BILL NO. 52
1st Session, 57th General Assembly
Nova Scotia
47 Elizabeth II, 1998
Business Efficiency (1998) Act
The Honourable Keith W. Colwell
Minister of Business and Consumer Services
First Reading: October 29, 1998
Second Reading: November 16, 1998
Third Reading: December 3, 1998 (WITH COMMITTEE AMENDMENTS)
Explanatory Notes
Clause 1 sets out the short title of the Act.
Clause 2 permits the Minister to disclose information received pursuant to the Business Electronic Filing Act in accordance with Section 27 of the Freedom of Information and Protection of Privacy Act.
(a) change references to licences to permits throughout the Collection Agencies Act in keeping with the recommendations of the Licences, Permits and Approvals Task Force Report; and
(b) provide that a permit to carry on business as a collection agency be issued for three years and a permit to act as a collector be issued for one year.
(a) permit the use of abbreviated forms of a company name; and
(b) remove the requirement that the occupation of a subscriber be indicated on a memorandum of association.
Clause 20 removes the requirement that a borrowing secured by real property be authorized by a special resolution of the company.
Clause 21 removes the requirement for agreements under Section 109 of the Companies Act to be filed with the Registrar of Joint Stock Companies.
Clauses 22 and 23 remove the requirements for a tax discounter licence.
Clauses 24 and 25 add to the Consumer Protection Act the provisions in the Future Services Act dealing with contract requirements and cancellation rights.
(a) change references to licences to permits in keeping with the Licenses, Permits and Approvals Task Force Report; and
(b) provide that permits shall be issued for a period of one year or such longer period as specified in the regulations.
Clause 42 repeals the Future Services Act.
Clause 43 removes from the Imitation Dairy Products Act the authority of the Governor in Council to make regulations providing for a licence with respect to an imitation dairy product.
Clause 44 clarifies that the extension of one hundred and eighty-three days after ceasing to be licensed does not apply to the life and accident and sickness classes of insurance. The existing wording of the Insurance Act appears to exempt these classes of insurance from subsection 10(1) altogether.
Clause 45 extends to marine insurance the prohibition against carrying on the business of insurance in Nova Scotia on behalf of or as agent for an insurer who is prohibited from carrying on the business of insurance in Nova Scotia.
The existing wording of the Act could result in no death benefit being payable in respect of a child where the child is killed in an automobile accident. Clause 46 addresses this problem by including a head of the household as a qualifying survivor.
At present, an insurer is not liable for bodily injury or death where the operator of the motor vehicle is convicted of certain Criminal Code offences relating to impairment. Clause 47 adds a reference to section 255 of the Criminal Code (Canada) dealing with impaired driving causing bodily harm. Clause 47 also corrects a cross-reference.
Clause 48 corrects a cross-reference.
Clause 49 provides that the cautionary sentence that must be contained in certain insurance contracts shall be printed or stamped in red ink or bold print of not less than twelve-point size.
Clauses 50 and 51 provide that an insurance company liable to pay tax under the Insurance Premiums Tax Act shall, within sixty days after the end of each quarter, pay an amount equal to the tax in respect of that quarter. This change will enable the payment of tax to coincide with the year end of the insurance company. At present, the quarterly payments are based on a calendar year.
Clauses 52 to 55 make a number of changes in the new Licences, Permits, Registrations and Certifications Act to improve the effectiveness of that Act.
Clause 56 repeals the Loan Companies Inspection Act.
Clauses 57 and 58 remove from the Margarine Act the requirements for a licence.
Clause 59 provides that a registration as a mortgage broker expires three years after it is issued.
Clauses 60 to 71 remove references in the Vital Statistics Act to registration divisions and gives the Governor in Council authority to appoint persons as division registrars.
Clause 72 provides that Sections 3 to 15 and 59 to 71 come into force on proclamation.
An Act to Promote Efficiency
in the Delivery of Government Services
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Business Efficiency (1998) Act.
2 Subsection 11(4) of Chapter 3 of the Acts of 1995-96, the Business Electronic Filing Act, is amended by
(a) striking out "to" in the third line;
(b) adding "to" immediately preceding "a" in the first line of clause (a);
(c) adding "to" immediately preceding "a" in the first line of clause (b);
(d) striking out "or" at the end of clause (b);
(e) adding "to" immediately preceding "a" in the first line of clause (c);
(f) striking out the period at the end of clause (c) and substituting "; or"; and
(g) adding the following clause:
3 Section 2 of Chapter 77 of the Revised Statutes, 1989, the Collection Agencies Act, is amended by
(a) repealing clause (c); and
(b) adding immediately after clause (d) the following clause:
4 (1) Clause 5(1)(b) of Chapter 77 is amended by striking out "licensed collection agency" in the second and third lines and substituting "collection agency issued a permit pursuant to this Act".
(2) Subsection 5(2) of Chapter 77 is amended by striking out "licensed collection agency" in the first line and substituting "collection agency issued a permit pursuant to this Act".
5 Subsection 7(2) of Chapter 77 is amended by striking out "licensee" in the first line and substituting "holder of a permit".
6 Subsection 8(1) of Chapter 77 is amended by striking out "licensed collection agency" in the third line and substituting "collection agency issued a permit pursuant to this Act".
7 Section 12 of Chapter 77 is amended by striking out "was previously licensed" in the third line and substituting "previously held a permit".
8 (1) Clause 13(1)(b) of Chapter 77 is amended by striking out "licensee" in the second line and substituting "holder of the permit".
(2) Subsection 13(2) of Chapter 77 is amended by striking out "licensee" in the first line and substituting "holder of a permit".
9 Section 14 of Chapter 77 is repealed and the following Section substituted:
(a) clause 5(1)(a) expires three years from the date of its issue; and
(b) clause 5(1)(b) expires one year from the date of its issue.
10 (1) Subsection 15(1) of Chapter 77 is amended by striking out "licensee" in the second line and substituting "holder of a permit".
(2) Subsection 15(3) of Chapter 77 is amended by striking out "licences" in the second line and substituting "permits".
11 Section 16 of Chapter 77 is amended by striking out "licensee" in the third line and substituting "holder of a permit".
12 (1) Subsection 22(1) of Chapter 77 is amended by striking out "licensed under this Act" in the second and third lines and substituting "issued a permit pursuant to this Act".
(2) Subsection 22(2) of Chapter 77 is amended by striking out "licensed under this Act" in the third line and substituting "issued a permit pursuant to this Act".
13 Clause 26(a) of Chapter 77 is amended by striking out "licensed" in the second line and substituting "issued a permit".
14 Section 28 of Chapter 77 is amended by
(a) striking out "licences" in the first, in the second and in the third lines of clause (a) and substituting in each case "permits"; and
(b) striking out "licences" each time it appears in the second line of clause (b) and substituting in each case "permits".
15 Chapter 77 is further amended by striking out "licence" wherever it appears in Chapter 77 and substituting in each case "permit".
16 Section 10 of Chapter 81 of the Revised Statutes, 1989, the Companies Act, is amended by
(a) striking out "or "Limitée"" in the third line of subclause (a)(i) and substituting ", "Limitée", "Inc.", "Ltd" or "Ltée"";
(b) striking out "write" in the first line of clause (c) and substituting "indicate"; and
(c) striking out "and occupation" in the third line of clause (c).
17 Section 11 of Chapter 81 is amended by
(a) striking out "or "Limitée"" in the third line of subclause (a)(i) and substituting ", "Limitée", "Inc.", "Ltd" or "Ltée"";
(b) striking out "write" in the first line of clause (b) (iii) and substituting "indicate"; and
(c) striking out "and occupation" in the third line of clause (b) (iii).
18 Section 12 of Chapter 81 is amended by
(a) adding "with "Company", "Co.", "Unlimited Liability Company" or "ULC" as the last word in the English form of its name, and equivalent translations in other forms of its name" immediately after "company" in the second line of clause (a)(i);
(b) striking out "write" in the first line of subclause (b)(ii) and substituting "indicate"; and
(c) striking out "and occupation" in the third line of subclause (b)(ii).
19 Subsection 98(1) of Chapter 81 is amended by striking out "and the occupations" in the second and third lines.
20 Subsection 102(2) of Chapter 81 is repealed.
21 (1) Subsection 109(1) of Chapter 81 is amended by striking out "and filed with the Registrar at or before the issue of such shares" in the fifth and sixth lines.
(2) Subsection 109(2) of Chapter 81 is amended by striking out "and filed with the Registrar at or before the issue of such share" in the sixth and seventh lines.
(3) Subsections 109(3), (4), (5) and (6) of Chapter 81 are repealed.
22 Clause 2(e) of Chapter 92 of the Revised Statutes, 1989, the Consumer Protection Act, is repealed.
23 (1) Subsection 17(1) of Chapter 92 is amended by striking out "who is not a discounter" in the second line.
(2) Subsections 17(7) and (8) of Chapter 92 are repealed.
24 Chapter 92 is further amended by adding immediately after Section 25 the following Sections:
(a) "customer" means a person who enters into, or is discussing with an operator the prospect of entering into, a contract;
(b) "initiation fee" means a one-time fee in addition to the membership fee;
(c) "membership fee" means the amount payable by a customer for the use of services;
(d) "operator" means a person who provides or offers to provide services;
(e) "payment" includes an initiation fee;
(f) "services" means facilities provided for, or instruction on,
(ii) sports, dance or similar activities.
(2) Sections 25A to 25J do not apply in respect of services that are provided
(a) on a non-profit or co-operative basis;
(b) by a private club primarily owned by its members;
(c) incidental to the main business of the operator where no fee is charged for the services;
(d) by an operator funded or run by a charitable or municipal organization or by the Province or any agency thereof;
(e) for an amount less than that prescribed by the regulations.
25C (1) No operator shall require or accept advance payment for services from a customer with whom the operator
(a) does not have a written contract that meets the conditions set out in Section 25D; or
(b) has a contract where all of the services contracted for by the customer are not available to the customer at the beginning of the term of the contract with the customer.
(2) The term of a contract begins when all of the services contracted for are first made available to the customer.
(3) No contract shall be made for a term longer than one year.
(4) All payments received in contravention of subsection (1) are repayable to the person making the payments on demand by that person.
25D (1) A contract shall set out
(a) the name and address of the operator and the customer;
(b) a description of the services contracted for by the customer that is sufficient to identify those services with certainty;
(c) the price of the services contracted for;
(d) the conditions upon which the contract may be renewed, cancelled or rescinded;
(e) where payment is to be by instalment, the number of instalments, the amount of each instalment and the total additional cost, if any, for payment by instalment; and
(f) where any part of the services are not available at the time the contract is signed, the date that the services will be made available and the name and address of the person holding the funds pending availability.
(2) A contract that provides for renewal shall provide that it is not renewable if the customer notifies the operator in writing, before the time for renewal, that the customer does not want to renew.
25E (1) No operator shall charge a customer more than one initiation fee.
(2) No operator shall charge an initiation fee that is greater than twice the membership fee.
25F (1) Every operator shall make available to every customer at least one plan for instalment payments of membership and, where applicable, initiation fees whereby the customer may make equal monthly payments over the term of the contract.
(2) In a plan for payments, the total amount paid by instalments shall not exceed the membership or initiation fee, if applicable, by more than twenty-five per cent.
25G (1) A customer may rescind a contract by delivering written notice of rescission to the operator within five days after the contract is signed or the services are available, whichever is the later.
(2) A notice of rescission sent to an operator by registered mail is deemed to be delivered on the day that it is mailed.
(3) A customer who rescinds a contract is not liable for payment for services received or used up to the rescission and is entitled to a refund of any payment pursuant to the contract.
25H Every operator who owes a refund shall pay the refund within twenty days
(a) after receiving notice of rescission or cancellation, as the case may be; or
(b) where Section 25J applies, after the day specified in the contract or the expiration of the last permission, whichever is the later.
24I (1) Where a contract provides for renewal and the operator does not deliver to the customer a notice reminding the customer of the provision required by subsection (2) of Section 25D, the provision for renewal does not apply.
(2) A notice pursuant to subsection (1) shall be delivered at least thirty days before, but not more than ninety days before, the end of the contract.
(3) A notice pursuant to subsection (1) sent by registered mail to the customer at the last known address of the customer on file with the operator is deemed to be delivered on the day that it is mailed.
25J (1) Where a facility is not available for use on the day specified in the contract, the operator shall refund all payments received from the customer unless the customer agrees, in writing, to permit the operator to retain the payment.
(2) No permission given pursuant to subsection (1) applies for longer than ninety days but a subsequent permission may be given on the expiration of a permission.
25 Clause 33(d) of Chapter 92 is repealed.
26 The title of Chapter 129 of the Revised Statutes, 1989, the Direct Sellers' Licensing and Regulation Act, is amended by striking out "Licensing and" in the first and second lines.
27 Section 1 of Chapter 129 is amended by striking out "Licensing and" in the second line.
28 Subsection 8(1) of Chapter 129 is amended by striking out "licenses" in the first line and substituting "permits".
29 Subsections 9(2) and (3) of Chapter 129 are repealed and the following subsection substituted:
30 Section 12 of Chapter 129 is amended by striking out "licensed person" in the third line and substituting "person issued a permit pursuant to this Act".
31 Section 13 of Chapter 129 is amended by striking out "licensed direct seller and salesman" in the first line and substituting "direct seller and salesman issued a permit pursuant to this Act".
32 (1) Subsection 14(1) of Chapter 129 is amended by striking out "licensed direct seller" in the second and third lines and substituting "direct seller issued a permit pursuant to this Act".
(2) Subsection 14(2) of Chapter 129 is amended by striking out "licensee" in the second line and substituting "salesman".
33 (1) Subsection 18(2) of Chapter 129 is amended by striking out "licensee" in the second line and substituting "holder of a permit".
(2) Subsection 18(3) of Chapter 129 is amended by striking out "licenses" in the second line and substituting "permits".
34 Subsection 19(2) of Chapter 129 is amended by striking out "was previously licensed" in the third line and substituting "previously held a permit".
35 Clause 22(1)(a) of Chapter 129 is amended by striking out "licensed" in the second line and substituting "issued a permit".
36 Section 25 of Chapter 129 is amended by striking out "licensed by this Act" in the last line and substituting "issued a permit pursuant to this Act".
37 (1) Subsection 30(1) of Chapter 129 is amended by striking out "licensed" in the third line and substituting "issued a permit".
(2) Subsection 30(2) of Chapter 129 is amended by striking out "exempt from licensing under this Act" in the second and third lines and substituting "are not required to be issued a permit pursuant to this Act".
38 (1) Subsection 32(1) of Chapter 129 is amended by striking out "licensed or bonded" in the second line and substituting "bonded or issued a permit".
(2) Subsection 32(2) of Chapter 129 is amended by striking out "licensed" in the first line and substituting "issued a permit".
39 Clause 33(a) of Chapter 129 is amended by striking out "licensed" in the second line and substituting "issued a permit".
40 Section 35 of Chapter 129 is amended by
(a) striking out "licenses" in the second line of clause (a) and substituting "permits";
(b) striking out "licenses" in the second line of clause (b) and substituting "permits";
(c) repealing clause (c) and substituting the following clause:
(d) striking out "licenses" in the second line of clause (d) and substituting "permits".
41 Chapter 129 is further amended by striking out "license" wherever it appears in Chapter 129 and substituting in each case "permit".
42 Chapter 12 of the Acts of 1990, the Future Services Act, is repealed.
43 Clause 7(d) of Chapter 216 of the Revised Statutes, 1989, the Imitation Dairy Products Act, is repealed.
44 (1) Subsection 10(1) of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, is amended by
(a) striking out ", other than the classes of life and accident and sickness insurance," in the fourth and fifth lines; and
(b) adding ", except for the classes of life and accident and sickness insurance," immediately before "for" in the seventh line.
(2) Subsection (1) has effect on and after June 15, 1989.
45 Section 11 of Chapter 231 is amended by striking out "Except solely in respect of marine insurance, no" in the first line and substituting "No".
46 Paragraph A. of Part 1 - Death Benefits of SUBSECTION 2 - DEATH BENEFITS AND LOSS OF INCOME PAYMENTS of SCHEDULE B TO PART VI of Chapter 231 is amended by adding "head of the household," immediately after "a" in the fifth line.
47 Clause (3)(b) of SUBSECTION 3 - SPECIAL PROVISIONS, DEFINITIONS, AND EXCLUSIONS OF THIS SECTION of SCHEDULE B TO PART VI of Chapter 231 is amended by
(a) striking out "2A" in the second line and substituting "2"; and
(b) adding "or section 255 (impaired driving causing bodily harm)" immediately before "of" in the eighth line of subclause (i).
48 Subsection 161(3) of Chapter 231 is amended by striking out "154" in the last line and substituting "162".
49 Section 170 of Chapter 231 is amended by adding "or in bold print of not less than twelve-point size" immediately after "ink" in the eighth line.
50 Clause 2(d) of Chapter 232 of the Revised Statutes, 1989, the Insurance Premiums Tax Act, is amended by striking out "calendar" in the first line and substituting "fiscal".
51 Section 4 of Chapter 232, as enacted by Chapter 26 of the Acts of 1989, is amended by
(a) striking out "(1)" in the first line;
(b) striking out "March, June, September and December" in the third line and substituting "each quarter"; and
(c) striking out "the three-month period ending in March, June, September or December, respectively" in the fifth and sixth lines and substituting "that quarter".
AND CERTIFICATIONS ACT
52 Subsection 2(2) of Chapter 2 of the Acts of 1997 (2nd Session), the Licences, Permits, Registrations and Certifications Act, is repealed and the following subsections substituted:
(3) For the purpose of subsection (2), a regime may be designated pursuant to subsection (2) notwithstanding that the regime does not comply with Section 3.
53 Section 6 of Chapter 2 is repealed and the following Section substituted:
(a) to ensure that a licence, permit, registration or certification meets the requirements of this Act and the regulations; or
(b) before any designation is made pursuant to subsection 2(2) that relates to the mandate of the department.
55 Subsection 11(1) of Chapter 2 is amended by
(a) repealing clause (a) and substituting the following clauses:
(ii) on a periodic basis whether a licence, permit, registration or certification designated pursuant to subsection 2(2) continues to be justified;
(c) striking out "this Act" in the second line of clause (h) and substituting "an enactment".
56 Chapter 265 of the Revised Statutes, 1989, the Loan Companies Inspection Act, is repealed.
57 Section 7 of Chapter 269 of the Revised Statutes, 1989, the Margarine Act, is repealed.
58 Clause 8(1)(a) of Chapter 269 is repealed.
59 (1) Subsection 9(1) of Chapter 291 of the Revised Statutes, 1989, the Mortgage Brokers' and Lenders' Registration Act, is amended by striking out "one year" in the first line and substituting "three years".
(2) Subsection 9(2) of Chapter 291 is amended by striking out "one year" in the third line and substituting "three years".
(3) Subsection 9(3) of Chapter 291 is amended by striking out "one year" in the second line and substituting "three years".
60 Section 2 of Chapter 494 of the Revised Statutes, 1989, the Vital Statistics Act, is amended by
(a) repealing clause (o) and substituting the following clause:
(b) repealing clause (t).
61 Section 3 of Chapter 494 is amended by striking out "of the registration division in which the birth or stillbirth occurs" in the third, fourth and fifth lines.
62 Subsection 4(2) of Chapter 494 is amended by striking out "of the registration division in which the birth occurs" in the last line.
63 Subsection 7(1) of Chapter 494 is amended by striking out "of the registration division in which the child is found" in the third and fourth lines.
64 (1) Clause 17(2)(b) of Chapter 494 is amended by striking out "residing or being within the registration division" in the second and third lines.
(2) Subsection 17(8) of Chapter 494 is amended by striking out "of the registration division" in the fifth and sixth and in the seventh and eighth lines and substituting in each case "for the area".
65 Subsection 18(2) of Chapter 494 is repealed.
66 Clause 20(2)(a) of Chapter 494 is amended by striking out "registration division" in the second line and substituting "area".
67 Section 30 of Chapter 494 is repealed.
68 Section 31 of Chapter 494 is repealed and the following Section substituted:
69 Section 34 of Chapter 494 is repealed.
70 Section 42 of Chapter 494 is amended by striking out "in any registration division" in the second line.
71 Clauses 51(1)(h) and (i) of Chapter 494 are repealed.
72 Sections 3 to 15 and 59 to 71 come into force on such day as the Governor in Council orders and declares by proclamation.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 1998 Crown in right of Nova Scotia. Updated December 8, 1998. Send comments to legc.office@gov.ns.ca.
