Bill 12 — First Session, 31St Legislature, 2 Charles Iii the Legisla Tive Assembly of Alberta Bill 12 Co Nsumer Protection (Life Leases) Amendment Act, 2024 (Legislature 31, Session 1)

L31 S1 12026

Alberta — Bills

2024 Bill 12 First Session, 31st Legislature, 2 Charles III THE LEGISLA TIVE ASSEMBLY OF ALBERTA BILL 12 CO NSUMER PROTECTION (LIFE LEASES) AMENDMENT ACT, 2024 THE MINISTER OF SERVICE ALBERTA AND RED TAPE REDUCTION Firs t Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee of the Whole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Third Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royal Assent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Bill 12 BILL 12 2024 CONSUMER PROTECTION (LIFE LEASES) AMENDMENT ACT, 2024 ( A s s e n t e d t o , 2 0 2 4 ) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Amends RSA 2000 cC-26.3 1 The Consumer Protection Act is amended by this Act. 2

Section 1(1)(

k) is amended by adding the following after subclause (ii): (ii.1) under a life le ase as defined in

Part 3.1, the exclusive right to occupy a residential dwelling and, if applicable, use areas intended for the common use of occupants of a building, 3 The following is added after

section 41:

Part 3.1 Life Leases

Definitions 41.1 In this Part,

1 Explanatory Notes Explanatory Notes 1 Amends

chapter C-26.3 of the Revised Statutes of Alberta 2000. 2

Section 1(1)(

k) presently reads in part: 1(1) In this Act, (k) “services” means, subjec t to the regulations under subsection (2), any service offered or provided primarily for personal, family or household purposes, including (ii) a membership in any club or organization if the club or organization is a business formed to make a profit for its owners, (iii) the right to use property under a time share contract, and 3

Part 3.1 Life Leases.

2 (a) “entrance fee” means an amount, other than occupancy fees, payable under a life lease to a lease operator or a trustee; (b) “lease operator” means a pe rson who, under a life lease, grants to a leaseholder the exclusive right to occupy a residential dwelling and, if applicable, the right to use areas intended for the common use of occupants of a building; (c) “leaseholder” means an individual who, under a life lease, is granted the exclusive right to occupy a residential dwelling and, if applicable, the right to use areas intended for the common use of occupants of a building, or the estate of a deceased leaseholder; (d) “life lease” means a written agreement pursuant to or with respect to which (

i) an entrance fee has been paid or is payable with respect to a residential dwelling, and (ii) the leaseholder is granted the exclusive right to occupy the residential dwelling and, if applicable, the right to use areas intended for the common use of occupants of a building for life or until the life lease is terminated by the lease operator or the leaseholder; (e) “occupancy fees” means any amount the lease operator requires the leaseholder to pay on a monthly or other basis for operations, maintenance and services or to secure the upkeep and cleanliness of the residential dwelling; (f) “pre-lease payment” means a payment that may be used as a deposit to hold a residential dwelling for an individual who has not formally entered into a life lease; (g) “trustee” means a person o r entity appointed by the lease operator to receive, manage and disburse funds on behalf of the lease operator.

Application 41.2 Subject to

section 41.4(3), this Part applies to life leases entered into on or after this

Part comes into force.

2 Explanatory Notes

3 Life lease requirements 41.3(1) Subject to

section 41.5 and the regulations, a life lease must include provisions respecting (

a) the collection and use of entrance fees, (

b) the return of entrance fees, including the timing of and conditions for a return, (

c) cancellation rights respec ting the life lease, including (

i) a minimum 10-day cancella tion period for a leaseholder after the leaseholder has signed a life lease, (ii) notice requirements for cancellation, and (iii) conditions respecting cancellation, (

d) termination rights respec ting the life lease, including (

i) notice requirements for termination, and (ii) conditions respecting termination, (

e) occupancy fees, including (

i) conditions for the increase of those fees, (ii) notice requirements for t he increase of those fees, and (iii) the allowable freq uency of increases, (

f) lease operat or obligations, (

g) leaseholder obligations, and (

h) any other provisions required under

section 41.5 or by the regulations.

(2) A lease operator shall use a form of life lease that complies with subsection (1),

section 41.5 and the regulations. Return of entrance fee 41.4(1) A lease operator shall return the leaseholder’s entrance fee within 180 days of termination of a life lease.

3 Explanatory Notes

(2) If a lease operator does not return the leaseholder’s entrance fee or any portion of it within the time specified in subsection (1), interest at the prescribed rate will accrue on any unreturned amount.

(3) Notwithstanding any provision respecting the matters in subsections (1) and (2) in leases substantially similar to a life lease, those subsections apply with respect to substantially similar leases that are (

a) subsisting on the coming into force of this Part, and (

b) terminated after the comi ng into force of this Part. Standard content of agreements, forms, other documents 41.5(1) The Minister may establish standard content for agreements, forms and other documents used by lease operators, including, but not limited to, life leases, cancellation forms and receipts.

(2) If the Minister establishes standard content for a document, a lease operator shall use that standard content. Regulations 41.6(1) The Lieutenant Governor in Council may make regulations (

a) respecting life lease requ irements, including specifying requirements in addition to any set out in

section 41.3 or under

section 41.5; (

b) respecting pre-lease pa yment disclosure and refund requirements; (

c) respecting entrance fees, including (

i) the maximum allowable fees, (ii) the percentage that is returnable, (iii) receipt requirements, and (iv) interest or other payments to be paid by a lease operator to a leaseholder with respect to unreturned entrance fees, including the rate of interest under

section 41.4(2);

4 Explanatory Notes

5 (

d) requiring lease operators or trustees who receive entrance fees or pre-lease payments to deposit those fees or payments into a trust account; (

e) respecting the trust acco unt referred to in clause (d), including (

i) where the trust account may be established and maintained and when the fees or payments must be deposited, (ii) the qualifications and appointment of trustees, (iii) the powers, duties and fu nctions of trustees and the disbursement of funds from the trust account, and (iv) the records to be kept res pecting the trust account, the period of time that those records are to be maintained and any audit of the trust account; (

f) respecting any restrictions on the use by a lease operator of entrance fees or pre-lease payments not held in trust; (

g) requiring lease operators to provide or submit a security; (

h) respecting the provision or submission of a security refer red to in clause (g), including (

i) the circumstances in which a lease operator is required to provide or submit a security, (ii) the person to whom a lease operator must provide or submit a security, and the powers, duties and functions of that person, (iii) the person from whom a s ecurity may be obtained if issued by a third party at the request of a lease operator, (iv) the type, form, amount a nd terms and conditions of a security, (

v) the terms and conditions under which a security is forfeited, the persons who are entitled to the proceeds under the security and the procedures to be followed for claiming on a security,

5 Explanatory Notes

6 (vi) a system of resolving disputes involving claims against a security that claimants and lease operators are required to participate in and providing that decisions under the system are binding, (vii) any notification, reportin g or disclosure requirements related to the security, and (viii) the records to be kept respecting a security and the period of time for which those records are to be maintained; (

i) respecting establishment of a fund for ongoing building maintenance and requirements for a study to assess the condition of a building; (

j) respecting financial audit and disclosure requirements wit h respect to leaseholders; (

k) respecting governance requirements, including annual meeting requirements for leaseholders and lease operators; (

l) respecting notice periods and restrictions respecting increases in fees applicable to leaseholders; (

m) respecting insurance requirements and disclosure of insurance coverage to leaseholders; (

n) defining any term used but not defined in this Part; (

o) prescribing anything required to be prescribed under this Part or that this Part refers to as prescribed; (

p) respecting any other matter or thing that the Lieutenant Governor in Council considers necessary to carry out the intent of this Part.

(2) Without limiting the generality of subsection (1)(n), the Lieutenant Governor in Council may make regulations that restrict or broaden the definition of any term defined in or under this Part, and the restricting or broadening of the definition may apply to one or more provisions of this Part and to one or more provisions of the regulations under this Part.

6 Explanatory Notes

7 4

Section 161 is amended by adding the following after clause (b): (b.1) in

Part 3.1, sections 41.3(2), 41.4(1), 41.5(2);

7 Explanatory Notes 4

Section 161 presently reads in part: 161 Any person who contravenes any of the following provisions is guilty of an offence: (

b) in

Part 3, s ections 31(2), 39(1);

RECORD OF DEBATE Stage Date Member From To Interventions From To Stage Date Member From To Interventions From To Stage Date Member From To Interventions From To Stage Date Member From To Interventions From To Stage Date Member From To Interventions From To Stage Date Member From To Interventions From To Title: 2024 (31st, 1st) Bill 12, Consumer Protection (Life Leases) Amendment Act, 2024

Document details

Collection	Alberta — Bills
Citation	L31 S1 12026
Type	bill
Volume / chapter	L31 S1 12026
Language	en
Format	json
Source	PROVINCIAL
Identifier	4e20064e6714cc594717fee69b736def421f42fe

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