Licence Application Fees for the Cremation, Interment and Funeral Services Industry
| Licence Application Fees for the Cremation, Interment and Funeral Services Industry |
 |
 |
|
Frequently Asked Questions
Q. What is the Business Practices and Consumer Protection Authority? A. The Authority is a not for profit corporation, independent from government. Its mandate is to:
The Authority became operational on July 4, 2004. It is responsible for BC consumer protection activities including administration of the Business Practices and Consumer Protection Act and the Cremation, Interment and Funeral Services Act, promotion of a fair marketplace, regulation of specific industry groups, and information and complaint resolution services offered through a toll free number. Currently, the industries regulated by the BPCPA include the debt collection industry, the interment, crematoria and funeral services industries, and the travel services industry. Effective October 1, 2005, telemarketers will also be regulated.
Q. Can the Authority set fees? A. The Authority has been delegated the authority to set fees, charges and amounts for the industries it regulates and the areas of its authority. The fees are set so that the Authority can achieve full cost-recovery. The Business Practices and Consumer Protection Act and the Fee Setting Criteria Regulation require the Authority to consult with affected industry and interested parties before setting fees and to give at least 90 days notice to the affected industry before a fee, charge or other amount has effect.
Q. What is the Authority’s budget? A. Annual expenditures are estimated to be $3.8 million. This compares to a budget of $2.6 million when the Consumer Services Division (CSD) of the BC Ministry of Public Safety and Solicitor General regulated the industry. The CSD only collected licensing revenue of $1.0 million; taxpayers subsidized the balance. The Authority is also incurring increased expenditures due to costs that government either did not pay (insurance) or that were centrally administered (payroll, human relations, labour relations, etc.). The expenditure increase of $1.2 million is due to:
Q. Who approves the Authority’s budget? A. The Board of Directors is responsible for approving the budget and for ensuring that expenditures are cost effective, efficient and reasonable.
Q. What process was used to determine the new fee structure? A. The fee structure was based on an analysis of actual and projected expenditures related to enforcement, regulation, mediation and inquiries, client relations/policy and administration. There is no cross subsidization among the industries. The process currently being followed to set fees, as reviewed with the Cremation, Interment and Funeral Services Advisory Group on December 8, 2004, is as follows:
Q. What are the costs of regulating the cremation, interment and funeral services industry? A. Expenditures by the Authority on the industry equal 17% of total expenditures.
Q. What is included in the Authority’s expenditures? A. The expenditures are divided into five categories: enforcement, regulation, media/enquiries, client relations/policy, and administration. Enforcement includes investigation of potential violations of the legislation and resulting enforcement action, as well as providing public education on the laws surrounding consumer protection and working with regulated industries to ensure understanding and compliance with the legislation. This work serves to ensure a fair marketplace, warn consumers about businesses in violation of the law, educate consumers, and acts as a deterrent to violating the legislation. Regulation includes the licensing function, which allows the Authority to restrict who receives a licence and to impose licence conditions which will protect the consumer interest. This builds credibility in the industries and provides an avenue to prevent questionable business practices. Media/enquiries include responding to over 1,000 inquiries and complaints each month and to meeting media requests for information. Client relations/policy supports the Industry Advisory Groups, undertakes consultation, and addresses policy and legislative issues, and administration provides the financial, human resources, building occupancy, information technology and governance support to the Authority.
Q. How many licences are issued? A. Crematoria, interment and funeral services licences total 19% of licences issued by the Authority, which issues the following average numbers of licences each year:
Q. How many and what kinds of inquiries and complaints related to the industry does the Authority receive? A. The Authority has received over 700 inquiries and complaints in the 11 months from July 4, 2004 to May 31, 2005. This includes calls and letters related to inquiries, complaints and licensing. Inquiries include requests for information on licensing conditions, legislative requirements and consumer rights. Complaints include concerns about pricing, quality of service, and failure of some businesses to meet legislative requirements.
Q. What other data were considered in the fee setting process? A. The other data considered include:
Q. Why are licences now required for operators of crematoria and places of interment? A. Certificates of Operation for places of interment and crematoria have been replaced with the requirement for licences under the new Cremation, Interment and Funeral Services Act. As this is the first time these operators have been licensed, more work will be required to perform this function, with related costs.
Q. What consultation on the proposed fees has taken place? A. The Authority has established industry advisory groups to:
The group was selected to ensure a solid cross section of industry representation among the members, and includes representation from the funeral services, crematoria and interment industry, consumers, and the Authority. Information on the Advisory Group can be viewed at http://www.bpcpa.ca/advisory-groups/cemetery/advisory-groups-cemetery.htm. The Cremation, Interment And Funeral Services Advisory Group was established on November 12, 2004. Meetings and conference calls took place on December 8, 2004, January 19, 2005, February 9, 2005, February 14, 2005, February 28, 2005 and May 18, 2005 to discuss the proposed fee schedules. The Authority informed the advisory group about the Authority’s requirements and the direct relationship between costs and the proposed fees. Comments from the advisory group were instrumental in adjusting the proposed fee schedules. The proposed fee schedules for the crematoria and funeral services industries were posted on the Authority’s website on February 1, 2005 and for operators of places of interment on February 28, 2005. Feedback was received from industry associations, corporate offices and many independent businesses. The BPCPA has reviewed, summarized and considered this feedback, and has responded by modifying the fee schedules.
Q. Why are changes proposed for licence fees? A. The Authority is required to operate on a cost-recovery model. It must determine the costs of regulating an industry, and then set the fees in order to cover those costs. All costs of industry regulation must be recovered through fees and charges, including non-revenue generating activities (i.e. providing public information, administration, and communications). In order to generate revenue to cover directly related industry expenditures, fees must be increased. The former licence fees, administered by government, did not accurately reflect costs and were subsidized by taxpayers. In addition, the Authority has had to cover expenditures that government either did not pay (insurance) or that were centrally administered. As a result, licence fees have to be increased to fully provide for costs. It will have been nearly ten years since the licence fees were implemented. Since then, there has been an increase of 22% in the Consumer Price Index (CPI). The Authority is committed to keeping its costs as low as possible and to seek out new lines of business in order to achieve economies of scale that will keep costs down. As a result, the Authority was able to minimize the fee increase.
Q. What will the new fee schedules be? A. The fee schedules include application fees for new licences of $500 for operators of places of interment and crematoria and for funeral providers, renewal licences of $125 for operators of places of interment and crematoria, and new or renewal licences of $125 for embalmers, funeral directors, and funeral directors/embalmers. The application fee for a renewal licence for funeral providers will be a base amount of $125 plus a $25 administrative fee for each death registered by the funeral provider in British Columbia, as of September 15, 2005. The new fee schedules have been posted on the Authority’s website as follows: Fee Schedule for Funeral Service Providers Fee Schedule for Operators of Places of Interment Fee Schedule for Operators of Crematoria
Q. What is the administrative fee? A. The administrative fee is based on each death registered by a funeral provider in the province of British Columbia. The fee is required to offset BPCPA operating costs to ensure that consumers are protected and receive all the rights provided by law. The fee is not a tax and does not go to government revenues. The fee will not be retroactive; it will be based on death registrations starting September 15, 2005.
Q. Are there any exemptions to the administrative fee? A. Yes, there are several exemptions to the fee, specifically services paid for by the Office of the Public Guardian and Trustee, the Ministry of Human Resources, the Federal Departments of Indian Affairs and Northern Development, Veterans Affairs, the Last Post Fund and compassionate services for an infant either stillborn or less than 7 days of age.
Q. What value do the industry and the consumer receive for the licence fee? A. The Authority is working to promote a fair marketplace that will benefit both businesses and consumers. The industry benefits from the consumer confidence that results from the protections in the legislation, such as qualifications and financial requirements, and from provisions to ensure an equal “playing field”. Consumers benefit from the protections and remedies offered by the legislation and the education, inquiries, complaints, inspection and enforcement services that identify and protect their rights. The Authority has begun a new program of industry inspections and audits to ensure that all agencies are licensed and that all agencies adhere to the requirements of the legislation that are aimed at protecting consumers. |
