No. 107 1st Session, 14th Legislature, Alberta 8 Elizabeth II BILL 107 A Bill to Regulate and Control Funds Provided for the Prearrangement of Funeral Preparations HON. MR. PATRICK Printed by L. S. WALL, Printer to the Queen's Most Excell~nt Majesty, Edmonton, Alberta, 1960

Explanatory Note General. This BiB enacts a new Act to be known as The Pre­ arranged Funeral Services AC1t, which will regwlate and control by licensing the entering into of prepaid funeral plans now coming into use in the Province. The Act will require licences for those persons entering into these types of agreements; and will require that the payments thereunder be held in trus1t funds for eventual use for funeral services or for return to the payer or his personal representative. 2. Defjnitions. 3. Prohibition against dealing in prearranged funeral plans.

BILL No. 107 of 1960

An Act to Regulate and Control Funds Provided for the Prearrangement of Funeral Preparations (Assented to , 1960) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Prearranged Funeral Services Act". 2.

In this Act, ( a) "funeral services" means the services and com­ modities usual in the preparation for burial and the burial of the dead, or any such service and com­ modity, other than the supplying of lots, burial vaults, grave markers, vases and services rendered or to be rendered at the cemetery; ( b) "licensee" means a person licensed under this Act to provide funeral services under a prearranged funeral plan; (c) "Minister" means that member of the Executive Council charged with the administration of this Act; (d) "prearranged funeral plan" means an agreement whereby in consideration of payment therefor in advance, bya lump sum or instalments, a person contracts to provide funeral services for a person alive at the time the agreement is entered into; (e) "Public Trustee" means the Public Trustee ap­ pointed under The Public Trustee Act; (I) "trust company" means a trust company that is an approved corpor'ation for trustee investments un­ der The Trustee Act. 3.

Unless he is licensed to do so under this Act, no person shall (

a) undertake to provide or make provision for an­ other's funeral services under a prearranged funeral plan, or (

b) solicit another person to enter into a prearranged funeral plan with him or with any person who would provide the funeral services under any such plan.

2 4. Prearranged funeval plan licences. s. Payments constitute trust moneys. 6. Investment and special fund. 7. Withdrawal permitted.

2 4.

(1) A person desiring to give funeral services for re­ muneration, reward or compensation under prearranged funeral plans may apply to the Minister for a licence under this Act to enter into prearranged funeral plans in accord­ ance with the regulations.

(2) Where the Minister is satisfied that an applicant for a licence is a reputable person and that the necessary agreements have been made with a trust company or the Public Trustee, as required by this Act, for the investment and disposal of any moneys to be received under the pre­ arranged funeral plans proposed to be entered into by the applicant, the Minister may issue the applicant a licence.

(3) A licence may be made subject to such terms and conditions as m'ay be prescribed by the regulations. 5. A licensee who enters into a prearranged funeral plan holds all moneys paid under that plan in trust for the purposes for which it has been paid until (

a) the funeral services mentioned in the prearranged funeral plan have been provided in accordance with the plan, or (

b) the moneys paid pursuant to the prearranged fun­ eral plan, or any unused balance thereof have been refunded to the person who m'ade the payment or payments or paid to his 12ersonal representative, as the case may be. G.

(1) Moneys held in trust by a licensee under a pre­ arranged funeral plan shall be paid to the Public Trustee or a trust company to be deposited in a special fund pro­ vided by the Public Trustee or trust company by agree­ ment with the licensee.

(2) A person making payments under a prearranged funeral plan with a licensee shall not be requIred to pay any commission, fees or costs for any services in connection with the handling of moneys payable under any such plan.

(3) Moneys in any special fund for the purposes of this Act may be invested in any investments authorized for trustee investments under The Trustee Act. 7.

(1) Moneys paid to the Public Trustee or a trust company pursuant to

section 6 may, at any time upon reasonable notice, be paid out in whole or in part (

a) to the person who made the payment or his personal representative, upon the joint authorization of the licensee and the person who made the payment or his personal representative, or if the licensee is not available or refuses to authorize repayment upon the direction of the Minister, or (

b) to the licensee, upon production of proof of the death of the person on whose behalf the payment was made and proof that the funeral services have been provided.

3 8. Reports required. 9. Assignment of plans.

(2) Every prearranged funeral plan shall contain a pro­ vision that the moneys paid thereunder may be withdrawn in the manner specified in subsection (1) and without pay­ ment of a commission, service fee or penalty or other charge.

(3) A person who pays money under a prearranged fun­ eral plan is entitled to such interest on -the moneys paid under the plan as may be agreed upon by himself and the licensee. 8.

(1) Every licensee shall report, at such periods as may be prescribed by the regulations, to the Minister con­ cerning any prearranged funeral plans undertaken by the licensee, and shall give the Minister such information in respect thereof as is required by the regulations.

(2) Every trust company and the Public Trustee shall prepare as of the first day of December in each year, a statement showing: (

a) the number of special funds maintained for licensees by the trust company or Public Trustee pursuant to this Act; (

b) the amount standing at that date to the credit of ea1ch special fund and the name of the licensee for whom the fund is maintained; (

c) in respect of each fund the persons who are paying moneys under a prearranged funeral plan with the licensee for whom the fund is maintained, and the amount paid and to be paid thereunder on behalf of each such person; (

d) the sums charged by the trust company or Public Trustee by way of service charge for maintaining the fund and how derived; (

e) such other matters as may be required by the regulations.

(3) The statement required under subsection (2) shall be sent by ordinary mail to the Minister before the thirty­ first day of December in each year. 9.

(1) A licensee may, with the consent of the person who is making or has completed the payments thereunder, assign a prearranged funeral plan to another licensee with notice in writing thereof to the trust company or Public Trustee.

(2) Where an assignment of a prearranged funeral plan is made to another licensee, the trust company maintaining the special fund on behalf of the licensee or the Public Trustee, as the case may be, shall make all necessary changes in the records and funds in order to make the assignment complete, and if the special fund of the assignee is maintained elsewhere than with that trust company or the Public Trustee, moneys held under the assigned prear­ ranged funeral plan may be transferred to the special fund

4 10. Non-application to mutual benefit societies and fraternal societies. II. Offence and penalty. 12. Revocation of licence and assignment order. 13. Application of Act to plans already in existence.

4 maintained O'n behalf O'f the assignee, UPQn the payment Qf such charges and fees as may be prescribed by the regulatiQns. 10. This Act dQes nO't apply to' a mutual benefit sQciety Qr a fraternal sQciety licensed under The Alberta Insurance Act. 11.

(1) A perSQn is guilty Qf an Qffence and liable Qn

summary cQnvictiQn to' a fine Qf nQt mQre than Qne thQusand dQllars, and in default Qf payment to' imprisQnment fQr nQt mQre than three mQnths, (

a) whO', nQt being a licensee under this Act, agrees fQr remuneratiQn Qr reward to' prQvide funeral services Qr to' arrange the prQvisiQn Qf funeral services under a prearranged funeral plan, Qr (

b) whO', being a licensee under this Act, CQntravenes any prQvisiQn Qf this Act.

(2) A perSQn whO' cQntravenes a prQvisiQn Qf this Act fQr which nO' express penalty is prQvided is guilty Qf an Qffence and liable Qn

summary cQnvictiQn to' a fine Qf nQt mQre than twO' hundred dQllars and in default Qf payment to' imprisQnment fQr nQt mQre than Qne mQnth. 12.

(1) Where a licensee is guilty Qf an Qffence under this Act, the Minister shall revQke the licence issued by him to' the licensee, and may by Qrder assign all prearranged funeral plans entered intO' by that perSQn while a licensee to' anQther licensee Qr licensees with nQtice to' the perSQn af­ fected thereby.

(2) Where an Qrder is made under this sectiQn the Qrder is effective to' assign the prearranged funeral plans and the assignment is binding Qn all perSQns affected by the Qrder. 13.

(1) This Act applies to' all prearranged funeral plans whether entered intO' befQre Qr after the CQmmence­ ment Qf this Act.

(2) Where a prearranged funeral plan was entered intO' befQre the cQmmencement of this Act, if the perSQn agree­ ing fQr remuneratiQn, reward Qr cQmpensatiQn to' prQvide Qr to' make prQvisiQn fQr the funeral services required by the plan is unable to' qualify fO'r a licence under this Act, he shall within six mQnths of the cQmmencement Qf this Act, assign the prearranged funeral plan to' a licensee under this Act UPQn such terms and cQnditiQns and in such manner as may be prescribed by the regulatiQns.

(3) Where a prearranged funeral plan required to' be assigned under subsectiQn (2) is nQt assigned within the time limited therefQr, the perSQn agreeing to' prQvide Qr m'ake prQvisiQn fQr the funeral services under the plan is guilty ·Qf an O'ffence and liable O'n

summary cQnvictiQn to' a

5 14. Funds not liable to seizure. I s. Regulations. 16. Commencement.

5 fine of not more than five hundred dollars and in default of payment to imprisonment for not more than two months. ( 4) Where, before the commencement of this Act, (

a) a prearranged funeral plan was entered into, and (

b) a commission or other fee was paid out of the moneys paid under the plan, the amount so paid for commission or other fee shall be deemed not to be part of the moneys held in trust pursuant to this Act. 14.

Any money standing to the credit of a prearranged funeral plan is not, while in the hands of the trust company or Public Trustee or while in course of transmission from or to the person who is to provide the funeral services under the prearranged funeral plan, liable to demand, seizure or detention under legal process as 'against the person deposit­ ing the same under the plan or his personal representative or as against the person to whom the money is to be paid under the prearranged funeral plan for the provision of funeral services. 15. The Lieutenant Governor in Council may make regulations (

a) prescribing forms for use under this Act, (

b) governing the issuing of licences and prescribing the terms and conditions thereof, (

c) prescribing reports to be made under this Act and the times of reporting, and the information to be contained in any such reports, (

d) prescribing and fixing fees for services under this Act, (

e) governing and regulating such other matters, not being inconsistent with this Act, as may be deemed necessary or advisable to carry out the intent of this A,ct. 16. This Act comes into force on the day upon which it is assented to.

No. 107 FIRST SESSION FOURTEENTH LEGISLATURE 8 ELIZABETH II 1960 BILL

An Act to Regulate and Control Funds Provided for the Pre­ arrangement of Funeral Prepara­ tions Recei ved and read the First time ......................................... . Second time. Third time ....... HON. MR. PATRICK Title: 1960 (14th, 1st) Bill 107,

An Act to Regulate and Control Funds Provided for the Prearrangement of Funeral Preparations