BILL NO. 57

(as introduced)

1st Session, 59th General Assembly
Nova Scotia
53 Elizabeth II, 2004

Government Bill

Cemetery and Funeral Services Act
(amended)

The Honourable Barry Barnet
Minister of Service Nova Scotia and Municipal Relations

First Reading: April 20, 2004

(Explanatory Notes)

Second Reading: April 20, 2004

Third Reading: April 22, 2004 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

Clause 1 amends the Cemetery and Funeral Services Act to

1 Chapter 62 of the Revised Statutes, 1989, the Cemetery and Funeral Services Act, is amended by adding immediately after Section 27 the following Sections:

27A Where any person of a class referred to in clauses (a) to (d) of Section 27

(a) carries out any act of bankruptcy or makes a general assignment for the benefit of that person's creditors or other acknowledgement of insolvency or makes any application pursuant to the Bankruptcy and Insolvency Act (Canada) or the Companies Creditors Arrangement Act (Canada) or any similar legislation;

(b) fails to fulfil any contractual, fiduciary or statutory duties to

(i) a purchaser or the person for whom a pre-arranged funeral plan or pre-need cemetery plan was purchased, or

(ii) the personal representative of a purchaser or the person for whom the plan was purchased, after the death of the purchaser or that person,

(c) is unwilling or unable to comply with this Act or the regulations,

or where any circumstances prescribed by regulation exist, an act of default is deemed to have occurred for the purpose of Sections 27B and 27C.

27B (1) Where an act of default has occurred, the Registrar may take any steps the Registrar considers necessary or advisable to remedy the default or mitigate the default and, without limiting the generality of the foregoing, may

(a) take control over and administer, assign or dispose of any trust fund relating to a pre-arranged funeral plan or pre-need cemetery plan or a care fund;

(b) cancel any pre-arranged funeral plan or pre-need cemetery plan and refund to the purchaser or the purchaser's personal representative the principal paid under the plan, together with any income earned thereon;

(c) order an operator to perform any function relating to the operation of a cemetery;

(d) allocate or specify the use of any income earned on a care fund.

(2) An order made under clause (c) of subsection (1) may be appealed to the Supreme Court of Nova Scotia within thirty days.

27C (1) Where an act of default by an operator has occurred, the Minister may appoint an administrator to perform the duties and functions of the operator with respect to a cemetery until

(a) another operator becomes responsible for the operation of the cemetery;

(b) an operational arrangement for the on-going care and maintenance of the cemetery is established; or

(c) three years have passed since the appointment of the administrator,

whichever occurs first.

(2) Upon the appointment of an administrator under subsection (1), the cemetery vests in the administrator and the administrator has control and management of the cemetery in accordance with this Act and the regulations.

(3) An administrator appointed under subsection (1) shall attempt to

(a) find another operator for the cemetery; or

(b) make an operational arrangement for the on-going care and maintenance of the cemetery.

(4) Where three years have passed from the date of appointment of an administrator under subsection (1) and the administrator has not been able to find another operator for the cemetery or make an operational arrangement for the on-going care and maintenance of the cemetery, the operation of the cemetery shall be

(a) carried on in accordance with the regulations; or

(b) terminated in accordance with the regulations.

(wa) prescribing circumstances that constitute acts of default under Section 27A;

(wb) respecting circumstances in which the principal from a care fund may be disbursed and any conditions attaching to money disbursed;

(wc) respecting the performance by the Registrar of any duties or functions of an operator after an act of default has occurred under Section 27A;

(wd) respecting the power of the Registrar to address issues arising from acts of default;

(we) respecting the terms and conditions of the appointment of administrators appointed under Section 27C;

(wf) respecting the powers, duties and functions of administrators appointed under Section 27C;

(wg) respecting the operation of cemeteries or the termination of operation of cemeteries in circumstances referred to in subsection (4) of Section 27C.