assignments by purchaser Failure to notify the Director of changes Failure to maintain records Failure to obtain permission from seniors residence or hospital Business manager s failure to provide written notification of commencement and termination of licencees and change of business manager Licensee s failure to provide written notification of change of employment within 7 days of change Failure to take direction from the person with the right to control disposition Failure to have a code of practice respecting the disposition of cremated remains $500 $500 $500 $500 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $500 $1,000 $500 $1,000 Sections 7, 12.1(1), (2), (4), (5) and (7) and 16(1) Failure to disclose corporate name Failure to assign pre-need contracts according to the regulation Failure to provide annual pre-need trust report within 120 days of fiscal year end $1,000 $1,000 $1,000 $2,500 $2,500 $2,500 Section 8 Failure to comply to funeral contract requirements $1,500 $5,000

32 Section 12(1) Failure to transfer money to authorized trustee within 7 business days $5,000 $20,000