Revised Regulations
The unproclaimed Funeral, Burial and Cremation Services Act, 2002 (the new Act) was recently amended by the Consumer Protection and Service Modernization Act (Bill 152). The new Act consolidates and modernizes two existing statutes, the Cemeteries Act (Revised) and the Funeral Directors and Establishments Act.
The primary objective of the new act and regulations is to offer modernized protections and greater transparency to consumers, while at the same time creating a more level playing field for bereavement sector participants under one streamlined legislative framework.
From 2004 to 2006, draft regulations were released for public comment as part of an ongoing consultation process. The ministry has revised the draft regulations in response to stakeholder feedback. The ministry has also revised and simplified the way in which the regulations are structured.
Subject to all necessary approvals, the ministry’s goal would be to have the new Act and regulations in force by early 2008.
NOTE: Until the Act is proclaimed, the existing Cemeteries Act (Revised), Funeral Directors and Establishments Act, and regulations made under them remain in force.
You can view previous consultation documents here.
Regulations
These integrated regulations are the outcome of an extensive consultation process. In response to stakeholders, the ministry has reduced the complexity of the regulations, eliminated unnecessary requirements, integrated and simplified the structure and language wherever possible. The content has been reorganized for ease of reference. For example, topics related to operation of a business are combined under one regulation.
The release of these regulations will provide stakeholders greater opportunity to become familiar with the proposed regulatory regime prior to proclamation of the new Act.
The following five regulations are now proposed under the Act:
- Operation of Businesses Regulation (*PDF)
The general regulation addresses issues specific to operating a bereavement business. The regulation includes licensing, standards, record keeping, trust accounts and funds, and reporting to the registrar.
Streamlining
The regulation has been organized to group related provisions (e.g., licensing). This should make the regulation easier to read. Wherever possible, the regulation has been streamlined and its language simplified.
Education
After careful consideration, the ministry has decided to defer the development of new education requirements until 12 to 24 months after proclamation.
The ministry continues to view education as a key component of a reformed bereavement sector and looks forward to beginning the development of the education requirements, with full participation from stakeholders.
Care and Maintenance Funds/Accounts
Regulations regarding spending of care and maintenance money have been clarified. Income generated from the care and maintenance fund or account is not to be used on any portion of a cemetery that is subject to payment of property tax or to payment in lieu of property tax.
Cemetery operators who choose to have a funeral establishment on their property will be required to submit an annual audit of the fund or account to the registrar. - Consumer Protection Regulation (*PDF)
The Consumer Protection regulation includes disclosure requirements to ensure fair treatment of consumers, a prohibition against soliciting, and prescribes details of refunds and reimbursements.
The regulations under the new Act will protect consumers by prohibiting solicitation by phone or in person for the sale of funeral supplies and services, particularly to those in hospitals, nursing homes and homes for the aged. Certain aspects of bereavement related insurance products are regulated under this regulation. For example, specific disclosure would be required where any portion of a bereavement contract is to be funded by insurance.
A limited number of provisions, if implemented, would affect the insurance marketplace. The Ministry of Government Services is working with the Ministry of Finance to ensure a smooth integration with the insurance regulatory system. The Ministry of Finance, in conjunction with the Ministry of Government Services, will consult with the insurance industry on these proposals. - Price List, Pricing and Payments into a Care and Maintenance Fund or Account Regulation (*PDF)
The Pricing regulation outlines form and content requirements for price lists, process for price disallowances by the registrar, and includes details for payment of a portion of sales into cemeteries’ care and maintenance accounts for perpetual care. It is structured in such a way that it is flexible and may be expediently updated as needed to respond to changes in the marketplace. - Cemeteries, Burial Sites and Crematoriums Regulation (*PDF)
The Cemeteries regulation further assists in the streamlining of the regulations by grouping most cemetery provisions into a stand-alone regulation. This regulation deals with the establishment and closing of cemeteries, cemetery by-laws, interment and scattering rights, neglected cemeteries, burial sites and crematoriums, as well as disbursement of capital gains from pre-need assurance trust funds.
Capital Gains
The revised regulations will clarify the treatment of capital gains in pre-need assurance trust funds.
The Act sets out trusting rules that are similar to the Cemeteries Act (Revised), but proposes to allow for the release of capital gains realized from trust money on prepaid contracts for supplies and services in the same manner as other income earned on trust money.
The regulation also provides for the disbursement of capital gains earned on contracts entered into prior to the new Act and where, prior to and following the new Act coming into force, the contract has been cancelled or the services provided.
These capital gains provisions would only apply to capital gains realized from prepaid contracts trust funds, and not to a cemetery’s care and maintenance funds. - Property Tax-Related Regulations
Draft Regulation under the Assessment Act (*PDF)
Draft Regulation under the Provincial Land Tax Act (*PDF)
The Act would require cemeteries (other than religious or municipal cemeteries) that engage in commercial activities to pay property tax on the portion of land used for such purposes. Commercial activity includes on-site funeral homes and other large non-interment, non-scattering services such as crematoriums established after January 1, 2002. Cemeteries engaged in such activities would be required to pay property tax to their local municipalities for the portion of the cemetery land used for that purpose.
Religious and municipal cemeteries engaged in commercial bereavement related activities would be exempt from property tax; however, they would be required to make a payment into their care and maintenance fund or account in an amount corresponding to the property tax that would be payable if the land were liable to assessment and taxation.
Those activities that are necessarily incidental to interment and scattering or that are ancillary to interment and scatterings, and small scale, would remain exempt from property taxation.
Consequential changes were made to both the Provincial Land Tax Act and the Assessment Act in Bill 152 and would be proclaimed in force at the same time as the new Act. The regulations under these Acts reflect the property tax policy as set out in the new Act, the Assessment Act and the Provincial Land Tax Act, as amended.
Next Steps
Once bereavement sector stakeholders have had an opportunity to review these integrated regulations, the ministry will provide them with a technical overview. While the regulations are being reviewed, the ministry will focus on outstanding transition issues. Transition regulations will be required to continue the compensation fund under the Funeral Directors and Establishments Act, address fees, and put in place a transition scheme for the new licensing regime.
A Consumer Information Guide will outline relevant information for consumers, including their rights. A Plain Language Guide will also be prepared to assist operators and licensees understand and meet their obligations under the new Act and regulations. Both guides will be available prior to the new act becoming law.
Questions may be directed to
Larissa Hretchka
Policy Branch,
Policy and Consumer Protection Services Division
416-326-8883
If you would like to make any technical comments or request clarification, please forward your comments to us no later than April 30, 2007 at:
FBCSA2002@ontario.ca
Note: The above documents are available in Acrobat (*PDF) format. To view PDF format files, you need to have Adobe Acrobat® Reader installed on your computer. You can download this free software from the Adobe Web site.
All materials or comments received from organizations will be considered public information and may be used and disclosed by the ministry to assist the ministry in evaluating and revising the posted regulations. This may involve disclosing materials or comments, or summaries of them, to other interested parties during and after this process.
An individual who provides materials or comments and who indicates an affiliation with an organization will be considered to have submitted those comments or materials on behalf of the organization so identified.
Materials or comments received from individuals who do not indicate affiliations with organizations will not be considered public information unless expressly stated otherwise by the individual. However, materials or comments provided by individuals may be used and disclosed by the ministry to assist in evaluating and revising the posted regulations. Personal information, such as an individual’s name and contact details, will not be disclosed by the ministry unless required by law.
If you have any questions about the collection of this information, you can contact:
The Freedom of Information and Privacy Coordinator
Ministry of Government Services 416-326-8470.
FAQ