[38] Bill 187 Royal Assent (PDF)

Bill 187 2007

An Act respecting Budget measures, interim appropriations and other matters

Note: This Act amends or repeals more than one Act.  For the legislative history of these Acts, see Public Statutes – Detailed Legislative History on www.e-Laws.gov.on.ca.

 

CONTENTS

1.

2.

3.

Schedule 1

Schedule 2

Schedule 3

Schedule 4

Schedule 5

Schedule 6

Schedule 7

Schedule 8

Schedule 9

Schedule 10

Schedule 11

Schedule 12

Schedule 13

Schedule 14

Schedule 15

Schedule 16

Schedule 17

Schedule 18

Schedule 19

Schedule 20

Schedule 21

Schedule 22

Schedule 23

Schedule 24

Schedule 25

Schedule 26

Schedule 27

Schedule 28

Schedule 29

Schedule 30

Schedule 31

Schedule 32

Schedule 33

Schedule 34

Schedule 35

Schedule 36

Schedule 37

Schedule 38

Schedule 39

Schedule 40

Schedule 41

Contents of this Act

Commencement

Short title

Assessment Act

Capital Investment Plan Act, 1993

Charitable Gifts Act

City of Toronto Act, 2006

Community Small Business Investment Funds Act

Corporations Tax Act

Credit Unions and Caisses Populaires Act, 1994 and Related Amendments

Early Childhood Educators Act, 2007 and a Related Amendment

Education Act

Election Act

Election Finances Act

Electricity Act, 1998

Environmental Protection Act

Escheats Act

Family Responsibility and Support Arrears Enforcement Act, 1996

French Language Services Act

Income Tax Act

Insurance Act

Interim Appropriation Act, 2007

Justices of the Peace Act

Legislative Assembly Act

Mining Act

Mining Tax Act

Ministry of Citizenship and Culture Act

Ministry of Revenue Act

Municipal Act, 2001

Municipal Conflict of Interest Act

Niagara Escarpment Planning and Development Act

Ontario Loan Act, 2007

Ontario Water Resources Act

Pension Benefits Act

Police Services Act

Prepaid Hospital and Medical Services Act

Proceedings Against the Crown Act

Registered Insurance Brokers Act

Retail Sales Tax Act

Ryerson University Act, 1977

Securities Act

Status of Ontario's Artists Act, 2007

Tobacco Tax Act

Workplace Safety and Insurance Act, 1997

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

   1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

   2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

   (2)  The Schedules to this Act come into force as provided in each Schedule.

Same

   (3)  If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

   3.  The short title of this Act is the Budget Measures and Interim Appropriation Act, 2007.

 

Schedule 1
Assessment Act

   1.  (1)  Subsection 6.1 (2) of the Assessment Act is repealed and the following substituted:

Land in municipalities

   (2)  The council of a local or upper-tier municipality, as the case may be, may pass by-laws exempting land described in subsection (1) from taxation for its purposes on such conditions as may be set out in the by-laws.

   (2)  Section 6.1 of the Act is amended by adding the following subsection:

Transition

   (6)  Despite the repeal of section 325 of the Municipal Act, 2001 on December 20, 2006, a by-law passed under that section that was in effect on December 19, 2006 is, on and after December 20, 2006, deemed to have been authorized by subsection (2).

   2.  Section 15 of the Act is amended by adding the following subsection:

Same, non-municipal territory

   (2)  Where necessary for the purposes of elections to boards constituted under the District Social Services Administration Boards Act or under other provincial statutes, the Minister may direct the assessment corporation to conduct an enumeration of the inhabitants of all or part of the non-municipal territory and the assessment corporation shall do so at the times and in the manner required by the Minister.

   3.  Subsection 19 (1) of the Act is amended by striking out "or average current value, as determined under section 19.1" at the end.

   4.  Section 19.1 of the Act is repealed and the following substituted:

Adjustments for certain property classes

   19.1  (1)  In this section,

"eligible increase" has the meaning prescribed by the Minister; ("augmentation admissible")

"general reassessment" means the updating of assessments as a result of the application of a new valuation day under subsection 19.2 (1). ("réévaluation générale")

Property classes

   (2)  This section applies with respect to land in the residential property class, the farm property class, the managed forest property class and such other property classes or sub-classes as may be prescribed by the Minister.

Phasing in eligible increases

   (3)  For 2009 and subsequent taxation years, if the current value of land increases because of a general reassessment, the current value of the land shall be reduced according to the following rules:

    1.  For the first taxation year to which the general reassessment applies, the current value of the land is reduced by an amount equal to 75 per cent of the eligible increase.

    2.  For the taxation year following the taxation year in paragraph 1, the current value of the land is reduced by an amount equal to 50 per cent of the eligible increase.

    3.  For the taxation year following the taxation year in paragraph 2, the current value of the land is reduced by an amount equal to 25 per cent of the eligible increase.

Further adjustments

   (4)  The Minister may, by regulation, provide for such other adjustments to the current value of land for the 2009 and subsequent taxation years as he or she considers appropriate including, without limiting the generality of the foregoing,

  (a)  adjustments relating to a change made pursuant to section 32, 33 or 34;

  (b)  adjustments resulting from an application, a request for reconsideration or a complaint under section 39.1, 40 or 46;

   (c)  adjustments where there is no eligible increase in the current value;

  (d)  adjustments in such other circumstances as may be prescribed.

   5.  Subsections 19.2 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Valuation days

   (1)  Subject to subsection (5), the day as of which land is valued for a taxation year is determined as follows:

    1.  For the 2006, 2007 and 2008 taxation years, land is valued as of January 1, 2005.

    2.  For the period consisting of the four taxation years from 2009 to 2012, land is valued as of January 1, 2008.

    3.  For each subsequent period consisting of four consecutive taxation years, land is valued as of January 1 of the year preceding the first of those four taxation years.

   6.  Subsection 41 (4) of Schedule A to the Budget Measures Act, 2006 (No. 2) is repealed and the following substituted:

Same

   (4)  Subsection 18 (2), sections 22, 24, 25, 26, 28, 29, subsections 30 (1), (2), (3) and (4) and sections 36, 37, 38 and 39 come into force on January 1, 2008.

Same

   (5)  Subsections 30 (5), (6) and (7) come into force on January 1, 2007.

Commencement

   7.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on December 20, 2006.

Same

   (3)  Section 6 is deemed to have come into force on January 1, 2007.

 

Schedule 2
Capital Investment Plan Act, 1993

   1.  Section 8 of the Capital Investment Plan Act, 1993 is amended by adding the following subsections:

Ontario Financing Authority powers

   (7)  With the approval of the Minister of Finance, the Ontario Financing Authority may determine salary ranges and remuneration, excluding benefits, for public servants who work in the Authority and who are members of a prescribed class.

Same

   (8)  With the approval of the Minister of Finance, the Ontario Financing Authority may determine benefits to be provided in addition to the benefits determined under subsection 33 (3) of the Public Service of Ontario Act, 2006 for public servants who work in the Authority and who are members of a prescribed class.

Regulations re classes

   (9)  For the purposes of subsection (7) or (8) or both, the Minister of Finance may, by regulation, prescribe one or more of the classes that are created under subsection 33 (1) of the Public Service of Ontario Act, 2006.

Subclasses

   (10)  For the purposes of subsection (7) or (8) or both, the Ontario Financing Authority may establish subclasses within the prescribed classes of public servants and may determine different salary ranges, remuneration and benefits for each subclass.

Policies and procedures

   (11)  The Ontario Financing Authority may establish policies and procedures relating to the management and administration of the salary ranges and remuneration determined under subsection (7) and the additional benefits determined under subsection (8).

Conflict

   (12)  The salary ranges and remuneration determined under subsection (7) prevail over those determined under subsections 33 (2) and (3) of the Public Service of Ontario Act, 2006.

Same

   (13)  The policies and procedures established under subsection (11) prevail over directives of the Public Service Commission issued under subsection 43 (1) of the Public Service of Ontario Act, 2006 and over policies, procedures and directives issued under the Management Board of Cabinet Act.

   2.  Section 20 of the Act is repealed and the following substituted:

Authorized investments

   20.  Despite any other Act, securities issued by the corporations are authorized investments for public bodies as defined in section 29 and for trusts.

   3.  Subsection 35 (1) of the Act is amended by striking out "to an officer or employee of the Crown employed in or seconded to the Authority" and substituting "to the chief executive officer of the Authority or to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Authority".

Commencement

   4.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 and 3 come into force on the day subsection 33 (2) of the Public Service of Ontario Act, 2006 comes into force.

Same

   (3)  Section 2 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

schedule 3
Charitable Gifts Act

   1.  Section 6 of the Charitable Gifts Act is repealed and the following substituted:

Investment of proceeds

   6.  The proceeds of any disposition pursuant to section 2 may be invested only in investments authorized under sections 27 to 31 of the Trustee Act, but no such investment shall be made that results in the person making the investment holding more than a 10 per cent interest in any one business. 

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 4
City of Toronto Act, 2006

   1.  Section 323 of the City of Toronto Act, 2006 is amended by adding the following subsection:

Exception, vacant unit rebate

   (1.1)  For 2007 and subsequent taxation years, no cancellation, reduction or refund of taxes is permitted under clause (1) (h) in respect of land that is eligible property under section 331.

   2.  Subsection 333 (20) of the Act is repealed and the following substituted:

Notice to City

   (20)  The owner of an eligible property in respect of which a record of site condition has been filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act shall, within 30 days after the record of site condition is filed, notify the City of the filing and the City shall, within 30 days after receiving the notice, advise the Minister of Finance of the filing.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 2 comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 5
Community Small Business Investment Funds Act

   1.  The definition of "eligible year" in subsection 16.1 (7) of the Community Small Business Investment Funds Act is repealed and the following substituted:

"eligible year" means a calendar year after 2000 and before 2012.

   2.  Subsection 17 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Disposition of investment

   (3)  For the purposes of this section, the labour sponsored investment fund corporation shall be deemed to continue to hold the investment,

.     .     .     .     .

Commencement

   3.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 6
Corporations Tax Act

   1.  Section 11.2 of the Corporations Tax Act is amended by adding the following subsections:

Effect of transfer

   (13.1)  For the purposes of this section, if a qualified Ontario SR & ED expenditure made or incurred by a corporation in a specified taxation year or in the taxation year preceding the first specified taxation year of a corporation is transferred to another corporation pursuant to subsection 127 (13) of the Federal Act, the amount transferred, 

  (a)  is deemed not to be a qualified Ontario SR & ED expenditure made or incurred by the transferor; and

  (b)  is deemed to be a qualified Ontario SR & ED expenditure made or incurred by the other corporation in the other corporation's first taxation year that ends after the specified taxation year or that preceding year, as the case may be.

Application of subs. (13.1)

   (13.2)  Subsection (13.1) applies in respect of a qualified Ontario SR & ED expenditure made or incurred by a corporation before or after subsection (13.1) comes into force.

   2.  (1)  Subsection 43.1 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Corporate minimum tax account, taxation years ending before March 23, 2007

   (3)  The amount of a corporation's corporate minimum tax account for a taxation year ending before March 23, 2007 is,

.     .     .     .     .

   (2)  Section 43.1 of the Act is amended by adding the following subsections:

Corporate minimum tax account, taxation years ending after
March 22, 2007

   (3.1)  The amount of a corporation's corporate minimum tax account for a taxation year ending after March 22, 2007 is determined as follows:

    1.  If the corporation is not a life insurance corporation, the amount of the corporation's corporate minimum tax account for the year is the sum of all amounts each of which is,

            i.  the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or

           ii.  the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year.

    2.  If the corporation is a life insurance corporation, the amount of the corporation's corporate minimum tax account for the year is the sum of all amounts each of which is,

            i.  the amount determined under subsection (3.2) in respect of a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or

           ii.  the amount determined under subsection (3.2) in respect of a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent that the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year.

Same

   (3.2)  For the purposes of subparagraphs 2 i and ii of subsection (3.1), the amount determined in respect of a previous taxation year is the amount by which the corporation's corporate minimum tax for that year, as determined under Part II.1 before any deduction permitted under subsection 57.3 (2), exceeds the greater of,

  (a)  the amount that would be determined in respect of the corporation under clause 74.1 (1) (a) for that year; and

  (b)  the amount of tax payable under this Part for that year after all deductions from tax to which the corporation is entitled for that year, other than a deduction permitted under this section.

   3.  (1)  Clause 43.10 (4) (b) of the Act is amended by striking out "April 1, 2007" and substituting "April 1, 2008".

   (2)  Clause 43.10 (4) (c) of the Act is amended by striking out "March 31, 2007" and substituting "March 31, 2008".

   4.  (1)  Clause (a) in the definition of "C", as set out in clause (b) of the definition of "A", in subsection 43.13 (3) of the Act is repealed and the following substituted:

  (a)  after May 18, 2004 and before January 1, 2015, and

   (2)  Paragraph 1 of subsection 43.13 (7) of the Act is repealed and the following substituted:

    1.  The apprentice's employment as an apprentice in an apprenticeship program with the corporation commenced before January 1, 2012.

   (3)  Subparagraphs 1 iii and 2 ii of subsection 43.13 (9) of the Act are amended by striking out "January 1, 2011" wherever it appears and substituting in each case "January 1, 2015".

   5.  Subsection 44.1 (2) of the Act is amended by striking out "clause 57.3 (2) (b)" and substituting "clause 43.1 (3.2) (b), 57.3 (2) (b)".

   6.  Subsection 57.5 (5) of the Act is repealed and the following substituted:

Eligible losses for a taxation year

   (5)  Except as provided in subsection (7), the amount of a corporation's eligible losses for a taxation year that is deducted or deemed to be deducted under this Part for the year is equal to the lesser of "A" and "B" where,

  "A"  is the amount by which "C" exceeds "D" where,

         "C"  is the sum of all amounts each of which is,

                 (a)  the corporation's adjusted net loss for a prior taxation year that commenced after 1993, ended before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, or

                 (b)  the corporation's adjusted net loss for a prior taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, and

         "D"  is the sum of all amounts each of which is an amount included in the amount determined under clause (a) or (b) of the definition of "C" that was deducted or is deemed to have been deducted as an eligible loss under this Part for a prior taxation year, and

  "B"  is the amount by which the corporation's adjusted net income for the taxation year exceeds the amount, if any, of its pre-1994 loss that is deducted or deemed to be deducted for the taxation year.

   7.  Subsection 61 (1) of the Act is amended by adding the following clause:

(b.1) for taxation years commencing after September 30, 2006, its accumulated other comprehensive income;

   8.  (1)  Subsection 62 (4) of the Act is repealed and the following substituted:

Definition, "any other surplus"

   (4)  For the purpose of this Part,

"any other surplus" includes, in respect of a corporation for a taxation year, in addition to any amount included under subsection (7), any amount required to be included in the corporation's income for the purposes of Part II for the taxation year or a previous taxation year to the extent that the amount is not included in the corporation's income as shown on its financial statements, but does not include,

  (a)  an amount referred to in subsection 11 (5) or (6) or 11.0.1 (3), or

  (b)  an amount referred to in paragraph 12 (1) (o) or subsection 15 (1) or (2), 17 (1) or 37.1 (3) of the Income Tax Act (Canada), as made applicable by subsection 11 (1).

   (2)  Subsection 62 (7) of the Act is amended by striking out the portion before clause (a) of the definition of "any other surplus", "total assets" and "cost of investments" and substituting the following:

Definitions

   (7)  For the purposes of this Part,

"accumulated other comprehensive income", "any other surplus", "cost of investments" and "total assets" includes any amount,

.     .     .     .     .

   9.  Subsection 62.1 (2) of the Act is amended by striking out "and" at the end of clause (d) and by adding the following clause:

(d.1) for taxation years commencing after September 30, 2006, the amount of its accumulated other comprehensive income; and

   10.  (1)  Subsection 66 (1.1) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year.

   (2)  Subsection 66 (1.2) of the Act is repealed and the following substituted:

No tax payable after June 30, 2010

   (1.2)  No tax is payable under this Part by a corporation that is not a financial institution for a taxation year commencing after June 30, 2010.

   (3)  The definition of "G" in subsection 66 (4.1) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.3 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (4)  The definition of "J" in subsection 66 (4.2) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (5)  The definition of "L" in subsection 66 (4.3) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.36 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (6)  Subsection 66 (4.4) of the Act is repealed and the following substituted:

No tax payable after June 30, 2010 by financial institution

   (4.4)  No tax is payable under this Part by a financial institution for a taxation year commencing after June 30, 2010.

   11.  The definition of "D" in clause 66.1 (3.2) (b) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year.

Commencement

   12.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 7
Credit Unions and Caisses Populaires Act, 1994 and Related Amendments

   1.  (1)  The definitions of "association of credit unions", "auditor", "by-law" and "Commission" in section 1 of the Credit Unions and Caisses Populaires Act, 1994 are repealed.

   (2)  The definition of "credit union" in section 1 of the Act is repealed and the following substituted:

"credit union" means a corporation incorporated or continued as a credit union or caisse populaire under this Act or a predecessor of this Act; ("caisse", "caisse populaire")

   (3)  The definition of "deposit" in section 1 of the Act is repealed and the following substituted:

"deposit" includes money deposited with a credit union under a federal or provincial registered savings plan or fund; ("dépôt")

   (4)  Clauses (a) and (b) of the definition of "financial institution" in section 1 of the Act are repealed and the following substituted:

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada),

  (b)  an insurer licensed under the Insurance Act,

   (5)  The definition of "financial institution" in section 1 of the Act is amended by striking out "and" at the end of clause (e) and by adding the following clauses:

  (g)  a retail association as defined under the Cooperative Credit Associations Act (Canada), and

   (h)  such other entities or classes of entities as may be prescribed;

   (6)  The definition of "officer" in section 1 of the Act is repealed and the following substituted:

"officer", in respect of a credit union, means,

  (a)  the chair of the board required under section 94.2,

  (b)  the corporate secretary required under subsection 140 (1),

   (c)  the chief executive officer required under subsection 140 (1), and

  (d)  any other officer provided for in the by-laws referred to in subsection 140 (1); ("dirigeant")

   (7)  Section 1 of the Act is amended by adding the following definition:

"patronage share" means a share of a class provided for by the articles of a credit union in accordance with section 53; ("part de ristourne")

   (8)  The definition of "personal representative" in section 1 of the Act is amended by striking out "a tutor".

   (9)  The definitions of "real estate" and "stabilization authority" in section 1 of the Act are repealed.

   2.  The English version of subsection 2 (2) of the Act is amended by striking out "his or her" and substituting "their".

   3.  (1)  Subsection 5 (2) of the Act is amended by striking out "Superintendent" and substituting "Corporation".

   (2)  Subsection 5 (3) of the Act is repealed and the following substituted:

Revocation of order

   (3)  The Corporation may, by order, revoke an order under subsection (2) if the Corporation believes that the credit union has failed to comply with a term set out in the order under subsection (2) or that it is no longer appropriate to deem the corporate body in respect of which the order under subsection (2) was made to be an affiliate.

Procedural rules

   (4)  Section 240.1 applies with respect to an order under this section.

   4.  Section 7 of the Act is repealed and the following substituted:

Member

   7.  (1)  For the purposes of this Act, a person is a holder of a membership share of a credit union when, according to the register under section 230, the person is the owner of the membership share or is entitled to be entered in the register as the owner of the share.

Holder of membership share

   (2)  A reference in this Act to the holding of a membership share by or in the name of a person is a reference to the fact that the person is registered or is entitled to be registered in the register under section 230 as the holder of the share.

   5.  Part II of the Act is repealed.

   6.  Clause 13 (2) (c) of the Act is repealed and the following substituted:

   (c)  is an undischarged bankrupt or has been discharged as a bankrupt in the five years preceding the date the application to incorporate the credit union is made under subsection 15 (1).

   7.  Subsection 14 (1) of the Act is repealed and the following substituted:

Contents of articles

   (1)  The articles of incorporation must set out the prescribed information.

   8.  (1)  Subsection 15 (1) of the Act is repealed and the following substituted:

Application for incorporation

   (1)  An application to incorporate a credit union may be made by sending to the Superintendent two copies of the proposed articles of incorporation and the proposed by-laws of the credit union and paying the application fee established by the Minister.

   (2)  Subsection 15 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Inquiry before incorporation

   (2)  The Superintendent shall inquire into the circumstances, sufficiency and regularity of the articles and by-laws and may do any of the following before issuing a certificate of incorporation:

.     .     .     .     .

   9.  (1)  Subsection 16 (1) of the Act is repealed and the following substituted:

Certificate of incorporation

   (1)  Subject to subsection (2), the Superintendent shall issue a certificate of incorporation to the incorporators.

   (2)  Subsection 16 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Grounds for refusing certificate

   (2)  The Superintendent shall not issue a certificate of incorporation if the articles do not meet the requirements of section 14 or 15 or if the incorporators do not satisfy the Superintendent of the following matters:

.     .     .     .     .

   (3)  Paragraph 3 of subsection 16 (2) of the Act is repealed and the following substituted:

    3.  The credit union will be operated in such a way that deposits will be safeguarded without the likelihood of a claim against the Corporation.

   10.  Sections 18 and 19 of the Act are repealed and the following substituted:

Refusal of certificate

   18.  If the Superintendent decides, after giving the applicants for incorporation an opportunity to make written submissions, not to issue a certificate of incorporation, he or she shall notify the incorporators, in writing, and set out the reasons for the decision.

Language and form of corporate name

   19.  (1)  The corporate name of a credit union must be in the language and form authorized in the articles and approved by the Superintendent.

Use of "credit union"

   (2)  Subject to subsections (3) and (4), the corporate name of a credit union must include the words "credit union" or "caisse populaire".

Use of "caisse populaire"

   (3)  Only a corporation incorporated under this Act or a predecessor of this Act that provides financial services to its members and promotes the interests of the French-speaking community in Ontario by providing management and democratic control in French may include "caisse populaire" in its corporate name, and all other corporations incorporated under this Act or a predecessor of this Act shall include "credit union" in their corporate names.

Use of "Limited", etc.

   (4)  The corporate name of a credit union must have at the end of it one of the following: "Limited", "Ltd", "Limitée", "Ltée", "incorporated", "incorporée" or "Inc".

   11.  Subsections 19.1 (1) and (2) of the Act are repealed and the following substituted:

Use of other name

   (1)  A credit union shall not carry on business under or identify itself by a name other than its corporate name unless the Superintendent has approved that name.

Restriction on approval

   (2)  The Superintendent shall not approve a name under subsection (1),

  (a)  if the name includes "credit union" or "caisse populaire", unless the name is derived from the credit union's corporate name; or

  (b)  if the name would be precluded as a corporate name under section 21.

   12.  Section 20 of the Act is repealed and the following substituted:

Prohibition, use of "credit union", "caisse populaire"

   20.  No person, other than a credit union or prescribed person or entity, shall carry on business using a name in which "credit union" or "caisse populaire" is used.

   13.  (1)  The English version of subsection 21 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Restrictions re corporate names

   (1)  A credit union may not be incorporated under this Act with a corporate name that,

.     .     .     .     .

   (2)  Subsections 21 (3), (4) and (5) of the Act are repealed and the following substituted:

Exception for affiliates

   (3)  Clauses (1) (d) and (e) do not apply with respect to a credit union that is affiliated with another entity if the Superintendent is satisfied that the entity consents to it having a corporate name substantially similar to the entity's name.

Change of corporate name

   (4)  If a credit union has acquired a corporate name contrary to subsection (1), the Superintendent may, by order, issue a certificate of amendment to the articles changing the name of the credit union.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under subsection (4).

   14.  Section 22 of the Act is repealed and the following substituted:

Reserving a corporate name

   22.  (1)  A person may reserve a corporate name for a period of up to 90 days by making an application to the Superintendent and paying the fee established by the Minister.

Effect of reservation

   (2)  During the period that the corporate name is reserved, a body corporate is not entitled to acquire the name or a similar name without the written consent of the person for whose use and benefit the name is reserved.

Renewal of reservation of corporate name

   (3)  Within 30 days before the expiry of the reservation of a corporate name under subsection (1), the person who reserved the name may apply for a renewal of the reservation for a further period of not more than 90 days by submitting an application for the renewal to the Superintendent and paying the fee established by the Minister.

Corporate seal

   22.1  A credit union may, but need not, have a corporate seal.

   15.  (1)  Clause 24 (2) (d) of the Act is repealed and the following substituted:

  (d)  each member has only one vote at its general meetings or in respect of elections of its directors.

   (2)  Subsection 24 (3) of the Act is repealed and the following substituted:

Exception

   (3)  Clause (2) (d) does not prevent a member from voting as a proxy holder as allowed under section 217.3.

   16.  Part III of the Act is amended by adding the following sections:

Financial years

   27.1  (1)  The financial year of a credit union must end on December 31.

Existing financial years with different year ends

   (2)  The following apply if, on the day this section comes into force, a credit union's financial year ends on a date other than December 31:

    1.  The credit union's financial year need not be changed.

    2.  If the credit union's financial year is changed, it must be changed so that it ends on December 31.

Special rule not to apply to amalgamated credit unions

   (3)  Subsection (2) does not apply to a credit union formed by the amalgamation of two or more credit unions after the day this section comes into force; in such a case, the financial year of the amalgamated credit union must end on December 31.

Corporations Act not to apply

   27.2  The Corporations Act does not apply to credit unions.

   17.  Section 28 of the Act is repealed and the following substituted:

Membership

   28.  (1)  Membership in a credit union is governed by the credit union's by-laws, subject to the provisions of this Act and the credit union's articles.

Minimum membership shares required

   (2)  To be a member, a person or entity must hold the minimum number of membership shares required under the by-laws of the credit union.

Member who ceases to hold the minimum

   (3)  A member who ceases to hold enough shares to be a member shall, nonetheless, continue to be a member of the credit union for the purposes of this Act, subject to any limitations in the by-laws of the credit union, including limitations on the rights that member may exercise.

Ground for expulsion

   (4)  For greater certainty, subsection (3) does not prevent holding fewer than the minimum number of shares from being set out in the by-laws of the credit union as a ground for expulsion under subsection 47 (1).

   18.  (1)  Subsections 30 (1) and (2) of the Act are repealed and the following substituted:

Limitation on membership

   (1)  The by-laws of every credit union shall provide that the membership of the credit union is limited to persons, related persons and entities who come within a bond of association and shall specify the nature of the bond of association.

   (2)  Subsections 30 (4), (5), (6) and (7) of the Act are repealed.

   19.  Paragraph 3 of subsection 31 (1) of the Act is repealed and the following substituted:

    3.  Members who do not come within the bond of association must be identified as such in the register under section 230.

   20.  Subsection 33 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Record, information relating to membership

   (1)  Every person or entity whose name is registered in the register under section 230 is entitled to,

.     .     .     .     .

   21.  The heading immediately before section 35 and sections 35 and 36 of the Act are repealed.

   22.  Sections 38 and 39 of the Act are repealed and the following substituted:

Not bound by trust

   38.  (1)  A credit union is not bound to see to the execution of any trust to which any membership share is subject.

Application

   (2)  Subsection (1) applies whether the trust is express, implied or constructive.

Trusts for named beneficiaries

   39.  (1)  A credit union may accept deposits from a member in trust for a named beneficiary only if,

  (a)  the member holds, in trust for the beneficiary, the minimum number of membership shares required under subsection 28 (2);

  (b)  the member and the beneficiary are related persons;

   (c)  the deposits are money the member is required to hold in accordance with subsection 57 (1) of the Law Society Act; or

  (d)  the deposits are required or governed under an Act and are prescribed for the purposes of this clause.

Deposit is separate for deposit insurance purposes

   (2)  A deposit of a member in trust for a named beneficiary shall be deemed, for the purpose of paragraph 2 of subsection 270 (2), to be a deposit separate from any other deposit of the member.

Exercise of rights of membership shares held in trust

   (3)  The following apply with respect to membership shares held by a member in trust for a beneficiary:

    1.  The member shall exercise the rights attached to the shares, subject to paragraph 2.

    2.  At a meeting of members, the member does not have an additional vote as a result of holding the membership shares in trust.

Disclosure of beneficiary

   (4)  The member shall disclose to the credit union such personal information concerning the beneficiary as the credit union requires to comply with all applicable laws.

Failure to disclose

   (5)  A credit union may refuse to accept or maintain a deposit made by a member in trust for a named beneficiary if the member refuses or fails to provide the information referred to in subsection (4).

   23.  Section 41 of the Act is repealed and the following substituted:

Members under the age of 18 years

   41.  If permitted by the by-laws of a credit union, a person under the age of 18 years may be a member of the credit union, subject to such conditions and restrictions as may be set out in the by-laws.

   24.  Sections 42 and 43 of the Act are repealed and the following substituted:

Limited payment re deceased member

   42.  (1)  If a member of a credit union dies and the credit union makes a payment of an amount described in subsection (2) to such person as the credit union is satisfied is entitled to receive the amount, the payment discharges any obligation of the credit union and its board in respect of and to the extent of the amount paid even if the payment is made without letters probate or letters of administration being taken out.

Type of payments

   (2)  The payment referred to in subsection (1) is a payment of the following:

    1.  An amount not exceeding the prescribed amount payable from the amount on deposit in the name of the deceased or in consideration for the membership shares of the deceased.

    2.  An amount not exceeding the prescribed amount payable from any money that is received by the credit union under any policy of insurance on the life of the deceased.

Restrictions

   (3)  Subsection (1) applies only if the credit union pays the amount in good faith and the credit union receives, before the payment,

  (a)  a statutory declaration attesting to the person's entitlement to receive the amount; or

  (b)  such other evidence of the person's entitlement to the amount as the credit union considers to be appropriate in the circumstances.

Credit union can require more

   (4)  Nothing in this section prevents the credit union from requiring additional documentation or evidence as the credit union considers appropriate.

Recovery from recipient

   (5)  Subsection (1) does not affect any right of a person claiming to be entitled to recover the amount from the person to whom it was paid.

No limit on other powers, requirements

   (6)  For greater certainty, this section does not prevent a credit union from making a payment or transfer as otherwise allowed or required by law.

If deceased member was trustee

   (7)  If a member of a credit union dies holding membership shares or money on deposit in trust for a named beneficiary, the credit union may pay the amount of, or transfer, the membership shares or deposit and any interest or dividends on them,

  (a)  to the executor or administrator of the estate of the deceased member; or

  (b)  to the beneficiary if there is no executor or administrator of the estate of the deceased member or, if the beneficiary is a minor, to the beneficiary's parent or guardian.

   25.  The heading immediately before section 44 and sections 44 and 45 of the Act are repealed and the following substituted:

Liens

Lien for liability

   44.  (1)  A credit union has a lien on the deposits and membership shares of a member for any liability to it by the member, and may set off any sum standing to the credit of the member on the books of the credit union towards the payment of the liability.

Limitation, member's share account

   (2)  Despite subsection (1), a credit union shall not apply any service charges or other deductions against a member's share account except upon the termination of the membership.

   26.  Section 46 of the Act is amended by adding the following subsection:

Rights of withdrawing member

   (3)  The by-laws of a credit union shall set out the rights of a withdrawing member which shall include the right to receive payment for the member's membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.

   27.  (1)  Sections 47, 48 and 49 of the Act are repealed and the following substituted:

Expulsion of members

   47.  (1)  A member of a credit union may be expelled from membership, in accordance with the by-laws, by a resolution of the board on the grounds set out in the by-laws.

Member rights relating to expulsion

   (2)  The by-laws of a credit union shall provide for the following rights:

    1.  The right of a member to receive advance notice of any meeting of the board at which the board will consider a resolution to expel the member.

    2.  The right of the member not to be expelled without being given an opportunity to appear at the meeting of the board to make submissions and to be represented at the meeting by legal counsel or an agent.

    3.  The right of an expelled member to appeal the decision of the board at the next general meeting of the members.

    4.  The right of the expelled member to be reinstated as a member of the credit union if, at the next general meeting, the members, by a majority of the votes cast at the meeting, set aside the resolution of the board.

    5.  The right of the expelled member to receive payment for the member's membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.

Procedures to be set out in by-laws

   (3)  The by-laws of a credit union shall set out the following:

    1.  The procedures to be followed by the board to provide the advance notice referred to in paragraph 1 of subsection (2).

    2.  The procedures to be followed relating to the appeal referred to in paragraph 3 of subsection (2).

Notice of decision

   (4)  If the board passes a resolution expelling a member, the credit union shall, within five days after the resolution is passed, notify the member of the decision of the board by registered letter addressed to the member at the member's last known address.

   (2)  Paragraph 2 of subsection 47 (2) of the Act, as enacted by subsection (1), is amended by striking out "by legal counsel or an agent" and substituting "by a person authorized under the Law Society Act to represent the member".

   28.  The Act is amended by adding the following heading immediately before section 50:

Representative Actions by Members

   29.  Section 51 of the Act is repealed and the following substituted:

Classes of shares

   51.  (1)  The articles of a credit union must provide for a class of shares known as membership shares and may provide for additional classes of shares, including patronage shares referred to in section 53.

Nature of shares

   (2)  The shares of a credit union are personal property.

Form

   (3)  The shares of a credit union are without nominal or par value and, if they are not membership shares or patronage shares, must be in registered form.

   30.  Subsections 52 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Membership shares

   (1)  Membership shares confer on the holder the right to receive dividends declared on the shares and to receive the remaining property of the credit union on dissolution.

Number of shares that member can hold

   (2)  Subject to any prescribed limit or limit set out in the by-laws of the credit union, a member may hold more than the minimum number of membership shares required under subsection 28 (2) to be a member.

Transfer prohibited

   (3)  The holder of a membership share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.

   31.  Section 53 of the Act is repealed and the following substituted:

Patronage shares

   53.  (1)  The articles of a credit union may provide for a class of shares known as patronage shares to be payable to members as a dividend under section 65 or as a patronage return under section 66.

Nature of share

   (2)  A patronage share does not confer on the holder the right to vote at meetings of the members of the credit union, the right to notice of any meeting of members of the credit union, the right to receive dividends or the right to receive the remaining property of the credit union on dissolution.

Transfer prohibited

   (3)  The holder of a patronage share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.

Rights of classes

   53.1  (1)  For each class of shares, the articles must set out,

  (a)  the rights, privileges, restrictions and conditions attaching to the shares of the class; and

  (b)  the maximum number, if any, of shares of the class that the credit union is authorized to issue.

Restrictions

   (2)  Shares, other than membership shares, do not confer on their holder the right to vote at meetings of the members of the credit union except as permitted under this Act or the right to receive any of the remaining property of the credit union on dissolution.

   32.  (1)  Subsection 54 (1) of the Act is amended by striking out "determine" and substituting "set out".

   (2)  Subsection 54 (2) of the Act is amended by adding "and the limitations under this Act" at the end.

   (3)  Subsections 54 (6) and (7) of the Act are repealed and the following substituted:

Information to Superintendent

   (6)  Before issuing shares in series, the credit union must file with the Superintendent articles of amendment designating the series and setting out the rights, privileges, restrictions and conditions attaching to the shares.

   33.  Section 55 of the Act is repealed.

   34.  Subsection 56 (1) of the Act is amended by adding "or patronage shares" after "membership shares".

   35.  Subsection 57 (1) of the Act is amended by adding "or patronage shares" after "membership shares" in the portion before clause (a).

   36.  (1)  Subsection 59 (1) of the Act is amended by adding "other than a patronage share" after "share".

   (2)  Section 59 of the Act is amended by adding the following subsection:

Exception for certain asset purchases

   (1.1)  Subsection (1) does not apply to the issue of shares by a credit union if the issue is part of a transaction in which the credit union (the "purchaser credit union") acquires the assets of another credit union (the "vendor credit union") and, as part of that transaction, shareholders of the vendor credit union are to be issued with shares of the purchaser credit union.

   (3)  Subsection 59 (3) of the Act is repealed.

   37.  The English version of section 60 of the Act is amended by striking out "his or her" and substituting "the person's".

   38.  Subsection 62 (1) of the Act is repealed and the following substituted:

Purchase and redemption of shares

   (1)  A credit union may purchase or redeem its shares only in accordance with this section and the articles and by-laws of the credit union.

   39.  Sections 63 and 64 of the Act are repealed and the following substituted:

Cancellation of shares

   63.  A credit union shall cancel its shares or fractions of its shares that it has purchased, redeemed or otherwise acquired, other than through the realization of security.

Shares acquired through realization of security

   64.  (1)  If a credit union acquires any of its shares through the realization of security, the credit union shall sell, cancel or otherwise dispose of them within six months after the day of the realization.

Same

   (2)  If a subsidiary of a credit union acquires shares of the credit union through the realization of security, the credit union shall cause the subsidiary to sell or otherwise dispose of them within six months after the day of the realization.

   40.  The heading immediately before section 65 and section 65 of the Act are repealed and the following substituted:

Dividends and Patronage Returns

Declaration of dividend

   65.  (1)  The board may declare, subject to the by-laws, and the credit union may pay a dividend.

Form of dividend

   (2)  A dividend may be paid,

  (a)  in cash;

  (b)  by issuing patronage shares;

   (c)  by issuing fully paid shares, other than membership shares, or options or rights to acquire fully paid shares, other than membership shares, in any class or series of shares;

  (d)  in a combination of two or more forms of dividends described in clauses (a), (b) and (c); or

  (e)  in property, with the approval of the Superintendent.

   41.  Subsection 66 (2) of the Act is repealed and the following substituted:

Form of patronage return

   (2)  A patronage return may be paid,

  (a)  in cash;

  (b)  by issuing patronage shares;

   (c)  by issuing fully paid shares, other than membership shares, or options or rights to acquire fully paid shares, other than membership shares, in any class or series of shares; or

  (d)  in a combination of two or more forms of patronage returns described in clauses (a), (b) and (c).

Rebate of interest

   (3)  A patronage return may include a rebate of interest paid by members during a financial year in respect of loans from the credit union.

   42.  Subsections 68 (3) and (4) of the Act are repealed.

   43.  Subsection 69 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Adjustment due to conversion

   (1)  On a conversion of outstanding shares, other than membership shares or patronage shares, of a credit union into shares of another class or series, the credit union shall,

.     .     .     .     .

   44.  (1)  Subsection 72 (1) of the Act is repealed and the following substituted:

Reduction by special resolution

   (1)  The stated capital of a credit union may be reduced by special resolution of the members of the credit union.

   (2)  The French version of subsection 72 (4) of the Act is repealed and the following substituted:

Conditions d'approbation

   (4)  Le surintendant ne peut approuver la résolution extraordinaire que si la demande à cet effet a été présentée dans les trois mois qui suivent son adoption et qu'une copie de la résolution, accompagnée d'un avis de l'intention de demander son approbation, a été publiée dans la Gazette de l'Ontario.

   45.  Subsection 73 (2) of the Act is repealed and the following substituted:

Shares held by personal representative

   (2)  A person holding shares as a personal representative who is registered in the register under section 230 as a member or shareholder and described as the personal representative for a named person is not personally liable under subsection (1), but the named person is liable.

   46.  Section 74 of the Act is amended by adding "or patronage shares" after "membership shares".

   47.  The Act is amended by adding the following section immediately before the heading "Offering Statement":

Restrictions on transfer of securities

   74.1  (1)  A security issued under circumstances described in clause 75 (1) (a) shall not be transferred except to another member of the credit union or to a prescribed person.

Same

   (2)  The transfer of a security that is permitted under subsection (1) shall be made in the prescribed manner and subject to the prescribed conditions.

Same

   (3)  The transfer of a security that is permitted under subsection (1) is effective when the transfer is recorded in the register under section 230.

   48.  Clauses 75 (3) (a) and (b) of the Act are repealed and the following substituted:

  (a)  membership shares;

  (b)  patronage shares; or

   (c)  shares under section 65 or 66.

   49.  The French version of clause 76 (c) of the Act is repealed and the following substituted:

    c)  soit les personnes inscrites comme courtier en bourse, courtier en valeurs mobilières ou courtier négociant aux termes de la Loi sur les valeurs mobilières.

   50.  (1)  Subsections 77 (1) and (2) of the Act are repealed and the following substituted:

Offering statement

   (1)  Application for a receipt for an offering statement is made by filing with the Superintendent a copy of the offering statement and paying the fee established by the Minister.

Contents

   (2)  The offering statement must contain such information as may be prescribed.

   (2)  Subsection 77 (4) of the Act is repealed and the following substituted:

Certificate

   (4)  The offering statement must be accompanied by a disclosure certificate signed by the chair of the board and the chief executive officer, certifying that the offering statement satisfies the requirements of subsections (2) and (3).

   51.  Subsections 78 (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Refusal to issue, revocation

   (2)  The Superintendent may refuse to issue or may revoke a receipt for an offering statement in any of the following circumstances:

    1.  The credit union is in contravention of section 84.

    2.  The credit union is subject to the supervision of the Corporation or under the administration of the Corporation.

Same

   (3)  Before refusing to issue a receipt or revoking a receipt, the Superintendent shall give the applicant an opportunity to make written submissions.

Same

   (4)  A decision to refuse to issue a receipt or a decision to revoke a receipt must be given in writing and must include the reasons for the refusal or revocation.

Expiry of receipt

   (5)  A receipt for an offering statement expires on the earlier of,

  (a)  the date that is six months after the day it is issued; and

  (b)  the date on which the offering of securities contemplated by the offering statement for which the receipt is granted is closed in accordance with the offering statement.

   52.  Subsection 79 (1) of the Act is repealed and the following substituted:

Renewal of receipt

   (1)  Application for renewal of the receipt for an offering statement may be made by filing an application with the Superintendent with a copy of the statement and paying the fee established by the Minister.

   53.  Subsection 81 (3) of the Act is repealed and the following substituted:

Withdrawal from purchase

   (3)  An agreement of purchase and sale in respect of securities is not binding on the purchaser if the person from whom the purchaser has agreed to purchase the security receives written notice of the purchaser's intention not to be bound by the agreement not later than midnight on the second business day after receipt by the purchaser of the latest offering statement and any statement of material change.

Same

   (4)  Subsection (3) applies with necessary modifications in respect of a person who is subscribing for securities to be issued by a credit union.

Receipt by fax, etc., considered written notice

   (5)  Without limiting how else a written notice may be given, a written notice is considered to be received by a recipient for the purposes of subsection (3) if the recipient receives the notice by facsimile or electronic means.

Business day

   (6)  In subsection (3),

"business day" means a day that is not,

  (a)  Saturday, or

  (b)  Sunday or any other holiday, other than Easter Monday and Remembrance Day.

   54.  (1)  Subsection 82 (5) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Defence

   (5)  A person who signed the disclosure certificate required under subsection 77 (4) or a director is not liable under this section if the person proves one of the following:

.     .     .     .     .

   (2)  Paragraph 2 of subsection 82 (5) of the Act is repealed and the following substituted:

    2.  The person was not aware of the misrepresentation when the offering statement or material change statement was filed with the Superintendent. After the receipt for the statement was issued but before the purchaser bought the security, the person immediately after the person became aware of the misrepresentation advised the Superintendent that the person withdrew consent to the filing of the statement with the Superintendent.

   55.  Section 83 of the Act is repealed and the following substituted:

Restriction on Commission for Purchase or Sale

No commission by directors, officers, employees

   83.  None of the following persons shall charge or accept payment of a commission on the purchase or sale of a security of a credit union:

    1.  The directors, officers and employees of the credit union.

    2.  The related persons of a director, officer or employee of the credit union.

    3.  If the credit union is a member of a league, the directors, officers and employees of the league.

   56.  Section 84 of the Act is amended by adding the following subsections:

Forming of groups relating to capital requirements

   (3)  Subject to the regulations and with the approval of the Corporation, two or more credit unions may enter into an agreement with a league to form a group for the purposes of assisting the credit unions in satisfying the requirements of this section relating to capital.

Revocation of approval

   (4)  The Corporation may, by order, revoke its approval under subsection (3) on a prescribed ground.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under subsection (4).

   57.  Sections 85, 86, 87, 88 and 89 of the Act are repealed and the following substituted:

Capital and liquidity policies

   85.  (1)  A credit union shall establish capital and liquidity policies for the credit union consistent with the regulations governing adequate capital and liquidity and the credit union shall adhere to those policies.

Policies to be prudent

   (2)  The capital and liquidity policies of a credit union shall consist of policies, standards and procedures that a reasonable and prudent person would apply in order to ensure the financial soundness of the credit union, avoid undue risk of loss and obtain a reasonable return.

Approval and review by board

   (3)  The capital and liquidity policies of a credit union are subject to the approval of the board and the board shall review the policies at least once each year.

Order if policies inadequate, etc.

   (4)  If the Corporation considers the capital and liquidity policies of the credit union to be inadequate or imprudent, the Corporation may order the credit union to amend them in accordance with the order.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Additional requirements

   86.  (1)  The Corporation may order a credit union,

  (a)  to increase its capital; or

  (b)  to provide additional liquidity in such forms and amounts as the Corporation may require.

Circumstances

   (2)  Despite a credit union's compliance with the regulations governing adequate capital and liquidity, the Corporation may impose the requirements set out in subsection (1),

  (a)  if there are reasonable grounds to believe that the credit union is not complying with the requirements of this Act and the regulations concerning the management of risk in making loans and investments and in the general management of credit union business;

  (b)  if the Corporation considers that imposing the requirement is necessary to protect the interests of members, shareholders or depositors; or

   (c)  if the Corporation considers that imposing the requirement is necessary to ensure the financial security and integrity of the credit union.

Compliance

   (3)  The credit union shall comply with the order within such time as the Corporation specifies in the order.

Time for compliance if member of a group

   (4)  If the credit union is in a group formed under subsection 84 (3), the time for compliance specified under subsection (3) for an order under clause (1) (a) must be at least 30 days after the copy of the order is given to the credit union under section 240.2.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Variation of requirements

   87.  (1)  A credit union may apply to the Corporation for a variation of the requirements under section 84.

Application

   (2)  An application must be in a form approved by the Corporation and must describe how and when the credit union will meet the requirements under section 84.

Variation

   (3)  The Corporation may grant the variation subject to any terms it considers appropriate if it considers that granting the variation is in the interest of the members of the credit union and that the credit union will meet the requirements under section 84 within a reasonable time.

Valuation of asset

   88.  If the Corporation has appraised the value of an asset held by a credit union or a subsidiary and the value determined by the Corporation varies materially from the value placed by the credit union or the subsidiary on the asset, the Corporation shall send to the credit union, its auditor and its audit committee a written notice of the value of the asset as determined by the Corporation.

Report re adequacy

   89.  A credit union shall provide a report in a form approved by the Corporation concerning its compliance with section 84 to such persons and at such times as required by the Corporation.

Notification if credit union insolvent

   89.1  If the Corporation believes that a credit union is unable to provide for the payment of its liabilities as they become due, the Corporation shall immediately notify the Superintendent in writing.

   58.  (1)  Section 92 of the Act is repealed and the following substituted:

Disqualified individuals

   92.  (1)  The following individuals are disqualified from being directors of a credit union:

    1.  One whose membership in any credit union has been terminated, other than voluntarily.

    2.  One who a court has decided is of unsound mind.

    3.  One who is an undischarged bankrupt or who has been discharged as a bankrupt in the five years preceding the date on which he or she may be elected as director.

    4.  One who is unable to obtain a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance.

    5.  One who is more than 90 days in arrears in the payment of a debt owed to the credit union unless the credit union has agreed to extend the time for repayment.

    6.  One who is a listed person within the meaning of the United Nations Suppression of Terrorism Regulations under the United Nations Act (Canada).

    7.  One who has been convicted, in the five years preceding the date on which he or she may be elected as a director, of an offence described in subsection (3) and who has not received a pardon for the offence.

    8.  One whose membership in a professional association has been terminated, in the five years preceding the date on which he or she may be elected as director, for professional misconduct.

    9.  An employee of the credit union or a league in which the credit union is a member or his or her spouse, parent or child.

  10.  A professional advisor who provides services to the credit union in his or her professional capacity or who has provided such services in the three years preceding the date on which he or she may be elected as a director.

  11.  An employee of the Corporation.

  12.  A public servant employed in regulating credit unions.

  13.  One who has not met the training requirements or qualifications for directors established by the credit union.

  14.  One who has not met any reasonable condition or qualification set out in the by-laws of the credit union.

Exception

   (2)  An individual is not an employee for the purposes of paragraph 9 of subsection (1) solely because he or she provides, without remuneration, services to the credit union or league that are ordinarily provided by an employee.

Type of offence

   (3)  An offence referred to in paragraph 7 of subsection (1) is an offence that,

  (a)  is related to the qualifications, functions or duties of a director of a body corporate;

  (b)  involves theft or fraud;

   (c)  involves a contravention or failure to comply with this Act, a predecessor of this Act or an Act governing a subsidiary of the credit union; or

  (d)  involves a contravention or failure to comply with the Securities Act.

   (2)  Paragraph 12 of subsection 92 (1) of the Act, as enacted by subsection (1), is repealed and the following substituted:

  12.  A public servant employed under Part III of the Public Service of Ontario Act, 2006 whose employment duties include regulating credit unions.

   59.  Subsection 93 (1) of the Act is repealed and the following substituted:

Number of directors

   (1)  Subject to subsection (2), the number of directors shall be as provided in the by-laws.

   60.  The Act is amended by adding the following sections:

Disclosure of interest by candidates

   94.1  (1)  A person who is a candidate for director of a credit union shall disclose, before the election, everything the person would have to disclose under section 146 if the person were a director.

Clarification, existing directors, etc.

   (2)  For greater certainty,

  (a)  subsection (1) applies in relation to the re-election of a director as well as to the election of a person who is not already a director;

  (b)  the obligation to disclose under subsection (1) is in addition to any requirement to disclose under section 146 and applies even if a disclosure has already been made under that section; and

   (c)  a general notice described in subsection 146 (6) is not sufficient disclosure of an interest in a contract for the purposes of subsection (1).

Disclosure to board

   (3)  A disclosure required under subsection (1) shall be made in writing to the board of the credit union.

Notice to members

   (4)  The board shall give the members notice of the disclosure before the election is held.

How notice to members given

   (5)  The by-laws of the credit union may specify how the board shall give notice of the disclosure under subsection (4).

Chair of board

   94.2  The directors shall elect or appoint a chair of the board from among themselves.

   61.  Subsection 95 (4) of the Act is repealed and the following substituted:

Maximum number

   (4)  The by-laws shall provide for a maximum number of consecutive terms for directors.

   62.  The Act is amended by adding the following section:

Term of office, chair

   95.1  (1)  The chair of the board shall hold office for such term as the by-laws provide.

Maximum number

   (2)  The by-laws shall provide for a maximum number of consecutive terms for the chair of the board.

   63.  Subsection 97 (1) of the Act is repealed and the following substituted:

Vacancies

   (1)  If a vacancy occurs in the board and a quorum of directors remains, the directors remaining in office may appoint a qualified individual to fill the vacancy until the next annual meeting of the members of the credit union.

   64.  (1)  Clause 98 (1) (e) of the Act is repealed and the following substituted:

  (e)  when the Corporation replaces the board and appoints a person to assume the powers of the board under subsection 295 (1).

   (2)  Section 98 of the Act is amended by adding the following subsection:

Notice if no quorum of directors

   (3)  The credit union shall notify the Superintendent if, after a director ceases to hold office, there is not a quorum of directors in office.

   65.  (1)  Subsections 100 (4) and (5) of the Act are repealed and the following substituted:

Right to make representations

   (4)  At the meeting, the director is entitled to speak to the resolution calling for his or her removal and may do so personally or through legal counsel or an agent.

   (2)  Subsection 100 (4) of the Act, as re-enacted by subsection (1), is amended by striking out "through legal counsel or an agent" and substituting "through a person authorized under the Law Society Act to represent the member".

   66.  Sections 101 and 102 of the Act are repealed and the following substituted:

Removal by Superintendent

   101.  (1)  The Superintendent may, by order, remove a director of a credit union if the Superintendent is of the opinion that the director is not suitable to hold office as a director on the basis of the character or competence of the director.

Risk of prejudice

   (2)  In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the members, depositors and creditors of the credit union have been or are likely to be prejudiced by the director's holding office.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The director who is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Statement re opposition

   102.  (1)  A director who opposes any proposed action or resolution by the directors or members is entitled to give the credit union a written statement setting out why he or she opposes the proposed action or resolution.

Circulation of statement

   (2)  The credit union shall, within 30 days after receipt of the statement, send a copy of the statement to the Superintendent.

Immunity

   (3)  A credit union and a person acting on its behalf do not incur any liability by reason only of sending the statement as required by subsection (2).

   67.  Subsections 103 (2), (3), (4), (5) and (6) of the Act are repealed and the following substituted:

Information to Superintendent and Corporation

   (2)  The Superintendent or the Corporation may require the director to provide such information relating to the resignation as the Superintendent or the Corporation, as the case may be, specifies and the director shall promptly do so.

Statement re disagreement

   (3)  If a director resigns as a result of a disagreement with the other directors or the officers of a credit union, the director shall give the credit union, the Superintendent and the Corporation a written statement setting out the nature of the disagreement.

Advising members that statement available

   (4)  The credit union shall, within 30 days after receipt of the statement under subsection (3), advise every member that a copy of the statement is available on request.

Method of advising members

   (5)  The advising of the members under subsection (4) may be by deliveries permitted under section 335 or by such other method as is provided for in the credit union's by-laws.

Duty to give copy of statement

   (6)  The credit union shall give a copy of the statement to every member who requests it.

Immunity

   (7)  A credit union and a person acting on its behalf do not incur any liability by reason only of advising the members under subsection (4) or giving a copy of the statement to a member.

   68.  Subsections 104 (1) and (2) of the Act are repealed and the following substituted:

Duties of the board

   (1)  The board shall manage or supervise the management of the business and affairs of the credit union and shall perform such additional duties as may be imposed under this Act, the regulations, the by-laws of the Corporation respecting credit unions or the by-laws of the credit union.

Board, etc., not to manage day to day activities

   (2)  The board, a committee of the board or a director shall not directly manage, or be involved in, the day to day activities of the credit union.

   69.  Section 105 of the Act is amended by adding the following subsection:

Required matters

   (1.1)  The by-laws of a credit union shall provide for the following matters:

    1.  The appointment of officers of the credit union and the establishment of their duties.

    2.  The calling of meetings of the board, including the minimum number of times the board must meet each financial year if the minimum number of times exceeds the prescribed minimum number of times, the place or places where meetings of the board may be held and the manner in which notice of the meetings must be given.

   70.  Subsection 107 (2) of the Act is repealed and the following substituted:

Filing

   (2)  Within 30 days after a by-law is confirmed, the credit union shall file two copies of it with the Superintendent.

   71.  Section 108 of the Act is repealed and the following substituted:

Disclosure of expenses and remuneration

   108.  A credit union's annual audited financial statements must disclose the total expenses of the board and the total remuneration paid to the directors during the year.

   72.  The heading immediately before section 109 and section 109 of the Act are repealed and the following substituted:

Establishment of and delegation to committees

   109.  (1)  The board may establish committees and, subject to subsection (2), may delegate powers and assign duties to those committees.

Limitation on delegation

   (2)  The following powers cannot be delegated to a committee of the board:

    1.  Filling vacancies on the board or the audit committee.

    2.  Appointing or removing an officer or director of the credit union.

    3.  Appointing signing officers.

    4.  Adopting, amending or repealing by-laws.

    5.  Issuing securities except in the manner and on the terms authorized by the board.

    6.  Authorizing the payment of a commission upon the sale of shares.

    7.  Purchasing, redeeming or otherwise acquiring shares issued by the credit union.

    8.  Approving the financial statements.

    9.  Authorizing the purchase, sale, lease, exchange or other disposition of material assets.

  10.  Declaring dividends or patronage returns.

  11.  Expelling a member.

   73.  The heading immediately before section 110 and sections 110 to 120 of the Act are repealed.

   74.  The heading immediately before section 121 and sections 121 to 124 of the Act are repealed.

   75.  Sections 125 to 139 of the Act are repealed and the following substituted:

Audit Committee

Audit committee

   125.  (1)  The board of every credit union shall establish an audit committee composed of members appointed by the board from among the directors.

Minimum number of members

   (2)  The audit committee must have at least three members.

When member ceases to be member

   (3)  A person ceases to be a member of the audit committee of a credit union when he or she ceases to be a director or when he or she resigns from the committee or is replaced by the board.

Training

   (4)  Every member of an audit committee shall satisfy such training requirements or qualifications for audit committee members as are established by the credit union.

Meetings

   (5)  The audit committee shall hold a meeting no less frequently than once every quarter during each year and meetings may be called by the credit union's auditor, a member of the audit committee or any director.

Quorum

   (6)  A majority of the members of the audit committee constitutes a quorum.

Minutes

   (7)  The audit committee shall keep minutes of its meetings.

Report to the board

   (8)  The audit committee shall report to the board within 60 days after each committee meeting or at the next board meeting, whichever is earlier, setting out the results of the meeting.

Report to the members

   (9)  The audit committee shall report to the members of the credit union at the annual meeting by a report containing such information as may be prescribed.

Powers and duties of audit committee

   126.  The audit committee has such powers and duties as are set out in this Act, prescribed by the regulations or set out in the by-laws.

Notification about certain matters

   127.  (1)  The audit committee shall promptly notify the board, the credit union's auditor, the Corporation and the Superintendent if any of the following matters come to the attention of the committee:

    1.  Funds, securities or other property of the credit union have been or may have been misappropriated or misdirected.

    2.  The board, a director, an officer or an employee of the credit union has contravened or failed to comply with this Act, the regulations or the by-laws and the contravention or failure to comply materially affects the credit union.

Assistance

   (2)  Subject to the board's approval, which shall not be unreasonably withheld, the committee may retain one or more persons to assist it in determining whether a misappropriation or misdirection has occurred.

Remuneration

   (3)  The committee shall fix the remuneration payable to the persons retained under subsection (2) and the credit union shall pay it.

Power to call board meeting

   128.  The audit committee may call a meeting of the board to consider a matter of concern to the committee.

   76.  (1)  Subsection 140 (1) of the Act is repealed and the following substituted:

Officers

   (1)  In addition to the chair of the board required under section 94.2, a credit union must have a corporate secretary and a chief executive officer and may have such other officers as are provided for in the by-laws.

   (2)  Section 140 of the Act is amended by adding the following subsection:

Chief executive officer

   (3.1)  The chief executive officer shall be an employee of the credit union appointed by the board.

   (3)  Subsection 140 (5) of the Act is repealed and the following substituted:

Remuneration reported in financial statements

   (5)  A credit union's annual audited financial statements must disclose the prescribed information about the remuneration paid during the year to the officers and employees of the credit union.

   77.  Sections 142 and 143 of the Act are repealed and the following substituted:

Duty of confidentiality

   142.  (1)  Every director, officer, member of a committee or employee of a credit union shall keep confidential all information received by the credit union or by a subsidiary or other affiliate of the credit union that the director, officer, committee member or employee knows or should know is confidential to the credit union or subsidiary or other affiliate.

Use of information

   (2)  No director, officer, member of a committee or employee of a credit union shall make use of information referred to in subsection (1) in any transaction in order to obtain, directly or indirectly, a benefit or advantage for any person other than the credit union or a subsidiary or other affiliate of the credit union.

Confidentiality re members

   143.  (1)  Every director, officer, member of a committee or employee of a credit union shall keep confidential all information respecting members of the credit union.

Exception consent

   (2)  Despite subsection (1), information respecting a member may be disclosed with the consent of the member.

Exceptions

   (3)  Despite subsection (1), a director, officer or member of a committee or an employee authorized by the board may disclose information,

  (a)  to a person acting in a confidential or professional relationship to the credit union, including an employee of a league in which the credit union is a member;

  (b)  to a financial institution with which the credit union has transactions that may involve confidential matters;

   (c)  to another credit union with which the credit union of the director, officer, committee member or employee proposes to amalgamate, for the purposes of the amalgamation, if the credit unions have signed letters of intent to enter into an agreement for the amalgamation;

  (d)  to a person to whom the credit union proposes to sell assets, for the purposes of the sale, if the credit union and the person have signed letters of intent to enter into an agreement of purchase and sale for the sale;

  (e)  to a credit grantor or to a reporting agency, if the disclosure is for the purpose of determining the creditworthiness of the member;

    (f)  to the Superintendent and the Corporation; and

  (g)  to any other person entitled to the information by law.

   78.  Subsection 144 (1) of the Act is repealed and the following substituted:

Duty of care

   (1)  Every director, officer and member of a committee shall exercise the powers and discharge the duties of his or her office honestly, in good faith and in the best interests of the credit union.

   79.  Subsection 145 (1) of the Act is repealed and the following substituted:

Duty to comply

   (1)  Every director, officer, member of a committee and employee of a credit union shall comply with this Act, the regulations made under it and the articles and by-laws of the credit union.

   80.  Section 146 of the Act is repealed and the following substituted:

Disclosure of interest

   146.  (1)  This section applies to every director, officer, member of a committee or employee of a credit union who,

  (a)  is a party to a material contract or proposed material contract with the credit union;

  (b)  is a director or an officer of an entity that is a party to a material contract or proposed material contract with the credit union;

   (c)  has a material interest in a person who is a party to a material contract or proposed material contract with the credit union; or

  (d)  is a spouse, parent or child of an individual who is a party to a material contract or proposed material contract with the credit union.

Same

   (2)  The director, officer, committee member or employee shall disclose, in writing, to the credit union or ask to have the nature and extent of his or her interest entered in the minutes of board meetings.

Time of disclosure, director

   (3)  A director shall make the disclosure,

  (a)  at the board meeting at which a proposed contract is first considered;

  (b)  if the director was not then interested in a proposed contract, at the first meeting after the director becomes so interested;

   (c)  if the director becomes interested after a contract is made, at the first meeting after the director becomes so interested; or

  (d)  if a person who is interested in a contract later becomes a director, at the first meeting after he or she becomes a director.

Same, officer or committee member

   (4)  An officer, committee member or employee shall make the disclosure,

  (a)  promptly after he or she becomes aware that a proposed contract is to be considered or a contract has been considered at a board meeting;

  (b)  if he or she becomes interested after a contract is made, promptly after becoming so interested;

   (c)  if a person who is interested in a contract later becomes an officer, committee member or employee, promptly after becoming an officer, committee member or employee.

Same, no board approval

   (5)  If a material contract or proposed material contract is one that, in the ordinary course of business of the credit union, would not require approval by the board or the members, the director, officer, committee member or employee shall make the disclosure promptly after becoming aware of the contract or proposed contract.

Continuing disclosure

   (6)  A general notice to the board by a director, officer, committee member or employee declaring that he or she is a director or officer of an entity, or has a material interest in a person, and is to be regarded as interested in any contract made with that entity or person, is sufficient disclosure of an interest in relation to any contract so made.

   81.  Subsections 147 (1), (2) and (3) of the Act are repealed and the following substituted:

Voting

   (1)  A director to whom section 146 applies shall not be present at any meeting while the contract is being discussed or vote on, or attempt to influence the voting on, any resolution to approve the contract.

Exception

   (2)  Subsection (1) does not apply if the contract is,

  (a)  an arrangement by way of security for money lent to or obligations undertaken by the director for the benefit of the credit union or a subsidiary of it;

  (b)  a contract relating primarily to the director's remuneration as a director or as a member of a committee or an officer, employee or agent of the credit union or a subsidiary of it or an entity controlled by it;

   (c)  a contract for indemnity under section 157 or for insurance under section 156; or

  (d)  a contract with a subsidiary of the credit union.

   82.  Section 148 of the Act is repealed and the following substituted:

Avoidance standards

   148.  (1)  If a director, officer, committee member or employee made a required disclosure in respect of a contract referred to in subsection 146 (1), the contract was approved by the board or by the members of the credit union and the contract was reasonable and fair to the credit union at the time it was approved, the contract is neither void nor voidable by reason only,

  (a)  of the relationship between the person or entity and the director, officer, committee member or employee; or

  (b)  that an interested director is present at or is counted to determine the presence of a quorum at the board meeting that authorized the contract.

Application to court

   (2)  If a director, officer, committee member or employee of a credit union fails to disclose an interest in a material contract in accordance with section 146, a court may, on the application of the credit union or a member of the credit union, set aside the contract on such conditions as the court thinks fit.

   83.  Subsection 149 (1) of the Act is repealed and the following substituted:

Prohibition re acting for credit union

   (1)  This section applies with respect to a person who is a director of a credit union or a member of a committee.

   84.  The Act is amended by adding the following section immediately before the heading "Miscellaneous":

Prohibition re acting as trustee

   149.1  An officer or employee of a credit union shall not act as a trustee with respect to a deposit with the credit union or any other business or transaction with the credit union unless the beneficiary is a related person of the officer or employee.

   85.  Sections 150, 151 and 152 of the Act are repealed and the following substituted:

Validity of actions

   150.  An act by a director, officer or member of a committee is not invalid by reason only of a defect discovered afterward in his or her appointment, election or qualification.

Requirement for bond

   151.  (1)  Every director, officer or employee of a credit union who receives or has charge of money shall, on assuming his or her duties, furnish to the credit union a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance.

Bond

   (2)  The bond must be for an amount equal to or greater than the amount that is prescribed or determined in the prescribed manner, and must satisfy such conditions as may be prescribed.

Liability of directors, etc.

   152.  A liability imposed under this Act upon a director, officer or member of a committee is in addition to any other liability that is by law imposed upon him or her.

   86.  Section 155 of the Act is repealed and the following substituted:

Due diligence, reliance on statement, etc.

   155.  (1)  A director, officer, member of a committee or an employee of a credit union is not liable under section 153 or 209.1 and has fulfilled their duty under section 145 if they exercised the degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, including reliance in good faith on,

  (a)  financial statements of the credit union represented to them by an officer of the credit union or in a written report of the auditor of the credit union fairly to reflect the financial condition of the credit union; or

  (b)  a report of an accountant, lawyer or other professional person whose profession lends credibility to a statement made by the person.

Same

   (2)  A director, officer or member of a committee of a credit union has fulfilled their duty under section 144 if they relied in good faith on,

  (a)  financial statements of the credit union represented to them by an officer of the credit union or in a written report of the auditor of the credit union fairly to reflect the financial condition of the credit union; or

  (b)  a report of an accountant, lawyer or other professional person whose profession lends credibility to a statement made by the person.

   87.  (1)  Clause (a) of the definition of "eligible person" in subsection 157 (1) of the Act is repealed and the following substituted:

  (a)  a director, officer or member of a committee,

   (2)  Section 157 of the Act is amended by adding the following subsections:

Advance to pay for costs, etc.

   (3.1)  A credit union may advance money to an eligible person to pay for the costs, charges and expenses of any proceeding to which the person is made a party by reason of serving or having served in a qualifying capacity, but the person is required to repay the money if either of the conditions described in subsection (5) is not satisfied.

.     .     .     .     .

Advance to pay for costs, etc., derivative action

   (4.1)  With the approval of a court, a credit union may advance money to an eligible person to pay for the costs, charges and expenses of a proceeding described in subsection (4) to which the person is made a party by reason of serving or having served in a qualifying capacity, but the person is required to repay the money if either of the conditions described in subsection (5) is not satisfied.

   (3)  Clause 157 (9) (a) of the Act is repealed and the following substituted:

  (a)  acting or having acted as a director, officer or member of a committee; or

   88.  Subsection 159 (3) of the Act is repealed and the following substituted:

Vacancy

   (3)  In the event the office of auditor becomes vacant before the end of the incumbent auditor's term of office, the board may appoint an auditor to hold office until the close of the next annual meeting.

   89.  Subclause 160 (2) (b) (i) of the Act is amended by striking out the portion before sub-subclause (A) and by repealing sub-subclauses (A) and (B) and substituting the following:

           (i)  if that person, any partner of that person or any member of a firm of accountants of which that person is an employee,

                 (A)  is a director, officer, committee member or employee of the credit union, a subsidiary of the credit union or the Corporation,

                 (B)  is a business partner of any director, officer, committee member or employee of the credit union or a subsidiary of the credit union,

   90.  Subsections 164 (6) and (7) of the Act are repealed and the following substituted:

Replacement

   (6)  If the members remove the auditor from office, they shall appoint another auditor at the same meeting to hold office for the remainder of the auditor's term.

Vote

   (7)  The auditor appointed under subsection (6) must be appointed by a resolution passed by a majority of the votes cast at the meeting.

   91.  Section 165 of the Act is repealed and the following substituted:

Notice re resignation, etc.

   165.  A credit union shall promptly notify the Superintendent and the Corporation when an auditor resigns, is replaced or is removed from office and shall inform the Superintendent of the reasons.

   92.  Subsections 167 (1) and (2) of the Act are repealed and the following substituted:

Right of access

   (1)  The auditor of a credit union has a right of access at all times to all records and documents of the credit union.

Same

   (2)  The auditor is entitled to require from the board, directors, officers, employees and agents of the credit union such information and explanations as the auditor considers necessary to enable the auditor to make such reports as are required under this Act.

   93.  (1)  Subsections 169 (3) and (4) of the Act are repealed and the following substituted:

Qualified report

   (3)  If the auditor's report is not an unqualified report, the auditor shall state in the report the reasons for the qualified report.

Report to Superintendent, Corporation for certain purposes

   (3.1)  Within 10 days after the annual meeting, the auditor shall provide a copy of the audited financial statements and the auditor's report to the Superintendent and the Corporation for the purpose of assisting them in carrying out their duties and powers under this Act, including, without limiting the generality of the foregoing, for the purposes of the following:

    1.  Determining whether conditions on the deposit insurance of the credit union should be imposed or amended under section 270.

    2.  Determining whether the deposit insurance of the credit union should be cancelled under section 274.

    3.  Determining the annual premium for the credit union under section 276.1.

Facts discovered subsequently

   (4)  If facts come to the attention of an officer, the board or the audit committee which, if they had been known before the most recent annual meeting, would have required a material adjustment to the financial statement presented at the meeting, the officer, board or audit committee shall notify the auditor who reported to the members at the meeting and the board shall promptly amend the financial statement and send it to the auditor.

   (2)  Subsection 169 (7) of the Act is repealed and the following substituted:

Amended report to Superintendent, Corporation

   (7)  Within 10 days after providing the amended report to the credit union, the auditor shall provide a copy of the amended report to the Superintendent and the Corporation.

Auditing standards

   (8)  The auditor's examination referred to in subsection (1) shall, except as otherwise specified by the Corporation, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Canadian Institute of Chartered Accountants.

Report to address fair value, adequacy of capital, etc.

   (9)  The auditor's report shall address the fair value of the assets and liabilities of the credit union and the credit union's compliance with section 84.

   94.  Section 170 of the Act is repealed and the following substituted:

Duty at meetings

   170.  If the auditor is present at a meeting of members or shareholders, the auditor shall answer inquiries directed to the auditor concerning the basis for the auditor's report under section 169.

   95.  The Act is amended by adding the following section:

Extended examination required by Corporation

   171.1  The Corporation may exercise the powers of the Superintendent under section 171 and, for that purpose, the references to the Superintendent in section 171 shall be deemed to be references to the Corporation.

   96.  (1)  Subsection 172 (1) of the Act is repealed and the following substituted:

Duty to report contravention, etc.

   (1)  The auditor of a credit union shall report in writing to the chair of the board and to the audit committee of the credit union any transaction or conditions that have come to the auditor's attention adversely affecting the credit union that, in the auditor's opinion, are not satisfactory and require rectification.

   (2)  Subsection 172 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Same

   (2)  Without restricting the generality of subsection (1), the auditor shall report on,

.     .     .     .     .

   (3)  Clause 172 (4) (a) of the Act is repealed and the following substituted:

  (a)  the auditor shall transmit the report, in writing, to the chair of the board and to the audit committee;

   (4)  Clause 172 (4) (d) of the Act is repealed and the following substituted:

  (d)  the auditor shall, at the time of transmitting the report pursuant to clause (a), provide the Superintendent and the Corporation with a copy of the report.

   97.  Paragraphs 6 and 7 of section 173 of the Act are repealed.

   98.  (1)  Subsection 174 (1) of the Act is repealed and the following substituted:

Ancillary businesses

   (1)  A credit union shall not deal in goods or engage in any trade or business except as authorized by this Act or as prescribed.

   (2)  Subsection 174 (3) of the Act is repealed and the following substituted:

Prohibition re financial services

   (3)  A credit union shall not provide financial services prescribed as prohibited.

   99.  (1)  Subsection 178 (2) of the Act is repealed and the following substituted:

Authorization by the Corporation

   (2)  Despite subsection (1), the Corporation may authorize a credit union to guarantee a payment in circumstances other than those described in that subsection.

   (2)  Subsection 178 (5) of the Act is repealed and the following substituted:

Exemption

   (5)  The Corporation may exempt a credit union from the limit under subsection (4) on the aggregate value of guarantees.

   (3)  Subsection 178 (7) of the Act is repealed and the following substituted:

Non-application of s. (1) (a)

   (7)  Clause (1) (a) does not apply with respect to a guarantee given by a credit union on behalf of a league or a financial institution that is a member of the Canadian Payments Association if the payment guaranteed represents the obligation of the league or financial institution to settle for payment items in accordance with the by-laws and rules of the Canadian Payments Association or such other guarantees as may be prescribed.

   100.  Section 179 of the Act is repealed and the following substituted:

Appointment of receiver, etc.

   179.  A credit union shall not give a person the right to appoint a receiver or a receiver and manager of the property or business of the credit union.

   101.  (1)  Clause 180 (b) of the Act is repealed and the following substituted:

  (b)  the Corporation;

   (2)  Clause 180 (j) of the Act is repealed and the following substituted:

    (j)  leagues;

(j.1)  subject to any restrictions in the by-laws of the credit union, persons who have not become members of the credit union but whose deposit accounts were acquired by the credit union as a result of the purchase of all or part of the business of another financial institution that is not a credit union;

   (3)  Section 180 of the Act is amended by adding the following subsections:

Authority to accept deposits

   (2)  A credit union may, without the intervention of another person,

  (a)  accept a deposit from a person referred to in subsection (1) whether or not the person is qualified by law to enter into contracts; and

  (b)  pay all or part of the principal of the deposit and all or part of the interest earned on the deposit to or to the order of that person.

Exception

   (3)  Clause (2) (b) does not apply if, before the payment is made, the money deposited with the credit union is claimed by another person,

  (a)  in an action or proceeding to which the credit union is a party and in respect of which service of a claim or other process originating that action or proceeding has been made on the credit union; or

  (b)  in an action or proceeding pursuant to which an injunction or order made by the court requiring the credit union not to make payment of that money or to make payment of it to some person other than the depositor has been served on the credit union.

Same

   (4)  In the case of a claim referred to in subsection (3), the money may be paid to the depositor only with the consent of the claimant or to the claimant only with the consent of the depositor.

RRSPs for employees of a member

   (5)  Despite subsection (1), a credit union may accept deposits for RRSPs for employees of a member if the member was involved in the establishment of the RRSPs at the credit union and the member makes payments into the RRSPs on behalf of the employees.

Application of other provisions

   (6)  Subsections (2), (3) and (4) apply, with necessary modifications, with respect to employees referred to in subsection (5).

Definition

   (7)  In subsection (5),

"RRSPs" means registered retirement savings plans within the meaning of subsection 146 (1) of the Income Tax Act (Canada).

   102.  Sections 181, 182, 183, 184 and 185 of the Act are repealed and the following substituted:

Not bound by trust

   181.  (1)  A credit union is not bound to see to the execution of any trust to which any deposit is subject.

Application, payment when credit union has notice of trust

   (2)  Subsection (1) applies whether the trust is express, implied or constructive and applies even when the credit union has notice of the trust if the credit union acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.

Unclaimed deposits

   182.  (1)  If 10 years have elapsed since the day on which the last transaction by a depositor took place on the depositor's account or a statement of account was last requested or acknowledged by the depositor, whichever is latest, the credit union shall pay the amount on deposit to the Minister.

Obligation discharged

   (2)  Payment to the Minister discharges the credit union from all liability in respect of the amounts paid.

Payment by Minister

   (3)  The Minister shall pay the amount received under subsection (1) to a person claiming to be entitled to it upon being furnished with satisfactory evidence of the person's entitlement.

Two-year notice

   (4)  If two years have elapsed since the day on which the last transaction by a depositor took place on the depositor's account or a statement of account was last requested or acknowledged by the depositor, whichever is latest, the credit union shall mail a notice to the depositor, at the depositor's last known address, notifying the depositor that the deposit remains unpaid.

Five-year notice

   (5)  If five years have elapsed since the day on which the last transaction by a depositor took place on the depositor's account or a statement of account was last requested or acknowledged by the depositor, whichever is latest, the credit union shall mail a notice to the depositor, at the depositor's last known address, notifying the depositor that the deposit remains unpaid.

Application despite other Act

   (6)  This section applies despite the provisions of any other Act that would apply with respect to the disposition of an unclaimed and unpaid amount on deposit and the provisions of any such other Act shall not apply with respect to such an amount.

Debt Obligations

Borrowing

   183.  (1)  A credit union may borrow only if authorized to do so by its by-laws.

Scope of authority

   (2)  The by-laws may authorize the credit union to borrow money at such rates of interest and on such conditions as the board may determine.

Limit on amount

   (3)  A credit union shall not borrow an aggregate amount exceeding 50 per cent of its regulatory capital and deposits or such lesser amount as may be established by its by-laws.

Security interests in credit union property

   184.  A credit union may create a security interest in property of the credit union only as prescribed.

Notice re acquisitions subject to security interests

   185.  A credit union shall notify the Corporation in writing if it acquires, other than by way of realization on the security for a loan, a beneficial interest in property that is subject to a security interest.

   103.  Sections 187 to 196 of the Act are repealed and the following substituted:

Limit on borrowing

   187.  (1)  The Corporation may inquire into the borrowing by a credit union and may, by order, limit the credit union's authority to borrow money.

Reasons to be given

   (2)  The Corporation shall set out the reasons for its decision in the order.

Effect

   (3)  The credit union shall not exercise its borrowing power in excess of any limit set out in the order of the Corporation.

Procedural rules

   (4)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (5)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Restriction on borrowing from another credit union

   188.  No credit union shall borrow money from another credit union without the written approval of the Corporation.

Investment and lending policies

   189.  (1)  A credit union shall establish investment and lending policies for the credit union and the credit union shall adhere to those policies.

Policies to be prudent

   (2)  The investment and lending policies of a credit union shall consist of policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans in order to avoid undue risk of loss and obtain a reasonable return.

Approval and review by board

   (3)  The investment and lending policies of a credit union are subject to the approval of the board and the board shall review the policies at least once each year.

Order if policies inadequate, etc.

   (4)  If the Corporation considers the investment and lending policies of the credit union to be inadequate or imprudent, the Corporation may order the credit union to cease investing or lending as specified in the order until the policies are amended in accordance with the order.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Loans

Loans to members only

   190.  (1)  A credit union shall loan money only,

  (a)  to its members; or

  (b)  by participating in a loan syndication in which the borrower is a member of a credit union that is one of the lenders in the loan syndicate.

Exception – loans acquired by purchase

   (2)  If a credit union acquires a loan as a result of a purchase of all or part of the business of another financial institution, the credit union may continue that loan, despite subsection (1), for one year after the loan is acquired or, if the loan is for a specified term, until the end of that term.

Prescribed lending limits

   191.  (1)  A credit union shall not make loans in excess of such lending limits as may be prescribed or as may be ordered under subsection (2) or (5).

Lowering lending limits

   (2)  The Corporation may, by order, lower a credit union's lending limits if the Corporation believes on reasonable grounds that the credit union's current lending limits may adversely affect the interests of the credit union's members, depositors or shareholders.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under subsection (2).

Appeal to Tribunal

   (4)  The credit union that is subject to an order under subsection (2) may appeal the order to the Tribunal in accordance with section 240.4.

Raising lending limits

   (5)  On application by a credit union, the Corporation may, by order on terms specified in the order, raise the credit union's lending limits if the Corporation is satisfied there are reasonable grounds for doing so.

   104.  Subsection 197 (2) of the Act is repealed and the following substituted:

Divestment if not in compliance with investment and lending policies

   (2)  If the securities acquired by a credit union because of a default on a loan are not an investment permitted by the credit union's investment and lending policies, the credit union shall divest itself of the securities within two years after their acquisition or within such further time as the Corporation may authorize.

   105.  The Act is amended by adding the following section immediately before the heading "Cost of Borrowing":

Order for call of unauthorized loans

   197.0.1  (1)  The Corporation may order a credit union to call any loan it has made that is not authorized by this Act, the regulations or the by-laws of the credit union.

Time to comply

   (2)  Despite section 240.3, an order under this section shall allow the credit union at least 60 days to comply with the order.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

   106.  Sections 198, 199, 200 and 201 of the Act are repealed and the following substituted:

Eligible investments

   198.  A credit union shall invest only in such types of securities or property and on such conditions as are prescribed for its class.

Exception to restriction re single investment

   199.  (1)  A credit union may directly or indirectly invest, by way of purchase from or loans to a single person or to two or more connected persons, more than the amount prescribed for its class only if,

  (a)  the investment is in the form of deposits with or loans to,

           (i)  a financial institution that is not a credit union or a securities dealer,

          (ii)  the Corporation, or

         (iii)  a prescribed person or entity; or

  (b)  the investment is in securities issued or guaranteed by the Government of Canada, including mortgages insured under the National Housing Act (Canada), by the government of any province of Canada or by any municipality in Canada.

Connected persons

   (2)  For the purposes of this section, two or more persons are connected persons if they satisfy the prescribed conditions.

Establishing or acquiring subsidiary

   200.  (1)  A credit union may establish or acquire a subsidiary only if the subsidiary is prescribed and only with the approval of the Corporation and the establishment or acquisition of a subsidiary is subject to such restrictions as may be prescribed and to such additional conditions as the Corporation may, by order, impose.

Deemed prescribed subsidiary

   (2)  On written application by a credit union, the Corporation may, by order and on such conditions as are specified in the order, deem a body corporate named in the order to be, for all purposes of this Act, a prescribed subsidiary if its activities are substantially similar to those of a body corporate identified as a prescribed subsidiary.

Refusal of approval to be by order

   (3)  If the Corporation refuses to approve the establishment or acquisition of a subsidiary, the Corporation shall do so by order.

Anti-avoidance

   (4)  The Corporation shall issue an order refusing to approve the establishment or acquisition of a subsidiary if it considers that the establishment or acquisition is primarily for the purpose of allowing the credit union to avoid the limits under this Act or the regulations on its investments.

Revocation of approval

   (5)  The Corporation may, by order, revoke its approval if,

  (a)  the credit union has failed to comply with the conditions and restrictions applicable to the investment; or

  (b)  the body corporate is no longer a prescribed subsidiary.

Effect of revocation

   (6)  Upon a revocation of an approval, the credit union shall divest itself of the investment in accordance with the order effecting the revocation.

Restriction on investments in subsidiaries

   (7)  A credit union shall ensure that the total book value of investments held by the credit union in subsidiaries of the credit union and of guarantees by the credit union of the obligations of such subsidiaries does not exceed the prescribed percentage of the regulatory capital of the credit union.

Procedural rules

   (8)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (9)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Variation of requirements

   201.  (1)  A credit union may apply to the Corporation for a variation of the requirements under section 198, subsection 199 (1) or subsection 200 (7).

Application

   (2)  An application must be in a form approved by the Corporation.

Variation

   (3)  The Corporation may grant the variation subject to any terms it considers appropriate if it considers that granting the variation is in the interest of the members of the credit union.

Investment in another credit union

   201.1  (1)  A credit union shall not invest in another credit union without the approval of the Corporation.

Refusal of approval to be by order

   (2)  If the Corporation refuses to approve an investment in another credit union, the Corporation shall do so by order.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

   107.  (1)  Subsection 202 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Status of investments upon amalgamation, etc.

   (1)  The Corporation may authorize the acceptance by a credit union of securities or other assets not fulfilling the requirements of this Act,

.     .     .     .     .

   (2)  Subsections 202 (2) and (3) of the Act are repealed and the following substituted:

Divestment

   (2)  The credit union shall divest itself of the securities or other assets within two years after their acquisition or within such further time as the Corporation may authorize.

Exception

   (3)  The Corporation may relieve the credit union of the obligation to divest itself of the securities or other assets if the Corporation is satisfied that they are not inferior in status or value to the securities for which they have been substituted.

   108.  The Act is amended by adding the following section immediately before the heading "Transfer of Assets":

Order for disposal of unauthorized investments

   202.1  (1)  The Corporation may order a credit union to dispose of any investment that was not made or is not held in accordance with this Act, the regulations, the Corporation's by-laws or the credit union's investment and lending policies.

Time to comply

   (2)  Despite section 240.3, an order under this section shall allow the credit union at least 60 days to comply with the order.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Directors' liability

   (5)  Subject to subsection (8), if the amount realized from the disposal of the investment is less than the amount paid by the credit union for it, the directors of the credit union are jointly and severally liable for the payment to the credit union of the amount of the difference.

Objection to investment

   (6)  A director who is present at a directors' meeting at which an investment to which the director objects is authorized may,

  (a)  immediately deliver or send to the credit union by registered mail a protest against the investment; and

  (b)  within 30 days after delivering or sending the protest referred to in clause (a), send a copy of the protest by registered mail to the Corporation.

Same

   (7)  A director who is absent from a meeting at which an investment to which the director objects is authorized may,

  (a)  within 14 days after he or she becomes aware of the investment and is able to do so, deliver or send to the credit union by registered mail a protest against the investment; and

  (b)  within 30 days after delivering or sending the protest referred to in clause (a), send a copy of the protest by registered mail to the Corporation.

Exoneration

   (8)  A director who takes the steps set out in subsection (6) or (7) has no liability with respect to an investment to which he or she objected.

   109.  The heading immediately before section 203 and sections 203, 204, 205 and 206 of the Act are repealed and the following substituted:

Purchase and Sale of Assets

Interpretation

   203.  For the purposes of section 204, a sale of property includes a sale, lease, exchange or other disposition of property and a purchase of property includes a lease, exchange of property or other acquisition of property.

Purchase or sale of substantial assets

   204.  (1)  A credit union shall not do any of the following unless authorized to do so by special resolution of the members of the credit union:

    1.  Sell assets if the market value of the assets is 15 per cent or more of the value of the credit union's total assets.

    2.  Purchase assets of a financial institution if the market value of the assets is 15 per cent or more of the value of the credit union's total assets.

Alternative for certain sales

   (2)  A credit union may proceed with a sale described in paragraph 1 of subsection (1) without a special resolution of the members if the sale is in the ordinary course of business and the purchaser pays the purchase price by paying cash.

Determination of value of total assets

   (3)  For the purposes of subsection (1), the value of the credit union's total assets shall be as set out in the audited financial statements placed before the members at the most recent annual meeting.

If more than one class of shares

   (4)  If the credit union has more than one class of issued shares, the special resolution referred to in subsection (1) shall be in the form of a special resolution passed by the holders of each class of shares.

Agreement and Corporation approval required

   (5)  A credit union shall not proceed with a sale or purchase described in subsection (1), including a sale to which subsection (2) applies, unless there is an agreement for the sale or purchase and that agreement has been approved by the Corporation.

Corporation approval required before authorization of members, etc.

   (6)  A credit union shall not seek the authorization of the members and shareholders required under subsection (1) until the Corporation has approved the agreement under subsection (5).

Refusal of approval to be by order

   (7)  If the Corporation refuses to approve an agreement under subsection (5), the Corporation shall do so by order.

Procedural rules

   (8)  Section 240.1 applies with respect to an order under subsection (7).

Appeal to Tribunal

   (9)  The credit union that is subject to an order under subsection (7) may appeal the order to the Tribunal in accordance with section 240.4.

Purchase price if transaction is between credit unions

   (10)  In a purchase or sale described in subsection (1) in which both the purchaser and the seller are credit unions, the purchaser may pay the purchase price only in one or more of the following ways:

    1.  By assuming liabilities of the seller.

    2.  By paying cash.

    3.  By issuing shares that are not membership shares or patronage shares.

    4.  By issuing promissory notes.

No splitting to avoid requirements

   (11)  A credit union shall not structure a sale or purchase as two or more sales or purchases for the purpose of avoiding a requirement under this section.

   110.  Section 208 of the Act is repealed and the following substituted:

Loans to officers and directors

   208.  (1)  A credit union may lend to an officer or a director an amount in excess of the aggregate of deposits of the officer or director pledged as collateral for the loan only if the board approves the loan before it is made.

Delegation of authority to approve loan to committee

   (2)  The board may delegate its authority to grant an approval under subsection (1) to a committee of the board on such terms and with such restrictions as may be specified by the board.

Committee to report

   (3)  A committee referred to in subsection (2) shall report details of the loans approved by the committee to the board at the first meeting of the board after the approval is given.

   111.  The Act is amended by adding the following section:

Setting aside transactions

   209.1  (1)  If a transaction with a restricted person that is prohibited or restricted by this Act or the regulations takes place, any interested person, including the Superintendent or Corporation, may apply to the court for an order,

  (a)  setting aside the transaction and directing that the restricted party account to a credit union for any profit or gain realized; and

  (b)  that each person who participated in or facilitated the transaction pay to the credit union on a joint and several basis the damages suffered, the face value of the transaction or the amount expended by the credit union in the transaction.

Order

   (2)  The court may make the order applied for or such other order as it thinks appropriate.

Same

   (3)  An order under subsection (2) may order compensation for a loss or damage suffered by the credit union and punitive damages from the restricted party.

Exemption

   (4)  A person who is not a director is not liable under clause (1) (b) unless the person knew or ought reasonably to have known that the transaction was made in contravention of a restricted party provision.

   112.  Sections 211 and 212 of the Act are repealed and the following substituted:

Members' and Shareholders' Meetings

Notice of meetings

   211.  (1)  Notice of the time and place for holding a meeting of the members of a credit union shall be given at the time and in the manner specified in the by-laws of the credit union to each member of the credit union who, on the record date for the notice, appears in the records of the credit union as a member.

Same

   (2)  Despite the by-laws of the credit union, notice of the time and place for holding a meeting shall be given at least 10 days before the date of the meeting but not more than 50 days before the date of the meeting.

Notice to include summary of special resolution

   (3)  Notice of a meeting at which a special resolution is to be voted on shall include a summary of the special resolution, including, for a special resolution to confirm a by-law, a summary of the by-law.

Interpretation

   (4)  For the purposes of subsection (1), the record date means the record date as established by the by-laws of the credit union.

Shareholder meetings

   (5)  This section applies with necessary modifications to meetings of holders of shares of the credit union other than patronage shares.

Annual meeting

   212.  (1)  Subject to the by-laws, an annual meeting of the members of a credit union shall be held at such time and place in Ontario as the board determines.

Time of meeting

   (2)  Unless otherwise authorized by the Superintendent, the annual meeting of the members of a credit union must be held no later than 120 days after the end of the credit union's last completed financial year.

Extension of time limit for holding annual meeting

   (3)  On application by a credit union, the Superintendent may authorize the credit union to hold its annual meeting of members on a day that is more than 120 days after the end of the last completed financial year if the Superintendent considers the extension of time to be reasonable in the circumstances, and the Superintendent may impose such conditions as the Superintendent considers appropriate.

Business to be dealt with

   (4)  At an annual meeting, the board shall place before the members,

  (a)  the audited financial statements of the credit union;

  (b)  the report of the auditor;

   (c)  the report of the audit committee; and

  (d)  such further information respecting the financial position of the credit union and the results of its operations as the by-laws require.

Information to be provided

   (5)  The notice of an annual meeting of the members must,

  (a)  specify that copies of the audited financial statements, the auditor's report and the audit committee report will be available for inspection, by any member, at the meeting and at the offices of the credit union at least 10 days before the meeting; and

  (b)  set out any matters to be dealt with at the annual meeting in addition to the business described in subsection (4) in sufficient detail to permit members to form a reasonable judgment on the matter.

   113.  (1)  Subsections 213 (1), (2) and (3) of the Act are repealed and the following substituted:

Financial statements

   (1)  The financial statements to be placed before the members must show the prescribed matters relating separately to the prescribed time periods.

   (2)  Subsections 213 (6) and (7) of the Act are repealed and the following substituted:

Available to members

   (6)  The credit union shall make copies of the audited financial statements, the auditor's report and the audit committee report available for inspection, by any member, at the meeting at which the statements and reports are to be placed before the members and at the offices of the credit union at least 10 days before the meeting.

Filed with the Corporation

   (7)  The credit union shall send to the Corporation the audited financial statements, the auditor's report and the audit committee report at least 10 days before the day of the annual meeting at which the statements and reports are to be placed before the members.

   114.  Subsections 217 (2) to (9) of the Act are repealed.

   115.  The Act is amended by adding the following sections:

Voting rights at members' meetings

   217.1  Each member of a credit union has one vote at a meeting of the members of the credit union.

Different ways of member voting

   217.2  (1)  A member of a credit union may vote in person or, unless the articles or by-laws of the credit union provide otherwise, by mail or by telephone or electronic means.

Conditions in by-laws

   (2)  The by-laws may set out conditions that apply to voting in the different ways allowed under subsection (1).

Regulations

   (3)  The Lieutenant Governor in Council may make regulations governing voting in the different ways allowed under subsection (1).

Proxies, members

   217.3  (1)  No member of a credit union shall vote by proxy except when the member is Her Majesty the Queen in right of Ontario or in right of Canada, a corporation, including a municipality defined in the Municipal Affairs Act, an unincorporated association or a partnership registered under the Business Names Act or a predecessor of that Act.

Only one proxy vote

   (2)  A person may cast only one vote by proxy on a matter.

Member's vote not affected

   (3)  For greater certainty, subsection (2) does not prevent a member who votes as a proxy holder from casting the member's own vote.

Proxies, other shareholders

   217.4  (1)  Part VIII of the Business Corporations Act applies, with necessary modifications, with respect to proxies for voting by shareholders in respect of shares other than membership shares or patronage shares as if the credit union were incorporated under that Act.

Same

   (2)  For the purposes of subsection (1), any reference in Part VIII of the Business Corporations Act to "offering corporation" shall be deemed to be a reference to the "credit union" and, if the credit union is not an "offering corporation" as defined in section 1 of that Act, any reference in Part VIII of that Act to the "Commission" shall be deemed to be a reference to the "Superintendent".

Exception, information circular

   (3)  Despite Part VIII of the Business Corporations Act, as made applicable by subsection (1), neither a credit union nor a dissident is required to deliver an information circular to holders of membership shares or patronage shares.

Telephone and electronic meetings

   217.5  Unless the articles or by-laws of a credit union provide otherwise, a meeting of the members may be held by telephonic or electronic means and a member who, through those means, votes at the meeting or establishes a communications link to the meeting shall be deemed for the purposes of this Act to be present at the meeting.

   116.  The Act is amended by adding the following heading immediately before section 218:

Directors' Meetings

   117.  The French version of subsection 218 (1) of the Act is repealed and the following substituted:

Réunions par téléphone ou par un moyen électronique

   (1)  Sauf disposition contraire des règlements administratifs, si tous les administrateurs qui sont présents à la réunion ou qui y participent y consentent, une réunion du conseil ou d'un de ses comités peut se tenir par tout moyen téléphonique ou électronique ou par tout autre moyen permettant à tous les participants de communiquer entre eux de façon simultanée et instantanée.

   118.  Section 220 of the Act is repealed and the following substituted:

Meeting required by Superintendent or the Corporation

   220.  (1)  The Superintendent or the Corporation may, by written notice to the credit union and each director, require a credit union to hold a meeting of the directors to consider any matter set out in the notice.

Attendance by Superintendent or the Corporation

   (2)  The Superintendent or his or her designate and a representative of the Corporation may attend and be heard at the meeting.

   119.  The Act is amended by adding the following heading immediately before section 221:

Miscellaneous

   120.  (1)  Subsection 222 (2) of the Act is repealed and the following substituted:

Inspection of person's own account

   (2)  A person may inspect, at all reasonable hours, the person's own account.

   (2)  Section 222 of the Act is amended by adding the following subsection:

List of members and shareholders

   (5.1)  A member of a credit union may inspect, at all reasonable hours, a list, extracted from the register under section 230, of the names of the members and shareholders.

   121.  (1)  Subsection 223 (1) of the Act is repealed and the following substituted:

Financial statements of subsidiaries

   (1)  Copies of the latest financial statements of each subsidiary of a credit union,

  (a)  shall be kept by the credit union at such place in Ontario as is specified in the by-laws; and

  (b)  shall be open to examination by the members and shareholders of the credit union and their agents.

   (2)  The French version of subsections 223 (2) and (3) of the Act is repealed and the following substituted:

Extraits

   (2)  Quiconque a le droit d'examiner les exemplaires des états financiers peut en tirer gratuitement des extraits pendant les heures de bureau de la caisse.

Requête au tribunal

   (3)  La caisse peut, dans les quinze jours qui suivent la réception d'une demande d'examen d'exemplaires des états financiers, demander au tribunal, par voie de requête, une ordonnance visant à interdire cet examen. Si le tribunal est convaincu que celui-ci serait préjudiciable à la caisse ou à une de ses filiales, il peut l'interdire et rendre toute autre ordonnance qu'il estime appropriée.

   122.  Section 224 of the Act is repealed and the following substituted:

Branches and other member groups

   224.  (1)  A credit union may establish branches and such other member groups as may be specified in the by-laws, subject to such conditions as may be set out in the by-laws.

Branch and member group meetings

   (2)  A credit union may, by by-law, provide for the holding of branch and member group meetings for members of branches and member groups.

Election of delegates

   (3)  If a by-law of a credit union provides for a branch or member group meeting, the members of the branch or member group shall elect delegates, by a resolution passed by a majority of the votes cast at the meeting, to represent the members at general meetings of the members of the credit union.

Powers of delegates

   (4)  Delegates elected from a branch or member group shall exercise the powers of the members of the branch or member group at all general meetings of the members of the credit union.

When members lose vote

   (5)  Members of a branch or member group who are represented by elected delegates at a general meeting of the members of the credit union are entitled to attend the meeting but are not entitled to vote at the meeting.

Branch meeting procedure

   (6)  If a by-law of a credit union provides for branch or member group meetings, the by-laws of the credit union shall specify,

  (a)  the number of delegates and votes allowed to each branch and member group at a general meeting of the members of the credit union;

  (b)  the time, place and manner of calling branch and member group meetings;

   (c)  the number of members of a branch or member group that constitute a quorum; and

  (d)  the procedure to be followed in the conduct of branch and member group meetings.

Determination of number of delegates and votes

   (7)  The number of delegates and votes allowed to each branch and member group at a general meeting of the members of the credit union under clause (6) (a) shall be determined on a basis that is reasonable given the number of members in each branch or member group.

Majority

   (8)  The required majority vote for deciding an issue to be voted on at a branch or member group meeting is the same as that required for deciding a similar issue at a general meeting of the members of the credit union.

   123.  The heading immediately before section 225 and sections 225, 226, 227, 228 and 229 of the Act are repealed and the following substituted:

PART XI
RETURNS, Examinations and Records

Returns and Examinations

Information required by Superintendent

   225.  (1)  A credit union shall provide the Superintendent with such information relating to the credit union's business as the Superintendent may require for the purpose of carrying out his or her powers and duties under this Act.

Time and form

   (2)  The credit union shall provide the information at such times and in such form as the Superintendent may require.

Information required by Corporation

   226.  (1)  A credit union shall provide the Corporation with such information relating to the credit union's business as the Corporation may require for the purpose of carrying out its powers and duties under this Act.

Time and form

   (2)  The credit union shall provide the information at such times and in such form as the Corporation may require.

Annual return

   227.  (1)  A credit union shall file an annual return with the Corporation at such time, in such form and containing such information as the Corporation requires.

Review

   (2)  The Corporation shall review the annual return and, for that purpose, may require the credit union and any league of which it is a member to provide such additional information concerning the affairs of the credit union as the Corporation may require.

Same

   (3)  A credit union and league shall provide any additional information required by the Corporation under subsection (2).

Examination by Superintendent

   228.  The Superintendent may, at any reasonable time, visit the offices of any credit union and inspect the premises and examine the credit union's affairs to determine whether the credit union is complying with this Act, the regulations, orders made by the Superintendent or the Corporation, the by-laws of the Corporation applicable to the credit union, the by-laws of the credit union or policies established by the board of the credit union.

Examination by Corporation

   229.  A person authorized by the Corporation for the purposes of this section may, at any reasonable time, visit the offices of any credit union and inspect the premises and examine the credit union's affairs to determine whether the credit union is complying with this Act, the regulations, orders made by the Superintendent or the Corporation, the by-laws of the Corporation applicable to the credit union, conditions imposed on the deposit insurance of the credit union under subsection 270 (4), the by-laws of the credit union or policies established by the board of the credit union.

Examination powers

   229.1  (1)  This section applies with respect to examinations under sections 228 and 229.

Access to records and documents, etc.

   (2)  The person conducting the examination is entitled to access to all records and documents of a credit union, wherever located, including information held by a provider of data processing services to the credit union.

Answering questions

   (3)  Every director, officer and employee of a credit union shall answer such questions during the course of the examination as may be necessary for the person conducting the examination to determine if the credit union has complied with this Act, the regulations, orders made by the Superintendent or the Corporation, the by-laws of the Corporation applicable to the credit union, the by-laws of the credit union or policies established by the board of the credit union.

Material to be furnished on examination

   (4)  For the purposes of an examination,

  (a)  a credit union shall prepare and submit to the person conducting the examination such statements with respect to its business, finances or other affairs as the person requires; and

  (b)  the person conducting the examination may require the directors, officers and auditor of a credit union to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the condition and affairs of the credit union and any entity in which the credit union has made an investment.

Copies

   (5)  If a record or document has been examined or produced under this section, the person conducting the examination may make, or cause to be made, one or more copies of it and, if necessary, may temporarily remove the record or document for the purposes only of making the copy or copies.

   124.  The heading immediately before section 230 and sections 230 and 231 of the Act are repealed and the following substituted:

Records and Documents

Register of members, shareholders, etc.

   230.  (1)  Every credit union shall keep a register of members, shareholders and other security holders.

Contents of register

   (2)  The register shall contain,

  (a)  the name and address of each member, shareholder or other security holder;

  (b)  the number of shares of each class held by each member or shareholder and the number and type of the securities held by each of the other security holders;

   (c)  the date on which the name of any person or entity was entered in the register as a member, shareholder or other security holder; and

  (d)  the date on which any person or entity ceased to be a member.

Certificate as evidence

   (3)  A copy of all or part of the register, or a statement as to the contents of all or part of the register, purporting to be certified by the secretary is, without proof of the office or signature of the secretary, receivable in evidence as proof, in the absence of evidence to the contrary, of the facts stated in it for all purposes in any action, proceeding or prosecution.

Requirement to maintain records and documents, etc.

   231.  (1)  Every credit union shall keep and maintain at its head office or at such other place in Ontario as may be specified in its by-laws such books, registers and other records and documents in either English or French as may be required by the regulations.

Superintendent's order re location

   (2)  The Superintendent may order a credit union to keep its books, registers and other records and documents at a place in Ontario, specified in the order, instead of at the credit union's head office or any other place specified in the credit union's by-laws.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

   125.  (1)  Subsection 232 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Form of records and documents

   (1)  Any record or document required or authorized by this Act to be prepared and kept by a credit union may be,

.     .     .     .     .

   (2)  Subsection 232 (2) of the Act is repealed and the following substituted:

Conversions

   (2)  Any record or document kept in one form may be converted to any other form.

   126.  The heading immediately before section 234 and sections 234, 235, 236, 237, 238 and 239 of the Act are repealed and the following substituted:

PART XII
ENFORCEMENT

Certain Orders

Superintendent's order – general

   234.  (1)  The Superintendent may make an order under this section against,

  (a)  any person if, in the Superintendent's opinion, the person is doing anything that contravenes this Act or the regulations or might reasonably be expected, if continued, to result in a contravention of this Act or the regulations; or

  (b)  a credit union or a director, officer or employee of a credit union if, in the Superintendent's opinion, the credit union, director, officer or employee is doing anything that constitutes a practice that might prejudice or adversely affect the interest of a member, depositor or shareholder of the credit union.

What order may require

   (2)  An order under this section may require a person,

  (a)  to stop doing any act or pursuing any course of conduct; or

  (b)  to do any act or pursue any course of conduct.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The person who is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Appeal to court

   (5)  A party to the proceedings before the Tribunal may appeal the decision of the Tribunal, within 30 days after the party received notice of the decision, to the court upon a question of law only.

Order, if assets shown at more than fair value

   235.  (1)  If it appears to the Corporation from an examination of the condition and affairs of a credit union that assets are shown in the books and records of the credit union at an amount greater than the fair value, the Corporation may, by order, require the credit union to set aside such additional provisions as it considers necessary.

Procedural rules

   (2)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (3)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

   127.  Subsection 240 (2) of the Act is repealed and the following substituted:

Procedural rules

   (2)  Section 240.1 applies with respect to an order under this section.

Reasons

   (3)  The Superintendent shall set out the reasons for his or her decision in the order.

Appeal to Tribunal

   (4)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

   128.  Part XII of the Act is amended by adding the following sections:

General Provisions Relating to Orders

Procedural rules for certain orders

   240.1  (1)  This section applies with respect to an order by the Superintendent or the Corporation under this Act if the section under which the order is made provides for this section to apply.

Notice before order made

   (2)  Before making an order, the Superintendent or Corporation shall give notice of their intention to do so to the person who would be subject to the order and, if the Superintendent or Corporation would be relying on information not provided by the person, the Superintendent or Corporation shall inform the person of that information and give the person an opportunity to explain or refute it.

Written submissions

   (3)  The Superintendent or Corporation is not required to hold a hearing but shall, before making an order, allow the person who would be subject to the order, and any other person who would be affected by the order, to make written submissions.

Notice not required other than to person subject to order

   (4)  The Superintendent or Corporation is not required to give notice to persons who would be affected by an order other than the person who would be subject to the order as required under subsection (2).

Rules for practice and procedure

   (5)  The Superintendent may make rules for the practice and procedure to be observed in relation to orders made by the Superintendent and the Corporation may make rules for the practice and procedure to be observed in relation to orders made by the Corporation.

Inquiries can be made before order made

   (6)  Before making an order under this Act, the Superintendent or Corporation may inquire into the affairs of a person as the Superintendent or Corporation considers necessary to determine whether the order should be made.

Order made without opportunity to make submissions

   (7)  The Superintendent or Corporation may make an order to which a person is subject without giving notice or allowing the person or any other person to make submissions if the Superintendent or Corporation is of the opinion that the interests of the members, depositors or shareholders of any credit union may be prejudiced or adversely affected by a delay in making the order.

Special procedures if no opportunity to make submissions

   (8)  The following apply with respect to an order under subsection (7):

    1.  The person who is subject to the order or any other person affected by the order may request an opportunity to make written submissions by giving written notice to the person who made the order, within 15 days after the person who is subject to the order received it.

    2.  If the person who is subject to the order or any other person affected by the order requests an opportunity to make written submissions, the person who made the order may defer compliance with the order until the submissions have been considered or any appeal is concluded and the order is confirmed, varied or revoked.

    3.  After considering the submissions, the person who made the order may confirm, vary or revoke the order.

Variation of orders

   (9)  Subject to subsections (2) and (3),

  (a)  the Superintendent may reconsider and vary or revoke an order made by the Superintendent if the Superintendent considers it advisable to do so; and

  (b)  the Corporation may reconsider and vary or revoke an order made by the Corporation if the Corporation considers it advisable to do so.

Copies of orders to be given

   240.2  (1)  The Superintendent or Corporation shall give a copy of an order they make under this Act to the person who is subject to the order and, if the person who is subject to the order is a credit union, to each director of the credit union.

Copies to Superintendent, Corporation

   (2)  The Superintendent shall give the Corporation a copy of every order the Superintendent makes under this Act and the Corporation shall give the Superintendent a copy of every order the Corporation makes under this Act.

When orders take effect

   240.3  An order by the Superintendent or Corporation under this Act comes into effect when it is made or at such later time as the order provides.

Appeals of orders to Tribunal

   240.4  (1)  This section applies with respect to an appeal to the Tribunal of an order by the Superintendent or the Corporation under this Act if the section under which the order is made provides for such an appeal in accordance with this section.

How appeal is made

   (2)  The appeal shall be made by filing a written notice of appeal with the Tribunal and serving a copy of the notice on the Superintendent, in the case of an appeal of an order by the Superintendent, or the Corporation, in the case of an appeal of an order by the Corporation.

Time for filing and serving notice

   (3)  The notice of appeal must be filed and served, as required under subsection (2), within 15 days after the order was received by the person appealing the order.

No stay of decision unless granted

   (4)  An appeal from an order does not stay the order but the Tribunal may grant a stay until it disposes of the appeal.

Exception

   (5)  Despite subsection (4), an appeal of an order under section 301, 310, 331.2 or 331.3 stays the order.

Hearing

   (6)  The Tribunal shall hold a hearing of the appeal.

Parties

   (7)  The parties to the appeal are,

  (a)  the person appealing the order;

  (b)  the Superintendent, in the case of an appeal of an order by the Superintendent, or the Corporation, in the case of an appeal of an order by the Corporation; and

   (c)  such other persons as the Tribunal specifies.

Power of the Tribunal

   (8)  Upon hearing the appeal, the Tribunal may, by order, confirm, vary or revoke the order being appealed or substitute its order for the order being appealed.

Orders, etc., not stayed by judicial review

   240.5  (1)  An application for judicial review of an order of the Superintendent or Corporation under this Act or of a decision of the Tribunal on the appeal of such an order and any appeal from an order of the court on such an application for judicial review does not stay the order of the Superintendent or Corporation or the decision of the Tribunal.

Court may grant stay

   (2)  Despite subsection (1), a judge of the court to which the application is made or a subsequent appeal is taken may grant a stay until the disposition of the judicial review or appeal.

   129.  (1)  Subsections 241 (1), (2) and (3) of the Act are repealed and the following substituted:

Incorporating leagues

   (1)  Ten or more credit unions may incorporate a league.

Objects

   (2)  The objects of a league are to,

  (a)  provide services primarily to members;

  (b)  provide and manage a liquidity system for credit unions;

   (c)  manage those investments that are held by the league for its members; and

  (d)  carry out such other objects as may be prescribed.

General restriction

   (3)  A league may engage in or carry on a business or business activity only as allowed under this section.

Businesses, services

   (3.1)  A league may engage in or carry on a business or business activity that a credit union may engage in or carry on and may engage in or carry on such other businesses or business activities, or provide such services, as may be prescribed.

   (2)  Section 241 of the Act is amended by adding the following subsection:

Stabilization fund

   (7)  Without limiting anything else a league may do, a league may establish and maintain a stabilization fund for the benefit of the credit unions that are members of the league.

   130.  Section 242 of the Act is repealed.

   131.  Sections 245, 246, 247 and 248 of the Act are repealed and the following substituted:

Corporations Act not to apply

   245.  The Corporations Act does not apply to leagues.

Members

   246.  Subject to any prescribed restrictions, the following may be members of a league:

    1.  Credit unions.

    2.  Prescribed entities.

   132.  Subsection 249 (3) of the Act is repealed.

   133.  Subsections 250 (1) and (2) of the Act are repealed and the following substituted:

Board of directors

   (1)  The board of directors of the Corporation consisting of not more than nine persons shall be appointed by the Lieutenant Governor in Council.

Qualification

   (2)  A person is qualified to be a member of the board of directors if the person possesses, by virtue of education, training or experience, the expertise to perform the duties of a member of the board.

Disqualification

   (2.1)  A person is disqualified to be a member of the board of directors if the person is a director, officer or employee of a credit union.

   134.  (1)  Subsection 252 (1) of the Act is repealed and the following substituted:

Duties of board

   (1)  The board of directors of the Corporation shall manage or supervise the management of the affairs of the Corporation and shall perform such additional duties as may be imposed under this Act, prescribed by the regulations or imposed by the by-laws.

   (2)  Subsection 252 (6) of the Act is repealed and the following substituted:

Remuneration

   (6)  A member of the board of directors may be paid by the Corporation out of its income as remuneration for his or her services and duties such daily or other amount as may be fixed by the board and reported in its annual report.

   135.  Clause 254 (b) of the Act is repealed and the following substituted:

  (b)  prepare its annual financial statements in accordance with generally accepted accounting principles and any prescribed requirements.

   136.  Sections 255, 256, 257 and 258 of the Act are repealed and the following substituted:

Audits

   255.  (1)  The board of directors of the Corporation shall appoint one or more auditors licensed under the Public Accounting Act, 2004 to audit the financial statements of the Corporation for each fiscal year.

Minister-directed audit

   (2)  The Minister may, at any time, appoint one or more auditors licensed under the Public Accounting Act, 2004 to audit any aspect of the affairs of the Corporation or request the Auditor General to make such an audit.

Co-operation with Minister-directed audit

   (3)  The directors, officers and employees of the Corporation shall co-operate with and assist the persons performing an audit under subsection (2).

Annual report

   256.  (1)  The Corporation shall, within four months after the end of each fiscal year, send to every credit union and the Minister an annual report on its activities in that year.

What included

   (2)  The annual report shall include the financial statements of the Corporation, the auditor's report on those statements and such other matters as may be prescribed.

   137.  Sections 259, 260, 261 and 262 of the Act are repealed and the following substituted:

Tabling of annual reports

   259.  The Minister shall lay the annual report of the Corporation before the Legislative Assembly if it is in session or, if not, at the next session.

Information to Minister

   260.  (1)  The Corporation shall provide the Minister with such information relating to its activities, operations and financial affairs as the Minister may request.

Same

   (2)  At least once each year, the Corporation shall advise the Minister about the credit union sector and the adequacy of the Deposit Insurance Reserve Fund and about any matters that concern or can reasonably be expected to concern the Minister in the exercise of his or her responsibilities.

Objects

   261.  The objects of the Corporation are to,

  (a)  provide insurance against the loss of part or all of deposits with credit unions;

  (b)  promote and otherwise contribute to the stability of the credit union sector in Ontario with due regard to the need to allow credit unions to compete effectively while taking reasonable risks;

   (c)  pursue the objects set out in clauses (a) and (b) for the benefit of persons having deposits with credit unions and in such manner as will minimize the exposure of the Corporation to loss;

  (d)  collect, accumulate and publish such statistics and other information related to credit unions as may be appropriate;

  (e)  perform the duties provided under this Act or the regulations or do anything the Corporation is required or authorized to do under this Act or the regulations; and

    (f)  carry out such other objects as the Minister may specify in writing or as may be prescribed.

Ancillary powers

   262.  (1)  The Corporation may do all things necessary or incidental to its objects and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects,

  (a)  provide, in its discretion, financial assistance for the purpose of,

           (i)  assisting a credit union under administration in its continued operation, or

          (ii)  assisting in the orderly winding up of the operations of a credit union;

  (b)  make an advance or grant for the purpose of paying lawful claims against a credit union in respect of any claims of its members for withdrawal of deposits;

   (c)  acquire assets or assume the liabilities of credit unions;

  (d)  with the approval of the Minister, require the payment of special levies by credit unions;

  (e)  accept powers conferred on it under the Canada Deposit Insurance Corporation Act;

    (f)  with the approval of the Minister, borrow money,

           (i)  on the credit of the Corporation,

          (ii)  on bills of exchange or promissory notes drawn, made, accepted or endorsed by or on behalf of the Corporation, or

         (iii)  by the issue of debentures;

  (g)  acquire, hold, improve and alienate real and personal property;

   (h)  declare and pay premium rebates to credit unions;

    (i)  act as the supervisor, administrator or liquidator of a credit union;

    (j)  appoint an agent;

   (k)  insure any liability of the Corporation with one or more insurers;

    (l)  advise the Superintendent of any adverse implications of proposed new charters;

(m)  collect or disclose information concerning a credit union; and

   (n)  do all such other things, not contrary to this Act, as may be necessary for the exercising of any of the powers of the Corporation.

Same

   (2)  The Corporation may attach conditions to financial assistance provided under clause (1) (a) and, without limiting the form in which such financial assistance may be provided, the Corporation may provide such financial assistance by,

  (a)  purchasing securities of a credit union;

  (b)  making or guaranteeing loans, with or without security, or advances to or deposits with a credit union;

   (c)  taking security for loans or advances to a credit union; or

  (d)  guaranteeing the payment of the fees of, and the costs incurred by, a liquidator of a credit union.

Subrogation

   (3)  If the Corporation makes an advance under clause (1) (b), it is subrogated as an unsecured creditor for the amount of the advance.

Membership

   (4)  If the Corporation holds membership shares of a credit union, the Corporation is a member of the credit union and has the rights and benefits of a member.

Pledging assets

   (5)  For the purposes of clause (1) (f), the Corporation may pledge as security all or any part of its assets.

Delegation of powers and duties

   (6)  The Corporation may, subject to the conditions that the Corporation considers appropriate, delegate in writing to any officer or employee of the Corporation the exercise of any power or the performance of any duty that this Act confers on or assigns to the Corporation and all acts done and decisions made under the delegation are as valid and effective as if done or made by the Corporation.

   138.  (1)  Clause 264 (h) of the Act is repealed.

   (2)  Section 264 of the Act is amended by adding "and" at the end of clause (k), by striking out "and" at the end of clause (l) and by repealing clause (m).

   (3)  Section 264 of the Act is amended by adding the following subsection:

Regulations Act

   (2)  For greater certainty, the Regulations Act does not apply to a by-law of the Corporation.

   (4)  Subsection 264 (2) of the Act, as enacted by subsection (3), is repealed and the following substituted:

Legislation Act, 2006

   (2)  For greater certainty, Part III (Regulations) of the Legislation Act, 2006 does not apply to a by-law of the Corporation.

   139.  Sections 265, 266 and 267 of the Act are repealed.

   140.  Section 270 of the Act is repealed and the following substituted:

Deposit Insurance

Insurance of deposits with credit unions

   270.  (1)  Subject to subsection (2), the deposits with every credit union are insured by the Corporation in accordance with this Act and the by-laws of the Corporation, except if the deposit insurance of a credit union is cancelled under section 274.

Exceptions

   (2)  The following are not insured:

    1.  A deposit that is not payable in Canada or not in Canadian currency.

    2.  The amount of any one deposit that exceeds a prescribed amount.

Conditions on deposit insurance

   (3)  The deposit insurance of a credit union is subject to the prescribed conditions and any other conditions imposed by the Corporation under subsection (4).

Conditions imposed by notice

   (4)  The Corporation may impose conditions on the deposit insurance of a credit union, or amend such conditions, at any time by written notice to the credit union.

Certificate

   (5)  The Corporation shall issue a certificate of deposit insurance to every credit union whose deposits the Corporation insures.

Insurance continues after member withdraws, etc.

   (6)  For greater certainty, the obligation to insure a deposit of a member of a credit union continues after the member withdraws or is expelled.

Shares not insurable

   (7)  The shares of a credit union are not insurable by the Corporation.

Payment for insured deposits

   270.1  (1)  The Corporation has an obligation to make payment in respect of any deposit insured by the Corporation if,

  (a)  the members of the credit union that holds the deposit pass a resolution for the voluntary liquidation and dissolution of the credit union;

  (b)  the credit union becomes a bankrupt under the Bankruptcy and Insolvency Act (Canada) or a liquidator is appointed for the credit union under this Act or the Winding-Up and Restructuring Act (Canada);

   (c)  the Corporation is satisfied that the credit union will be unable to make payment in full, without delay, in respect of any deposits insured by deposit insurance;

  (d)  the deposit insurance of the credit union that holds the deposit is cancelled; or

  (e)  the Corporation, as administrator, requires the credit union to be wound up under subparagraph 6 iii of subsection 295 (1).

Payment to person apparently entitled

   (2)  The Corporation, if it is obliged to make payment in respect of any deposit insured by deposit insurance, shall make payment to the person who appears entitled to the payment by the records of the credit union.

Amount of payment

   (3)  The Corporation may pay,

  (a)  the amount of the deposit according to the terms of the deposit; or

  (b)  before maturity of the deposit, an amount equal to the principal of the deposit and the accrued and unpaid interest on the deposit on the day it is paid.

Withholding to cover lien

   (4)  If the credit union has a lien on a deposit under section 44, the Corporation may withhold payment of an amount equal to the amount of the lien and pay that amount to the liquidator of the credit union.

Withholding of amount held as security

   (5)  If the credit union held a deposit as security for a loan, the Corporation may withhold payment of an amount necessary to repay the loan and pay that amount to the liquidator of the credit union.

Discharge of liability

   (6)  Payment, under this section, by the Corporation in respect of any deposit insured by deposit insurance discharges the Corporation from all liability in respect of that deposit, and in no case is the Corporation under any obligation to see to the proper application of the payment made.

Subrogation

   (7)  If the Corporation makes a payment under this section in respect of any deposit with a credit union, the Corporation is subrogated to the extent of the payment made to all the rights and interests of the depositor as against that credit union.

Assignment

   (8)  If the Corporation considers it advisable, it may withhold payment in respect of any deposit with a credit union until the Corporation has received a written assignment of all the rights and interests of the depositor against that credit union.

Agreement to administer payments

   (9)  The Corporation may enter into a deposit administration agreement with a financial institution under which that financial institution agrees to make the payments under this section on behalf of the Corporation.

   141.  Sections 272 and 273 of the Act are repealed and the following substituted:

Preparatory examination

   272.  (1)  The Corporation may examine the records and documents of the credit union if the Corporation believes that a payment by the Corporation under this Act in respect of a deposit held by a credit union is imminent and that it is in the best interest of both the depositors with the credit union and the Corporation to make early preparations for the payment.

Same

   (2)  The examination may be made by a person designated by the Corporation.

Examination powers

   (3)  Section 229.1 applies, with necessary modifications, with respect to an examination under this section.

Application to receivers and liquidators

   (4)  Under clause 229.1 (4) (b), as it applies under subsection (3), the person conducting the examination may also require a receiver or liquidator to provide information and explanations.

   142.  (1)  Clause 274 (1) (a) of the Act is repealed and the following substituted:

  (a)  the credit union is in breach of the standards of business and financial practices prescribed by the Corporation or any conditions of its deposit insurance;

   (2)  Subsection 274 (1) of the Act is amended by striking out "or" at the end of clause (c), by adding "or" at the end of clause (d) and by adding the following clause:

  (e)  the Corporation determines, on reasonable grounds, that the credit union is unable to meet its obligations as they come due.

   (3)  Subsection 274 (5) of the Act is repealed and the following substituted:

Notice to Superintendent, league

   (5)  The Corporation shall give the Superintendent and the league for the credit union written notice of the cancellation of deposit insurance.

   143.  The heading immediately before section 275 and sections 275 and 276 of the Act are repealed and the following substituted:

Prohibition, advertising, holding out as insured

   275.  (1)  Except as allowed under this section, no person shall, by written or oral representations, advertise or hold out any entity as being insured by the Corporation.

Advertisement, etc., by credit union or league

   (2)  A credit union may advertise or hold out that it is insured and a league may advertise or hold out that its members are insured if the advertising or holding out is by marks, signs, advertisements or other devices authorized by the by-laws of the Corporation and used in the manner and on the occasions set out by the by-laws.

Deposit Insurance Reserve Fund and Premiums

Deposit Insurance Reserve Fund

   276.  (1)  The Corporation shall maintain a fund, called the Deposit Insurance Reserve Fund.

Use of the Fund

   (2)  The Deposit Insurance Reserve Fund may be used to pay for the following:

    1.  Deposit insurance claims.

    2.  The costs associated with the continuance or orderly winding up of credit unions in financial difficulty.

    3.  Financial assistance provided under clause 262 (1) (a).

    4.  The costs of the Corporation.

Same

   (3)  The Corporation has the power to manage and invest the money in the Deposit Insurance Reserve Fund and may disburse money from the Fund for anything under subsection (2).

Annual premiums

   276.1  (1)  Within 120 days after the start of a credit union's financial year, the Corporation shall do the following:

    1.  Determine the credit union's annual premium for that financial year in accordance with the regulations.

    2.  Collect the annual premium determined under paragraph 1.

Deposit of premiums

   (2)  The Corporation shall credit the annual premiums to the Deposit Insurance Reserve Fund.

   144.  Sections 278 to 293 of the Act are repealed and the following substituted:

Deferral of premiums

   278.  The Corporation may, upon such conditions as it may direct, defer the collection of, or cancel, all or part of an annual premium assessed by the Corporation.

Supervision

Supervision by Corporation

   279.  (1)  The Corporation may order a credit union subject to the supervision of the Corporation in any of the following circumstances:

    1.  The credit union asks, in writing, that it be subject to supervision.

    2.  The credit union is in contravention of section 84.

    3.  The Corporation, on reasonable grounds, believes that the credit union is conducting its affairs in a way that might be expected to harm the interests of members or depositors or that tends to increase the risk of claims by depositors against the Corporation.

    4.  The credit union or an officer or director of it does not file, submit or deliver a report or document required to be filed, submitted or delivered under this Act within the time limited under this Act.

    5.  The credit union has failed to comply with an order of the Superintendent and the Superintendent has requested, in writing, that the credit union be subject to supervision.

    6.  The credit union has failed to comply with an order of the Corporation.

Interpretation

   (2)  For the purposes of paragraph 2 of subsection (1), a variation under section 87 does not bring a credit union into compliance with section 84.

Release

   (3)  The credit union remains subject to supervision until,

  (a)  the credit union is being wound up or placed under administration; or

  (b)  the Corporation rescinds the order that the credit union be subject to supervision.

Same

   (4)  The Corporation may rescind an order under clause (3) (b) on the application of the credit union or on the Corporation's own initiative if there are reasonable grounds for believing that the credit union is no longer in need of supervision.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Exception, if order at credit union's request

   (7)  Subsections (5) and (6) do not apply if the order is made after the credit union asks, in writing, that it be subject to supervision as described in paragraph 1 of subsection (1).

Powers when credit union supervised

   280.  (1)  If a credit union is subject to the supervision of the Corporation, the Corporation may,

  (a)  order the credit union to correct any practices that the Corporation feels are contributing to the problem or situation that caused the credit union to be ordered subject to its supervision;

  (b)  order the credit union and its directors, committee members, officers and employees to not exercise any powers of the credit union or of its directors, committee members, officers and employees;

   (c)  establish guidelines for the operation of the credit union;

  (d)  order the credit union not to declare or pay a dividend or to restrict the amount of a dividend to be paid to a rate or amount set by the Corporation;

  (e)  attend meetings of the credit union's board and its audit committee; and

    (f)  propose by-laws for the credit union and amendments to its articles of incorporation.

Approval of by-laws, etc.

   (2)  No by-law, policy or resolution relating to the business, affairs or management of a credit union passed or made by the board during the time the credit union is subject to supervision is of any effect until approved in writing by the Corporation.

Enforcement

   (3)  If a credit union fails to comply with an order of the Corporation under this section, the Corporation may apply to the court for,

  (a)  an order directing compliance with the Corporation's order; or

  (b)  such other order as the court considers appropriate.

Expenses of Corporation

   281.  The Corporation may require a credit union to pay the expenses of and disbursements by the Corporation in supervising the credit union.

   145.  Section 294 of the Act is repealed and the following substituted:

Administration by Corporation

   294.  (1)  The Corporation may order a credit union subject to administration by the Corporation in any of the following circumstances:

    1.  The Corporation, on reasonable grounds, believes that the credit union is conducting its affairs in a way that might be expected to harm the interests of members, depositors or shareholders or that tends to increase the risk of claims by depositors against the Corporation, but that supervision would, in the circumstances, not be appropriate.

    2.  The credit union has failed to comply with an order of the Corporation made while the credit union was subject to the supervision of the Corporation.

    3.  The Corporation is of the opinion that the assets of the credit union are not sufficient to give adequate protection to its depositors.

    4.  The credit union has failed to pay any liability that is due or, in the opinion of the Corporation, will not be able to pay its liabilities as they become due.

    5.  After a general meeting and any adjournment of no more than two weeks, the members of the credit union have failed to elect the minimum number of directors required under subsection 93 (2).

    6.  If a vacancy occurs in the board of the credit union resulting in there not being a quorum of directors in office and a general meeting is not called promptly as required under subsection 97 (2).

    7.  The Superintendent has made an order under section 240.

Procedural rules

   (2)  Section 240.1 applies with respect to an order under this section.

Appeal to court

   (3)  The credit union that is subject to an order under this section may appeal the order to the court, within seven days after receiving the order, upon a question of law only.

   146.  (1)  Paragraph 4 of subsection 295 (1) of the Act is repealed and the following substituted:

    4.  Exercise the powers of the credit union and of the directors, officers and committees.

   (2)  Subparagraph 6 i of subsection 295 (1) of the Act is repealed and the following substituted:

            i.  amalgamate, by requiring the credit union to enter into an amalgamation agreement under section 310,

   147.  Part XIV of the Act is amended by adding the following section:

Expenses of Corporation

   295.1  The Corporation may require a credit union to pay the expenses of and disbursements by the Corporation in administering the credit union.

   148.  The Act is amended by striking out the heading immediately before section 296 and substituting the following:

PART XV
DISSOLUTION, AMALGAMATION, Other Fundamental changes

   149.  The Act is amended by adding the following heading immediately before section 297:

Dissolution

   150.  Section 298 of the Act is repealed and the following substituted:

Voluntary winding up

   298.  (1)  The members of a credit union may, by special resolution passed at a general meeting called for that purpose, require the credit union to be wound up voluntarily.

If more than one class of shares

   (2)  If the credit union has more than one class of issued shares, the special resolution referred to in subsection (1) shall be in the form of a special resolution passed by the holders of each class of shares.

Appointment of liquidator

   (3)  At the meeting passing the special resolution, the members shall appoint a person as liquidator of the estate and effects of the credit union for the purpose of winding up its affairs and distributing its property.

Who can be liquidator

   (4)  Only the following may be appointed as a liquidator under this section:

    1.  The Corporation.

    2.  A licensed trustee in bankruptcy.

Remuneration and expenses of liquidator

   (5)  The remuneration of the liquidator and the costs, charges and expenses of the winding up shall be determined in accordance with the following:

    1.  If the liquidator is the Corporation, the remuneration and costs, charges and expenses shall be as set by the Corporation as of the day the resolution is passed.

    2.  If the liquidator is a licensed trustee in bankruptcy, the remuneration and costs, charges and expenses shall be as set out in the appointment of the liquidator.

Publication of notice of winding-up

   (6)  The liquidator shall,

  (a)  file a copy of the resolution under subsection (1) and the appointment under subsection (3) with the Superintendent within 10 days after the resolution has been passed;

  (b)  publish a notice of the resolution and the appointment in The Ontario Gazette within 20 days after the resolution has been passed; and

   (c)  publish a notice of the resolution and the appointment in a newspaper having a general circulation in the locality where the head office of the credit union is located.

Vacancy in office of liquidator

   (7)  The following apply if a vacancy occurs, by death, resignation or otherwise, in the office of a liquidator appointed under this section:

    1.  The members of the credit union, by a majority of the votes cast at a general meeting called for that purpose, may appoint a person to fill the vacancy.

    2.  If the members fail to appoint a person under paragraph 1, the Superintendent shall appoint a person to fill the vacancy.

Removal of liquidator

   (8)  Unless the liquidator is the Corporation, the members of the credit union may, by a majority of the votes cast at a general meeting called for that purpose, remove a liquidator appointed under this section and appoint a replacement.

Credit union to cease business

   (9)  From the time the resolution under subsection (1) is passed, the credit union shall cease to carry on its business, except in so far as is, in the opinion of the liquidator, required for the beneficial winding-up of the credit union, but the corporate state and all the corporate powers of the credit union, despite anything to the contrary in the charter of the credit union, continue until the affairs of the credit union are wound up.

No proceeding against credit union without leave

   (10)  After the resolution under subsection (1) is passed, no suit, action or other proceeding shall be proceeded with or commenced against the credit union, except with the leave of the court and subject to such terms as the court imposes.

Attachments, etc., void

   (11)  Every attachment, sequestration, distress or execution put in force against the estate or effects of the credit union after the passing of the resolution under subsection (1) is void.

Liquidator to take custody

   (12)  Upon appointment, the liquidator shall take custody and control of all property, rights and privileges of the credit union or to which the credit union appears to be entitled and shall take all necessary steps to wind up the credit union.

Statement of assets and liabilities

   (13)  Within 60 days after being appointed, the liquidator shall prepare a statement of the assets and liabilities of the credit union as of the start of the winding up and file the statement with the Superintendent.

List of contributories and calls

   (14)  Upon a voluntary winding-up, the liquidator,

  (a)  shall settle the list of contributories; and

  (b)  may, before having ascertained the sufficiency of the property of the credit union, call on any of the contributories for the time being settled on the list of contributories, to the extent of their liability, to pay any sum that the liquidator considers necessary to satisfy the liabilities of the credit union, and the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves.

Same

   (15)  The list of contributories settled by the liquidator under clause (14) (a) is admissible in evidence as proof, in the absence of evidence to the contrary, of the liability of the persons named in the list as contributories.

Meetings of credit union during winding-up

   (16)  The liquidator may, during the continuance of the voluntary winding-up, call general meetings of the members of the credit union for the purpose of obtaining their approval by resolution or for any other purpose as the liquidator thinks fit.

Arrangements with creditors

   (17)  The liquidator may make such compromise or other arrangement as the liquidator thinks expedient with any creditor or person claiming to be a creditor or having or alleging that the person has a claim, present or future, certain or contingent, liquidated or unliquidated, against the credit union or whereby the credit union may be rendered liable.

Power to compromise with debtors and contributors

   (18)  The liquidator may compromise all debts and liabilities capable of resulting in debts and all claims, whether present or future, certain or contingent, liquidated or unliquidated, subsisting or supposed to subsist between the credit union and any contributory, alleged contributory or other debtor or person who may be liable to the credit union and all questions in any way relating to or affecting the property of the credit union, or the winding up of the credit union upon the receipt of the sums payable at such times and generally upon such conditions as are agreed, and the liquidator may take any security for the discharge of the debts or liabilities and give a complete discharge in respect of them.

Account to be made by liquidator

   (19)  The liquidator shall make up an account showing the manner in which the winding-up has been conducted and the property disposed of.

Same

   (20)  After the account is made up, the liquidator shall call a general meeting of the members and shareholders of the credit union for the purpose of having the account laid before them and hearing any explanation that may be given by the liquidator.

Calling meeting

   (21)  The liquidator shall call the meeting in the manner set out in the credit union's articles or by-laws.

Extension of time

   (22)  The Superintendent may, in writing, extend the time for filing any documents required to be filed under this section if the Superintendent is satisfied that an extension is appropriate.

   151.  Subsections 299 (1), (2) and (3) of the Act are repealed and the following substituted:

Notice and dissolution

   (1)  Following the meeting called under subsection 298 (20), the liquidator shall,

  (a)  within 10 days after the meeting, file a notice with the Superintendent stating that the meeting was held and its date; and

  (b)  forthwith after filing the notice under clause (a), publish a notice in The Ontario Gazette setting out the date that the meeting was held and the date, proposed by the liquidator, for the dissolution of the credit union.

Restriction on dissolution date

   (2)  The date proposed by the liquidator for the dissolution of the credit union must be at least three months after the date that the meeting called under subsection 298 (20) was held.

Deferral of date by court

   (3)  At any time before the credit union is dissolved, the court may, on the application of the liquidator or any other interested person, make an order deferring the date on which the dissolution of the credit union is to take effect to a date fixed in the order.

Dissolution

   (3.1)  The credit union is dissolved on the date proposed by the liquidator unless the court makes an order under subsection (3), in which case the credit union is dissolved on the date fixed in the order.

   152.  (1)  Clause 300 (1) (a) of the Act is repealed and the following substituted:

  (a)  the members, by a special resolution passed at a general meeting called for that purpose, authorize an application to be made to the court to wind up the credit union;

   (2)  Section 300 of the Act is amended by adding the following subsection:

If more than one class of shares

   (1.1)  If the credit union has more than one class of issued shares, the special resolution referred to in clause (1) (a) shall be in the form of a special resolution passed by the holders of each class of shares.

   (3)  Clauses 300 (2) (c) and (d) of the Act are repealed and the following substituted:

   (c)  a creditor having a claim of $5,000 or more;

  (d)  if the credit union is being wound up voluntarily, the liquidator or a contributor;

(d.1) the Superintendent; or

   (4)  Section 300 of the Act is amended by adding the following subsection:

Notice to Corporation

   (4.1)  Except if the application is made by the Corporation, four days notice of the application must be given to the Corporation.

   (5)  Clause 300 (10) (a) of the Act is repealed and the following substituted:

  (a)  forthwith after the appointment, give notice to the Superintendent and the Corporation of the court order respecting the winding-up; and

   (6)  Subsection 300 (11) of the Act is repealed.

   (7)  Subsections 300 (15), (16) and (17) of the Act are repealed and the following substituted:

Order for delivery of property

   (15)  If a winding-up order has been made by the court, the court may require any contributory for the time being settled on the list of contributories, or any director, employee, trustee, receiver, banker, agent or officer of the credit union, to pay, deliver, convey, surrender or transfer forthwith, or within such time as the court directs, to the liquidator any money, record, document, estate or effects that are in any such person's hands and to which the credit union is apparently entitled.

Inspection of documents and records

   (16)  If a winding-up order is made by the court, the court may make an order for the inspection of the records and documents of the credit union by its creditors and contributories, and any records and documents in the possession of the credit union may be inspected in conformity with the order.

No proceeding against credit union without leave

   (17)  After a winding-up order is made, no suit, action or other proceeding shall be proceeded with or commenced against the credit union, except with the leave of the court and subject to such terms as the court imposes.

Attachments, etc., void

   (17.1)  Every attachment, sequestration, distress or execution put in force against the estate or effects of a credit union after a winding-up order is made is void.

   153.  Section 301 of the Act is repealed and the following substituted:

Dissolution by Superintendent

   301.  (1)  The Superintendent may, by order, dissolve a credit union if he or she is satisfied that,

  (a)  its incorporation was obtained by fraud or mistake;

  (b)  it exists for an illegal purpose;

   (c)  the number of its members is reduced to fewer than 20;

  (d)  it is not carrying on business or is not in operation; or

  (e)  it has contravened this Act or the regulations.

Procedural rules

   (2)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (3)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Appointment of liquidator

   (4)  If necessary, the Superintendent shall appoint a liquidator to carry out the dissolution.

Liquidation

   (5)  The liquidator, if one is appointed, shall proceed to wind up the credit union and subsections 298 (9) to (22) and 299 (1) apply, except that no approval of the members of the credit union is required.

Publishing order

   (6)  The Superintendent shall publish notice of the dissolution in The Ontario Gazette.

Modification with respect to leagues

   (7)  For the purposes of the application of clause (1) (c) to a league under section 243, the reference to "20" in clause (1) (c) shall be deemed to be a reference to "10".

   154.  Subsections 307 (9) and (10) of the Act are repealed and the following substituted:

Disposal of records

   (9)  If a credit union has been wound up under this Act and is about to be dissolved, the records and documents of the credit union and of the liquidator may be disposed of in such manner as,

  (a)  the Superintendent may specify, in the case of voluntary winding up or a liquidator appointed by the Superintendent under section 301; or

  (b)  the court may order in the case of winding up under court order.

Retention of records by custodian

   (10)  A person who has been granted custody of the records and documents under subsection (9) shall keep them available for production for six years following the date of the dissolution of the credit union or until the expiration of such other period as may be specified by the Superintendent or ordered by the court under subsection (9).

Regulations

   (11)  The Lieutenant Governor in Council may make regulations respecting the procedure to be followed in a winding-up, and, unless otherwise provided by this Act or by those regulations, the practice and procedure in a winding-up under the Winding-up and Restructuring Act (Canada) applies.

   155.  Section 308 of the Act is repealed and the following substituted:

Notice of winding-up proceedings

   308.  If proceedings are taken under the Winding-up and Restructuring Act (Canada) in respect of a credit union, the secretary of the credit union shall send notice of the proceedings to the Superintendent by registered mail.

Security interests remaining after dissolution

   308.1  (1)  If a credit union is dissolved without discharging a security interest given to the credit union, the Corporation may discharge that security interest or do anything else, in relation to that security interest, that the credit union could have done had it not been dissolved.

Clarification with respect to real property

   (2)  For greater certainty, and without limiting what other security interests subsection (1) applies to, subsection (1) applies to liens, charges and mortgages or any other security interest in real property.

   156.  (1)  The English version of paragraph 1 of subsection 309 (2) of the Act is repealed and the following substituted:

    1.  The corporate name of the amalgamated credit union.

   (2)  Subsections 309 (3) and (4) of the Act are repealed and the following substituted:

Filing of agreement

   (3)  Within one month after the agreement is signed, the parties must file with the Superintendent, in triplicate, true copies of the amalgamation agreement and pay the fee established by the Minister.

Approvals required

   (4)  The agreement is subject to the approval of the Superintendent and to adoption by special resolutions of the members of each of the amalgamating credit unions, passed at meetings called for the purpose of considering the agreement.

If more than one class of shares

   (4.1)  If the credit union has more than one class of issued shares, each special resolution referred to in subsection (4) shall be in the form of a special resolution passed by the holders of each class of shares.

Refusal of approval to be by order

   (4.2)  If the Superintendent refuses to approve the agreement, the Superintendent shall do so by order.

Procedural rules

   (4.3)  Section 240.1 applies with respect to an order under subsection (4.2).

Appeal to Tribunal

   (4.4)  The credit union that is subject to an order under subsection (4.2) may appeal the order to the Tribunal in accordance with section 240.4.

   (3)  Subsection 309 (8) of the Act is repealed and the following substituted:

Application for certificate

   (8)  If the agreement is adopted, the amalgamating credit unions may apply jointly for a certificate of amalgamation by submitting an application to the Superintendent together with articles of amalgamation.

Certificate of amalgamation

   (8.1)  The Superintendent may, in his or her discretion, issue a certificate of amalgamation which shall set out the effective date of the amalgamation.

Grounds for refusing certificate

   (8.2)  Subsection 16 (2) applies, with necessary modifications, with respect to the issue of a certificate of amalgamation.

   (4)  Subsection 309 (9) of the Act is amended by striking out the portion before clause (a) and by repealing clause (a) and substituting the following:

Amalgamation and effects

   (9)  On and after the effective date of the amalgamation,

  (a)  the amalgamating credit unions are amalgamated and are continued as one credit union under the corporate name set out in the certificate;

.     .     .     .     .

   (5)  Subsection 309 (10) of the Act is repealed and the following substituted:

Notice

   (10)  The Superintendent shall publish notice of the issue of the certificate of amalgamation in The Ontario Gazette.

Statement of assets and liabilities

   (11)  The amalgamated credit union shall file with the Superintendent, within 60 days after the effective date of the amalgamation, a statement of the assets and liabilities of the amalgamated credit union as of the date of the certificate.

   157.  Section 310 of the Act is repealed and the following substituted:

Amalgamation of credit unions under administration

   310.  (1)  If a credit union is under the administration of the Corporation, the Corporation may require the credit union to enter into an amalgamation agreement or do anything else under section 309.

Application of s. 309

   (2)  If the Corporation requires a credit union under the administration of the Corporation to enter into an amalgamation agreement under section 309, the following apply with respect to the application of section 309:

    1.  The adoption, under subsection 309 (4), of the amalgamation agreement by the members and shareholders of the credit union under administration is not required.

    2.  The Superintendent shall not issue a certificate of amalgamation under subsection 309 (8.1) unless the Corporation demonstrates that the amalgamation would,

            i.  protect the interests of the depositors or members of the credit unions being amalgamated; and

           ii.  promote the financial security and integrity of the amalgamated credit union.

   158.  The English version of clause 311 (1) (b) of the Act is repealed and the following substituted:

  (b)  change its corporate name; or

   159.  Subsection 312 (2) of the Act is repealed and the following substituted:

Exception

   (2)  Subsection (1) does not apply to membership shares.

   160.  (1)  Section 313 of the Act is amended by striking out "six months" in the portion before clause (a) and substituting "60 days".

   (2)  The English version of clause 313 (a) of the Act is repealed and the following substituted:

  (a)  the corporate name of the credit union;

   161.  The heading immediately before section 316 and section 316 of the Act are repealed and the following substituted:

Continuing as or Ceasing to be an Ontario Credit Union

Continuance as an Ontario credit union

   316.  (1)  A body corporate incorporated under the laws of another jurisdiction in Canada other than Ontario or under another Ontario Act may, if authorized by the laws of that other jurisdiction or under that other Ontario Act, apply to the Superintendent for a certificate of continuance.

Authorization

   (2)  If a body corporate has shareholders, the application must be authorized by a special resolution of the shareholders.

Articles of continuance, etc.

   (3)  Articles of continuance shall be sent to the Superintendent together with a copy of the special resolution required under subsection (2) and any other prescribed documents.

Requirements for articles

   (4)  The articles of continuance shall make any amendments to the original or restated articles of incorporation, articles of amalgamation, letters patent, supplementary letters patent, a special Act and any other instrument by which the body corporate was incorporated and any amendments thereto necessary to make the articles of continuance conform to the laws of Ontario, and may make such other amendments as would be permitted under this Act if the body corporate were incorporated under this Act, provided that at least the same shareholder approval has been obtained for such other amendments as would have been required if the body corporate were incorporated under this Act.

Issue of certificate of continuance

   (5)  Upon receipt of the articles of continuance and the other required documents, the Superintendent may, subject to any prescribed conditions, issue a certificate of continuance on such terms and subject to such limitations and conditions as the Superintendent considers proper.

Grounds for refusing certificate

   (6)  Subsection 16 (2) applies, with necessary modifications, with respect to the issue of a certificate of continuance.

Effect of certificate

   (7)  The articles of continuance become effective on the date set out in the certificate of continuance and, as of that date,

  (a)  the body corporate is continued as a credit union under this Act as though it had been incorporated under this Act;

  (b)  the articles of continuance are deemed to be the articles of incorporation of the continued credit union; and

   (c)  the certificate of continuance is deemed to be the certificate of incorporation of the credit union.

Copy of certificate to other jurisdiction, etc.

   (8)  The Superintendent shall send a copy of the certificate of continuance,

  (a)  to the appropriate official or public body for the jurisdiction in which the body corporate was incorporated; or

  (b)  if the body corporate was incorporated under another Ontario Act, to the appropriate official or public body for the other Ontario Act.

Rights, liabilities, etc., preserved

   (9)  If a body corporate is continued as a credit union under this Act,

  (a)  the credit union possesses all the property, rights, privileges and franchises and is subject to all the liabilities, including civil, criminal and quasi-criminal, and all contracts, disabilities and debts of the body corporate;

  (b)  a conviction against, or ruling, order or judgment in favour of or against, the body corporate may be enforced by or against the credit union; and

   (c)  the credit union shall be deemed to be the party plaintiff or the party defendant, as the case may be, in any civil action commenced by or against the body corporate.

Notice

   (10)  The Superintendent shall publish notice of the issue of the certificate of continuance in The Ontario Gazette.

Transition – outstanding debt and assets, etc.

   (11)  The Superintendent may, by order, allow a continued credit union to,

  (a)  have outstanding debt obligations which are not authorized by this Act if the debt obligations were outstanding at the time the application for the certificate of continuance was made, for such period and under such conditions as the Superintendent may order;

  (b)  hold assets, including loans, that a credit union is not otherwise permitted by this Act to hold if the assets were held at the time the application for the certificate of continuance was made, for such period and under such conditions as the Superintendent may order;

   (c)  acquire and hold assets, including loans, that a credit union is not otherwise permitted by this Act to acquire or hold if the body corporate continued as the credit union was obliged, at the time the application for the certificate of continuance was made, to acquire those assets, for such period and under such conditions as the Superintendent may order.

Limits on transition period

   (12)  The following apply with respect to a period mentioned in clause (11) (a), (b) or (c):

    1.  The period may not exceed the prescribed maximum period.

    2.  The Superintendent may extend the period but only for a further period that does not exceed the prescribed maximum extension period.

Transfer to another jurisdiction

   316.1  (1)  A credit union may, if it has been issued a certificate of approval of continuance under this section, apply to the appropriate official or public body of another jurisdiction in Canada requesting that the credit union be continued as if it had been incorporated under the laws of that other jurisdiction.

Application for certificate of approval

   (2)  A credit union may apply to the Superintendent for a certificate of approval of continuance.

Authorization

   (3)  An application must be authorized by a special resolution of the members of the credit union.

If more than one class of shares

   (4)  If the credit union has more than one class of issued shares, the special resolution referred to in subsection (3) shall be in the form of a special resolution passed by the holders of each class of shares.

Issue of certificate of approval

   (5)  The Superintendent may, subject to any prescribed conditions, issue a certificate of approval of continuance if the Superintendent is satisfied as to the following:

    1.  If the credit union is to be continued as a deposit-taking institution, the deposits held by the institution will be insured or guaranteed by the deposit insurer or similar entity for the jurisdiction under whose laws the credit union is to be continued.

    2.  If the credit union is to be continued as a body corporate other than a deposit-taking institution, the body corporate will not hold any deposits when it is continued.

Copy of certificate to other jurisdiction

   (6)  The Superintendent shall send a copy of the certificate of approval of continuance to the appropriate official or public body for the jurisdiction under whose laws the credit union is to be continued.

Effect of continuation in other jurisdiction

   (7)  When a credit union is continued under the laws of another jurisdiction following the issue of a certificate of approval of continuance, the credit union ceases to be a credit union for the purposes of this Act.

Filing and notice

   (8)  A credit union that is continued under the laws of another jurisdiction shall file a copy of the instrument of continuance with the Superintendent and the Superintendent shall publish notice of the continuation in The Ontario Gazette.

Continuation under other Ontario Act

   316.2  (1)  A credit union may, if it has been issued a certificate of approval of continuance under this section, apply under another Ontario Act to be continued as if it had been incorporated under that other Act.

Application for certificate of approval

   (2)  A credit union may apply to the Superintendent for a certificate of approval of continuance.

Authorization

   (3)  An application must be authorized by a special resolution of the members of the credit union.

If more than one class of shares

   (4)  If the credit union has more than one class of issued shares, the special resolution referred to in subsection (3) shall be in the form of a special resolution passed by the holders of each class of shares.

Issue of certificate of approval

   (5)  The Superintendent may, subject to any prescribed conditions, issue a certificate of approval of continuance if the Superintendent is satisfied that the credit union, when it is continued under the other Ontario Act, will not hold any deposits.

Copy of certificate to other official

   (6)  The Superintendent shall send a copy of the certificate of approval of continuance to the appropriate official or public body under the other Ontario Act.

Effect of continuation under other Act

   (7)  When a credit union is continued under another Ontario Act following the issue of a certificate of approval of continuance, the credit union ceases to be a credit union for the purposes of this Act.

Filing and notice

   (8)  A credit union that is continued under another Ontario Act shall file a copy of the instrument of continuance with the Superintendent and the Superintendent shall publish notice of the continuation in The Ontario Gazette.

   162.  The Act is amended by striking out the heading immediately before section 317 and substituting the following:

PART XVI
REGULATIONS, approval of forms and Establishment of Fees

Regulations

   163.  (1)  Paragraph 4 of subsection 317 (1) of the Act is repealed and the following substituted:

    4.  prescribing matters to be shown in financial statements under subsection 213 (1) and the periods to which those matters relate;

   (2)  Paragraph 7 of subsection 317 (1) of the Act is repealed.

   (3)  Paragraph 10 of subsection 317 (1) of the Act is repealed and the following substituted:

  10.  respecting the books, registers and other records and documents to be kept and maintained by credit unions and the length of time they are to be retained;

   (4)  Subsection 317 (1) of the Act is amended by adding the following paragraph:

17.1 permitting credit unions to undertake fiduciary activities;

   (5)  Subparagraphs 22 i and ii of subsection 317 (1) of the Act are repealed and the following substituted:

            i.  classes of loans, and

   (6)  Paragraph 28 of subsection 317 (1) of the Act is repealed and the following substituted:

  28.  governing the use of confidential information by the credit unions and the Corporation;

   (7)  Paragraph 30 of subsection 317 (1) of the Act is repealed and the following substituted:

  30.  authorizing the Corporation to provide services prescribed by the regulations that are ancillary, complementary or similar to services it performs to persons, bodies or classes of persons or bodies prescribed by the regulations, and governing the provision of those services;

  31.  governing credit unions registered under subsection 332 (4), including providing for provisions of this Act to apply to such credit unions with such modifications as may be specified in the regulations.

   164.  Clauses 318 (e) and (f) of the Act are repealed and the following substituted:

  (e)  exempting any class of distributions from the application of sections 75 to 82;

    (f)  generally, for carrying out the purposes of sections 74.1 to 82.

   165.  Clause 319 (a) of the Act is repealed and the following substituted:

  (a)  regulating the maintenance, by credit unions, of adequate capital and adequate and appropriate forms of liquidity and governing agreements under subsection 84 (3);

   166.  Sections 320 and 321 of the Act are repealed and the following substituted:

Regulations: deposit insurance premiums

   320.  (1)  The Lieutenant Governor in Council may make regulations prescribing how annual premiums are to be determined under paragraph 1 of subsection 276.1 (1).

Same

   (2)  A regulation under subsection (1) may prescribe different annual premiums for different credit unions or classes of credit unions.

Limitation

   (3)  For the purposes of subsection (2), prescribed classes of credit unions shall be based in part on measurable criteria which relate to the risk posed by the credit union and may be based in part on other factors so long as they are not based on membership in a league.

Regulations: audit committee

   321.  The Lieutenant Governor in Council may make regulations prescribing the powers and duties of audit committees.

Regulations: administrative penalties

   321.0.1  (1)  The Lieutenant Governor in Council may make regulations governing the administrative penalties that may be imposed under section 331.2 or 331.3.

Same

   (2)  Without limiting the generality of subsection (1), a regulation governing administrative penalties may,

  (a)  prescribe criteria the Superintendent or Corporation is required or permitted to consider when imposing a penalty under section 331.2 or 331.3;

  (b)  authorize the Superintendent or Corporation to determine the amount of a penalty, if the amount of the penalty is not prescribed, and prescribe criteria the Superintendent or Corporation is required or permitted to consider when determining the amount of the penalty;

   (c)  establish different penalties or ranges of penalties for different types of contraventions and for different classes of persons and entities;

  (d)  authorize a penalty to be imposed for each day or part of a day on which a contravention continues;

  (e)  authorize higher penalties for a second or subsequent contravention by a person or entity;

    (f)  require that the penalty be paid before a specified deadline or before a deadline specified by the Superintendent or Corporation;

  (g)  authorize the imposition of late payment fees respecting penalties that are not paid before the deadline, including graduated late payment fees;

   (h)  establish a maximum cumulative penalty payable in respect of a contravention or in respect of contraventions during a specified period.

Regulations: transition

   321.0.2  (1)  The Lieutenant Governor in Council may make regulations providing for any transitional matters the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of the amendments to this Act in Schedule 7 to the Budget Measures and Interim Appropriation Act, 2007.

Transitional regulations

   (2)  A regulation under subsection (1) may provide that it applies despite this Act.

   167.  The Act is amended by adding the following heading immediately before section 321.1:

Approval of Forms, etc.

   168.  Section 321.5 of the Act is repealed.

   169.  The Act is amended by adding the following heading immediately before section 321.6:

Establishment of Fees

   170.  The Act is amended by striking out the heading immediately before section 322 and substituting the following:

PART XVII
Offences and Administrative Penalties

Offences

   171.  Subsection 322 (1) of the Act is repealed and the following substituted:

Offence, general

   (1)  Every person who contravenes any provision of this Act or the regulations or an order of the Superintendent or the Corporation is guilty of an offence.

   172.  Section 323 of the Act is repealed.

   173.  Subsection 327 (1) of the Act is repealed and the following substituted:

Order to comply

   (1)  If a credit union or any director, officer, employee or agent of a credit union does not comply with any provision of this Act, the regulations, the by-laws of the Corporation or the articles of incorporation or by-laws of the credit union, the Superintendent, the Corporation or a member or creditor of the credit union may apply to the court for an order directing the credit union, director, officer, employee or agent to comply with, or restraining the credit union, director, officer, employee or agent from acting in breach of the provision.

   174.  Section 328 of the Act is repealed.

   175.  Part XVII of the Act is amended by adding the following sections:

Administrative Penalties

Administrative penalties

   331.1  (1)  An administrative penalty may be imposed under section 331.2 or 331.3 for either of the following purposes:

    1.  To promote compliance with the requirements established under this Act.

    2.  To prevent a person or entity from deriving, directly or indirectly, any economic benefit as a result of contravening a provision of this Act or the regulations.

Same

   (2)  An administrative penalty may be imposed alone or in conjunction with any other regulatory measure provided by this Act, including any other order under this Act or the cancellation of deposit insurance under section 274.

Superintendent – administrative penalties

   331.2  (1)  If the Superintendent is satisfied that a person or entity is contravening a requirement described in subsection (2), the Superintendent may, by order, impose an administrative penalty on the person or entity in accordance with this section and the regulations.

Requirements for which penalties can be imposed

   (2)  The requirements referred to in subsection (1) are the following:

    1.  A requirement under subsection 107 (2) to file copies of a by-law.

    2.  A requirement, by the Superintendent under subsection 220 (1), to hold a meeting.

    3.  A requirement, by the Superintendent under section 225, to provide information.

    4.  Such other requirements, as may be prescribed, under provisions of this Act or the regulations.

Opportunity to make submissions

   (3)  Before imposing a penalty, the Superintendent shall give the person or entity a reasonable opportunity to make written submissions.

Limitation

   (4)  The Superintendent shall not make an order under this section more than two years after the day the Superintendent became aware of the contravention.

Appeals of administrative orders to Tribunal

   (5)  The person or entity that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Variation on application of s. 240.4

   (6)  The powers of the Tribunal under subsection 240.4 (8) to confirm, vary or revoke an order under this section are subject to the limits, if any, established by the regulations.

Corporation – administrative penalties

   331.3  (1)  If the Corporation is satisfied that a person or entity is contravening a requirement described in subsection (2), the Corporation may, by order, impose an administrative penalty on the person or entity in accordance with this section and the regulations.

Requirements for which penalties can be imposed

   (2)  The requirements referred to in subsection (1) are the following:

    1.  A requirement to provide reports to such persons and at such times as required by the Corporation under section 89.

    2.  A requirement, by the Corporation under subsection 220 (1), to hold a meeting.

    3.  A requirement, by the Corporation under section 225, to provide information.

    4.  A requirement under section 227 to file an annual return or provide information.

    5.  A requirement to pay a special levy under clause 262 (1) (d) or an annual premium determined under section 276.1.

    6.  Such other requirements, as may be prescribed, under provisions of this Act or the regulations.

Opportunity to make submissions

   (3)  Before imposing a penalty, the Corporation shall give the person or entity a reasonable opportunity to make written submissions.

Limitation

   (4)  The Corporation shall not make an order under this section more than two years after the day the Corporation became aware of the contravention.

Appeals of administrative orders to Tribunal

   (5)  The person or entity that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Variation on application of s. 240.4

   (6)  The powers of the Tribunal under subsection 240.4 (8) to confirm, vary or revoke an order under this section are subject to the limits, if any, established by the regulations.

Effect of paying penalty

   331.4  If a person or entity pays the administrative penalty in accordance with the terms of an order under section 331.2 or 331.3 or, if the order is varied on appeal, in accordance with the terms of the varied order, the person or entity cannot be charged with an offence under this Act in respect of the same contravention.

Maximum administrative penalties

   331.5  An administrative penalty imposed under section 331.2 or 331.3 shall not exceed $25,000 or such lesser amount as may be prescribed for the contravention of a requirement specified in the regulations.

Enforcement of administrative penalties

   331.6  (1)  If a person or entity fails to pay an administrative penalty imposed under section 331.2 or 331.3 in accordance with the terms of the order imposing the penalty, the person who made the order may file the order with the court and the order may be enforced as if it were an order of the court.

Same

   (2)  For the purposes of section 129 of the Courts of Justice Act, the date on which the order is filed with the court shall be deemed to be the date of the order.

Same

   (3)  An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is also enforceable as such.

   176.  Section 332 of the Act is amended by adding the following subsections:

Registration of credit unions to take deposits

   (4)  The Superintendent may, subject to any prescribed conditions, register a credit union in the Extra-Provincial Credit Unions Register for the purpose of allowing the credit union to borrow money from the public by receiving deposits and lending or investing such money.

Limitation

   (5)  A credit union shall not be registered under subsection (4) unless the deposits taken in Ontario are insured or guaranteed by the deposit insurer or similar entity for the jurisdiction under whose laws the credit union was incorporated.

Special rules for credit unions taking deposits

   (6)  The following apply with respect to a credit union registered under subsection (4):

    1.  The credit union shall be deemed to be a credit union under this Act for the purposes of the Loan and Trust Corporations Act and such other statutes and regulations as may be prescribed.

    2.  This Act shall not apply with respect to a credit union registered under subsection (4), except as provided in the regulations.

   177.  Sections 334 and 335 of the Act are repealed and the following substituted:

Review

   334.  (1)  Within five years after section 177 of Schedule 7 to the Budget Measures and Interim Appropriation Act, 2007 comes into force, the Minister shall appoint one or more persons to review the operation of this Act and the regulations and to make recommendations to the Minister.

Subsequent reviews

   (2)  The Minister shall, no later than five years after the appointment under subsection (1), appoint one or more persons to conduct a subsequent review and shall, no later than five years after the most recent appointment under this subsection, appoint one or more persons to conduct subsequent reviews.

Public consultation

   (3)  When conducting a review, the appointees shall solicit the views of the public.

Public inspection

   (4)  The Minister shall make the recommendations of the appointees available to the public.

Delivery of notice

   335.  Delivery of any written notice or document for any purpose of this Act, if the mode is not otherwise specified, may be delivered by first class ordinary mail or first class registered mail,

  (a)  in the case of a credit union, addressed to it at its principal place of business;

  (b)  in the case of a director, addressed to the director at his or her address as shown on the records of the Corporation;

   (c)  in the case of the Superintendent, addressed to the Superintendent at his or her office;

  (d)  in the case of the Corporation, addressed to the Corporation at its office; or

  (e)  in the case of a member, addressed to the member at the member's address as shown in the records of the credit union or by personal delivery to the member at the member's place of employment.

Existing stabilization funds

   335.1  A stabilization fund established, before this section comes into force, under this Act or a predecessor of this Act shall be maintained as prescribed.

Related Amendments

AgriCorp Act, 1996

   178.  Section 12 of the AgriCorp Act, 1996 is repealed and the following substituted:

Funds

   12.  Subject to subsection 3 (4), AgriCorp shall maintain all funds that it administers in,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Algonquin Forestry Authority Act

   179.  Subsection 13 (3) of the Algonquin Forestry Authority Act is repealed and the following substituted:

Bank accounts

   (3)  The Authority may, with the approval of the Minister, maintain in its name one or more accounts in,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Assignments and Preferences Act

   180.  Subsection 28 (1) of the Assignments and Preferences Act is repealed and the following substituted:

Retention of assets in Ontario and deposit of money

   (1)  No property or assets of an estate assigned under this Act shall be removed out of Ontario without the order of the judge, and the proceeds of the sale of any such property or assets and all money received on account of any estate shall be deposited by the assignee in a financial institution described in subsection (1.1) and shall not be withdrawn or removed without the order of the judge, except in payment of dividends and charges incidental to winding up the estate.

Financial institutions

   (1.1)  A financial institution referred to in subsection (1) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Business Corporations Act

   181.  (1)  Subsections 188 (6) and (7) of the Business Corporations Act are repealed and the following substituted:

Trust funds

   (6)  An offeree corporation is deemed to hold in trust for dissenting offerees the money or other consideration it receives under subsection (5), and the offeree corporation shall deposit the money in a separate account in a financial institution described in subsection (7.1) and shall place the other consideration in the custody of such a financial institution.

Same

   (7)  The offeror making an issuer bid is deemed to hold in trust for dissenting offerees the money or other consideration that the offeror would have had to pay or transfer to all dissenting offerees if they had elected to accept the issuer bid under subclause (2) (c) (i) and, within 20 days after the issuer sends an offeror's notice under subsection (2), the issuer shall deposit any such money in a separate account in a financial institution described in subsection (7.1) and shall place the other consideration in the custody of such a financial institution within 20 days after the offeror sends an offeror's notice under subsection (2).

Same

   (7.1)  A financial institution referred to in subsection (6) or (7) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

   (2)  Subsections 227 (1) and (2) of the Act are repealed and the following substituted:

Deposit of money

   (1)  The liquidator shall deposit all money that the liquidator has belonging to the corporation and amounting to $100 or more in a financial institution described in subsection (2).

Financial institutions

   (2)  A financial institution referred to in subsection (1) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Business Regulation Reform Act, 1994

   182.  Section 11 of the Business Regulation Reform Act, 1994 is repealed and the following substituted:

Deduction from payment

   11.  (1)  A financial institution described in subsection (2) that receives a payment of fees, taxes, interest, penalties or other charges under this Act or a designated Act on behalf of a Minister by the credit card of the institution, may deduct from the payment the amount of compensation that the Minister of Finance and the institution agree may be deducted.

Financial institutions

   (2)  A financial institution referred to in subsection (1) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994;

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada); or

  (e)  any other financial institution prescribed under this Act.

Corporations Act

   183.  (1)  Subsection 143 (5) of the Corporations Act is repealed and the following substituted:

Application of money received on account of shares

   (5)  All money received on account of shares shall be paid into a trust account in a financial institution described in subsection (5.1) in trust for the proposed company and no money paid on account of shares before the first general meeting of the company has been organized shall be withdrawn or paid over to the company until after such meeting has been organized and an election of directors held thereat.

Financial institutions

   (5.1)  A financial institution referred to in subsection (5) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

   (2)  Subsections 259 (1) and (2) of the Act are repealed and the following substituted:

Deposit in financial institution by liquidator

   (1)  The liquidator shall deposit in a financial institution described in subsection (1.1) all sums of money that the liquidator has belonging to the corporation if such sums amount to $100 or more.

Financial institutions

   (1.1)  A financial institution referred to in subsection (1) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Approval of financial institution by inspectors

   (2)  If inspectors have been appointed, the financial institution shall be one approved by them.

Development Corporations Act

   184.  Clauses 22 (b) and (c) of the Development Corporations Act are repealed and the following substituted:

  (b)  deposit receipts, deposit notes, certificates of deposits, acceptances and other similar instruments issued or endorsed by a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

   (c)  deposits with a corporation registered under the Loan and Trust Corporations Act;

  (d)  deposits with a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

Election Act

   185.  Subsection 71 (2) of the Election Act is repealed and the following substituted:

Security for costs

   (2)  An application under subsection (1) shall be accompanied by a receipt showing that there has been deposited with a clerk of the Ontario Court of Justice, as security for costs in connection with the recount, the sum of $200 or money order or cheque in that amount drawn upon and accepted by,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Election Finances Act

   186.  (1)  Subsection 1 (1) of the Election Finances Act is amended by adding the following definition:

"financial institution" means,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada),

  (b)  a corporation registered under the Loan and Trust Corporations Act,

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994, or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada); ("institution financière")

   (2)  Clause 10 (3) (h) of the Act is repealed and the following substituted:

   (h)  the name and address of every financial institution to be used by the political party as the depositories for contributions made to that political party;

   (3)  Clause 11 (2) (f) of the Act is repealed and the following substituted:

    (f)  the name and address of every financial institution to be used by the constituency association as the depositories for all contributions made to that constituency association;

   (4)  Clause 13 (3) (g) of the Act is repealed and the following substituted:

  (g)  the name and address of every financial institution to be used by or on behalf of the candidate as the depositories for all contributions made to that candidate; and

   (5)  Clause 14 (3) (e) of the Act is repealed and the following substituted:

  (e)  the name and address of every financial institution that is lawfully entitled to accept deposits to be used by or on behalf of the leadership contestant as the depositories for all contributions made to that leadership contestant;

   (6)  Clause 35 (1) (a) of the Act is repealed and the following substituted:

  (a)  a financial institution; or

   (7)  Clause 39 (1) (a) of the Act is repealed and the following substituted:

  (a)  all the assets of the foundation shall consist of deposits with a financial institution or shall be invested in investments authorized for trust money by the Trustee Act;

Municipal Affairs Act

   187.  Section 35 of the Municipal Affairs Act is repealed and the following substituted:

Ministry to have control over money and its application

   35.  (1)  The Ministry has full charge and control over all money belonging to the municipality and received by any person for or on its behalf and such money shall be deposited in a financial institution described in subsection (2) to be designated by the municipality, and when so deposited shall only be applied, used, transferred and withdrawn for such purpose, in such manner and at such time or times as the Ministry may approve and direct, and all cheques drawn and issued by the municipality shall be signed and countersigned by such persons and in such manner as the Ministry may authorize, and no money belonging to or revenues of the municipality may be appropriated, applied, paid, used, transferred or withdrawn by any person except with the approval of or otherwise than as directed by the Ministry.

Financial institutions

   (2)  A financial institution referred to in subsection (1) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  a retail association as defined under the Cooperative Credit Associations Act (Canada).

Northern Ontario Heritage Fund Act

   188.  Clause 6 (3) (c) of the Northern Ontario Heritage Fund Act is repealed and the following substituted:

   (c)  deposit receipts, deposit notes, certificates of deposits, acceptances and other similar instruments issued or endorsed by a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

(c.1) deposits with a corporation registered under the Loan and Trust Corporations Act;

(c.2) deposits with a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994;

(c.3) deposits with a retail association as defined under the Cooperative Credit Associations Act (Canada); and

Ontario Educational Communications Authority Act

   189.  Subsections 10 (1) and (2) of the Ontario Educational Communications Authority Act are repealed and the following substituted:

Accounts

   (1)  The Authority shall maintain in its own name one or more accounts in one or more of the following:

    1.  A bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada).

    2.  A corporation registered under the Loan and Trust Corporations Act.

    3.  A credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

    4.  A retail association as defined under the Cooperative Credit Associations Act (Canada).

Limits on certain deposits

   (2)  The total deposits of the Authority in a corporation registered under the Loan and Trust Corporations Act shall not exceed at any one time 3 per cent of the paid-in capital plus surplus and reserves of the corporation.

Real Estate and Business Brokers Act, 2002

   190.  (1)  Clause 5 (1) (d) of the Real Estate and Business Brokers Act, 2002 is repealed and the following substituted:

  (d)  a financial institution described in subsection (1.1), if the trade is in real estate owned or administered by the financial institution;

   (2)  Section 5 of the Act is amended by adding the following subsection:

Financial institutions

   (1.1)  A financial institution referred to in clause (1) (d) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act;

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994; or

  (d)  an insurer licensed under the Insurance Act.

   (3)  Subsection 25 (3) of the Act is repealed and the following substituted:

Limitation

   (3)  In the case of a financial institution described in subsection (3.1), the order under subsection (1) applies only to the offices and branches named in the order.

Financial institutions

   (3.1)  A financial institution referred to in subsection (3) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act; or

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

   (4)  Subclauses 27 (1) (a) (ii) and (iii) of the Act are repealed and the following substituted:

          (ii)  a corporation registered under the Loan and Trust Corporations Act, or

         (iii)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994;

Securities Act

   191.  (1)  Clause (c.1) of paragraph 1 of subsection 35 (2) of the Securities Act is amended by striking out "the deposit insurer" at the end and substituting "the Deposit Insurance Corporation of Ontario".

   (2)  Clause (c.2) of paragraph 1 of subsection 35 (2) of the Act is amended by striking out "the deposit insurer" at the end and substituting "the Deposit Insurance Corporation of Ontario".

   (3)  Paragraph 9 of subsection 35 (2) of the Act is amended by adding "or patronage shares" after "Membership shares".

Commencement

Commencement

   192.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 to 137, subsections 138 (1), (2) and (3) and sections 139 to 191 come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (3)  Subsection 138 (4) comes into force on the later of,

  (a)  the day on which subsection 138 (3) comes into force; and

  (b)  the day on which section 134 of Schedule F to the Access to Justice Act, 2006 comes into force.

 

 

schedule 8
Early Childhood Educators Act, 2007 and A Related Amendment

 

CONTENTS

PART I
INTERPRETATION

 1.

 2.

Definitions

Practice of early childhood education

PART II
PROHIBITIONS

 3.

 4.

 5.

Practice

Use of title

Holding out as early childhood educator

PART III
COLLEGE

 6.

 7.

 8.

 9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

College established

Duty and objects

Council: Registrar's role; remuneration

Term of office

Qualifications to vote

Quorum

Vacancies in Council

Meetings open to public

Employees and officers

Annual report

Minister's powers and duties

Annual meeting of members

Membership in College

Committees of Council

Other committees

Vacancies in committees

Member ceasing to be on committee during hearing

Incapacity of member during hearing

Delegation of Council's powers

PART IV
REGISTRATION

25.

26.

27.

28.

29.

30.

Issuing or refusing to issue certificate of registration

Disclosure of application file

Notice of proposal to refuse to issue, etc.

Duties of Registration Appeals Committee

Register

Suspension: failure to pay fees, provide information

PART V
COMPLAINTS COMMITTEE, DISCIPLINE COMMITTEE AND FITNESS TO PRACTISE COMMITTEE

31.

32.

33.

34.

35.

Duties of Complaints Committee

Reference to certain committees; interim suspensions

Discipline Committee

Fitness to Practise Committee

Procedure on hearings

PART VI
REINSTATEMENT AND VARIATION

36.

37.

Reinstatement or variation

Reinstatement: no hearing

PART VII
APPEALS TO COURT

38.

Appeal to court

PART VIII
REGISTRAR'S POWERS OF INVESTIGATION

39.

40.

41.

42.

Registrar's investigation

Entries and searches

Documents and objects

Report of investigation

PART IX
REGULATIONS AND BY-LAWS

43.

44.

45.

46.

47.

Regulations of College, subject to approval

By-laws

Regulations by L.G. in C.

Regulations and by-laws: general or specific

Copies of regulations, by-laws

PART X
MISCELLANEOUS

48.

49.

50.

51.

52.

53.

54.

55.

56.

57.

58.

Right to use French

Employer reports re: certain offences

Immunity of College

Confidentiality

Guarantee of loans

Service of notice or document

Registrar's certificate as evidence

Statutory Powers Procedure Act

Compliance order

Offences

Review by Minister

PART XI
TRANSITIONAL PROVISIONS

59.

60.

61.

62.

63.

64.

65.

66.

67.

68.

Definition, transitional period

Appointment of transitional Council

Transitional Registrar

Committees of transitional Council

First election of Council members

Initial certificate

Revoke certificate

Powers of Minister

Initial membership

First annual meeting of members

PART XII
CONSEQUENTIAL AMENDMENTS

69.

Fair Access to Regulated Professions Act, 2006

PART XIII
COMMENCEMENT AND SHORT TITLE

70.

71.

Commencement

Short title

___________

 

Part I
Interpretation

Definitions

   1.  In this Act,

"by-laws" means the by-laws made under this Act; ("règlements administratifs")

"child" means a person under the age of 18 years; ("enfant")

"College" means the College of Early Childhood Educators established under section 6; ("Ordre")

"Council" means the Council of the College established in accordance with section 8; ("conseil")

"Minister" means the Minister of Children and Youth Services or any other member of the Executive Council to whom the administration of this Act is assigned under the Executive Council Act; ("ministre")

"regulations" means the regulations made under this Act. ("règlements")

Practice of early childhood education

   2.  The practice of early childhood education is the planning and delivery of inclusive play-based learning and care programs for children in order to promote the well-being and holistic development of children, and includes,

  (a)  the delivery of programs to pre-school children and school aged children, including children with special needs;

  (b)  the assessment of the programs and of the progress of children in the programs;

   (c)  communication with the parents or persons with legal custody of the children in the programs in order to improve the development of the children; and

  (d)  such other services or activities as may be prescribed by the regulations.

Part II
Prohibitions

Practice

   3.  (1)  No person shall engage in the practice of early childhood education or hold himself or herself out as able to do so unless the person holds a certificate of registration issued under this Act.

Application

   (2)  Subsection (1) does not apply to any of the following persons who engage in activities that are part of the practice of early childhood education and do not hold a certificate of registration issued under this Act:

    1.  A person employed as a teacher or teaching assistant in an institution that is a school as defined in subsection 1 (1) of the Education Act.

    2.  A person employed in a day nursery under the Day Nurseries Act if that person,

            i.  works under the supervision or direction of a person who,

                  A.  holds a certificate of registration under this Act, or

                  B.  has been approved by the Director under that Act to work, instead of a person who holds a certificate of registration, as a supervisor of the day nursery or as a person responsible for a group of children in the day nursery, or

           ii.  is approved by the Director under that Act to work, instead of a person who holds a certificate of registration, as a supervisor of the day nursery or as a person responsible for a group of children in the day nursery.

    3.  A person who cares for children in a private residence if,

            i.  the children are of common parentage, within the meaning of the Day Nurseries Act,

           ii.  the person cares for five children or less, or

          iii.  the person provides private-home day care services, within the meaning of the Day Nurseries Act, on behalf of a private-home day care agency licensed under the Day Nurseries Act and under the supervision of a private-home day care visitor employed by the agency in accordance with that Act.

    4.  A person employed as a private-home day care visitor by a private-home day care agency licensed under the Day Nurseries Act if the person meets the requirements for employment as a private-home day care visitor under that Act.

    5.  A person employed as a resource teacher by a day nursery or private-home day care agency under the Day Nurseries Act if the person is approved by the Director under that Act to work for the day nursery or agency instead of a registered early childhood educator.

    6.  A person employed in a program that is a children's recreational program within the meaning of Regulation 262 of the Revised Regulations of Ontario, 1990 (General) made under the Day Nurseries Act.

    7.  Any other person or class of persons prescribed by a regulation made under subsection 45 (1).

Use of title

   4.  No person except a member of the College shall use the English title "early childhood educator" or "registered early childhood educator" or the French title "éducatrice de la petite enfance", "éducateur de la petite enfance", "éducatrice de la petite enfance inscrite" or "éducateur de la petite enfance inscrit" or an abbreviation of any of those titles to describe themselves or their profession.

Holding out as early childhood educator

   5.  No person except a member of the College shall represent or hold out expressly or by implication that he or she is a member of the College.

PART III
COLLEGE

College established

   6.  (1)  A college is established under the name College of Early Childhood Educators in English and Ordre des éducatrices et des éducateurs de la petite enfance in French.

Body corporate

   (2)  The College is a body corporate without share capital and with all the powers of a natural person.

Non-application of certain Acts

   (3)  The Corporations Act and the Corporations Information Act do not apply to the College.

Duty and objects

Duty to protect public interest

   7.  (1)  In carrying out its objects, the College's primary duty is to serve and protect the public interest.

Objects

   (2)  The College has the following objects:

    1.  To regulate the practice of early childhood education and to govern its members.

    2.  To develop, establish and maintain qualifications for membership in the College.

    3.  To provide for the ongoing education of members of the College.

    4.  To issue certificates of registration to members of the College and to renew, amend, suspend, cancel, revoke and reinstate those certificates.

    5.  To establish an appeal mechanism for registration decisions.

    6.  To establish and enforce professional standards and ethical standards that are applicable to members of the College and that demonstrate a respect for diversity and a sensitivity to the multicultural character of the Province.

    7.  To receive and investigate complaints against members of the College and to deal with issues of discipline, professional misconduct, incompetency and incapacity.

    8.  To promote high standards and quality assurance with respect to early childhood educators and to communicate with the public on behalf of the members.

    9.  To perform the additional functions prescribed by a regulation made under subsection 45 (1).

Council: Registrar's role; remuneration

Council

   8.  (1)  The College shall have a Council that shall be its governing body and board of directors and that shall manage and administer its affairs.

Composition of Council

   (2)  The Council shall be composed of,

  (a)  14 early childhood educators who are members of the College and who are elected by the members of the College in accordance with the by-laws to represent such geographic areas of the Province as may be determined by regulation;

  (b)  10 persons who are not members of the College and who are appointed by the Lieutenant Governor in Council to represent such sectors of Ontario society as may be prescribed by a regulation made under subsection 45 (1).

Role of Registrar

   (3)  The Registrar shall serve as secretary to the Council and has all the rights of participation at meetings of the Council that a Council member has, other than the right to vote.

Expenses and remuneration

   (4)  The Minister shall pay to Council members appointed by the Lieutenant Governor in Council the expenses and remuneration determined by the Lieutenant Governor in Council.

Term of office

   9.  (1)  The term of office of a Council member shall not exceed three years.

Multiple terms

   (2)  A person may be a Council member for more than one term but no person may be a Council member for more than 10 consecutive years.

Qualifications to vote

   10.  (1)  Subject to the by-laws, every member of the College who is in good standing is entitled to vote at an election of members of the Council.

Member in good standing

   (2)  A member of the College is in good standing for the purposes of this section if,

  (a)  the member is not in default of payment of a membership fee prescribed by the by-laws; and

  (b)  the member's certificate of registration is not suspended.

Quorum

   11.  Thirteen members of Council constitute a quorum.

Vacancies in Council

   12.  If one or more vacancies occur in the membership of the Council, the members remaining on the Council constitute the Council so long as their number is not fewer than the quorum established by section 11.

Meetings open to public

   13.  (1)  Subject to subsections (2) and (3), the meetings of the Council shall be open to the public and reasonable notice shall be given to the members of the College and to the public.

Exceptions

   (2)  The Council may exclude the public, including members of the College, from a meeting or any part of a meeting if it is satisfied that,

  (a)  financial or personal or other matters may be disclosed of such a nature that the desirability of avoiding public disclosure of them in the interest of any person affected or in the public interest outweighs the desirability of adhering to the principle that the meetings be open to the public;

  (b)  a person involved in a civil or criminal proceeding may be prejudiced;

   (c)  the safety of a person may be jeopardized;

  (d)  personnel matters or property transactions will be discussed; or

  (e)  litigation affecting the College will be discussed or instructions will be given to or opinions received from solicitors for the College.

Same

   (3)  The Council may also exclude the public, including members of the College, from a meeting or any part of a meeting in which it will deliberate whether to exclude the public from a meeting or part of a meeting.

Employees and officers

   14.  (1)  The Council may employ the persons it considers advisable and shall have the officers provided for by the by-laws.

Registrar appointed

   (2)  The Council shall appoint one of its employees as the Registrar.

Deputy registrars

   (3)  The Council may appoint one or more deputy registrars who shall have the powers of the Registrar as set out in the by-laws.

Chief executive officer

   (4)  The Registrar shall be the chief executive officer of the College.

Annual report

   15.  (1)  The Council shall report annually to the Minister on the activities and financial affairs of the College.

Same

   (2)  The report shall include audited financial statements.

Minister's powers and duties

   16.  (1)  The Minister may,

  (a)  review the activities of the Council and require the Council to provide reports and information;

  (b)  require the Council to do anything that the Minister believes is necessary or advisable to carry out the objects of the College;

   (c)  require the Council to make, amend or revoke a regulation under section 43.

Council to comply

   (2)  If the Minister requires the Council to do anything under subsection (1), the Council shall, within the time and in the manner specified by the Minister, comply with the requirement and submit a report to the Minister respecting the compliance.

Regulations

   (3)  If the Minister requires the Council to make, amend or revoke a regulation under clause (1) (c) and the Council does not do so within 60 days, the Lieutenant Governor in Council may, by regulation, make, amend or revoke the regulation.

Annual meeting of members

   17.  The College shall hold an annual meeting of the members of the College not more than 15 months after the holding of the last preceding annual meeting of members.

Membership in College

   18.  (1)  Every person who holds a certificate of registration is a member of the College, subject to any term, condition or limitation to which the certificate is subject.

Resignation of membership

   (2)  A member of the College may resign his or her membership by filing a resignation in writing with the Registrar and when the member does so, the certificate of registration is cancelled.

Continuing jurisdiction: revocation, cancellation

   (3)  A person whose certificate of registration is revoked or cancelled or expires continues to be subject to the jurisdiction of the College for professional misconduct, incompetence or incapacity referable to any time during which the person held a certificate of registration under this Act.

Committees of Council

   19.  (1)  The Council shall establish the following committees:

    1.  Executive Committee.

    2.  Registration Appeals Committee.

    3.  Complaints Committee.

    4.  Discipline Committee.

    5.  Fitness to Practise Committee.

Same

   (2)  In appointing persons to the committees mentioned in subsection (1), the Council shall ensure that,

  (a)  each committee has at least one member who is an elected member of the Council referred to in clause 8 (2) (a);

  (b)  at least one-third of the members of each committee are appointed members of the Council referred to in clause 8 (2) (b);

   (c)  no person who is a member of the Complaints Committee is also a member of the Discipline Committee or the Fitness to Practise Committee; and

  (d)  the appointments are made in accordance with the by-laws.

Chair

   (3)  The Council shall appoint one of the members of each committee referred to in subsection (1) as the Chair of that committee.

Panel appointed

   (4)  The Chair of a committee may appoint panels from among the committee's members and authorize them to conduct reviews, to consider and investigate written complaints and to hold hearings.

Same

   (5)  Each panel appointed under subsection (4) shall be composed of at least three persons and shall include,

  (a)  at least one elected member of the Council referred to in clause 8 (2) (a); and

  (b)  at least one appointed member of the Council referred to in clause 8 (2) (b).

Same

   (6)  A decision of a panel appointed under subsection (4) shall be deemed to be the decision of the committee from which it was appointed.

Other committees

   20.  The Council may establish other committees that the Council from time to time considers necessary.

Vacancies in committees

   21.  If one or more vacancies occur in the membership of a committee of the Council, the members remaining on the committee constitute the committee so long as their number is not fewer than the quorum established in the by-laws.

Member ceasing to be on committee during hearing

   22.  If, after a committee commences a hearing into a matter, a member of the committee ceases to be a member of the committee, the member shall be deemed, for the purposes of dealing with that matter, to remain a member of the committee until the final disposition of the matter.

Incapacity of member during hearing

   23.  If, after a committee commences a hearing into a matter, a member of the committee becomes incapacitated, the remaining members of the committee may continue to hear the matter and to render a decision with respect to the matter.

Delegation of Council's powers

   24.  The Council may delegate to the Executive Committee the authority to exercise any power or perform any duty of the Council other than the power to make, amend or revoke a regulation or by-law.

PART IV
REGISTRATION

Issuing or refusing to issue certificate of registration

Approval of application for registration

   25.  (1)  The Registrar shall issue a certificate of registration to an applicant if the applicant,

  (a)  applies for it in accordance with the regulations and the by-laws;

  (b)  meets the registration requirements prescribed by regulation; and

   (c)  pays the fees required under the by-laws.

Grounds for refusal

   (2)  The Registrar may refuse to issue a certificate of registration if the Registrar has reasonable grounds to believe that,

  (a)  the past conduct or actions of the applicant afford grounds for belief that the applicant will not perform his or her duties as an early childhood educator, in accordance with the law, including but not limited to this Act, the regulations and the by-laws; or

  (b)  the applicant does not fulfil the requirements under this Act for the issuance of the certificate.

Same

   (3)  Except as otherwise directed under this Act, the Registrar shall refuse to issue a certificate of registration to an applicant who previously held such a certificate of registration that was revoked as a result of a decision of the Discipline Committee or the Fitness to Practise Committee and that was not reinstated under section 36 or 37.

Terms, etc.

   (4)  If the Registrar believes that a certificate of registration should be issued to an applicant with terms, conditions or limitations, the Registrar may impose those terms, conditions or limitations.

Disclosure of application file

   26.  (1)  The Registrar shall give an applicant for a certificate of registration, at the applicant's request, a copy of each document the College has that is relevant to the application.

Exception

   (2)  The Registrar may refuse to give an applicant anything that may, in the Registrar's opinion, jeopardize the safety of any person.

Notice of proposal to refuse to issue, etc.

   27.  (1)  If the Registrar proposes to do one of the following, the Registrar shall first serve notice of the proposal, with written reasons for it, on the applicant:

    1.  Refuse to issue a certificate of registration.

    2.  Impose terms, conditions or limitations to which the applicant has not consented on a certificate of registration to be issued.

Exception

   (2)  Subsection (1) does not apply if the Registrar refuses to issue a certificate under subsection 25 (3).

Contents of notice

   (3)  A notice under subsection (1) shall state that the applicant may request a review by the Registration Appeals Committee in accordance with subsection (4).

Request for review

   (4)  The request for review shall be in writing and shall be served on the Registrar within 60 days after the notice under subsection (1) is served on the applicant.

Submissions

   (5)  The request for review may be accompanied by written submissions.

Power of Registrar if no request

   (6)  If an applicant does not request a review in accordance with subsection (4), the Registrar shall carry out the proposal stated in the notice under subsection (1).

Duties of Registration Appeals Committee

   28.  (1)  If an applicant requests a review in accordance with subsection 27 (4), the Registration Appeals Committee shall conduct the review.

Exception

   (2)  Despite subsection (1), the Committee shall refuse to conduct a review if, in its opinion, the request for review is frivolous, vexatious or an abuse of process.

Extension of time for requesting review

   (3)  The Committee may extend the time for requesting a review under subsection 27 (4) if it is satisfied that there are apparent grounds for granting relief on the review and that there are reasonable grounds for applying for the extension.

Examination of documents, submissions

   (4)  Subject to subsection (5), the Committee shall ensure that the person requesting the review is given an opportunity to examine and make written submissions on any documents that the Committee intends to consider in making its decision on the review.

Exception

   (5)  The Committee may refuse to give a person an opportunity to examine a document if doing so may, in the Committee's opinion, jeopardize the safety of any person.

No hearing

   (6)  Except as provided by section 27 and this section, the Committee need not hold a hearing or afford to any person an opportunity for a hearing or an opportunity to make oral or written submissions before making a decision or giving a direction under this part.

Order

   (7)  After considering the request for review, the submissions and any document that the Committee considers relevant, the Committee may make an order doing one or more of the following:

    1.  Directing the Registrar to issue the certificate of registration.

    2.  Directing the Registrar to issue the certificate of registration and to make it subject to specified terms, conditions or limitations.

    3.  Directing the Registrar to vary specified terms, conditions or limitations in the Registrar's proposal.

    4.  Directing the Registrar to refuse to issue a certificate of registration.

Service of decision on parties

   (8)  The Committee shall give its decision under this section in writing to the Registrar, with reasons, within 60 days after considering the request for review and shall serve the person who requested the review with a copy.

Register

   29.  (1)  The Registrar shall maintain a register.

Contents

   (2)  Subject to any by-law respecting the removal of information from the register, the register shall contain,

  (a)  the name of each member of the College and, where applicable, the class of certificate of registration that the member holds;

  (b)  any terms, conditions and limitations imposed on the member's certificate of registration;

   (c)  a notation of every revocation, cancellation and suspension of a member's certificate of registration;

  (d)  information that a committee required by subsection 19 (1) or established under section 20 directs shall be included; and

  (e)  information that the by-laws prescribe as information to be kept in the register.

Inspection

   (3)  Any person has the right, during normal business hours, to inspect the register.

Copies

   (4)  The Registrar shall provide to any person, on payment of a reasonable charge, a copy of any part of the register.

Suspension: failure to pay fees, provide information

   30.  (1)  The Registrar may suspend the certificate of registration of a member of the College for,

  (a)  failure to pay a fee or penalty prescribed by the by-laws; or

  (b)  failure to provide information required by the by-laws.

Same

   (2)  The Registrar shall not suspend a member's certificate of registration without first giving the member two months notice of the default and intention to suspend.

Reinstatement

   (3)  A person whose certificate of registration has been suspended under subsection (1) is entitled to have the suspension removed on payment of the fees and penalties prescribed by the by-laws or on provision of the information required by the by-laws, as the case may be.

PART V
COMPLAINTS COMMITTEE, DISCIPLINE COMMITTEE AND FITNESS TO PRACTISE COMMITTEE

Duties of Complaints Committee

   31.  (1)  The Complaints Committee shall consider and investigate written complaints regarding the conduct or actions of members of the College.

Same

   (2)  Despite subsection (1), the Complaints Committee shall refuse to consider and investigate a written complaint if, in its opinion,

  (a)  the complaint does not relate to professional misconduct, incompetence or incapacity on the part of a member of the College; or

  (b)  the complaint is frivolous, vexatious or an abuse of process.

Same

   (3)  No action shall be taken by the Complaints Committee under subsection (5) unless,

  (a)  a complaint in a form prescribed by the by-laws has been filed with the Registrar;

  (b)  the member of the College whose conduct or actions are being investigated has been notified of the complaint and given at least 30 days in which to submit in writing to the Committee any explanations or representations the member may wish to make concerning the matter; and

   (c)  the Committee has examined all the information and documents that the College has that are relevant to the complaint.

Same

   (4)  Notice of a complaint under clause (3) (b) shall include reasonable information about any allegations contained in the complaint.

Same

   (5)  The Complaints Committee, in accordance with the information it receives, shall,

  (a)  direct that the matter be referred, in whole or in part, to the Discipline Committee or the Fitness to Practise Committee;

  (b)  direct that the matter not be referred under clause (a);

   (c)  require the person complained against to appear before the Complaints Committee to be cautioned;

  (d)  refer the matter for alternative dispute resolution if the Committee considers it appropriate to do so and the complainant and the member agree, but if alternate dispute resolution fails to resolve the matter, it shall be referred back to the Committee; or

  (e)  take any action it considers appropriate in the circumstances and that is not inconsistent with this Act, the regulations or the by-laws.

Decision and reasons

   (6)  The Complaints Committee shall give its decision in writing to the Registrar and, except in the case of a decision made under clause (5) (a), its reasons for the decision.

Notice

   (7)  The Registrar shall provide the complainant and the person complained against with a copy of the written decision made by the Complaints Committee and its reasons for the decision, if any.

No hearing

   (8)  Except as provided by this section, the Complaints Committee need not hold a hearing or afford to any person an opportunity for a hearing or an opportunity to make oral or written submissions before making a decision or giving a direction under this section.

Timely disposal

   (9)  The Complaints Committee shall use its best efforts to dispose of a complaint within 120 days of its being filed with the Registrar.

Reference to certain committees; interim suspensions

Reference by Council or Executive Committee

   32.  (1)  The Council or the Executive Committee may direct the Discipline Committee to hold a hearing and determine any allegation of professional misconduct or incompetence on the part of a member of the College.

Same

   (2)  The Council or the Executive Committee may direct the Fitness to Practise Committee to hold a hearing and determine any allegation of incapacity on the part of a member of the College.

Interim suspension

   (3)  The Council or the Executive Committee may make an interim order directing the Registrar to suspend the certificate of registration of a member of the College or impose terms, conditions or limitations on a member's certificate of registration if,

  (a)  an allegation respecting the member has been referred to the Discipline Committee or to the Fitness to Practise Committee; and

  (b)  the Council or the Executive Committee believes that the actions or conduct of the member directly or indirectly exposes or is likely to expose a child to harm or injury.

Restriction

   (4)  No order shall be made under subsection (3) unless the member has been given,

  (a)  notice of the Council's or the Executive Committee's intention to make the order; and

  (b)  at least 14 days to make written submissions to the Council or the Executive Committee.

Same

   (5)  Clause (4) (b) does not apply if the Council or the Executive Committee believes that the delay would be inappropriate in view of the risk of harm or injury to any child.

No hearing

   (6)  Except as provided by this section, the Council or the Executive Committee need not hold a hearing or afford any person an opportunity to make oral or written submissions before making a decision or giving a direction under this section.

Procedure following order

   (7)  If an order is made under subsection (3) in relation to a matter referred to the Discipline Committee or to the Fitness to Practise Committee,

  (a)  the Council or the Executive Committee shall ensure that the committee proceed with the matter expeditiously; and

  (b)  the committee shall give precedence to the matter.

Duration of order

   (8)  An order under subsection (3) continues in force until the matter is disposed of by the Discipline Committee or the Fitness to Practise Committee.

Discipline Committee

   33.  (1)  The Discipline Committee shall,

  (a)  hear and determine matters directed or referred to it under section 31, 32 or 36; and

  (b)  perform any other duties assigned to it by the Council.

Professional misconduct

   (2)  The Discipline Committee may find a member of the College guilty of professional misconduct if, after a hearing, the Committee believes that the member has engaged in conduct that,

  (a)  contravenes this Act, the regulations or the by-laws;

  (b)  contravenes an order of the Discipline Committee, the Complaints Committee, the Council or the Registrar; or

   (c)  is defined as being professional misconduct in the regulations.

Incompetence

   (3)  The Discipline Committee may, after a hearing, find a member of the College to be incompetent if, in its opinion, the member has displayed in his or her professional responsibilities a lack of knowledge, skill or judgment or disregard for the welfare of a child of a nature or extent that demonstrates that,

  (a)  the member is unfit to continue to carry out his or her professional responsibilities; or

  (b)  the member's certificate of registration should be made subject to terms, conditions or limitations.

Powers of Discipline Committee

   (4)  If the Discipline Committee finds a member guilty of professional misconduct or to be incompetent, it shall make an order doing one or more of the following:

    1.  Directing the Registrar to revoke the member's certificate of registration.

    2.  Directing the Registrar to suspend the member's certificate of registration for a specified period, not exceeding 24 months.

    3.  Directing the Registrar to impose specified terms, conditions or limitations on the member's certificate of registration.

    4.  Directing that the Registrar not carry out a direction made under paragraph 1, 2 or 3 for a specified period and not carry out the direction at all if specified terms are met within that period.

Same

   (5)  If the Discipline Committee finds a member guilty of professional misconduct, it may, in addition to exercising its powers under subsection (4), make an order doing one or more of the following:

    1.  Requiring that the member be reprimanded, admonished or counselled by the Committee or its delegate and, if considered warranted, directing that the fact of the reprimand, admonishment or counselling be recorded on the register for a specified or an unlimited period.

    2.  Imposing a fine in an amount that the Committee considers appropriate, to a maximum of $2,000, to be paid by the member to the Minister of Finance for payment into the Consolidated Revenue Fund.

    3.  Directing that the finding and the order of the Committee be published, in detail or in summary, with or without the name of the member, in the official publication of the College and in any other manner or medium that the Committee considers appropriate in the particular case.

    4.  Fixing costs to be paid by the member.

Same

   (6)  In making an order under paragraph 4 of subsection (4), the Committee may specify the terms that it considers appropriate, including but not limited to terms requiring the successful completion by the member of specified courses of study.

Same

   (7)  In making an order revoking or suspending a certificate of registration or imposing terms, conditions or limitations on a certificate of registration, the Committee may fix a period during which the member may not apply under section 36.

Publication on request

   (8)  The Discipline Committee shall cause a determination by the Committee that an allegation of professional misconduct or incompetence was unfounded to be published in the official publication of the College, on the request of the member against whom the allegation was made.

Costs

   (9)  If the Discipline Committee believes that the commencement of the proceeding was unwarranted, the Committee may order that the College reimburse the member of the College for his or her costs or the portion of them fixed by the Discipline Committee.

Fitness to Practise Committee

   34.  (1)  The Fitness to Practise Committee shall,

  (a)  hear and determine matters directed or referred to it under section 31, 32 or 36; and

  (b)  perform any other duties assigned to it by the Council.

Incapacity

   (2)  The Fitness to Practise Committee may, after a hearing, find a member of the College to be incapacitated if, in its opinion, the member is suffering from a physical or mental condition or disorder such that,

  (a)  the member is unfit to continue to carry out his or her professional responsibilities; or

  (b)  the member's certificate of registration should be made subject to terms, conditions or limitations.

Powers of Fitness to Practise Committee

   (3)  If the Fitness to Practise Committee finds a member to be incapacitated, it shall make an order doing one or more of the following:

    1.  Directing the Registrar to revoke the member's certificate of registration.

    2.  Directing the Registrar to suspend the member's certificate of registration for a specified period, not exceeding 24 months.

    3.  Directing the Registrar to impose specified terms, conditions or limitations on the member's certificate of registration.

    4.  Directing that the Registrar not carry out a direction made under paragraph 1, 2 or 3 for a specified period and not carry out the direction at all if specified terms are met within that period.

Same

   (4)  In making an order under paragraph 4 of subsection (3), the Committee may specify the terms that it considers appropriate, including but not limited to terms requiring the production to the Committee of evidence satisfactory to it that any physical or mental condition or disorder in respect of which a direction was issued has been resolved.

Same

   (5)  In making an order revoking or suspending a certificate of registration or imposing terms, conditions or limitations on a certificate of registration, the Committee may fix a period during which the member may not apply under section 36.

Publication on request

   (6)  The Fitness to Practise Committee shall cause a determination by the Committee that an allegation of incapacity was unfounded to be published in the official publication of the College, on the request of the member against whom the allegation was made.

Costs

   (7)  If the Fitness to Practise Committee believes that the commencement of the proceeding was unwarranted, the Committee may order that the College reimburse the member for his or her costs or the portion of them fixed by the Committee.

Procedure on hearings

   35.  (1)  This section applies to hearings of the Discipline Committee under section 33 and to hearings of the Fitness to Practise Committee under section 34.

Parties

   (2)  The College and the member of the College whose conduct or actions are being investigated are parties to the hearing.

Examination of documentary evidence

   (3)  A party to the hearing shall be given an opportunity to examine before the hearing any documents that will be given in evidence at the hearing.

Members holding hearing not to have taken part in investigation

   (4)  Members of the Discipline Committee or Fitness to Practise Committee holding a hearing shall not have taken part before the hearing in any investigation of the subject-matter of the hearing, other than as a member of the Council or Executive Committee considering the referral of the matter to the Discipline Committee or Fitness to Practise Committee, and shall not communicate directly or indirectly about the subject-matter of the hearing with any person or with any party or representative of a party except on notice to all parties.

Same

   (5)  The Discipline Committee or Fitness to Practise Committee may seek independent legal advice from a lawyer other than a lawyer who is acting as legal counsel to one of the parties in the matter before the Committee and, in that case, the Committee shall communicate the nature of the advice to the parties despite subsection (4) so that they may make submissions as to the law.

Discipline Committee hearings to be public

   (6)  A hearing of the Discipline Committee shall, subject to subsections (7) and (8), be open to the public.

Exceptions

   (7)  The Discipline Committee may make an order that the public, including members of the College, be excluded from a hearing or any part of a hearing if the Committee is satisfied that,

  (a)  matters involving public security may be disclosed;

  (b)  financial or personal or other matters may be disclosed at the hearing of such a nature that the desirability of avoiding public disclosure of them in the interest of any person affected or in the public interest outweighs the desirability of adhering to the principle that hearings be open to the public;

   (c)  a person involved in a civil or criminal proceeding may be prejudiced; or

  (d)  the safety of a person may be jeopardized.

Same

   (8)  The Discipline Committee may also make an order that the public, including members of the College, be excluded from any part of a hearing in which it will deliberate whether to exclude them from a hearing or a part of a hearing.

Fitness to Practise Committee hearings to be closed

   (9)  A hearing of the Fitness to Practise Committee shall, subject to subsection (10), be closed to the public, including members of the College.

Open on request of member in some cases

   (10)  A hearing of the Fitness to Practise Committee shall be open to the public, including members of the College, if the person who is alleged to be incapacitated requests it in a written notice received by the Registrar before the day the hearing commences, unless the Fitness to Practise Committee is satisfied that,

  (a)  matters involving public security may be disclosed;

  (b)  financial or personal or other matters may be disclosed at the hearing of such a nature that the desirability of avoiding public disclosure of them in the interest of any person affected or in the public interest outweighs the desirability of acceding to the request of the person who is alleged to be incapacitated;

   (c)  a person involved in a civil or criminal proceeding may be prejudiced; or

  (d)  the safety of a person may be jeopardized.

Same

   (11)  The Fitness to Practise Committee may make an order that the public, including members of the College, be excluded from any part of a hearing in which it will deliberate whether to open the hearing or a part of the hearing to the public under subsection (10).

Recording of evidence

   (12)  The oral evidence taken before the Discipline Committee or Fitness to Practise Committee shall be recorded and, if requested by a party, copies of a transcript shall be provided to the party at the party's expense.

Only members at hearing to participate in decision

   (13)  No member of the Discipline Committee or Fitness to Practise Committee shall participate in a decision of the committee following a hearing unless he or she was present throughout the hearing and heard the evidence and argument of the parties.

Release of documentary evidence

   (14)  Documents and things put in evidence at a hearing shall, on the request of the party who produced them, be returned by the Discipline Committee or Fitness to Practise Committee within a reasonable time after the matter in issue has been finally determined.

Service of decision, reasons

   (15)  Subject to subsection (16), the committee shall give its decision in writing with reasons and serve it,

  (a)  on the parties; and

  (b)  if the matter was referred to the Discipline Committee as a result of a complaint under subsection 31 (1), on the complainant.

Same

   (16)  If the hearing was closed, the Discipline Committee or Fitness to Practise Committee may, in its discretion, withhold reasons when it serves its decision on the complainant.

PART VI
REINSTATEMENT AND VARIATION

Reinstatement or variation

Application for reinstatement

   36.  (1)  A person who has had a certificate of registration revoked or suspended as a result of a proceeding before the Discipline Committee may apply in writing to the Registrar to have a new certificate issued or the suspension removed.

Application for variation

   (2)  A person who has a certificate of registration that is subject to terms, conditions or limitations as a result of a proceeding before the Discipline Committee may apply in writing to the Registrar for the removal or modification of the terms, conditions or limitations.

Time of application

   (3)  An application under subsection (1) or (2) shall not be made before the expiry of the period fixed for the purpose by the Discipline Committee under subsection 33 (7) or under paragraph 6 of subsection (6), as the case may be.

Same

   (4)  If the Discipline Committee did not fix a period under subsection 33 (7) or under paragraph 6 of subsection (6), an application under subsection (1) or (2) shall not be made earlier than one year from the date of the order under section 33 or the date of the last order made under this section, as the case may be.

Referral to Discipline Committee

   (5)  The Registrar shall refer an application under subsection (1) or (2) to the Discipline Committee.

Order

   (6)  The Discipline Committee may, after a hearing, make an order doing one or more of the following:

    1.  Refusing the application.

    2.  Directing the Registrar to issue a certificate of registration to the applicant.

    3.  Directing the Registrar to remove the suspension of the applicant's certificate of registration.

    4.  Directing the Registrar to impose specified terms, conditions and limitations on the applicant's certificate of registration.

    5.  Directing the Registrar to remove any term, condition or limitation on the applicant's certificate of registration.

    6.  Fixing a period during which the applicant may not apply under this section.

Parties

   (7)  The College and the applicant are parties to the hearing under this section.

Examination of documentary evidence

   (8)  A party to the hearing shall be given an opportunity to examine before the hearing any documents that will be given in evidence at the hearing.

Closed hearings

   (9)  Hearings of the Discipline Committee under this section shall be closed to the public, including members of the College.

Recording of evidence

   (10)  If requested by a party, the oral evidence taken before the Discipline Committee under this section shall be recorded and, if requested by a party, copies of a transcript shall be provided to the party at the party's expense.

Only members at hearing to participate in decision

   (11)  No member of the Discipline Committee shall participate in a decision of the Committee under this section unless he or she was present throughout the hearing and heard the evidence and the argument of the parties.

Release of documentary evidence

   (12)  Documents and things put in evidence at a hearing under this section shall, on the request of the party who produced them, be returned by the Discipline Committee within a reasonable time after the matter in issue has been finally determined.

Service of decision on parties

   (13)  The Discipline Committee shall give its decision under this section in writing, with reasons, and shall serve each party with a copy of the decision.

Fitness to Practise Committee

   (14)  Subsections (1) to (13) apply with necessary modifications to the Fitness to Practise Committee and, for the purpose,

  (a)  a reference to the Discipline Committee shall be deemed to be a reference to the Fitness to Practise Committee; and

  (b)  a reference to subsection 33 (7) shall be deemed to be a reference to subsection 34 (5).

Reinstatement: no hearing

   37.  The Council or Executive Committee may, without a hearing, with respect to a person who has had a certificate suspended or revoked for any reason under this Act, make an order doing one or more of the following:

    1.  Directing the Registrar to issue a certificate of registration to the person.

    2.  Directing the Registrar to remove the suspension of the person's certificate of registration.

PART VII
APPEALS TO COURT

Appeal to court

   38.  (1)  A party to a proceeding before the Registration Appeals Committee, the Discipline Committee or the Fitness to Practise Committee may appeal to the Divisional Court, in accordance with the rules of court, from the decision or order of the committee.

Same

   (2)  For purposes of this section, a person who requests a review under section 27 is a party to the review by the Registration Appeals Committee.

Certified copy of record

   (3)  On the request of a party desiring to appeal to the Divisional Court and on payment of the fee prescribed by the by-laws for the purpose, the Registrar shall give the party a certified copy of the record of the proceeding, including any documents received in evidence and the decision or order appealed from.

Powers of court on appeal

   (4)  An appeal under this section may be made on questions of law or fact or both and the court may affirm or may rescind the decision of the committee appealed from and may exercise all powers of the committee and may direct the committee to take any action which the committee may take and that the court considers appropriate and, for the purpose, the court may substitute its opinion for that of the committee or the court may refer the matter back to the committee for rehearing, in whole or in part, in accordance with any directions the court considers appropriate.

Effect of appeal

   (5)  An appeal from a decision or order of a committee mentioned in subsection (1) does not operate as a stay of that decision or order.

PART VIII
REGISTRAR'S POWERS OF INVESTIGATION

Registrar's investigation

   39.  (1)  If the Registrar believes on reasonable and probable grounds,

  (a)  that a member of the College has committed an act of professional misconduct or is incompetent or incapacitated;

  (b)  that there is cause to refuse to issue a certificate applied for under this Act;

   (c)  that there is cause to suspend or revoke a certificate issued under this Act; or

  (d)  that there is cause to impose terms, conditions or limitations on a certificate applied for or issued under this Act,

the Registrar may appoint one or more investigators to investigate whether such act has occurred, such incompetence or incapacity exists or there is such cause.

Approval of Executive Committee

   (2)  The Registrar shall not make an appointment under subsection (1) without the approval of the Executive Committee.

Powers of investigator

   (3)  The investigator may inquire into and examine the conduct or actions of the member to be investigated as the conduct or actions relate to the matter the Registrar sought to be investigated in appointing the investigator.

Same

   (4)  The investigator has, for the purposes of the investigation, all the powers of a commission under Part II of the Public Inquiries Act.

Entry on work premises

   (5)  The investigator may, on production of his or her appointment, enter at any reasonable time the place of work of the member or the premises of the member's employer and may examine any document, record or thing found there that is relevant to the investigation.

Obstruction of investigator

   (6)  No person shall obstruct an investigator in the course of his or her duties or withhold or conceal from him or her or destroy anything that is relevant to the investigation.

Entries and searches

   40.  (1)  A justice of the peace may, on the application of an investigator, issue a warrant authorizing the investigator to enter and search a place and examine anything that is relevant to the investigation if the justice of the peace is satisfied that the investigator has been properly appointed and that there are reasonable and probable grounds for believing that,

  (a)  the member being investigated has committed an act of professional misconduct or is incompetent or incapacitated; and

  (b)  there is something relevant to the investigation at the place.

Searches by day unless stated

   (2)  A warrant issued under subsection (1) does not authorize an entry or search after sunset or before sunrise unless it is expressly stated in the warrant.

Assistance and entry by force

   (3)  An investigator entering and searching a place under the authority of a warrant issued under subsection (1) may be assisted by a peace officer and may enter a place by force.

Investigator to show identification

   (4)  An investigator entering and searching a place under the authority of a warrant issued under subsection (1) shall produce his or her identification, on request, to any person at the place.

Documents and objects

Copying of documents and objects

   41.  (1)  An investigator may copy, at the College's expense, a document, record or thing that an investigator may examine under section 39 or under the authority of a warrant issued under section 40.

Removal of documents and objects

   (2)  An investigator may remove a document, record or thing described in subsection (1) if,

  (a)  it is not practicable to copy it in the place where it is examined; or

  (b)  a copy of it is not sufficient for the purposes of the investigation.

Use of devices

   (3)  In order to examine or produce a document or record in readable form, an investigator may use data storage, information processing or retrieval devices or systems that are normally used in carrying on business in the place in which he or she is conducting the investigation.

Return of documents and objects or copies

   (4)  If it is practicable to copy a document, record or thing removed under subsection (2), the investigator shall,

  (a)  if it was removed under clause (2) (a), return the document, record or thing within a reasonable time; or

  (b)  if it was removed under clause (2) (b), provide the person who was in possession of the document, record or thing with a copy of it within a reasonable time.

Copy as evidence

   (5)  A copy of a document, record or thing certified by an investigator to be a true copy shall be received in evidence in any proceeding to the same extent and shall have the same evidentiary value as the document, record or thing itself.

Report of investigation

   42.  The Registrar shall report the results of an investigation to one or more of the Executive Committee, the Registration Appeals Committee, the Complaints Committee, the Discipline Committee or the Fitness to Practise Committee, as the Registrar considers appropriate.

PART IX
REGULATIONS AND BY-LAWS

Regulations of College, subject to approval

   43.  (1)  Subject to the approval of the Lieutenant Governor in Council and with prior review by the Minister, the Council may make regulations,

    1.  respecting the scope of practice of early childhood education and prescribing services and activities that are part of the practice of early childhood education for the purposes of clause 2 (d);

    2.  designating geographic areas for the purposes of clause 8 (2) (a) and prescribing the number of representatives for each geographic area;

    3.  prescribing classes of certificates of registration and imposing terms, conditions and limitations on the certificates of registration as a class;

    4.  respecting applications for certificates of registration or classes of them and the issuing, suspension, revocation and expiration of the certificates or classes of them;

    5.  prescribing standards, qualifications and other requirements for the issue of certificates of registration, including, without limiting the generality of the foregoing, prescribing the academic qualifications and practical experience that are required for membership and providing for exemptions from the standards, qualifications and requirements;

    6.  providing that the College or a committee of the College may determine whether certain academic qualifications and practical experiences are equivalent to the prescribed academic qualifications and practical experiences for the purposes of issuing certificates of registration;

    7.  defining specialties in the profession, providing for certificates relating to those specialities and the qualifications for and suspension and revocation of those certificates and governing the use of prescribed terms, titles or designations by members of the College indicating a specialization in the profession;

    8.  prescribing ongoing education requirements for members of the College;

    9.  establishing processes and criteria for suspending certificates of members who fail to meet ongoing education requirements;

  10.  prescribing what constitutes a conflict of interest in the practice of early childhood education and regulating or prohibiting the practice of early childhood education in cases where there is a conflict of interest;

  11.  defining professional misconduct for the purposes of clause 33 (2) (c);

  12.  respecting the promotion or advertising of the practice of the profession;

  13.  respecting the reporting and publication of decisions of committees;

  14.  regulating or prohibiting the use of terms, titles and designations by members of the College;

  15.  respecting the giving of notice of meetings and hearings that are to be open to the public;

  16.  providing for the exemption of any member or class of members of the College from any of the regulations made under this section;

  17.  prescribing the requirements, including academic qualifications and practical experience, that are required for the issuance of initial certificates of registration under subsection 64 (1);

  18.  prescribing anything that is referred to in this Act as being prescribed by the regulations.

Examinations permitted

   (2)  A regulation made under paragraph 5 of subsection (1) may authorize the Registrar to assess the qualifications or competency of potential members by examinations or other means.

By-laws

   44.  (1)  The Council may make by-laws relating to the administrative and domestic affairs of the College, including, but not limited to, by-laws,

    1.  adopting a seal for the College;

    2.  providing for the execution of documents by the College;

    3.  respecting banking and finance;

    4.  fixing the financial year of the College and providing for the audit of the accounts and transactions of the College;

    5.  respecting the election of Council members, including the requirements for members of the College to be able to vote, electoral districts and election recounts;

    6.  respecting the qualification of Council members who are elected;

    7.  prescribing conditions disqualifying elected members of the Council from sitting on the Council and governing the removal of disqualified Council members;

    8.  prescribing positions of officers of the College, providing for the election or appointment of officers and prescribing the duties of officers;

    9.  respecting the calling, holding and conducting of meetings of the Council and the duties of members of the Council;

  10.  respecting the calling, holding and conducting of meetings of the members of the College;

  11.  authorizing voting by the members on any of the business of the College and prescribing procedures for such voting;

  12.  respecting conflict of interest rules for members of the Council, for members of committees and for officers and employees of the College;

  13.  providing for the remuneration of members of the Council and committees, other than persons appointed by the Lieutenant Governor in Council, and for the payment of the expenses of the Council and committees in the conduct of their business;

  14.  respecting the filling of vacancies on the Council or on committees;

  15.  respecting the membership and practices and procedures of the committees required by subsection 19 (1), including,

            i.  the number of members to be appointed to each committee,

           ii.  the terms of office of those members,

          iii.  the conditions disqualifying members of the College from sitting on those committees,

          iv.  the removal of disqualified committee members, and

           v.  the quorum of those committees;

  16.  respecting the membership, powers, duties and practices and procedures of committees other than those required by subsection 19 (1), including,

            i.  the number of members to be appointed to each committee,

           ii.  the terms of office of those members,

          iii.  the conditions disqualifying members of the College from sitting on those committees,

          iv.  the removal of disqualified committee members, and

           v.  the quorum for those committees;

  17.  respecting the composition, practices and procedures of and quorum for panels of committees;

  18.  delegating to the Executive Committee powers and duties of the Council, other than the power to make, amend or revoke regulations or by-laws;

  19.  prescribing a code of ethics and standards of practice for members or classes of members of the College;

  20.  providing for the appointment of investigators;

  21.  respecting the keeping of a register of members of the College, including, but not limited to, prescribing the information that must be kept in the register and information that may be removed from the register;

  22.  requiring members of the College to provide the College with information necessary for establishing and maintaining the register and for establishing and maintaining records necessary for the proper functioning of the College;

  23.  respecting the duties and office of the Registrar and the powers and duties of deputy registrars;

  24.  prescribing procedures for making, amending and revoking by-laws;

  25.  prescribing forms and providing for their use;

  26.  respecting the management of property of the College;

  27.  respecting membership of the College in an organization or body with similar functions, the payment of annual assessments and representation at meetings;

  28.  authorizing the making of grants to advance knowledge or the education of persons wishing to practise early childhood education, to maintain or improve the standards of practice of early childhood education or to provide public information about, and encourage interest in, the past and present role of early childhood educators in society;

  29.  requiring members of the College to pay annual fees, fees upon registration, fees for election recounts and continuing education programs and fees for anything the Registrar or a committee of the College is required or authorized to do with respect to members, requiring members to pay penalties for the late payment of any fee and specifying the amount of any such fee or penalty;

  30.  requiring persons to pay fees, set by the Registrar or by by-law, for applying for a certificate and anything the Registrar is required or authorized to do with respect to persons who are not members;

  31.  respecting the designation of life or honorary members of the College and prescribing their rights and privileges;

  32.  exempting any member or class of members of the College from a by-law made under this section;

  33.  respecting indemnification by the College of members of the Council, of members of committees and of officers and employees of the College;

  34.  respecting service of documents and giving of documents.

Meetings by telecommunications, etc.

   (2)  A by-law made under paragraph 9 or 10 of subsection (1) may provide for the meetings to be held in any manner that allows all the persons participating to communicate with each other simultaneously and instantaneously.

Unanimous by-laws

   (3)  A by-law or resolution signed by all the members of the Council is as valid and effective as if passed at a meeting of the Council called, constituted and held for the purpose.

Copies of by-laws

   (4)  The Council shall ensure that a copy of each by-law is given to the Minister.

Regulations by L.G. in C.

   45.  (1)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing persons or classes of persons for the purposes of paragraph 7 of subsection 3 (2);

  (b)  prescribing additional functions of the College for the purposes of paragraph 9 of subsection 7 (2);

   (c)  respecting the appointment of persons to the Council under clause 8 (2) (b) and prescribing the sectors of Ontario society for the purposes of that clause;

  (d)  providing for any transitional matters the Lieutenant Governor in Council considers necessary or advisable in connection with the establishment of the College or the assumption of powers and duties by the College, including prescribing the day on which the transitional period defined in section 59 ends and providing that the transitional period may end on different days for the purposes of different transitional matters;

  (e)  providing for any other matters the Lieutenant Governor in Council considers necessary or advisable in connection with the College.

Conflict

   (2)  In the event of a conflict between a regulation made under clause (1) (d) and this Act, the regulation prevails.

Regulations and by-laws: general or specific

   46.  (1)  A regulation or by-law made under this Act may be general or specific.

Same

   (2)  Without limiting the generality of subsection (1), a regulation or by-law may be limited in its application to any class of members of the College, certificates or qualifications.

Copies of regulations, by-laws

   47.  (1)  The Council shall ensure that a copy of each regulation and by-law made under this Act is available for public inspection in the office of the College.

Same

   (2)  The Registrar shall provide to any person on payment of a reasonable charge, a copy of any regulation or by-law made under this Act.

PART X
MISCELLANEOUS

Right to use French

   48.  (1)  A person has the right to use French in all dealings with the College.

Definition

   (2)  In this section,

"dealings" means any practice or procedure available to the public or to members of the College and includes giving or receiving communications, information or notices, making applications, taking examinations or tests and participating in programs or in hearings or reviews.

Employer reports re: certain offences

   49.  (1)  An employer shall promptly report to the College in writing when the employer becomes aware that a member of the College who is employed by the employer as an early childhood educator,

  (a)  has been charged with or convicted of an offence under the Criminal Code (Canada) involving sexual conduct and minors; or

  (b)  has been charged with or convicted of an offence under the Criminal Code (Canada) that in the opinion of the employer indicates that a child may be at risk of harm or injury. 

Referral to committee

   (2)  If the College receives a report from an employer under subsection (1), the Council of the College shall immediately refer the matter to the appropriate committee.

Further reports

   (3)  An employer who makes a report under subsection (1) respecting a charge or conviction shall promptly report to the College in writing if the employer becomes aware that the charge was withdrawn, the member was discharged following a preliminary inquiry, the charge was stayed, or the member was acquitted. 

Immunity of College

   50.  No proceeding for damages shall be instituted against the College, the Council, a committee of the College, a member of the Council or of a committee of the College, or an officer, employee, agent or appointee of the College for any act done in good faith in the performance or intended performance of a duty or in the exercise or the intended exercise of a power under this Act, a regulation or a by-law, or for any neglect or default in the performance or exercise in good faith of the duty or power.

Confidentiality

   51.  (1)  Every person engaged in the administration of this Act, including an investigator appointed under section 39, shall preserve secrecy with respect to all information that comes to his or her knowledge in the course of his or her duties and shall not communicate any of those matters to any other person except,

  (a)  as may be required in connection with the administration of this Act and the regulations and by-laws or any proceeding under this Act or the regulations or by-laws;

  (b)  to his or her counsel;

   (c)  with the consent of the person to whom the information relates;

  (d)  to a peace officer to aid an investigation undertaken with a view to a law enforcement proceeding or from which a law enforcement proceeding is likely to result;

  (e)  to the extent that the information is available to the public under this Act; or

    (f)  as otherwise required by law.

Definition

   (2)  In clause (1) (d),

"law enforcement proceeding" means a proceeding in a court or tribunal that could result in a penalty or sanction being imposed.

Limitation

   (3)  No person described in subsection (1) shall disclose, under clause (1) (d), any information with respect to a person other than a member.

No requirement

   (4)  Nothing in clause (1) (d) shall require a person described in subsection (1) to disclose information to a peace officer unless the information is required to be produced under a warrant.

Persons not compellable

   (5)  No person to whom subsection (1) applies shall be compelled to give testimony in any civil proceeding, other than a proceeding under this Act or an appeal or a judicial review relating to a proceeding under this Act, with regard to information obtained in the course of his or her duties.

Documents not admissible

   (6)  No record of a proceeding under this Act and no document or thing prepared for or statement given at such a proceeding and no order or decision made in such a proceeding is admissible in any civil proceeding, other than a proceeding under this Act or an appeal or judicial review relating to a proceeding under this Act.

Guarantee of loans

   52.  (1)  The Lieutenant Governor in Council may, by order, authorize the Minister of Finance, on behalf of Ontario, to agree to guarantee the repayment of loans made to the College, including interest.

Same

   (2)  A guarantee given under subsection (1) is subject to any conditions that the Minister of Finance imposes.

Service of notice or document

   53.  (1)  A notice or document to be given or served under this Act is sufficiently given or served if it is,

  (a)  delivered personally;

  (b)  sent by mail; or

   (c)  given or served in accordance with by-laws respecting service.

Same

   (2)  If a notice or document is sent by mail addressed to a person at the last address of the person in the records of the College, there is a rebuttable presumption that the notice or document is delivered to the person on the fifth day after the day of mailing.

Registrar's certificate as evidence

   54.  A statement containing information from the records required to be kept by the Registrar under this Act, purporting to be certified by the Registrar under the seal of the College, is admissible in evidence in a court of law as proof, in the absence of evidence to the contrary, of the facts stated in it, without proof of the appointment or signature of the Registrar and without proof of the seal.

Statutory Powers Procedure Act

   55.  If there is a conflict between this Act, the regulations or the by-laws and the Statutory Powers Procedure Act, the provisions of this Act, the regulations and the by-laws prevail.

Compliance order

   56.  If it appears to the College that a person does not comply with this Act or the regulations or the by-laws, despite the imposition of a penalty in respect of that non-compliance and in addition to any other rights it may have, the College may apply to a judge of the Superior Court of Justice for an order directing the person to comply with the provision, and the judge may make the order or any other order the judge thinks fit.

Offences

Offence, engaging in practice, use of title, etc.

   57.  (1)  Every person who contravenes subsection 3 (1) or section 4 or 5 is guilty of an offence and on conviction is liable to a fine of not more than $2,000 for a first offence and not more than $5,000 for a subsequent offence.

Offence, obstruct investigator

   (2)  Every person who contravenes subsection 39 (6) (obstruction of investigator) is guilty of an offence and on conviction is liable to a fine of not more than $5,000.

Offence, false representation

   (3)  Every person who makes a representation, knowing it to be false, for the purpose of having a certificate issued under this Act is guilty of an offence and on conviction is liable to a fine of not more than $5,000.

Offence, assist in false representation

   (4)  Every person who knowingly assists a person in committing an offence under subsection (3) is guilty of an offence and on conviction is liable to a fine of not more than $5,000.

Offence re preserving secrecy

   (5)  A person who contravenes subsection 51 (1) is guilty of an offence and on conviction is liable to a fine of not more than $5,000.

Review by Minister

   58.  (1)  The Minister shall conduct a review of this Act within five years after this section comes into force.

Same

   (2)  The Minister shall,

  (a)  inform the public when a review under this section begins; and

  (b)  prepare a written report respecting the review and make that report available to the public.

PART XI
TRANSITIONAL PROVISIONS

Definition, transitional period

   59.  In this Part,

"transitional period" means the period that begins on the day the transitional Council is appointed under section 60 and ends on the day a Council duly constituted under section 8 holds its first meeting or on such other day as may be prescribed by a regulation made under subsection 45 (1).

Appointment of transitional Council

   60.  (1)  The Minister shall, on the terms determined by the Minister, appoint a transitional Council of the College.

Composition

   (2)  The transitional Council shall be composed of early childhood educators and such other persons as the Minister considers appropriate.

Term of office

   (3)  The transitional Council shall hold office until the end of the transitional period.

Powers and duties of transitional Council

   (4)  The transitional Council may exercise such powers as are necessary for the effective implementation of this Act and, without limiting the generality of the foregoing, may exercise any of the powers that the Council of the College could exercise with respect to the making of regulations or by-laws, as set out in sections 43 and 44.

Continuation of regulations and by-laws

   (5)  Any regulations or by-laws made by the transitional Council under subsection (4) shall continue to apply after the end of the transitional period until such time as they are amended or revoked by the Council of the College under section 43 or 44, as the case may be.

Transitional Registrar

   61.  The transitional Council shall appoint a person to act as transitional Registrar for the transitional period and thereafter until the first Council duly constituted under section 8 appoints a Registrar under subsection 14 (2).

Committees of transitional Council

   62.  The transitional Council may establish any committees that it considers necessary.

First election of Council members

   63.  (1)  Before the end of the transitional period, the transitional Council shall hold an election of the first elected Council members for the purposes of constituting a Council under section 8.

Eligibility to vote

   (2)  Any person who has been issued an initial certificate of registration under subsection 64 (1) is eligible to vote in an election under subsection (1).

Conduct of first election

   (3)  An election under subsection (1) shall be conducted in accordance with the by-laws adopted by the transitional Council.

Initial certificate

   64.  (1)  The transitional Registrar appointed by the transitional Council shall, subject to subsection (2), issue an initial certificate of registration to an applicant if,

  (a)  his or her application and the fees prescribed by the by-laws are received by the College before the end of the transitional period; and

  (b)  the applicant meets such requirements, including any academic qualifications and practical experience, as may be prescribed by the regulations.

Defer application

   (2)  The transitional Registrar may defer an application under this section for an initial certificate of registration until a Registrar is appointed under subsection 14 (2) if, based on the past conduct or actions of the applicant, the transitional Registrar has reasonable grounds to believe that the applicant will not perform his or her duties as an early childhood educator, in accordance with the law, including, but not limited to, this Act, the regulations and the by-laws.

Same

   (3)  Before deferring an application under subsection (2), the transitional Registrar shall give the applicant,

  (a)  notice of his or her intention to defer the application; and

  (b)  at least 14 days to make written submissions to the transitional Registrar as to why that action should not be taken.

Same

   (4)  The transitional Registrar need not hold a hearing or afford any person an opportunity to make oral or written submissions, other than as provided in this section, before deferring an application under this section.

Revoke certificate

   65.  (1)  The transitional Registrar appointed by the transitional Council may revoke an initial certificate of registration issued under subsection 64 (1) if he or she has reasonable grounds to believe that the past conduct or actions of the member in the course of his or her practice directly or indirectly exposes or is likely to expose a child to harm or injury.

Same

   (2)  Before revoking an initial certificate of registration under subsection (1), the transitional Registrar shall give the member,

  (a)  notice of his or her intention to revoke the certificate; and

  (b)  at least 14 days to make written submissions to the transitional Registrar as to why that action should not be taken.

Same

   (3)  Clause (2) (b) does not apply with respect to the revocation of an initial certificate of registration if the transitional Registrar believes that the delay would be inappropriate in view of the risk of harm or injury to a child.

Same

   (4)  The transitional Registrar need not hold a hearing or afford any person an opportunity to make oral or written submissions, other than as provided in this section, before revoking an initial certificate of registration under this section.

Powers of Minister

   66.  (1)  The Minister may,

  (a)  review the transitional Council's activities and require the transitional Council to provide reports and information;

  (b)  require the transitional Council to make, amend or revoke a regulation under this Act;

   (c)  require the transitional Council to do anything that, in the opinion of the Minister, is necessary or advisable to carry out the intent of this Act.

Transitional Council to comply with Minister's request

   (2)  If the Minister requires the transitional Council to do anything under subsection (1), the transitional Council shall, within the time and in the manner specified by the Minister, comply with the requirement and submit a report.

Regulations

   (3)  If the Minister requires the transitional Council to make, amend or revoke a regulation under clause (1) (b) and the transitional Council does not do so within 60 days, the Lieutenant Governor in Council may make, amend or revoke the regulation.

Same

   (4)  Subsection (3) does not give the Lieutenant Governor in Council authority to do anything that the transitional Council does not have authority to do. 

Initial membership

   67.  Every person who, on the day the transitional period ends, holds an initial certificate of registration issued under subsection 64 (1) shall, on and after that day, be deemed to hold a certificate of registration issued under section 25.

First annual meeting of members

   68.  The College shall hold the first annual meeting of the members of the College not more than 15 months after the day the transitional period ends.

Part XII
Consequential amendments

Fair Access to Regulated Professions Act, 2006

   69.  Schedule 1 to the Fair Access to Regulated Professions Act, 2006 is amended by adding the following paragraph:

  4.1  The College of Early Childhood Educators.

Part XIII
Commencement and short title

Commencement

   70.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 to 69 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   71.  The short title of the Act set out in this Schedule is the Early Childhood Educators Act, 2007.

Schedule 9
Education Act

   1.  Subsection 248 (5) of the Education Act is repealed.

   2.  Clause 257.12 (3) (d) of the Act is amended by adding at the end "whether or not a municipality has opted to have the class apply within the municipality".

Commencement

   3.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

Same

   (3)  Section 2 is deemed to have come into force on March 23, 2007.

 

schedule 10
Election Act

   1.  The Election Act is amended by adding the following section:

2007 general election

   9.2  The following rules apply, instead of subsections 9.1 (3), (4) and (5), with respect to the general election that is to be held on Wednesday, October 10, 2007 in accordance with clause 9.1 (2) (a) and Order in Council 227/2007 dated February 7, 2007:

    1.  The writs for the election shall be dated Monday, September 10, 2007.

    2.  The day for the close of nominations and the grant of a poll where required shall be Tuesday, September 18, 2007.

   2.  (1)  Section 44 of the Act is amended by adding the following subsection:

Effect of order under s. 9.1 (6)

   (1.1)  If an order has been made under subsection 9.1 (6), the following rules apply, instead of clauses (1) (a) and (b), with respect to advance polls:

    1.  Subject to paragraph 4, advance polls shall be open on six days during the seven-day period that ends on the sixth day before polling day.

    2.  An advance poll must be open on the Saturday that falls during the seven-day period described in paragraph 1.

    3.  Advance polls shall be held,

            i.  at an office of the returning officer on the first three advance poll days, and

           ii.  at an office of the returning officer and at designated other locations on the last three advance poll days.

    4.  The advance polls described in subparagraph 3 i need not be held if the ballots have not been printed.

   (2)  Subsection 44 (2) of the Act is amended by striking out "under clause (1) (b)" and substituting "at designated other locations".

   (3)  Subsection 44 (4) of the Act is amended by striking out "under clause (1) (a)" and substituting "under subsection (1) or (1.1)".

Commencement

   3.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 11
Election Finances Act

   1.  (1)  Subsection 10 (2) of the Election Finances Act is repealed and the following substituted:

Qualifications for registration

   (2)  Any political party may apply to the Chief Election Officer for registration in the register of political parties if the political party,

  (a)  after writs are issued for a general election or for two or more concurrent by-elections, endorses candidates in at least two electoral districts; or

  (b)  at any time other than during a campaign period and within one year after the Chief Election Officer makes a determination under subsection (7) that the name of the political party and the abbreviation thereof, if any, is registrable, provides the Chief Election Officer with the names, addresses and signatures of at least 1,000 persons who,

           (i)  are eligible to vote in an election, and

          (ii)  endorse the registration of the political party concerned.

   (2)  Subsection 10 (3) of the Act is amended by striking out "and" at the end of clause (i), by adding "and" at the end of clause (j) and by adding the following clause:

   (k)  a statement, attested to by the leader of the party, that participating in public affairs by endorsing candidates and supporting their election is a fundamental purpose of the party.

   (3)  Section 10 of the Act is amended by adding the following subsection:

Annual statement of purpose

   (6.1)  On or before May 31 in each year, the registered party shall file with the Chief Election Officer a statement, attested to by the leader of the party, that participating in public affairs by endorsing candidates and supporting their election is a fundamental purpose of the party.

   2.  Subsection 12 (2) of the Act is repealed and the following substituted:

Discretionary deregistration

   (2)  The Chief Election Officer may deregister,

  (a)  a registered party,

           (i)  that fails to comply with subsection 10 (6) or 33 (3),

          (ii)  that fails to comply with the filing requirement in subsection 10 (6.1),

         (iii)  that fails, in the Chief Election Officer's opinion, to participate in public affairs in accordance with the statement referred to in clause 10 (3) (k) or subsection 10 (6.1), or

         (iv)  whose chief financial officer fails to comply with section 41 or 42; or

  (b)  a registered constituency association that fails to comply with subsection 11 (4) or 33 (3) or whose chief financial officer fails to comply with section 41 or 42.

Mandatory deregistration

   (2.1)  If fewer than two of a registered party's registered constituency associations nominate candidates at a general election, the Chief Election Officer shall promptly deregister the party and shall send the party notice of the deregistration, by registered mail.

   3.  Paragraph 5 of subsection 38 (3.3) of the Act is repealed and the following substituted:

    5.  Thunder Bay-Superior North.

Commencement

   4.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 12
Electricity Act, 1998

   1.  The definition of "taxation year" in section 88 of the Electricity Act, 1998 is amended by striking out "Corporations Tax Act" and substituting "Income Tax Act (Canada)".

   2.  Subsection 89 (1) of the Act is amended by striking out "if it were not exempt" at the end and substituting "if it were a corporation to which that subsection did not apply".

   3.  (1)  This section applies only if Bill 174 (Strengthening Business through a Simpler Tax System Act, 2006), introduced on December 13, 2006, receives Royal Assent.

   (2)  References in this section to provisions of Bill 174 are references to those provisions as they were numbered in the first reading version of the Bill.

   (3)  On the later of the day this section comes into force and the day subsection 27 (2) of the Taxation Act, 2006, as set out in Schedule A to the Strengthening Business through a Simpler Tax System Act, 2006, comes into force, subsection 90 (1) of the Electricity Act, 1998 is repealed and the following substituted:

Payments in lieu of provincial corporate tax

   (1)  If Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is exempt under subsection 57 (1) of the Corporations Tax Act from the payment of tax under that Act for a taxation year that ends before January 1, 2009, it shall pay to the Financial Corporation in respect of each taxation year ending before that day an amount equal to the total amount of tax that it would be liable to pay under Parts II, II.1 and III of that Act for that year if it were a corporation to which that subsection did not apply. 

Same

   (1.0.1)  If Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is exempt under subsection 27 (2) of the Taxation Act, 2006 from the payment of tax under that Act for a taxation year that ends after December 31, 2008, it shall pay to the Financial Corporation in respect of each taxation year ending after that day an amount equal to the total amount of tax that it would be liable to pay under Divisions B, C and E of Part III of that Act for the taxation year if it were a corporation to which that subsection did not apply.

   (4)  On the later of the day this section comes into force and the day subsection 27 (2) of the Taxation Act, 2006, as set out in Schedule A to the Strengthening Business through a Simpler Tax System Act, 2006, comes into force, subsection 93 (2) of the Electricity Act, 1998 is repealed and the following substituted:

Same: payments in lieu of provincial corporate tax

   (2)  If a municipal electricity utility is exempt under subsection 57 (1) of the Corporations Tax Act from the payment of tax under that Act in respect of a taxation year ending before January 1, 2009, it shall pay to the Financial Corporation in respect of each taxation year ending before that day an amount equal to the total amount of tax that it would be liable to pay under Parts II, II.1 and III of that Act for the year if it were a corporation to which that subsection did not apply.

Same

   (2.1)  If a municipal electricity utility is exempt under subsection 27 (2) of the Taxation Act, 2006 from the payment of tax under that Act for a taxation year ending after December 31, 2008, it shall pay to the Financial Corporation in respect of each taxation year ending after that day an amount equal to the total amount of tax that it would be liable to pay for the taxation year under Divisions B, C and E of Part III of that Act if it were a corporation to which that subsection did not apply.

   (5)  On the later of the day this section comes into force and the day subsection 27 (1) of the Taxation Act, 2006, as set out in Schedule A to the Strengthening Business through a Simpler Tax System Act, 2006, comes into force, the Electricity Act, 1998 is amended by striking out "Corporations Tax Act" wherever it appears in the following provisions and substituting in each case "Corporations Tax Act or Part III of the Taxation Act, 2006":

    1.  Paragraph 2 of subsection 94 (3).

    2.  Paragraph 2 of subsection 94 (4).

    3.  Clause (b) of the definition of "A" in subsection 94 (6.1).

Commencement

   4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1, 2 and 3 come into force on January 1, 2008.

 

Schedule 13
Environmental Protection Act

   1.  Subsection 139 (2) of the Environmental Protection Act is repealed and the following substituted:

When Director refuses licence, permit or approval

   (2)  When the Director,

  (a)  refuses to issue or renew or revokes or suspends a licence, permit or approval;

  (b)  imposes terms and conditions in issuing a licence or permit or certificate of approval or provisional certificate of approval or approval;

   (c)  alters the terms and conditions of a certificate of approval, provisional certificate of approval, certificate of property use, licence or permit or approval after it is issued; or

  (d)  imposes new terms and conditions on a certificate of approval or certificate of property use,

the Director shall serve notice together with written reasons therefor upon the applicant or the person to whom the licence, permit, approval, certificate of approval, provisional certificate of approval or certificate of property use is issued, as the case may be, and the applicant or person may, by written notice served upon the Director and the Tribunal within 15 days after the service of the notice, require a hearing by the Tribunal.

   2.  Clause 156 (1) (e.1) of the Act is amended by striking out "has been filed" and substituting "has been submitted for filing or has been filed".

   3.  The definitions of "phase one environmental site assessment" and "phase two environmental site assessment" in section 168.1 of the Act are repealed and the following substituted:

"phase one environmental site assessment" means an assessment of property conducted in accordance with the regulations by or under the supervision of a qualified person to determine the likelihood that one or more contaminants have affected any land or water on, in or under the property; ("évaluation environnementale de site de phase I")

"phase two environmental site assessment" means an assessment of property conducted in accordance with the regulations by or under the supervision of a qualified person to determine the location and concentration of one or more contaminants in the land or water on, in or under the property; ("évaluation environnementale de site de phase II")

   4.  (1)  Section 168.2 of the Act is amended by striking out "subsections 168.3 (3) and 168.9 (12)" and substituting "subsections 168.3 (3) and (4) and 168.9 (12)".

   (2)  Section 168.2 of the Act is amended by adding the following subsection:

Interpretation, meeting standards

   (2)  For purposes of this Part, a property meets the applicable site condition standards prescribed by the regulations for all contaminants prescribed by the regulations or the standards specified in a risk assessment for a contaminant if the concentration of the contaminants in the land and water on, in or under the property does not exceed the standards.

   5.  (1)  The English version of paragraph 1 of subsection 168.3 (2) of the Act is repealed and the following substituted:

    1.  To allow the filing of records of site condition for the purposes of this Part.

   (2)  Section 168.3 of the Act is amended by adding the following subsection:

Same

   (4)  No action or other proceeding shall be commenced against a municipality or a conservation authority or against an officer, employee or agent of a municipality or conservation authority in relation to the following, if the action or proceeding arises from any inaccuracy contained in a record of site condition that is filed in the Registry under this Act:

    1.  The issuance of a permit under section 8 or 10 of the Building Code Act, 1992.

    2.  Any act done in the execution or intended execution of any power or duty under the Planning Act or any alleged neglect or default in the execution of any such power or duty.

    3.  Any act done in the execution or intended execution of any power or duty under any other prescribed Act or any prescribed provisions under a prescribed Act or any alleged neglect or default in the execution of any such power or duty.

   6.  (1)  Subsection 168.4 (1) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Submission for filing, record of site condition

   (1)  An owner of a property may submit for filing in the Registry a record of site condition in respect of the property if all of the following criteria are satisfied:

.     .     .     .     .

   (2)  Subsection 168.4 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Contents of record of site condition

   (2)  The person who submits for filing a record of site condition in respect of a property shall ensure that, in accordance with the regulations, the record of site condition contains the following:

.     .     .     .     .

   (3)  Paragraph 2 of subsection 168.4 (2) of the Act is repealed and the following substituted:

    2.  The name of the person submitting the record of site condition for filing and the names of any other owners of the property.

   (4)  Paragraph 3 of subsection 168.4 (2) of the Act is repealed and the following substituted: 

    3.  The type of property use to which the property for which the record of site condition is filed is to be put.

   (5)  Paragraph 3 of subsection 168.4 (2) of the Act, as re-enacted by subsection (4), is repealed and the following substituted:

    3.  The type of property use to which the property for which the record of site condition is submitted for filing is to be put.

   (6)  Subsection 168.4 (3) of the Act is repealed and the following substituted:

Submitting a record of site condition

   (3)  If a record of site condition is submitted for filing under this section in respect of a property, the Director shall,

  (a)  give a notice of receipt to the owner who submitted the record of site condition, once the Director is satisfied that everything required by subsection (2) has been submitted for filing; and

  (b)  within the time prescribed by the regulations from the date set out in the notice of receipt given under clause (a), give a notice or acknowledgement under subsection (3.1) to the owner who submitted the record of site condition.

Same

   (3.1)  The Director shall give one of the following to the person to whom the Director has given a notice of receipt under clause (3) (a):

    1.  Written notice that the record of site condition cannot be filed because it has not been completed in accordance with the regulations.

    2.  Written notice stating that the Director intends to conduct a review in relation to the record of site condition before the record of site condition can be filed in the Registry.

    3.  Written acknowledgement, specifying the date, that the record of site condition has been filed in the Registry.

Notice that a record of site condition cannot be filed

   (3.2)  A notice given under paragraph 1 of subsection (3.1) shall identify the manner in which the record of site condition has not been completed in accordance with the regulations.

Notice after review relating to record of site condition

   (3.3)  If a notice is given under paragraph 2 of subsection (3.1), after conducting the review, the Director shall,

  (a)  give a notice to the owner indicating that a defect prescribed by the regulations has been found in relation to the record of site condition; or

  (b)  give a written acknowledgment to the owner, specifying the date, that the record of site condition has been filed in the Registry.

Correction of defect 

   (3.4)  If an owner to whom notice has been given under clause (3.3) (a),

  (a)  submits for filing a new record of site condition in respect of the property under subsection (1); or

  (b)  submits further information or documents to the Director in relation to the original record of site condition that was submitted under subsection (1),

and the Director is satisfied that, as a result of the submission, there is no defect prescribed by the regulations in relation to the record of site condition, the Director shall give a written acknowledgment to the owner, specifying the date, that the record of site condition has been filed in the Registry.

   (7)  Subsection 168.4 (4) of the Act is repealed and the following substituted:

Date of filing

   (4)  A record of site condition is deemed to have been filed in the Registry under this section on the date specified in the acknowledgement given by the Director under this section.

   (8)  Subsection 168.4 (5) of the Act is repealed and the following substituted:

Retention of reports

   (5)  If a qualified person has relied on a report in making a certification referred to in subsection (1) or (2) in a record of site condition that has been filed under this section, the following persons shall retain a copy of the report for the period prescribed by the regulations:

    1.  The owner of the property who filed the record of site condition. 

    2.  The qualified person who made the certification.

   (9)  Paragraph 1 of subsection 168.4 (5) of the Act, as enacted by subsection (8), is repealed and the following substituted:

    1.  The owner of the property who submitted the record of site condition for filing or who filed the record of site condition. 

   (10)  Section 168.4 of the Act is amended by adding the following subsections:

Acknowledgment of filing

   (8)  If a record of site condition is filed in the Registry under subsection (6), the Director shall promptly give the person who filed the record of site condition a written acknowledgment.

Date of filing

   (9)  A record of site condition that is filed in the Registry under subsection (6) shall be deemed to have been filed in the Registry on the date specified in the acknowledgment given under subsection (8).

   (11)  Section 168.4 of the Act is amended by adding the following subsection:

Correction of errors

   (10)  If an owner of property for which a record of site condition has been filed in the Registry under this section requests the Director to correct an error in the record of site condition, the Director shall correct the error in the record of site condition if the error is of a prescribed type and if the correction is made in the circumstances that satisfy the criteria, if any, prescribed by the regulations and does not contravene any prohibition, if any, prescribed by the regulations.

   7.  Paragraph 1 of subsection 168.6 (1) of the Act is repealed and the following substituted:

    1.  Take any action that is specified in the certificate and that, in the Director's opinion, is necessary to prevent, eliminate or ameliorate any adverse effect that has been identified in the risk assessment, including installing any equipment, monitoring any contaminant or recording or reporting information for that purpose.

   8.  (1)  Subsection 168.7 (1) of the Act is amended by striking out "with section 168.4" in the portion before paragraph 1 and substituting "with section 168.4 with respect to a property".

   (2)  Paragraph 1 of subsection 168.7 (1) of the Act is repealed and the following substituted:

    1.  The person who filed or who submitted for filing the record of site condition or a subsequent owner of the property.

   (3)  Subsection 168.7 (2) of the Act is repealed and the following substituted:

False or misleading information, etc.

   (2)  Subsection (1) does not apply if the record of site condition contains false or misleading information or false or misleading certifications.

   (4)  Subsection 168.7 (3) of the Act is repealed and the following substituted:

Contaminants that move to other property

   (3)  Subject to section 168.7.1, subsection (1) does not apply if, after the certification date, any of the contaminant moved from the land or water on, in or under the property for which a record of site condition has been filed to another property.

   (5)  Subsection 168.7 (4) of the Act is repealed and the following substituted:

Different use

   (4)  If the actual use of the property is different from the use specified under paragraph 3 of subsection 168.4 (2) in the record of site condition, subsection (1) does not apply to a person who causes or permits the change in use and who owns, occupies or has charge, management or control of the property at the time of the change unless,

  (a)  the record of site condition did not contain any certification under subparagraph 4 ii of subsection 168.4 (1);

  (b)  all of the full depth background site condition standards that are applicable under the regulations to the actual use are the same as or less stringent than the full depth background site condition standards that are applicable to the use specified in the record of site condition, if the record of site condition contained a certification under sub-subparagraph 4 i A of subsection 168.4 (1);

   (c)  all of the full depth generic site condition standards that are applicable under the regulations to the actual use are the same as or less stringent than the full depth generic site condition standards that are applicable to the use specified in the record of site condition, if the record of site condition contained a certification under sub-subparagraph 4 i B of subsection 168.4 (1); and

  (d)  all of the stratified site condition standards that are applicable under the regulations to the actual use are the same as or less stringent than the stratified site condition standards that are applicable to the use specified in the record of site condition, if the record of site condition contained a certification under sub-subparagraph 4 i C of subsection 168.4 (1). 

   (6)  Section 168.7 of the Act is amended by adding the following subsection:

Order if contaminant moves

   (6.1)  Despite subsection (3), if, after the certification date, any of the contaminant moved from the land or water on, in or under the property for which a record of site condition has been filed to another property as a result of a person contravening,

  (a)  a term or condition of a certificate of property use or of an order referred to in clause (5) (b); or

  (b)  a provision of a regulation referred to in subsection (6),

subsection (1) does not apply, but solely in respect of that person.

   9.  The Act is amended by adding the following section:

Contaminants moving to other property

Application

   168.7.1  (1)  This section applies to a property for which a record of site condition has been filed in the Registry in accordance with section 168.4 when, after the certification date, a contaminant has moved from the land or water on, in or under the property to another property, and the certifications described in this section, if applicable, are made.

Assessment, all property

   (2)  This section applies if a qualified person has, in accordance with the regulations, certified in the record of site condition that an assessment of the contaminants that were discharged into the natural environment and that were on, in or under the property for which the record of site condition has been filed, as of the certification date, has been conducted by or under the supervision of a qualified person in accordance with the regulations.

Assessment of ground water

   (3)  The assessment of contaminants referred to subsection (2) must include an assessment of contaminants in the ground water in or under the property.

Exception, full depth background site condition standards

   (4)  Subsection 168.7 (3) does not apply to a contaminant that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property at a concentration that does not exceed the applicable full depth background site condition standard for that contaminant, if the record of site condition contains a certification under sub-subparagraph 4 i A of subsection 168.4 (1).

Exception, sensitive property use

   (5)  Subsection 168.7 (3) does not apply to a contaminant that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property at a concentration that does not exceed the applicable site condition standard for that contaminant if the record of site condition contains a certification under sub-subparagraph 4 i B or 4 i C of subsection 168.4 (1) and the type of property use specified under paragraph 3 of subsection 168.4 (2) in the record of site condition is a sensitive property use.

Application, not a sensitive property use

   (6)  If the record of site condition contains a certification under sub-subparagraph 4 i B or 4 i C of subsection 168.4 (1) and the type of property use specified under paragraph 3 of subsection 168.4 (2) in the record of site condition is not a sensitive property use, this section applies if a qualified person has, in accordance with the regulations, made the following certifications in the record of site condition, in addition to the certification referred to in subsection (2):

    1.  The phase one environmental site assessment of the property referred to in paragraph 1 of subsection 168.4 (1) included an investigation of the existing and permitted land uses within the vicinity of the property in accordance with the regulations to determine whether a sensitive property use is located or permitted within the vicinity of the property.

    2.  A certification that, as of the date prescribed by the regulations, there is no sensitive property use located or permitted within the vicinity of the property or a certification that, as of the date prescribed by the regulations, there is a sensitive property use located or permitted within the vicinity of the property.

Exception, not a sensitive property use

   (7)  If a record of site condition contains a certification under sub-subparagraph 4 i B or 4 i C of subsection 168.4 (1) and the type of property use specified under paragraph 3 of subsection 168.4 (2) in the record of site condition is not a sensitive property use, subsection 168.7 (3) does not apply to a contaminant that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property at a concentration that,

  (a)  does not exceed the applicable site condition standard for that contaminant if the record of site condition contains a certification that, as of the date prescribed by the regulations, there is no sensitive property use located or permitted within the vicinity of the property; or

  (b)  does not exceed the applicable site condition standard for that contaminant that would have applied to the property if the type of property use specified under paragraph 3 of subsection 168.4 (2) in the record of site condition were a sensitive property use, if the record of site condition contains a certification that, as of the date prescribed by the regulations, there is a sensitive property use located or permitted within the vicinity of the property.

Prescribed date

   (8)  A date prescribed by the regulations for the purposes of paragraph 2 of subsection (6) and clauses (7) (a) and (b) shall not be a date that is after the certification date that applies to the record of site condition.

Reference to site condition standard

   (9)  A reference in this section to an applicable site condition standard for a contaminant means the site condition standard that applied to the contaminant as of the certification date set out in the record of site condition or, in the case of a reference in clause (7) (b), means the site condition standard that would have applied to the contaminant as of the certification date set out in the record of site condition.

Non-application to person who causes or permits discharge

   (10)  This section does not apply to a person who, before the certification date, caused or permitted the discharge into the natural environment of the contaminant referred to in subsection (1).

Definition

   (11)  In this section,

"sensitive property use" means one or more types of property uses prescribed by the regulations for the purposes of this section.

   10.  The Act is amended by adding the following section:

Notice of order to be filed in Registry

   168.7.2  (1)  The Director shall file notice of the order in the Registry in accordance with the regulations if an order is issued under section 7, 8, 12, 17, 18, 97, 157 or 157.1 with respect to a property for which a record of site condition has been filed in accordance with section 168.4 and if,

  (a)  pursuant to subsection 168.7 (2), (3), (4) or (6.1), subsection 168.7 (1) does not apply; or

  (b)  subsection 168.7 (5) or (6) applies.

Notice of compliance with order

   (2)  If the Director is satisfied that an order referred to in subsection (1) has been complied with, the Director shall file notice of the compliance in the Registry in accordance with the regulations.

Filing of new record of site condition

   (3)  If the Director is satisfied that an order referred to in subsection (1) has been complied with, but the Director is of the opinion that a certification contained in the record of site condition filed in the Registry does not accurately reflect the current state of the property, subsection (2) does not apply until a new record of site condition is filed in accordance with section 168.4.

   11.  Subsection 168.8 (1) of the Act is amended by striking out "to the owner of the property" and substituting "to the person who owns the property".

   12.  (1)  The heading immediately before section 168.26 of the Act is struck out and the following substituted:

Investigations of Property and Actions to Reduce Concentration of Contaminants

   (2)  Section 168.26 of the Act is amended by striking out the portion before clause (a) and substituting the following: 

Investigations of property, etc.

   168.26  A person who conducts, completes or confirms an investigation in relation to property or a person who takes any action to reduce the concentration of contaminants on, in or under a property is not, for that reason alone,

.     .     .     .     .

   13.  (1)  Clause 176 (10) (a) of the Act is repealed and the following substituted:

  (a)  governing the establishment, operation and maintenance of the Registry, including the information that may be submitted for filing or filed in the Registry and the Director's powers and duties relating to the establishment, operation and maintenance of the Registry;

   (2)  Clause 176 (10) (b) of the Act is repealed and the following substituted:

  (b)  governing the conduct of phase one environmental site assessments, including in respect of the conduct of an investigation of the existing and permitted land uses within the vicinity of a property for which a record of site condition is to be filed and in respect of what constitutes an existing or permitted land use and of what is within the vicinity of the property;

   (3)  Clause 176 (10) (e) of the Act is repealed and the following substituted:

  (e)  prescribing the qualifications of qualified persons, including requiring approval of qualified persons by a person or body specified in the regulations, and governing the approval process and the terms and conditions that may be imposed when issuing or amending an approval;

(e.1) governing the payment of fees in respect of any approval required by a regulation made under clause (e);

(e.2) providing for and governing the revocation or suspension, by a person or body specified in the regulations, of any approval required by a regulation made under clause (e), and providing for and governing appeals to a person or body specified in the regulations of decisions to revoke or suspend an approval;

(e.3) requiring qualified persons to carry insurance specified in the regulations;

(e.4) delegating to a person or body specified in the regulations any power to make regulations under clauses (e), (e.1), (e.2) and (e.3);

   (4)  Subsection 176 (10) of the Act is amended by adding the following clause:

(i.1)  governing the circumstances in which full depth background site condition standards, full depth generic site condition standards or stratified site condition standards must be applied to a property;

   (5)  Clause 176 (10) (m) of the Act is repealed and the following substituted:

(m)  governing the management of soil on, in or under property for which a record of site condition has been filed in the Registry;

   (6)  Subsection 176 (10) of the Act is amended by adding the following clause:

(m.1)   governing the assessment of contaminants that were discharged into the natural environment and that are on, in or under a property for which a record of site condition is to be filed;

   (7)  Clause 176 (10) (n) of the Act is repealed and the following substituted:

   (n)  governing the filing in the Registry of notices under sections 168.7.2 and 168.8;

Commencement

   14.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

    1.  Section 2.

    2.  Subsection 5 (1).

    3.  Subsections 6 (1) to (3) and (5) to (11).

    4.  Subsections 8 (2) and (4).

    5.  Sections 9 and 10.

 

 

Schedule 14
Escheats Act

   1.  Subsection 1 (3) of the Escheats Act is amended by striking out "real property" and substituting "land".

   2.  Section 6 of the Act is repealed and the following substituted:

Transfer, assignment or discharge of interest in land

   6.  (1)  Despite any other Act or law, the Public Guardian and Trustee may transfer, assign or discharge, at such price and on such terms as seem proper, all or part of any interest in land of which he or she has taken possession under this Act. 

Sale of personal property

   (2)  Despite any other Act or law, where possession of any personal property has been taken by the Public Guardian and Trustee under this Act, he or she may sell it at such price and upon such terms as seem proper.

   3.  The Act is amended by adding the following sections:

Lien on property

   8.  (1)  The Crown has a lien, in the amount described in subsection (2),

  (a)  on any property that has become the property of the Crown by reason of the person last seised of it or entitled to it having died intestate and without lawful heirs, or that has become forfeited for any cause to the Crown; and

  (b)  on personal property not owned by the Crown that is situated on land that has become forfeited to the Crown.

Same

   (2)  The amount of the lien is the sum at any given time of the following:

    1.  Fees charged and expenses incurred or committed to by the Crown, as calculated in accordance with the regulations, in relation to the property during the period beginning when the property or, in the case of personal property referred to in clause (1) (b), the land on which it is situated became the property of the Crown and ending on the earliest of when title to the property is transferred under section 12, when the title of the Crown to the land is cleared under section 15, or when the Crown, or a servant or agent of the Crown,  

            i.  in respect of personal property, begins to use the property for Crown purposes, or

           ii.  in respect of land, has registered a notice against title to the property that it intends to use the property for Crown purposes.

    2.  Interest payable on the amount calculated under paragraph 1, as provided for in the regulations, and compounded until the date that the Crown receives payment.

Same

   (3)  For the purposes of this section, the Crown or a servant or agent of the Crown does not use a property for Crown purposes by reason of any activity described in subsection 5 (5.4) of the Proceedings Against the Crown Act, or by reason of the Public Guardian and Trustee taking possession or registering a notice of taking possession under this Act.

Same

   (4)  Despite any other Act or law, a lien under this section has priority over any other claim or interest, including statutory and non-statutory liens, the rights of a corporation that has been revived, or the rights of any person in the property of a corporation that has been dissolved or revived, and over the rights of any secured or unsecured creditor, regardless of when the claim, interest or right came into existence or was registered, except for the following rights:

    1.  The rights of the Crown under a trust created by section 3.6.1 of the Fuel Tax Act, section 18 of the Gasoline Tax Act, section 22 of the Retail Sales Tax Act or section 24.1 of the Tobacco Tax Act.

    2.  Real property taxes payable to a municipality.

Registration of lien

   (5)  The Crown shall register notice of a lien, in the manner provided for in the regulations,

  (a)  in the case of personal property, in the registration system maintained under the Personal Property Security Act; and

  (b)  in the case of land, in the appropriate land registry office.

Definition

   (6)  In this section and in sections 14 and 17,

"real property taxes" means real property taxes as defined in section 371 of the Municipal Act, 2001.

Notice of sale

   9.  (1)  The Crown may at any time, with respect to land to which a lien under section 8 applies, register a notice of sale against the title to the land.

Contents of notice

   (2)  The notice of sale shall indicate that the land described in the notice may be sold by the Crown within one year and that the right of a municipality to conduct a sale under Part XI of the Municipal Act, 2001 or under Part XIV of the City of Toronto Act, 2006 is suspended for a period of one year after registration of the notice.

Limit

   (3)  No notice of sale shall be registered by the Crown under subsection (1) if,

  (a)  the treasurer of a municipality has registered a tax arrears certificate under Part XI of the Municipal Act, 2001 or Part XIV of the City of Toronto Act, 2006 with respect to the land; and

  (b)  280 days have passed since registration of a tax arrears certificate under subsection 373 (1) of the Municipal Act, 2001 or subsection 344 (1) of the City of Toronto Act, 2006.

Exception to limit

   (4)  Subsection (3) does not apply if the treasurer of the municipality consents to registration of the notice of sale by the Crown, or if the municipality has not been proceeding with reasonable dispatch to enforce its tax rights.

Notice of sale, personal property

   (5)  The Crown may at any time prepare a notice of sale with respect to personal property to which a lien under section 8 applies.

Persons entitled to notice

   (6)  Within 30 days after the notice of sale is registered or, in the case of personal property, at any time after it is prepared, a copy of the notice of sale, with details of registration, if applicable, shall be given to the following persons by a method provided for in the regulations:

    1.  In the case of land registered under the Land Titles Act, every person appearing by the parcel register and by the index of executions for the area in which the land is situated to have an interest in the land on the day the notice of sale is registered, other than persons having an interest specified in clause 12 (1) (a), (b) or (c).

    2.  In the case of land registered under the Registry Act, every person appearing by the abstract index and by the index of executions for the area in which the land is situated to have an interest in the land on the day the notice of sale is registered, other than persons having an interest specified in clause 12 (1) (a), (b) or (c).

    3.  In the case of land in a local municipality, the clerk of the municipality.

    4.  In the case of personal property, every person who has an interest in the personal property that has been registered under the Personal Property Security Act or the Repair and Storage Liens Act on or before the day the notice of sale is prepared.

    5.  If the person administering the sale on behalf of the Crown receives actual notice in writing of any other interest in the property before giving the notice of sale, the person who has the interest.

    6.  Any other persons who are prescribed.

Statutory declaration

   (7)  A statutory declaration as to compliance with subsection (6) shall be made on behalf of the Crown stating the names and addresses of the persons to whom notice was given.

Inspection

   (8)  Any person is entitled, on request,

  (a)  to inspect a copy of the statutory declaration made under subsection (7); and

  (b)  to obtain a copy of the statutory declaration.

Exception

   (9)  A person is not entitled to notice under this section if,

  (a)  after a reasonable search, the person administering the sale on behalf of the Crown is unable to find the person's address and is not otherwise aware of the address; or

  (b)  the person has expressly waived the right to notice, either before or after the notice should have been given.

No need to ensure actual notice

   (10)  When a notice is properly given under this section, the Crown is not required to ensure that the notice is actually received by the person to whom it is directed.

Notice not required

   (11)  Notice under this section is not required with respect to personal property where,

  (a)  the personal property is perishable;

  (b)  the existence of a person entitled to notice cannot be readily and reasonably ascertained;

   (c)  there are reasonable grounds to believe that the personal property will rapidly decline in value;

  (d)  the cost of care and storage of the personal property is disproportionately large relative to its value;

  (e)  for any reason not otherwise provided for in this subsection, the Superior Court of Justice, on an application made without notice to any other person, is satisfied that a notice is not required; or

    (f)  the person entitled to receive a notice under subsection (6) consents in writing to the immediate disposition of the personal property.

Suspension of municipal sale rights

   (12)  The right of a municipality to conduct a sale of the land under Part XI of the Municipal Act, 2001 or under Part XIV of the City of Toronto Act, 2006 is suspended for a period of one year after the registration of a notice of sale by the Crown under this section, unless the Crown consents to such a sale.

Calculation of time

   (13)  The period during which there is a suspension under subsection (12) shall be counted when calculating periods under subsection 379 (1) or (2) of the Municipal Act, 2001 or subsection 350 (1) or (2) of the City of Toronto Act, 2006.

Other creditors

   (14)  Upon the registration of a notice by the Crown under this section, the right of any person other than the Crown to sell the property is suspended, unless the Crown consents to such a sale.

Cancellation

   10.  The Crown may, at any time, cancel its proposed sale under this Act of property to which a lien under section 8 applies.

Sale

   11.  (1)  Where at least 45 days have passed from the giving of the notice of sale under section 9 or, in cases where no notice is required, at any time, the Crown may sell the property,

  (a)  in the case of land, by public tender or public auction, or any alternative method of public sale that may be provided for in the regulations; or

  (b)  in the case of personal property, in accordance with whatever rules may be provided for in the regulations.

When sale to occur

   (2)  Land sold under subsection (1) that is in a local municipality shall be sold within one year from the registration of the notice of sale under section 9, unless the local municipality consents to an extension.

Saving

   (3)  Subsection (2) does not apply so as to prevent the Crown from registering a new notice of sale and proceeding under this Act.

Highest price need not be obtained

   (4)  The Crown is not bound to inquire into or form any opinion of the value of the property before conducting a sale under this section, and is not under any duty to obtain the highest or best price for the property.

Effect of conveyance

   12.  (1)  Despite any other Act or law, a transfer of title to land sold under section 11, when registered, vests in the purchaser an estate in fee simple in the land, together with all rights, privileges and appurtenances and free from all estates and interests, subject only to,

  (a)  easements and restrictive covenants that run with the land;

  (b)  any estates and interests of the Crown in right of Canada;

   (c)  any interest or title acquired by adverse possession by abutting landowners before the sale.

Same, personal property

   (2)  When personal property is sold under section 11, the Crown shall provide the purchaser with a transfer of title, which, despite any other Act or law, gives the purchaser title in the property free of any other interest. 

Finality

   13.  (1)  Despite any other Act or law, the Crown's transfer of title to land, when registered in the appropriate land registry office, is final, binding and conclusive and not subject to challenge for any reason.

Same, personal property

   (2)  Despite any other Act or law, the Crown's transfer of title to personal property is final, binding and conclusive and not subject to challenge for any reason.

No action

   (3)  Despite any other Act or law, no action or proceeding may be brought for the recovery of the property after the registration of the Crown's transfer of title, or, in the case of personal property, after title is transferred.

Application of proceeds

   14.  (1)  The proceeds of a sale under section 11 shall be applied as follows and in the following order:

    1.  Payment of the Crown's fees and expenses relating to the sale.

    2.  Payment in respect of trusts created by section 3.6.1 of the Fuel Tax Act, section 18 of the Gasoline Tax Act, section 22 of the Retail Sales Tax Act or section 24.1 of the Tobacco Tax Act.

    3.  In the case of land, payment of tax arrears for real property taxes relating to the land that are owed to any municipality.

    4.  Payment of the remainder of the Crown's lien under section 8.

    5.  Payment to all persons who had an interest in the property before the sale, according to their priority at law, including claims of the Crown other than those mentioned in paragraphs 1, 2 and 4.

    6.  Payment of the surplus to the Crown, or, if a person other than the Crown was the owner of the personal property before the sale, to that person.

Payment into court

   (2)  Subject to subsection (3), the Crown shall pay the proceeds of the sale into the Superior Court of Justice, minus the amounts payable to the Crown under paragraphs 1, 2 and 4 of subsection (1).

Payment to municipality

   (3)  The Crown shall pay to the local municipality where the land is situated the amount owing under paragraph 3 of subsection (1) according to its priority, but the Crown is not liable to any person if the amount paid is incorrect, where the Crown is acting on information provided by the municipality. 

Payment out of court

   (4)  Any person claiming entitlement under paragraph 5 or 6 of subsection (1) may apply to the Superior Court of Justice within one year of the payment into court under subsection (2) for payment out of court of the amount to which the person is entitled. 

Determination by court

   (5)  The Superior Court of Justice shall, after one year has passed from the payment into court, determine the amounts of the entitlements under subsection (1).

Forfeiture

   (6)  If no person makes an application under subsection (4) within the one-year period referred to in that subsection, the amount paid into court under subsection (2) is payable to the Crown, and all other claims and interests with respect to the amount are extinguished.

Payment out

   (7)  The Crown may apply to the Superior Court of Justice for payment out of court of the amount that is payable to the Crown under subsection (6) or the amount to which the Crown is entitled after the court has determined the entitlements.

Failure to sell

   15.  (1)  Where, after holding a sale, there is no successful purchaser of land under section 11, the Crown may apply to the appropriate land registry office to amend the register, which, once amended, has the effect, despite any other Act or law, of clearing the title of the Crown to the land and extinguishing all claims and interests other than those mentioned in clause 12 (1) (a), (b) or (c).

Same, personal property

   (2)  Where, after holding a sale, there is no successful purchaser of personal property under section 11, the Crown's title to the personal property is cleared and the claims and interests of any other person are extinguished.

Application to court

   16.  The Superior Court of Justice may, at any time, on the application of the Crown, make an order,

  (a)  to clarify, vary or settle the procedures to be followed under sections 9 to 15;

  (b)  to determine who has ownership in any property to which those sections apply;

   (c)  to clear the title of the Crown to the property and to extinguish the claims and interests of any other person; or

  (d)  generally, to enforce the Crown's lien.

Miscellaneous

   17.  (1)  Nothing in this Act prevents the Crown,

  (a)  from obtaining payment of its lien under section 8 by any other method permitted by law;

  (b)  from dealing with property which has become forfeited to the Crown by any other method permitted by law; or

   (c)  from transferring Crown property to a municipality on any terms that the Crown and the municipality consider proper.

Saving

   (2)  Except as otherwise provided in those sections, nothing in sections 9 to 15 shall be construed so as to interfere with the rights of a municipality to collect real property taxes that are in arrears.

Regulations

   18.  The Lieutenant Governor in Council may make regulations,

  (a)  governing the calculation of the Crown's lien for the purposes of section 8, including providing for what may be included in the lien, and providing a rate of interest for that purpose and the compounding of interest or providing that a rate of interest calculated under another Act or regulation applies with necessary modification;

  (b)  respecting any registration that may be made under sections 9 to 15;

   (c)  respecting the giving of a notice for the purposes of this Act, including the contents of a notice;

  (d)  governing what constitutes a reasonable search for the purposes of subsection 9 (9);

  (e)  respecting the procedure for the sale of property for the purposes of section 11;

    (f)  governing the making of payments under section 14, including procedures to be followed in order to determine who is entitled to payment, and the calculation of the expenses of the sale, and rules to be followed respecting the payment into and out of court;

  (g)  defining "successful purchaser" for the purposes of section 15;

   (h)  providing for provisions of Part XI of the Municipal Act, 2001 or the Personal Property Security Act, or of any regulations made under those Acts, that apply with necessary modification, or with modifications provided for in the regulations, for the purposes of interpreting or enforcing this Act;

    (i)  providing for anything that under this Act may be prescribed or that may be provided for in regulations.

Commencement

   4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 3 comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 15
Family Responsibility and Support Arrears Enforcement Act, 1996

   1.  Section 19 of the Family Responsibility and Support Arrears Enforcement Act, 1996 is repealed and the following substituted:

Updating contact information

   19.  A payor or recipient under a support order or support deduction order that is filed in the Director's office shall advise the Director of any changes to the following, within 10 days after the change:

    1.  Any name or alias used by the payor or recipient, including any spelling variation of any name or alias.

    2.  The payor's or recipient's home address, and the mailing address if different from the home address.

    3.  Any telephone number of the payor or recipient.

    4.  Other contact information, such as the payor's or recipient's work address, fax number or e-mail address, if the payor or recipient has previously provided that contact information to the Director.

   2.  (1)  Subsections 44 (1) and (2) of the Act are repealed and the following substituted:

Writs of seizure and sale

   (1)  If a writ of seizure and sale is filed with a sheriff in respect of a support order, the person who filed the writ may at any time file with the sheriff a statutory declaration specifying,

  (a)  the amount currently owing under the order; or

  (b)  any name, alias or spelling variation of any name or alias used by the payor.

Same

   (2)  When a statutory declaration is filed under clause (1) (a), the writ of seizure and sale shall be deemed to be amended to specify the amount owing in accordance with the statutory declaration.

Same

   (2.1)  When a statutory declaration is filed under clause (1) (b), the writ of seizure and sale shall be deemed to be amended to include the names specified on the statutory declaration. 

   (2)  Subsection 44 (3) of the Act is amended by striking out "subsection (1)" at the end and substituting "clause (1) (a)".

   (3)  Subsection 44 (4) of the Act is amended by striking out "subsection (1)" at the end and substituting "clause (1) (a)".

   (4)  Clause 44 (5) (c) of the Act is amended by striking out "subsection (1)" and substituting "clause (1) (a)".

   (5)  Clause 44 (5) (d) of the Act is amended by striking out "subsection (1)" and substituting "clause (1) (a)".

   (6)  Subsection 44 (6) of the Act is amended by striking out "subsection (2)" and substituting "subsection (2) or (2.1)".

   3.  (1)  The definition of "enforcement-related information" in subsection 54 (1) of the Act is amended by adding the following paragraph:

  0.1  name, alias or spelling variation of any name or alias,

   (2)  The definition of "enforcement-related information" in subsection 54 (1) of the Act is amended by adding the following paragraph:

  2.1  indexing factors applied to the payor's wages, salary, pension or other income,

   (3)  The definition of "recipient information" in subsection 54 (1) of the Act is amended by adding the following paragraph:

  0.1  name, alias or spelling variation of any name or alias,

Commencement

   4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Subsection 3 (2) comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 16
French Language Services Act

   1.  Section 1 of the French Language Services Act is amended by adding the following definition:

"Commissioner" means the French Language Services Commissioner appointed under section 12.1; ("commissaire")

   2.  (1)  Clause 11 (2) (d) of the Act is repealed. 

   (2)  Section 11 of the Act is amended by adding the following subsection:

Regulations

   (4)  Subject to the approval of the Lieutenant Governor in Council, the Minister responsible for Francophone Affairs may make regulations generally for the better administration of this Act and, without limiting the generality of the foregoing,

  (a)  governing the publication of government documents in French;

  (b)  governing the provision of services in French under a contract with a person who has agreed to provide services on behalf of a government agency, including the circumstances in which the agency may enter into such a contract.

   3.  The Act is amended by adding the following sections:

French Language Services Commissioner

   12.1  (1)  The Lieutenant Governor in Council shall appoint an individual to act as French Language Services Commissioner.

Official name

   (2)  The person appointed shall be known in English as the French Language Services Commissioner and in French as commissaire aux services en français.

Office established

   (3)  There is hereby established an office to be known in English as the Office of the French Language Services Commissioner and in French as Commissariat aux services en français.

Employees

   (4)  Such employees as are considered necessary shall be appointed under the Public Service Act for the administration of the functions of the Office of the French Language Services Commissioner.

Temporary replacement

   (5)  The Commissioner may designate in writing an employee in his or her office to act on a temporary basis in his or her place when the Commissioner is for any reason unable to carry out his or her functions and, when acting in that capacity, the designate has all the powers of the Commissioner, subject to any conditions, limitations or restrictions set out in the designation. 

Immunity

   (6)  No proceeding shall be commenced against the Commissioner or any employee in the Commissioner's office for any act done or omitted in good faith in the execution or intended execution of his or her duties under this Act.

Crown liability

   (7)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (6) does not relieve the Crown of any liability to which the Crown would otherwise be subject.

Functions of Commissioner

   12.2  It is the function of the Commissioner to encourage compliance with this Act by, 

  (a)  conducting investigations into the extent and quality of compliance with this Act, pursuant to complaints relating to French language services made by any person or on the Commissioner's own initiative;

  (b)  preparing reports on investigations, including recommendations for improving the provision of French language services;  

   (c)  monitoring the progress made by government agencies in providing French language services;

  (d)  advising the Minister on matters related to the administration of this Act; and

  (e)  performing such other functions as may be assigned to the Commissioner by the Lieutenant Governor in Council.

Commissioner's discretion to investigate complaints

   12.3  (1)  The Commissioner may, in his or her discretion, decide not to take any action based on a complaint relating to French language services, including refusing to investigate or ceasing to investigate any complaint, if, in his or her opinion,

  (a)  the subject-matter of the complaint is trivial;

  (b)  the complaint is frivolous or vexatious or is not made in good faith;

   (c)  the subject-matter of the complaint has already been investigated and dealt with;

  (d)  the subject-matter of the complaint does not involve a contravention of or failure to comply with this Act or, for any other reason, does not come within the authority of the Commissioner under this Act.

Notice to complainant

   (2)  If the Commissioner decides not to act on a complaint, or to take no further actions with regard to a complaint, he or she shall give the complainant notice in writing of the decision, and of the reasons for it.

Investigations

   12.4  (1)  Subject to this Act, the Commissioner may determine the procedure to be followed in conducting an investigation.

Notice to be given to deputy head

   (2)  Before beginning an investigation, the Commissioner shall inform the deputy head or other administrative head of the government agency concerned of his or her intention to conduct an investigation.

Power of commission

   (3)  For the purposes of conducting an investigation, the Commissioner has the powers of a commission under Part II of the Public Inquiries Act, and that Part applies to the investigation as if it were an inquiry under that Act.

Report on results of investigation

   (4)  The Commissioner shall report the results of an investigation,

  (a)  where the investigation arises from a complaint, to the complainant, the deputy head or other administrative head of the government agency concerned and the Minister;

  (b)  where the investigation is at the Commissioner's own initiative, to the deputy head or other administrative head of the government agency concerned and the Minister.

Annual and special reports

   12.5  (1)  The Commissioner shall prepare and submit to the Minister responsible for Francophone Affairs an annual report on his or her activities, which may include recommendations for improving the provision of French language services.

Special report

   (2)  The Commissioner may at any time make a special report to the Minister on any matter related to this Act that, in the opinion of the Commissioner, should not be deferred until the annual report and may request the Minister to submit it to the Speaker of the Assembly to be laid before the Assembly.

Tabling of report

   (3)  The Minister shall, without delay, submit to the Speaker the annual report and any special report that the Commissioner requests the Minister to submit under subsection (2), and the Speaker shall lay it before the Assembly forthwith if it is in session or, if not, at the next session.

Publication of report

   12.6  The Commissioner may publish, in any manner he or she considers appropriate, a report mentioned in this Act 30 days after it has been given to the Minister, unless the Minister consents to the report's earlier publication.   

Amendment

   4.  On the later of the day this Schedule comes into force and the day section 1 of Schedule C to the Public Service of Ontario Statute Law Amendment Act, 2006 comes into force, subsection 12.1 (4) of the French Language Services Act, as enacted by section 3 of this Schedule, is amended by striking out "Public Service Act" and substituting "Public Service of Ontario Act, 2006".

Commencement

   5.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 17
Income Tax Act

   1.  Section 8 of the Income Tax Act is amended by adding the following subsections:

2007 income threshold for purposes of subs. (3.1)

   (3.1.1)  If the sum of the amounts described in subsection (3.1.2) that are authorized to be paid to a senior and his or her cohabiting spouse or common-law partner for January, April, July and October, 2007 exceeds the sum of those amounts authorized to be paid to them for January, April, July and October, 2006, the Lieutenant Governor in Council may make a regulation,

  (a)  prescribing an amount determined by reference to the amounts described in subsection (3.1.2) that are authorized to be paid to a senior and his or her cohabiting spouse or common-law partner for January, April, July and October, 2007; and

  (b)  prescribing that the reference in subsection (3.1) to $23,090 shall be read as a reference to the amount prescribed by the regulation for the 2007 and subsequent taxation years.

Same

   (3.1.2)  For the purposes of subsection (3.1.1), the amounts are,

  (a)  the maximum amount of a pension under the Old Age Security Act (Canada);

  (b)  the maximum amount of a guaranteed income supplement under Part II of the Old Age Security Act (Canada); and

   (c)  the maximum amount of a guaranteed annual income increment under the Ontario Guaranteed Annual Income Act.

   2.  (1)  Clause (a) of the definition of "C" in the definition of "A" in subsection 8.4.5 (3) of the Act is amended by striking out "2011" and substituting "2015".

   (2)  Subparagraphs 1 iii and 2 ii of subsection 8.4.5 (8) of the Act are amended by striking out "2011" wherever it appears and substituting in each case "2015".

   3.  (1)  The definition of "qualified dependant" in subsection 8.5 (1) of the Act is repealed and the following substituted:

"qualified dependant" means, with respect to a month, an individual born before July 1, 2011 who has not attained the age of seven years before the first day of the month and who is a qualified dependant for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("personne à charge admissible")

   (2)  Subsection 8.5 (5) of the Act is repealed and the following substituted:

Amount of deemed overpayment

   (5)  The overpayment of tax, if any, referred to in subsection (4) that is deemed to arise during a month on account of an individual's liability under this Act for a taxation year in respect of a qualified dependant is equal to the amount determined in accordance with the formula,

in which,

  "A"  is the amount that is the lesser of "X" and "Y", as defined in subsection (5.1),

  "B"  is 8 per cent of the amount, if any, by which the individual's adjusted income for the base taxation year in relation to the month exceeds $20,000,

  "C"  is the number of qualified dependants in respect of whom the individual is an eligible individual at the beginning of the month, and

  "D"  is,

         (a)  if the month commences before July 1, 2008, nil, or

         (b)  if the month commences after June 30, 2008, the lesser of,

                   (i)  the amount to which the individual is entitled for the month under section 8.6.2, divided by the number of qualified dependants in respect of whom the individual is an eligible individual at the beginning of the month, and

                  (ii)  the amount that would otherwise be determined for the month under this subsection if "D" were nil for the month.

   4.  The Act is amended by adding the following section:

Ontario child benefit

Definitions

   8.6.2  (1)  In this section,

"adjusted income" of an individual for a taxation year means the individual's adjusted income as determined for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu modifié")

"base taxation year", when used in relation to a month, has the meaning assigned by section 122.6 of the Federal Act; ("année de base")

"Canada child tax benefit" means the Canada child tax benefit under subdivision a.1 of Division E of Part I of the Federal Act; ("prestation fiscale canadienne pour enfants")

"cohabiting spouse or common-law partner" means, in respect of an individual at any time, the person who, at that time, is the individual's cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("conjoint ou conjoint de fait visé")

"eligible individual" means, in respect of a qualified dependant, a person who is an eligible individual in respect of the dependant for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("particulier admissible")

"Ontario child benefit" in respect of an individual means an amount deemed under this section to be an overpayment by the individual on account of tax payable under this Act; ("prestation ontarienne pour enfants")

"qualified dependant" has the meaning assigned by section 122.6 of the Federal Act; ("personne à charge admissible")

"return of income" has the meaning assigned by section 122.6 of the Federal Act. ("déclaration de revenu")

Application of Federal Act

   (2)  Subsection 122.61 (2), paragraph 122.61 (3) (a) and subsections 122.61 (3.1) and (4), 122.62 (1), (2), (4), (5), (6) and (7), 152 (3.2), (3.3) and (4.2), 160.1 (2.1) and (3) and 164 (2.3) of the Federal Act apply for the purposes of this section as if a reference in any of those provisions to a provision of subdivision a.1 of Division E of Part I of the Federal Act were a reference to the corresponding provision of this section.

Deemed overpayment for taxation year

   (3)  If an overpayment on account of an individual's liability under this Act for a taxation year is deemed under subsection (4) or (5) to have arisen during a month beginning after June 30, 2007 in relation to which the year is the base taxation year, the Provincial Minister shall pay an Ontario child benefit to the individual in accordance with this section.

Same

   (4)  An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during the 12-month period beginning after June 30, 2007 and ending before July 1, 2008 if the following conditions are satisfied:

    1.  The individual is an eligible individual on July 1, 2007 in respect of one or more qualified dependants and is entitled to receive a Canada child tax benefit for July 2007.

    2.  The individual is resident in Ontario on July 1, 2007.

    3.  The individual and, if required by the Provincial Minister, the person who is the individual's cohabiting spouse or common-law partner have each filed a return of income for the 2006 taxation year.

Same

   (5)  An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a month beginning after June 30, 2008 in relation to which the year is the base taxation year if the following conditions are satisfied:

    1.  The individual is an eligible individual at the beginning of the month in respect of one or more qualified dependants and is entitled to receive a Canada child tax benefit for that month.

    2.  The individual is resident in Ontario on the first day of the month.

    3.  The individual and, if required by the Provincial Minister, the person who is the individual's cohabiting spouse or common-law partner have each filed a return of income for the base taxation year.

Ontario child benefit for July 2007 to June 2008

   (6)  The total amount of Ontario child benefits to which an eligible individual is entitled for the 12-month period commencing July 1, 2007 and ending June 30, 2008 is the amount calculated using the formula,

($250  A) – B

in which,

  "A"  is the number of qualified dependants in respect of whom the individual is an eligible individual on July 1, 2007, and

  "B"  is the amount equal to 3.4 per cent of the amount, if any, by which the individual's adjusted income for the 2006 taxation year exceeds $20,000.

Amount of a monthly payment after June 2008

   (7)  The amount of an Ontario child benefit to which an eligible individual is entitled for a month commencing after June 30, 2008 is the amount calculated using the formula,

in which,

  "C"  is,

         (a)  $600 if the month commences after June 30, 2008 and ends before July 1, 2009,

         (b)  $805 if the month commences after June 30, 2009 and ends before July 1, 2010,

          (c)  $900 if the month commences after June 30, 2010 and ends before July 1, 2011, and

         (d)  $1,100 if the month commences after June 30, 2011,

  "D"  is the number of qualified dependants in respect of whom the individual is an eligible individual on the first day of the month, and

  "E"  is the amount equal to 8 per cent of the amount, if any, by which the individual's adjusted income for the base taxation year in respect of the month exceeds $20,000.

Notice and payment

   (8)  If the Provincial Minister determines that an individual is entitled to an Ontario child benefit, the Provincial Minister,

  (a)  shall send a notice to the individual setting out the amount of the payment to which the individual is entitled; and

  (b)  shall make the payment in accordance with the determination by means of,

           (i)  one payment in the amount determined in respect of the individual under subsection (6), if an overpayment on account of the individual's liability under this Act is deemed under subsection (4) to have arisen, or

          (ii)  monthly payments, each of which is in the amount determined under subsection (7) in respect of the month to which the payment applies, if an overpayment on account of the individual's liability under this Act is deemed under subsection (5) to have arisen during that month.

Minimum Ontario child benefit, July 2007 to June 2008

   (9)  If the amount of an individual's Ontario child benefit as determined under subsection (6) for the 12-month period commencing July 1, 2007 and ending June 30, 2008 is greater than zero but less that $10, the Provincial Minister shall pay the individual an Ontario child benefit of $10 for that 12-month period.

No set-off

   (10)  No portion of an Ontario child benefit shall be retained by the Provincial Minister and applied to reduce any debt to the Crown in right of Ontario or in right of Canada other than an amount required to be repaid under this section.

Repayment of Ontario child benefit

   (11)  If, after an Ontario child benefit is paid to an individual under this section, it is determined that the individual received an Ontario child benefit to which he or she is not entitled or received an amount greater than the amount to which he or she is entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Provincial Minister.

Exception for July 2007 to June 2008

   (12)  Subsection (11) does not apply in either of the following circumstances in respect of an amount that is repayable by an individual in respect of the Ontario child benefit for the 12-month period that commences on July 1, 2007:

    1.  If the total amount that is repayable is not more than $25.

    2.  If all of the following criteria are satisfied:

            i.  The individual is resident in Ontario on July 1, 2007.

           ii.  The individual's adjusted income for the 2006 taxation year does not exceed $50,000.

          iii.  The Provincial Minister is satisfied that the obligation to make the repayment resulted solely from an administrative error made during the initial determination, a redetermination or a payment of the Ontario child benefit or during a reassessment of the individual for the 2006 taxation year.

Exception after June 2008

   (13)  Subsection (11) does not apply if the total amount that is repayable by an individual on account of the Ontario child benefit for any 12-month period that commences on July 1, 2008 or on July 1 of a subsequent year is not more than $2.

Recovery of excess amounts

   (14)  An amount repayable under subsection (11) that has not been repaid to the Provincial Minister,

  (a)  constitutes a debt to the Crown in right of Ontario and may be recovered by way of deduction, set-off or in any court of competent jurisdiction in proceedings commenced at any time or in any other manner provided by this Act; and

  (b)  shall be deemed for the purposes of sections 31 to 36 to be tax payable under this Act.

No interest payable

   (15)  No interest is payable on the amount of an Ontario child benefit paid by the Provincial Minister under this section or repayable by an individual under this section.

Confidentiality

   (16)  If a collection agreement is in effect, any person employed by the Government of Ontario may provide to officials of the Government of Canada information, including personal information, required by the Government of Canada to administer this section or co-ordinate the application of this section with the application of subdivision a.1 of Division E of Part I of the Federal Act. 

   5.  Subsection 23 (2) of the Act is amended by striking out "and" at the end of clause (f) and by adding the following clause:

(f.1)  the amount of an Ontario child benefit, if any, payable to an individual under section 8.6.2; and

   6.  Clause 45 (3) (a) of the Act is repealed and the following substituted:

  (a)  the Minister, the Minister of Finance and the Minister of Revenue; or

   7.  The Act is amended by adding the following section:

Disclosure of corporate information by the Minister of Government Services

   49.1  (1)  Despite any other Act, the Minister of Government Services may, on behalf of the Government of Ontario, enter into one or more agreements with the Canada Revenue Agency, on behalf of the Government of Canada, providing,

  (a)  that the Minister of Government Services may disclose to the Canada Revenue Agency such information with respect to corporations as is specified in the agreement; and

  (b)  that the disclosure described in clause (a) shall be only for the purpose of enabling the Government of Canada to collect taxes payable under the Corporations Tax Act or other legislation that imposes taxes payable by corporations.

Same

   (2)  If an agreement described in subsection (1) is entered into, the Minister of Government Services,

  (a)  may disclose the information described in that subsection for the purposes set out in that subsection despite the provisions of any other Act; and

  (b)  shall disclose the information only in accordance with the terms and conditions of the agreement and for the purpose set out in subsection (1).

Information

   (3)  An agreement under subsection (1) may specify any information relating to a corporation that is contained in records maintained by the Ministry of Government Services or an official appointed by the Minister of Government Services regardless of when the information was first shown on the records and includes information filed by the corporation or another person or entity under any Act.

Supplemental agreements

   (4)  The Minister of Government Services may, on behalf of the Government of Ontario, enter into an agreement amending the terms and conditions of an agreement entered into under subsection (1).

Same

   (5)  Despite subsection (4), an amending agreement shall not permit the disclosure of any information by the Minister of Government Services,

  (a)  to any person other than the Canada Revenue Agency; or

  (b)  for any purpose other than the purpose described in clause (1) (b).

   8.  The Act is amended by adding the following Part:

part v
general

Reciprocal provision of information, Minister of Finance

   55.  (1)  For any of the following purposes, the Minister of Finance and any person employed by the Crown who is engaged, directly or indirectly, in the development and evaluation of tax policy for the Crown may communicate information and material obtained in the course of his or her duties, or allow it to be communicated, to another person employed by the Crown or may receive information and material in the course of his or her duties from another person employed by the Crown:

    1.  For use in developing or evaluating tax policy for the Crown.

    2.  For use in developing or evaluating a program that confers a benefit.

    3.  For use in the administration or enforcement of an Act described in subsection (2) or another Act that imposes a tax or confers a benefit.

Same

   (2)  Subsection (1) applies despite any provision in an Act administered by the Minister of Finance or the Minister of Revenue or in an Act under which the Minister of Finance or the Minister of Revenue exercises powers or performs duties as assigned to him or her under the Executive Council Act.

Commencement

   9.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 18
Insurance Act

   1.  (1)  Subsection 386 (1) of the Insurance Act, as re-enacted by the Statutes of Ontario, 2006, chapter 33, Schedule O, section 10, is amended by striking out the portion before clause (a) and substituting the following:

Amount of cash or investments

   (1)  The exchange shall at all times maintain a sum in cash or investments amounting to not less than an amount that is,

.     .     .     .     .

   (2)  Clause 437.13 (2) (b) of the Act is repealed and the following substituted:

  (b)  the entity is a holding company of the insurer and is an insurer incorporated and licensed under the laws of Ontario; or

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 19
Interim Appropriation Act, 2007

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2006 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2007-08 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2008 as tabled in the Assembly on or before March 31, 2008.

Expenses of the public service

   2.  For the fiscal year ending on March 31, 2008, amounts not exceeding a total of $50,000,000,000 may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2007-08.

Investments of the public service

   3.  For the fiscal year ending on March 31, 2008, amounts not exceeding a total of $1,200,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2007-08.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2008, amounts not exceeding a total of $170,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2007-08.

Expenditures of the public service

   5.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2007-08 may be incurred by the Crown through any ministry to which, during the fiscal year ending on March 31, 2008, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   6.  The Act set out in this Schedule shall be deemed to have come into force on April 1, 2007.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation Act, 2007.

 

Schedule 20
Justices of the Peace Act

   1.  Subsection 2.1 (13) of the Justices of the Peace Act is repealed and the following substituted:

Quorum for interview

   (13)  If the Advisory Committee interviews a candidate, the interview must be conducted by at least four members of the Committee, at least one of whom is a regional member from the region for which an appointment is considered and another of whom is a judge or justice of the peace described in subsection (13.2).

Quorum re classification

   (13.1)  The quorum for decisions under paragraph 8 of subsection (12) is four members of the Committee, at least one of whom is a regional member from the region for which an appointment is considered and another of whom is a judge or justice of the peace described in subsection (13.2).

Same

   (13.2)  The judge or justice of the peace referred to in subsections (13) and (13.1) may be either a core member or a regional member from the region for which an appointment is considered.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 21
Legislative Assembly Act

   1.  Subsection 67 (6) of the Legislative Assembly Act is amended by striking out "Thunder Bay-Nipigon" in the portion before paragraph 1 and substituting "Thunder Bay-Superior North".

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 22
Mining Act

   1.  The Mining Act is amended by adding the following sections:

Voluntary Rehabilitation

Approval to rehabilitate

   139.2  (1)  Any person may apply to the Director for approval to rehabilitate a mine hazard on Crown land or on any other prescribed land.

Application

   (2)  An application under subsection (1) must be made in the prescribed manner and must contain,

  (a)  a description of the land on which the mine hazard is located;

  (b)  a rehabilitation plan setting out how the rehabilitation will meet the prescribed standards.

Determination of application

   (3)  The Director shall review the application and shall determine whether to grant written approval for the rehabilitation of the mine hazard or to reject the application.

Conditions

   (4)  The Director may grant approval under subsection (3) subject to any conditions, including conditions that require the applicant to modify the rehabilitation plan.

Modifying rehabilitation plan

   (5)  A person who receives approval under subsection (3) may apply to the Director to modify the rehabilitation plan and if the Director permits the modification, the rehabilitation plan shall be modified accordingly.

Rehabilitation plan

   (6)  Nothing in subsection (3) requires a person to rehabilitate the mine hazard, but if the person proceeds with the rehabilitation, the person shall rehabilitate the mine hazard in accordance with the rehabilitation plan.

No orders

   (7)  On and after the day that a person begins rehabilitation of a mine hazard pursuant to an approval granted under subsection (3),

  (a)  no order or direction under section 7, 8, 18, 43 or 157.1 of the Environmental Protection Act or section 16.1, 16.2, 31, 32 or 61 of the Ontario Water Resources Act shall be issued to the person in respect of the land described in the rehabilitation plan; and

  (b)  no order shall be issued under section 97 of the Environmental Protection Act in respect of a pollutant that spilled on, in or under the lands described in the rehabilitation plan, unless the person conducting the rehabilitation caused or permitted the spill.

Orders before rehabilitation

   (8)  Nothing in subsection (7) affects the validity of an order made before the person begins rehabilitation.

Acts or omissions unrelated to rehabilitation

   (9)  Despite subsection (7), the orders and directions mentioned in that subsection may be issued to the person in respect of the land described in the rehabilitation plan if the order or direction is in respect of an act or omission of the person that is unrelated to the rehabilitation.

Definitions

   (10)  In this section,

"pollutant" has the same meaning as in subsection 91 (1) of Environmental Protection Act; ("polluant")

"spill" has the same meaning as in subsection 91 (1) of Environmental Protection Act. ("déversement")

Rehabilitation not in accordance with plan

   139.3  (1)  If the Director has reasonable grounds for determining that a person who has begun rehabilitation pursuant to an approval under subsection 139.2 (3) is not conducting the rehabilitation of the mine hazard in accordance with the rehabilitation plan, the Director shall notify the person of the determination and the reasons for it.

Time for response

   (2)  The notice referred to in subsection (1) shall specify a day by which a person may respond under subsection (3) or (4).

Request for reconsideration

   (3)  A person who receives a notice under subsection (1) may request that the Director reconsider the determination and may make written submissions or submit materials in support of the request, and after considering the request the Director,

  (a)  shall confirm, modify or revoke the determination; and

  (b)  may modify the rehabilitation plan.

Application to modify the plan

   (4)  In addition to making a request under subsection (3), a person who receives a notice under subsection (1) may apply to the Director to modify the rehabilitation plan, and if the Director permits the modification, the rehabilitation plan shall be modified accordingly.

Order to rehabilitate

   (5)  If a person who receives a notice under subsection (1) does not respond under subsection (3) or (4) by the day specified in the notice, the Director may issue an order to the person to rehabilitate the mine hazard in accordance with the rehabilitation plan.

Same

   (6)  An order under subsection (5) shall specify a day by which the rehabilitation must be completed.

No appeal

   139.4  Any decision made by the Director under section 139.2 or 139.3 is final and is not subject to appeal.

Immunity

   139.5  Despite subsection 4 (4), no action or other proceeding shall be brought against the Crown, the Minister or an employee or agent of the Crown for any act or omission arising out of or in relation to the review or approval of a rehabilitation plan under section 139.2 or any modification to the plan.

   2.  The Act is amended by adding the following Part:

PART viii
royalty on diamonds

Interpretation

   154.  (1)  In this Part,

"diamond mine" means a mine at which diamonds are produced as part of the output of the mine; ("mine de diamants")

"fiscal year" means fiscal period as defined in section 249.1 of the Income Tax Act (Canada); ("exercice")

"grant from the Crown" includes a patent, lease, licence of occupation, permit or any other form of grant from the Crown; ("concession de la Couronne")

"net value of the output" means, in relation to a diamond mine, the amount determined in accordance with the regulations; ("valeur nette de la production")

"operator", in respect of a diamond mine, includes a person who has the right to work a diamond mine and produce diamonds from it, personally or through agents or employees or together with one or more other persons, and includes a former operator. ("exploitant")

Output

   (2)  A diamond is considered to be produced as part of the output of a diamond mine if the conditions set out in the regulations are met.

Royalty payable on diamonds

   154.1  (1)  Every operator of a diamond mine shall, for each fiscal year of the operator, pay to the Crown the amount of the royalty determined under section 154.2 in respect of the net value of the output of the diamond mine for the year that is produced by the operator under the authority of a grant from the Crown.

Same

   (2)  The royalty is payable in respect of all diamonds produced after March 22, 2007.

When payable

   (3)  An operator shall pay the royalty referred to in subsection (1) by the prescribed date.

Royalty reserved to Crown

   (4)  Every grant from the Crown issued after March 22, 2007 is subject to a reserve to the Crown of a royalty as contemplated by subsection (1).

No relief

   (5)  Nothing in subsection (4) relieves an operator from the obligation set out in subsection (1).

Rate of royalty

   154.2  The royalty payable in respect of a diamond mine for a fiscal year of an operator is the lesser of,

  (a)  13 per cent of the net value of the output of the diamond mine for the year; and

  (b)  the amount determined in accordance with the Table to this section.

 

TABLE

Item

Column 1

Column 2

 

Net value of the output for the year

Royalty payable on that portion of the net value of the output

1.

on the first $10,000

0

2.

on the next portion of the net value up to but not including $5 million

5%

3.

on the next portion of the net value up to but not including $10 million

6%

4.

on the next portion of the net value up to but not including $15 million

7%

5.

on the next portion of the net value up to but not including $20 million

8%

6.

on the next portion of the net value up to but not including $25 million

9%

7.

on the next portion of the net value up to but not including $30 million

10%

8.

on the next portion of the net value up to but not including $35 million

11%

9.

on the next portion of the net value up to but not including $40 million

12%

10.

on the next portion of the net value up to but not including $45 million

13%

11.

on the next portion of the net value

14%

 

Notice of royalty

   154.3  (1)  Within six years after the end of a fiscal year of an operator of a diamond mine, the Minister shall send to the operator a notice of royalty setting out the amount of the royalty payable in respect of the mine for the fiscal year.

Amount payable

   (2)  The amount of the royalty set out in the notice of royalty shall be considered to be the amount payable on the date prescribed for the purposes of subsection 154.1 (3), and any interest or late penalties payable under section 154.4 shall be calculated on that amount and in respect of that date.

Revised notice of royalty

   (3)  The Minister may at any time send to an operator of a diamond mine a revised notice of royalty for a fiscal year in respect of the mine if the operator made a fraudulent or negligent misrepresentation in supplying to the Minister information upon which the calculation of the amount of the royalty was based.

Review of amount of royalty

   (4)  The amount of the royalty set out in a notice of royalty or revised notice of royalty may be reviewed in accordance with the procedure set out in the regulations.

Interest and penalties

   154.4  An operator shall pay such interest and penalties as are prescribed on late payments of royalties.

Information required by Minister

   154.5  (1)  An operator shall deliver to the Minister such notices, returns and information as are required by the regulations.

Form and time

   (2)  The notices, returns and information shall be in a form approved by the Minister and shall be delivered to the Minister at the time and in the manner specified by the Minister.

Records

   154.6  (1)  Every operator shall keep at an office in Ontario,

  (a)  all records, books of account and other documents related to mining royalty returns; and

  (b)  any other prescribed documents and information.

If Minister requests records

   (2)  An operator shall allow the Minister access to any documents or information mentioned in subsection (1) upon request, within such time as the Minister may specify in the request.

Confidential information

   154.7  Every person engaged in the administration of this Act shall preserve secrecy with respect to all information that comes to his or her knowledge in the course of his or her duties and shall not communicate any of those matters to any other person except as may be required in connection with the administration and enforcement of this Act or for use in the development and evaluation of fiscal policy for the Crown.

Removal of diamonds

   154.8  An operator of a diamond mine shall ensure that the conditions set out in the regulations are met before any diamonds produced at the mine are removed from the mine or sold.

Administration

   154.9  (1)  The Minister, on behalf of the Crown, may enter into agreements with the Minister of Finance or the Minister of Revenue respecting the administration and enforcement of this Part.

Regulations re agreement

   (2)  An agreement entered into under subsection (1) shall be in accordance with any regulations governing the terms of the agreement.

   3.  (1)  Paragraphs 24.1, 24.2 and 24.3 of subsection 176 (1) of the Act are repealed.

   (2)  Section 176 of the Act is amended by adding the following subsection:

Regulations re Part VIII

   (2.1.1)  The Lieutenant Governor in Council may make regulations relating to Part VIII,

  (a)  governing the valuation of diamonds;

  (b)  prescribing requirements respecting the manner in which diamonds must be handled, prepared and processed before valuation;

   (c)  defining "net value of the output" for the purposes of subsection 154 (1);

  (d)  prescribing conditions for the purposes of determining if a diamond is part of the output of a diamond mine;

  (e)  governing the payment, collection and administration of royalties for the purposes of Part VIII;

    (f)  setting out a procedure by which the amount set out in a notice of royalty or revised notice of royalty may be reviewed;

  (g)  governing the calculation of interest and penalties on late payments of royalties under Part VIII;

   (h)  specifying the notices, returns and information that an operator of a diamond mine is required to deliver to the Minister for the purposes of section 154.5, including,

           (i)  information relating to the output of the mine,

          (ii)  notices requiring the operator to inform the Minister of the gross value or net value of the output of the diamond mine,

         (iii)  descriptions of how diamonds produced at the diamond mine are handled, prepared and processed before they are removed from the mine or sold, and

         (iv)  sufficient information for the Minister to assess the amount of the royalty payable under Part VIII;

    (i)  prescribing conditions that must be met before any diamonds produced at a diamond mine are removed or sold;

    (j)  governing the terms of an agreement referred to in section 154.9 respecting the administration and enforcement of Part VIII;

   (k)  prescribing anything that is to be or may be prescribed by Part VIII;

    (l)  respecting any other matter that the Lieutenant Governor in Council considers necessary or desirable in relation to royalties under Part VIII.

   (3)  Subsection 176 (2.2) of the Act is amended by striking out "subsection (1) or (2)" and substituting "subsection (1), (2) or (2.1.1)".

Commencement

   4.  (1)  This section comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 to 3 come into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 23
Mining Tax Act

   1.  The definition of "stone for ornamental or decorative purposes" in subsection 1 (1) of the Mining Tax Act is repealed and the following substituted:

"stone for ornamental or decorative purposes",

  (a)  does not include diamonds for taxation years ending before March 23, 2007, and

  (b)  includes diamonds for taxation years ending after March 22, 2007; ("pierre servant à des fins ornementales ou décoratives")

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 24
Ministry of Citizenship and Culture Act

   1.  The Ministry of Citizenship and Culture Act is amended by adding the following section:

Fees

   10.1  (1)  The Minister may establish and charge fees to recover the costs of any services that are provided by the Ministry.

Refunds

   (2)  The Minister may refund all or any part of a fee charged under this section.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 25
Ministry of Revenue Act

   1.  (1)  Section 7 of the Ministry of Revenue Act is repealed and the following substituted:

Delegation of powers and duties

   7.  (1)  Any power or duty conferred or imposed on the Minister under this or any other Act may be delegated by the Minister to the deputy minister or to any other public servant within the meaning of the Public Service Act who is employed in or provides services to the Ministry and, when purporting to exercise a delegated power or duty, the delegate shall be presumed conclusively to act in accordance with the delegation.

Exception

   (2)  The Minister is not permitted to delegate the Minister's powers under subsection 11 (2.1).

Delegation subject to conditions

   (3)  A delegation under subsection (1) shall be in writing and may be subject to such limitations, conditions and requirements as are set out in it.

Subdelegation

   (4)  In a delegation under subsection (1), the Minister may authorize a person to whom a power or duty is delegated to delegate to others the exercise of the delegated power or duty, subject to such limitations, conditions and requirements as the person may impose.

Deeds and contracts

   (5)  Despite section 6 of the Executive Council Act, a deed or contract signed by a person empowered to do so under a delegation or subdelegation made under this section has the same effect as if it were signed by the Minister.

   (2)  Subsection 7 (1) of the Act, as re-enacted by subsection (1), is amended by striking out "to any other public servant within the meaning of the Public Service Act who is employed in or provides services to the Ministry" and substituting "to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in or provides services to the Ministry".

   2.  (1)  Section 14 of the Act is amended by adding the following subsections:

Same

   (2)  For any of the following purposes, the Minister and any person employed by the Crown who is engaged, directly or indirectly, in the administration and enforcement of an Act described in subsection (3) may communicate information and material obtained in the course of his or her duties, or allow it to be communicated, to another person employed by the Crown or may receive information and material in the course of his or her duties from another person employed by the Crown:

    1.  For use in the administration or enforcement of an Act described in subsection (3) or another Act that imposes a tax or confers a benefit.

    2.  For use in developing or evaluating tax policy for the Crown.

    3.  For use in developing or evaluating a program that confers a benefit.

Same

   (3)  Subsection (2) applies despite any provision in an Act administered by the Minister or in an Act under which the Minister exercises powers or performs duties as assigned to him or her under the Executive Council Act.

   (2)  Subsection 14 (2) of the Act, as enacted by subsection (1), is amended,

  (a)  by striking out "any person employed by the Crown" in the portion before paragraph 1 and substituting "any public servant employed under Part III of the Public Service of Ontario Act, 2006";

  (b)  by striking out "to another person employed by the Crown" in the portion before paragraph 1 and substituting "to another public servant"; and

  (c)  by striking out "from another person employed by the Crown" in the portion before paragraph 1 and substituting "from another public servant".

Commencement

   3.  (1)  Subject to subsection (2), this Schedule is deemed to have come into force on February 21, 2007.

Same

   (2)  Subsections 1 (2) and 2 (2) come into force on the day section 1 of Schedule C to the Public Service of Ontario Statute Law Amendment Act, 2006 comes into force.

Schedule 26
Municipal Act, 2001

   1.  Section 357 of the Municipal Act, 2001 is amended by adding the following subsection:

Exception, vacant unit rebate

   (1.1)  For 2007 and subsequent taxation years, no cancellation, reduction or refund of taxes is permitted under clause (1) (g) in respect of land that is eligible property under section 364.

   2.  Subsection 365.1 (23) of the Act is repealed and the following substituted:

Notice to municipality

   (23)  The owner of an eligible property in respect of which a record of site condition has been filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act shall, within 30 days after the record of site condition is filed, notify the local municipality of the filing and the municipality shall, within 30 days after receiving the notice, advise the Minister of Finance of the filing.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 2 comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 27
Municipal Conflict of Interest Act

   1.  Subsection 14 (3) of the Municipal Conflict of Interest Act is amended by striking out "subsections 387 (1) and (2) of the Insurance Act" and substituting "section 387 of the Insurance Act".

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 28
Niagara Escarpment Planning and Development Act

   1.  The Niagara Escarpment Planning and Development Act is amended by adding the following section:

Limitation period for prosecutions

   31.  A prosecution for an offence under this Act shall not be commenced more than three years after the date on which the offence was committed or is alleged to have been committed.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 29
Ontario Loan Act, 2007

Borrowing authorized

   1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $4.5 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

   (2)  The authority to borrow conferred by this Act is in addition to that conferred by any other Act.

Expiry

   2.  (1)  No order in council authorizing borrowing under this Act shall be made after December 31, 2009.

Same

   (2)  The Crown shall not borrow money after December 31, 2010 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2010,

  (a)  the Crown has entered into an agreement to borrow the money under the order in council; or

  (b)  the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

   3.  The Act set out in this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2007.

 

Schedule 30
Ontario Water Resources Act

   1.  (1)  Section 89.1 of the Ontario Water Resources Act is repealed and following substituted:

Definitions re: records of site condition, ss. 89.2 to 89.3

   89.1  In sections 89.2, 89.2.1, 89.2.2 and 89.3,

"certificate of property use" has the same meaning as in the Environmental Protection Act; ("certificat d'usage d'un bien")

"certification date" has the same meaning as in the Environmental Protection Act; ("date d'attestation")

"land" has the same meaning as in the Environmental Protection Act; ("terrain")

"Registry" means the Environmental Site Registry established under Part XV.1 of the Environmental Protection Act; ("Registre")

"water" has the same meaning as in the Environmental Protection Act. ("eau")

   (2)  Section 89.1 of the Act, as re-enacted by subsection (1), is amended by adding the following definitions:

"contaminant" has the same meaning as in the Environmental Protection Act; ("contaminant")

"sensitive property use" has the same meaning as in section 168.7.1 of the Environmental Protection Act. ("usage sensible d'un bien")

   2.  (1)  Subsection 89.2 (1) of the Act is amended by striking out "with section 168.4 of the Environmental Protection Act" in the portion before paragraph 1 and substituting "with section 168.4 of the Environmental Protection Act with respect to a property".

   (2)  Paragraph 1 of subsection 89.2 (1) of the Act is repealed and the following substituted:

    1.  The person who filed or who submitted for filing the record of site condition or a subsequent owner of the property.

   (3)  Subsection 89.2 (2) of the Act is repealed and the following substituted:

False or misleading information, etc.

   (2)  Subsection (1) does not apply if the record of site condition contains false or misleading information or false or misleading certifications.

   (4)  Subsection 89.2 (3) of the Act is repealed and the following substituted:

Material that moves to other property

   (3)  Subject to section 89.2.1, subsection (1) does not apply if, after the certification date, any of the material moved from the land or water on, in or under the property for which a record of site condition has been filed to another property.

   (5)  Section 89.2 of the Act is amended by adding the following subsection:

Order if material moves

   (4.1)  Despite subsection (3), if, after the certification date, any of the material moved from the land or water on, in or under the property for which a record of site condition has been filed to another property as a result of a person contravening,

  (a)  a term or condition of a certificate of property use or of an order referred to in clause 168.7 (5) (b) of the Environmental Protection Act; or

  (b)  a provision of a regulation referred to in subsection 168.7 (6) of that Act,

subsection (1) does not apply, but solely in respect of that person.

   3.  The Act is amended by adding the following section:

Material moving to other property

Application

   89.2.1  (1)  This section applies to a property for which a record of site condition has been filed in the Registry in accordance with section 168.4 of the Environmental Protection Act when, after the certification date, material has moved from the land or water on, in or under the property to another property, if the certifications described in section 168.7.1 of that Act, if applicable, are made.

Exception, full depth background site condition standards

   (2)  Subsection 89.2 (3) does not apply to material that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property if the material contains a contaminant at a concentration that does not exceed the applicable full depth background site condition standard for that contaminant, if the record of site condition contains a certification under sub-subparagraph 4 i A of subsection 168.4 (1) of the Environmental Protection Act.

Exception, sensitive property use

   (3)  Subsection 89.2 (3) does not apply to material that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property if the material contains a contaminant at a concentration that does not exceed the applicable site condition standard for that contaminant, if the record of site condition contains a certification under sub-subparagraph 4 i B or 4 i C of subsection 168.4 (1) of the Environmental Protection Act and the type of property use specified under paragraph 3 of subsection 168.4 (2) of the Environmental Protection Act in the record of site condition is a sensitive property use.

Exception, not a sensitive property use

   (4)  If a record of site condition contains a certification under sub-subparagraph 4 i B or 4 i C of subsection 168.4 (1) of the Environmental Protection Act and the type of property use specified under paragraph 3 of subsection 168.4 (2) of the Environmental Protection Act in the record of site condition is not a sensitive property use, subsection 89.2 (3) does not apply to material that has moved from the land or water on, in or under the property for which a record of site condition has been filed to another property if the material contains a contaminant at a concentration that,

  (a)  does not exceed the applicable site condition standard for that contaminant, if the record of site condition contains a certification described in clause 168.7.1 (7) (a) of the Environmental Protection Act; or

  (b)  does not exceed the applicable site condition standard for that contaminant that would have applied to the property if the type of property use specified under paragraph 3 of subsection 168.4 (2) of the Environmental Protection Act in the record of site condition were a sensitive property use, if the record of site condition contains a certification described in clause 168.7.1 (7) (b) of that Act.

Reference to site condition standard

   (5)  A reference in this section to an applicable site condition standard for a contaminant means the site condition standard that applied to the contaminant as of the certification date set out in the record of site condition or, in the case of a reference in clause (4) (b), means the site condition standard that would have applied to the contaminant as of the certification date set out in the record of site condition.

Non-application to person who caused or permitted discharge

   (6)  This section does not apply to a person who, before the certification date, caused or permitted the discharge into the natural environment of the material referred to in subsection (1).

   4.  The Act is amended by adding the following section:

Notice of order to be filed in Registry

   89.2.2  (1)  The Director shall file notice of the order in the Registry in accordance with the regulations referred to in subsection 168.7.2 (1) of the Environmental Protection Act if an order is issued under section 16, 16.1 or 32 with respect to a property for which a record of site condition has been filed in accordance with section 168.4 of the Environmental Protection Act, and if,

  (a)  pursuant to subsection 89.2 (2), (3) or (4.1), subsection 89.2 (1) does not apply; or

  (b)  subsection 89.2 (4) applies.

Notice of compliance

   (2)  If the Director is satisfied that an order referred in subsection (1) has been complied with, the Director shall file notice of the compliance in the Registry in accordance with the regulations referred to in subsection 168.7.2 (2) of the Environmental Protection Act.

Filing of new record of site condition

   (3)  If the Director is satisfied that an order referred to in subsection (1) has been complied with, but the Director is of the opinion that a certification contained in the record of site condition filed in the Registry does not accurately reflect the current state of the property, subsection (2) does not apply until a new record of site condition is filed in accordance with section 168.4 of the Environmental Protection Act.

   5.  Subsection 89.3 (1) of the Act is amended by striking out "to the owner of the property" and substituting "to the person who owns the property".

   6.  Section 89.4 of the Act is amended by adding the following definition:

"contaminant" has the same meaning as in the Environmental Protection Act; ("contaminant")

   7.  Section 89.14 of the Act is amended by striking the portion before clause (a) and substituting the following:

Investigations of property, etc.

   89.14  A person who conducts, completes or confirms an investigation in relation to property or a person who takes any action to reduce the concentration of contaminants on, in or under a property is not, for that reason alone,

.     .     .     .     .

Commencement

   8.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

    1.  Subsections 1 (2) and 2 (2) and (4).

    2.  Sections 3 and 4.

 

Schedule 31
Pension Benefits Act

   1.  (1)  The definition of "multi-employer pension plan" in subsection 1 (1) of the Pension Benefits Act is repealed and the following substituted:

"multi-employer pension plan" means a pension plan described in subsection (3); ("régime de retraite interentreprises")

   (2)  Section 1 of the Act is amended by adding the following subsections:

Multi-employer pension plans

   (3)  For the purposes of this Act, a pension plan is a multi-employer pension plan if it is established and maintained for employees of two or more employers who contribute, or on whose behalf contributions are made, to a pension fund by reason of agreement, statute or municipal by-law to provide a pension benefit that is determined by service with one or more of the employers.

Exceptions

   (4)  Despite subsection (3), a pension plan is not a multi-employer pension plan for the purposes of this Act,

  (a)  if all of the employers who contribute, or on whose behalf contributions are made, to the pension fund are affiliates within the meaning of the Business Corporations Act; or

  (b)  if the regulations specify that the pension plan is not a multi-employer pension plan.

   2.  Subsection 8 (3) of the Act is repealed and the following substituted:

Interpretation

   (3)  For the purposes of clause (1) (b), "employer" includes the following persons and entities:

    1.  Affiliates within the meaning of the Business Corporations Act of the employer.

    2.  Such other persons or entities, or classes of persons or entities, as may be prescribed.

   3.  (1)  Clause 115 (1) (a) of the Act is repealed and the following substituted:

  (a)  prescribing any matter that, under this Act, is permitted or required to be prescribed or to be otherwise done by regulation or in accordance with the regulations;

   (2)  Section 115 of the Act is amended by adding the following subsection:

Classes of multi-employer pension plans

   (5)  Without limiting the generality of subsection (2), a regulation may establish one or more classes of multi-employer pension plans.

Commencement

   4.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 32
Police Services Act

   1.  The Police Services Act is amended by adding the following Part:

part viii.1
transfer of assets between pension plans

Interpretation

   131.1  (1)  Words and expressions used in this Part have the same meaning as under the Pension Benefits Act unless the context requires otherwise.

Definitions

   (2)  In this Part,

"police force employee" means, in relation to a municipal police force, a member of the police force and, in relation to the Ontario Provincial Police, a police officer or an employee who is not a police officer; ("employé d'un corps de police")

"receiving pension plan" means,

  (a)  a pension plan that is referred to in subsection 80 (1) of the Pension Benefits Act as a pension plan provided by the successor employer,

  (b)  a pension plan that is referred to in subsection 81 (1) of that Act as the new pension plan, or

   (c)  a pension plan for a pension fund to which assets are transferred in the circumstances referred to in subsection 81 (8) of that Act; ("régime de retraite cessionnaire")

"transferring pension plan" means,

  (a)  a pension plan that is referred to in clauses 80 (1) (a), (b) and (c) of the Pension Benefits Act as the employer's pension plan,

  (b)  a pension plan that is referred to in subsection 81 (1) of that Act as the original pension plan, or

   (c)  a pension plan for a pension fund from which assets are transferred in the circumstances referred to in subsection 81 (8) of that Act. ("régime de retraite cédant")

Agreement governing transfers

   131.2  (1)  The administrators of the Public Service Pension Plan and the Ontario Municipal Employees Retirement System may enter into one or more agreements governing the transfer of assets between pension plans in any of the circumstances that are referred to in subsection 80 (1) or 81 (1) or (8) of the Pension Benefits Act in respect of eligible police force employees whose employment has been transferred between a municipal police force and the Ontario Provincial Police.

Amount

   (2)  An agreement must set out the manner of determining the amount of assets to be transferred from a transferring pension plan to a receiving pension plan in respect of the pension benefits and ancillary benefits of an eligible police force employee who consents to the transfer of assets.

Notice to employees

   (3)  An agreement must provide for the contents of the notice to be given to each eligible police force employee concerning the option of consenting to a transfer of assets in respect of his or her pension benefits and ancillary benefits under the transferring pension plan, and the notice must contain sufficient information to allow the employee to make an informed decision about whether to consent to the transfer.

Transition

   (4)  An agreement cannot establish an effective date for a transfer of assets that is earlier than the day on which the Budget Measures and Interim Appropriation Act, 2007 received Royal Assent.

Duty to file agreement

   131.3  (1)  If the administrators of the Public Service Pension Plan and the Ontario Municipal Employees Retirement System enter into an agreement under section 131.2, the administrators shall file it with the Superintendent of Financial Services.

Effect of filing

   (2)  Sections 14 and 26 of the Pension Benefits Act do not apply with respect to a filed agreement or with respect to any amendment to a pension plan that relates to the implementation of a filed agreement.

Eligibility of police force employees

   131.4  (1)  For the purposes of an agreement filed under section 131.3, a police force employee is an eligible police force employee if he or she is employed as a police force employee on the effective date of the proposed transfer of assets under the agreement in respect of his or her pension benefits and ancillary benefits under the transferring pension plan.

Exception

   (2)  Despite subsection (1), a police force employee is not an eligible police force employee if he or she is receiving a pension under the Public Service Pension Plan or the Ontario Municipal Employees Retirement System on the effective date of the proposed transfer of assets under the agreement.

Same

   (3)  Despite subsection (1), a person is not an eligible police force employee if he or she is entitled, on the effective date of the proposed transfer of assets, to a deferred pension under the Public Service Pension Plan or the Ontario Municipal Employees Retirement System.

Employee's consent to transfer of assets

   131.5  (1)  An eligible police force employee may consent to the transfer of assets under an agreement filed under section 131.3 from a transferring pension plan to a receiving pension plan in respect of his or her pension benefits and ancillary benefits under the transferring pension plan.

Same

   (2)  The employee must indicate his or her consent in writing in the manner specified by the administrator of the transferring pension plan.

Effect of consent

   (3)  Subsections 80 (4), (5), (6) and (7) and 81 (4), (5), (6), (7) and (8) of the Pension Benefits Act do not apply with respect to a transfer of assets to which the employee consents in accordance with this section.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 33
Prepaid Hospital and Medical Services Act

   1.  Section 16 of the Prepaid Hospital and Medical Services Act is repealed and the following substituted:

Investments

   16.  A registered association may invest its funds in the same manner and subject to the same limitations that apply to a joint stock insurance company, other than a company licensed to transact the business of life insurance, under the provisions of the Acts and the regulations that are the old investment rules for the purposes of section 431.1 of the Insurance Act, and not otherwise.

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 34
Proceedings Against the Crown Act

   1.  Subsection 5 (5) of the Proceedings Against the Crown Act is repealed and the following substituted:

Property vesting in the Crown

   (5)  Where property vests in the Crown independent of the acts or the intentions of the Crown, the Crown is not, by virtue of this Act, subject to liability in tort by reason only of the property being so vested.

Same

   (5.1)  Property that vests in the Crown as a consequence of the dissolution of a corporation by the Crown is property that vests in the Crown independent of the acts or the intentions of the Crown within the meaning of subsection (5).

Same

   (5.2)  Subsection (5) does not affect the liability of the Crown under this Act in respect of any period after the Crown, or a servant or agent of the Crown,

  (a)  in respect of personal property, begins to use the property for Crown purposes; or

  (b)  in respect of land, has registered a notice against the title to the property that it intends to use the property for Crown purposes.

Notice

   (5.3)  Notice under subsection 1 (3) of the Escheats Act is not notice for the purposes of clause (5.2) (b).

No liability for investigation, etc.

   (5.4)  The Crown is not liable in tort by reason of any activity conducted either by the Crown or anyone acting on its behalf or with its approval to investigate any aspect of property that vests in the Crown in the manner described in subsection (5), to restore that property to productive use or to respond to complaints or to preserve public health and safety, or similar actions for similar purposes, including, without being limited to, the following:

    1.  Any action taken for the purpose of conducting, completing or confirming an investigation.

    2.  Any action taken for the purpose of securing, managing or maintaining the property, including action to,

            i.  ensure or end the supply of water, sewage services, electricity, artificial or natural gas, steam, hot water, heat or maintenance,

           ii.  secure the property by means of locks, gates, fences, security guards, cameras or other means, or

          iii.  repair, demolish or remove anything that is or might create a safety risk or a hazard.

    3.  Any action taken on the property for the purpose of responding to,

            i.  any danger to the health or safety of any person that results or may result from the presence of anything on the property or the presence or discharge of a contaminant on, in or under the property,

           ii.  any impairment or serious risk of impairment of the quality of the natural environment for any use that can be made of it that results or may result from the presence or discharge of a contaminant on, in or under the property, or

          iii.  any injury or damage or serious risk of injury or damage to any property or to any plant or animal life that results or may result from the presence or discharge of a contaminant on, in or under the property.

    4.  Any action taken under the Escheats Act.

    5.  Any other action prescribed by the regulations.

Regulations

   (5.5)  The Lieutenant Governor in Council may make regulations prescribing actions for the purposes of subsection (5.4).

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 35
Registered Insurance Brokers Act

   1.  Clause 11 (1) (n) of the Registered Insurance Brokers Act is repealed and the following substituted:

   (n)  respecting the application of the funds of the Corporation and the investment and reinvestment of any of its funds not immediately required in any investments that are from time to time authorized investments for joint stock insurance companies, other than companies licensed to transact the business of life insurance, under the provisions of the Acts and the regulations that are the old investment rules for the purposes of section 431.1 of the Insurance Act;

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 36
Retail Sales Tax Act

   1.  Subsection 1 (1.1) of the Retail Sales Tax Act is amended by striking out "July 1, 2007" in the portion before paragraph 1 and substituting "July 1, 2008".

   2.  Section 4.1 of the Act is amended by adding the following subsection:

Payment of balance of tax credit

   (6)  If the amount of the tax payable by a purchaser described in clause (3) (a) to a vendor under section 2 at the time of the sale of a new passenger car is less than $100, the vendor may pay the amount of the difference to the purchaser and deduct that amount from the total amount otherwise required to be remitted to the Minister by the vendor under subsection 13 (1).

   3.  Paragraph 26 of subsection 7 (1) of the Act is amended by striking out "subsection 106 (9) of the Highway Traffic Act" at the end and substituting "section 106 of the Highway Traffic Act".

   4.  (1)  Clause 48 (3) (r) of the Act is amended by striking out the portion before subclause (i) and substituting the following:

   (r)  providing for a rebate of all or part of the tax paid in respect of a solar energy system, as defined by the Minister, that is purchased and incorporated into residential premises after November 25, 2002 and before January 1, 2010, and prescribing the terms and conditions under which the rebate may be made, including,

.     .     .     .     .

   (2)  Clause 48 (3) (s) of the Act is amended by striking out "November 26, 2007" in the portion before subclause (i) and substituting "January 1, 2010".

Commencement

   5.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the earlier of the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent and July 1, 2007.

Same

   (3)  Section 3 shall be deemed to have come into force on December 1, 2006.

 

Schedule 37
Ryerson University Act, 1977

   1.  (1)  Clause 1 (a) of the Ryerson University Act, 1977 is repealed.

   (2)  Section 1 of the Act is amended by adding the following clause:

(h.1) "Senate" means the Senate of the University described in section 9;

   (3)  Clause 1 (k) of the Act is amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   2.  (1)  Subsection 4 (3) of the Act is repealed.

   (2)  Subsection 4 (4) of the Act is repealed and the following substituted:

Multiple terms of office

   (4)  Subject to subsections (4.1) and (5), a person may sit as a member of the Board for more than one term but shall not do so for more than three consecutive terms.

Same

   (4.1)  If a person sits as a member of the Board for three consecutive terms, the person is eligible to sit as a Board member for up to three more consecutive terms if at least one year has elapsed since the expiration of the previous three consecutive terms.

   (3)  Subsection 4 (5) of the Act is amended by striking out "The limit of two consecutive terms" at the beginning and substituting "The limit of three consecutive terms".

   3.  Subsection 6 (1) of the Act is amended by striking out "Academic Council" in the portion before clause (a) and substituting "Senate".

   4.  The heading immediately before section 9 of the Act is repealed and the following substituted:

Senate

   5.  (1)  Subsection 9 (1) of the Act is repealed and the following substituted:

Senate

   (1)  There shall be a Senate of the University composed of,

  (a)  the Chancellor, the President, the Vice-Presidents, the Deans, the Chief Librarian and the Registrar, each of whom shall be a member of the Senate by virtues of his or her office; and

  (b)  such other members, not exceeding 51, composed of persons elected by secret ballot,

           (i)  by the teaching faculty from among themselves,

          (ii)  by the students from among themselves,

         (iii)  by the librarians employed by the University from among themselves, and

         (iv)  by the alumni from among themselves.

   (2)  Subsections 9 (2) to (5) of the Act are amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   (3)  Subsection 9 (6) of the Act is amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   (4)  Subsection 9 (7) of the Act is amended by striking out "Academic Council" and substituting "Senate".

   (5)  Subsection 9 (8) of the Act is amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   (6)  Subsection 9 (9) of the Act is amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   6.  Section 10 of the Act is amended by striking out "The Academic Council" at the beginning and substituting "The Senate".

   7.  The heading immediately before section 11 of the Act is repealed and the following substituted:

Board of Governors and Senate

   8.  Subsection 11 (1) of the Act is amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   9.  Section 12 of the Act is amended by striking out "Academic Council" and substituting "Senate".

   10.  Subsections 13 (1) and (2) of the Act are amended by striking out "Academic Council" wherever it appears and substituting in each case "Senate".

   11.  Clause 13.1 (3) (c) of the Act is repealed and the following substituted:

   (c)  three members of the Senate appointed by the Senate.

Commencement

   12.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 38
Securities Act

   1.  (1)  Clause (a) of the definition of "associate" in subsection 1 (1) of the Securities Act is repealed and the following substituted:

  (a)  except in Part XX, any company of which such person or company beneficially owns, directly or indirectly, voting securities carrying more than 10 per cent of the voting rights attached to all voting securities of the company for the time being outstanding,

(a.1) in Part XX, any issuer of which such person or company beneficially owns or controls, directly or indirectly, voting securities carrying more than 10 per cent of the voting rights attached to all voting securities of the issuer for the time being outstanding,

   (2)  Subsection 1 (1.1) of the Act is amended by adding ""consultant"" after ""business combination"".

   (3)  Subsection 1 (2) of the Act is amended by adding at the beginning "Except for the purposes of Part XX".

   (4)  Subsection 1 (3) of the Act is amended by adding at the beginning "Except for the purposes of Part XX".

   (5)  Subsection 1 (4) of the Act is amended by adding at the beginning "Except for the purposes of Part XX".

   2.  The French version of subparagraph 3 iii.2 of subsection 35 (1) of the Act is repealed and the following substituted:

        iii.2  un courtier inscrit dans la catégorie de courtier en bourse, de courtier en valeurs mobilières ou de courtier négociant,

   3.  (1)  Subsection 57 (1) of the Act is amended by striking out "Subject to subsection (2)" at the beginning.

   (2)  Subsection 57 (2) of the Act is repealed and the following substituted:

Same, additional securities

   (2)  If, after a receipt for a prospectus or for an amendment to a prospectus is issued but before the distribution under the prospectus or amendment is completed, securities in addition to those previously disclosed in the prospectus or amendment are to be distributed, the issuer making the distribution shall file an amendment to the prospectus disclosing the additional securities as soon as practicable and, in any event, within 10 days after the decision to increase the number of securities offered is made.

Receipt

   (2.1)  The Director shall issue a receipt for an amendment to a prospectus that must be filed under subsection (1) or (2) unless the Director refuses in accordance with subsection 61 (2) to issue the receipt.

Restriction

   (2.2)  Unless otherwise permitted by regulation, an issuer shall not proceed with a distribution or an additional distribution until a receipt is issued for an amendment to the prospectus that must be filed under subsection (1) or (2).

   4.  (1)  Subsection 58 (1) of the Act is amended,

  (a)  by striking out "a certificate in the following form" and substituting "a certificate in the prescribed form"; and

  (b)  by striking out "The foregoing constitutes full, true and plain disclosure of all material facts relating to the securities offered by this prospectus as required by Part XV of the Securities Act and the regulations thereunder" at the end.

   (2)  Subsection 58 (2) of the Act is amended,

  (a)  by striking out "a certificate in the following form" and substituting "a certificate in the prescribed form"; and

  (b)  by striking out "The foregoing constitutes full, true and plain disclosure of all material facts relating to the securities previously issued by the issuer as required by Part XV of the Securities Act and the regulations thereunder" at the end.

   5.  Subsection 59 (1) of the Act is amended,

  (a)  by striking out "a certificate in the following form" and substituting "a certificate in the prescribed form"; and

  (b)  by striking out "To the best of our knowledge, information and belief, the foregoing constitutes full, true and plain disclosure of all material facts relating to the securities offered by this prospectus as required by Part XV of the Securities Act and the regulations thereunder" at the end.

   6.  The definition of "waiting period" in subsection 65 (1) of the Act is repealed and the following substituted:

"waiting period" means the period prescribed by regulation or, if no period is prescribed, the period between the Director's issuance of a receipt for a preliminary prospectus relating to the offering of a security and the Director's issuance of a receipt for the prospectus.

   7.  The French version of subclause 72 (1) (a) (iii.2) of the Act is repealed and the following substituted:

     (iii.2)  un courtier inscrit dans la catégorie de courtier en bourse, de courtier en valeurs mobilières ou de courtier négociant;

   8.  Part XX of the Act is repealed and the following substituted:

PART XX
TAKE-OVER BIDS AND ISSUER BIDS

Interpretation

Definitions

   89.  (1)  In this Part,

"bid circular" means a bid circular prepared in accordance with section 94.2; ("circulaire d'offre")

"business day" means a day other than a Saturday or holiday; ("jour ouvrable")

"class of securities" includes a series of a class of securities; ("catégorie de valeurs mobilières")

"equity security" means a security of an issuer that carries a residual right to participate in the earnings of the issuer and, on liquidation or winding up of the issuer, in its assets; ("titre de participation")

"formal bid" means a formal take-over bid or a formal issuer bid; ("offre formelle")

"formal bid requirements" means sections 93 to 99.1; ("exigences relatives aux offres formelles")

"formal issuer bid" means an issuer bid that is not exempt from the formal bid requirements by sections 101 to 101.7; ("offre formelle de l'émetteur")

"formal take-over bid" means a take-over bid that is not exempt from the formal bid requirements by sections 100 to 100.6; ("offre formelle d'achat visant à la mainmise")

"issuer bid" means an offer to acquire or redeem securities of an issuer made by the issuer to one or more persons or companies, any of whom is in Ontario or whose last address as shown on the books of the offeree issuer is in Ontario, and also includes an acquisition or redemption of securities of the issuer by the issuer from those persons or companies, but does not include an offer to acquire or redeem or an acquisition or redemption,

  (a)  if no valuable consideration is offered or paid by the issuer for the securities,

  (b)  if the offer to acquire or redeem, or the acquisition or redemption is a step in an amalgamation, merger, reorganization or arrangement that requires approval in a vote of security holders, or

   (c)  if the securities are debt securities that are not convertible into securities other than debt securities; ("offre de l'émetteur")

"offeree issuer" means an issuer whose securities are the subject of a take-over bid, an issuer bid or an offer to acquire; ("pollicité")

"offeror" means, except in sections 93 to 93.4, a person or company that makes a take-over bid, an issuer bid or an offer to acquire; ("pollicitant")

"offeror's securities" means securities of an offeree issuer beneficially owned, or over which control or direction is exercised, on the date of an offer to acquire, by an offeror or by any person or company acting jointly or in concert with the offeror; ("valeurs mobilières du pollicitant")

"offer to acquire" means,

  (a)  an offer to purchase, or a solicitation of an offer to sell, securities,

  (b)  an acceptance of an offer to sell securities, whether or not the offer has been solicited, or

   (c)  any combination of the above; ("offre d'acquisition")

"published market" means, with respect to any class of securities, a market in Canada or outside of Canada on which the securities are traded, if the prices at which they have been traded on that market are regularly,

  (a)  disseminated electronically, or

  (b)  published in a newspaper or business or financial publication of general and regular paid circulation; ("marché organisé")

"subsidiary" means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary; ("filiale")

"take-over bid" means an offer to acquire outstanding voting securities or equity securities of a class made to one or more persons or companies, any of whom is in Ontario or whose last address as shown on the books of the offeree issuer is in Ontario, where the securities subject to the offer to acquire, together with the offeror's securities, constitute in the aggregate 20 per cent or more of the outstanding securities of that class of securities at the date of the offer to acquire but does not include an offer to acquire if the offer to acquire is a step in an amalgamation, merger, reorganization or arrangement that requires approval in a vote of security holders. ("offre d'achat visant à la mainmise")

Deemed affiliate of an issuer

   (2)  For the purposes of this Part, an issuer shall be deemed to be an affiliate of another issuer if one of them is the subsidiary of the other or if each of them is controlled by the same person or company.

Control

   (3)  For the purposes of this Part, a person or company controls a second person or company,

  (a)  if the first person or company, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person or company carrying votes which, if exercised, would entitle the first person or company to elect a majority of the directors of the second person or company, unless the first person or company holds the voting securities only to secure an obligation;

  (b)  if the second person or company is a partnership, other than a limited partnership, and the first person or company holds more than 50 per cent of the interests of the partnership; or

   (c)  if the second person or company is a limited partnership and the general partner of the limited partnership is the first person or company.

Computation of time

   (4)  For the purposes of this Part, a period of days is to be computed as beginning on the day following the event that began the period and ending at 11:59 p.m. on the last day of the period if that day is a business day or at 11:59 p.m. on the next business day if the last day of the period does not fall on a business day.

Deemed convertible securities

   (5)  For the purposes of this Part,

  (a)  a security shall be deemed to be convertible into a security of another class if, whether or not on conditions, it is or may be convertible into or exchangeable for, or if it carries the right or obligation to acquire, a security of the other class, whether of the same or another issuer; and

  (b)  a security that is convertible into a security of another class shall be deemed to be convertible into a security or securities of each class into which the second-mentioned security may be converted, either directly or through securities of one or more other classes of securities that are themselves convertible.

Deemed beneficial ownership

   90.  (1)  For the purposes of this Part, in determining the beneficial ownership of securities of an offeror or of any person or company acting jointly or in concert with the offeror, at any given date, the offeror or the person or company shall be deemed to have acquired and to be the beneficial owner of a security, including an unissued security, if the offeror or the person or company is the beneficial owner of a security convertible into the security within 60 days following that date or has a right or obligation permitting or requiring the offeror or the person or company, whether or not on conditions, to acquire beneficial ownership of the security within 60 days, by a single transaction or a series of linked transactions.

Calculation of outstanding securities

   (2)  The number of outstanding securities of a class in respect of an offer to acquire includes securities that are beneficially owned as determined in accordance with subsection (1).

Calculation of holdings, joint offerors

   (3)  If two or more offerors acting jointly or in concert make one or more offers to acquire securities of a class, the securities subject to the offer or offers to acquire shall be deemed to be securities subject to the offer to acquire of each offeror for the purpose of determining whether an offeror is making a take-over bid.

Limitation

   (4)  For the purposes of this section, an offeror is not a beneficial owner of securities solely because there is an agreement, commitment or understanding that a security holder will tender the securities under a formal bid made by the offeror.

Acting jointly or in concert

   91.  (1)  For the purposes of this Part, it is a question of fact as to whether a person or company is acting jointly or in concert with an offeror and, without limiting the generality of the foregoing,

  (a)  the following shall be deemed to be acting jointly or in concert with an offeror:

           (i)  a person or company who, as a result of any agreement, commitment or understanding with the offeror or with any other person or company acting jointly or in concert with the offeror, acquires or offers to acquire securities of the same class as those subject to the offer to acquire, and

          (ii)  an affiliate of the offeror; and

  (b)  the following shall be presumed to be acting jointly or in concert with an offeror:

           (i)  a person or company who, as a result of any agreement, commitment or understanding with the offeror or with any other person or company acting jointly or in concert with the offeror, intends to exercise jointly or in concert with the offeror or with any person or company acting jointly or in concert with the offeror any voting rights attaching to any securities of the offeree issuer, and

          (ii)  an associate of the offeror.

Exception, registered dealers

   (2)  Subsection (1) does not apply to a registered dealer acting solely in an agency capacity for the offeror in connection with a bid and not executing principal transactions in the class of securities subject to the offer to acquire or performing services beyond the customary functions of a registered dealer.

Exception, agreements to tender securities

   (3)  For the purposes of this section, a person or company is not acting jointly or in concert with an offeror solely because there is an agreement, commitment or understanding that the person or company will tender securities under a formal bid made by the offeror.

Application to direct and indirect offers

   92.  For the purposes of this Part, a reference to an offer to acquire or to the acquisition or ownership of securities or to control or direction over securities includes a direct or indirect offer to acquire or the direct or indirect acquisition or ownership of securities, or the direct or indirect control or direction over securities, as the case may be.

Bid Integration Rules for Formal Bids

Definition, offeror

   93.  In sections 93.1 to 93.4,

"offeror" means,

  (a)  a person or company making a formal bid,

  (b)  a person or company acting jointly or in concert with a person or company referred to in clause (a),

   (c)  a control person of a person or company referred to in clause (a), or

  (d)  a person or company acting jointly or in concert with the control person referred to in clause (c).

Restrictions on acquisitions during formal take-over bid

   93.1  (1)  An offeror shall not offer to acquire, or make or enter into an agreement, commitment or understanding to acquire beneficial ownership of any securities of the class that are subject to a formal take-over bid or securities convertible into securities of that class otherwise than under the bid on and from the day of the announcement of the offeror's intention to make the bid until the expiry of the bid.

Exception

   (2)  Subsection (1) does not apply to an offeror's acquisitions of beneficial ownership of five per cent or less, in the aggregate, of the outstanding securities of the class that is subject to the bid if the acquisitions satisfy such conditions as may be specified by regulation.

Same

   (3)  For the purposes of subsection (2), the acquisition of beneficial ownership of securities that are convertible into securities of the class that is subject to the bid shall be deemed to be an acquisition of the securities as converted.

Restrictions on acquisitions during formal issuer bid

   (4)  An offeror shall not offer to acquire, or make or enter into an agreement, commitment or understanding to acquire, beneficial ownership of any securities of the class that are subject to a formal issuer bid, or securities that are convertible into securities of that class, otherwise than under the bid on and from the day of the announcement of the offeror's intention to make the bid until the expiry of the bid.

Exceptions by regulation

   (5)  Subsections (1) and (4) do not apply in such other circumstances as may be specified by regulation.

Restrictions on acquisitions before formal take-over bid

   93.2  (1)  If, within the period of 90 days immediately preceding a formal take-over bid, an offeror acquired beneficial ownership of securities of the class subject to the bid in a transaction not generally available on identical terms to holders of that class of securities,

  (a)  the offeror shall offer,

           (i)  consideration for securities deposited under the bid at least equal to and in the same form as the highest consideration that was paid on a per security basis under any such prior transaction, or

          (ii)  at least the cash equivalent of that consideration; and

  (b)  the offeror shall offer to acquire under the bid that percentage of the securities of the class subject to the bid that is at least equal to the highest percentage that the number of securities acquired from a seller in any such prior transaction was of the total number of securities of that class beneficially owned by that seller at the time of that prior transaction.

Exception

   (2)  Subsection (1) does not apply to trades effected in the normal course on a published market if the trades satisfy such conditions as may be specified by regulation.

Same

   (3)  Subsection (1) does not apply in such other circumstances as may be specified by regulation.

Restrictions on acquisitions after formal bid

   93.3  (1)  During the period beginning with the expiry of a formal bid and ending at the end of the 20th business day after that, whether or not any securities are taken up under the bid, an offeror shall not acquire or offer to acquire beneficial ownership of securities of the class that was subject to the bid except by way of a transaction that is generally available to holders of that class of securities on identical terms.

Exception

   (2)  Subsection (1) does not apply to trades effected in the normal course on a published market if the trades satisfy such conditions as may be specified by regulation.

Same

   (3)  Subsection (1) does not apply in such other circumstances as may be specified by regulation.

Prohibition on sales during formal bid

   93.4  (1)  An offeror, except pursuant to the formal bid, shall not sell, or make or enter into an agreement, commitment or understanding to sell, any securities of the class subject to the bid, or securities that are convertible into securities of that class, beginning on the day of the announcement of the offeror's intention to make the bid until the expiry of the bid.

Exception

   (2)  Despite subsection (1), an offeror may, before the expiry of a bid, make or enter into an agreement, commitment or understanding to sell securities that may be taken up by the offeror under the bid, after the expiry of the bid, if the intention to sell is disclosed in the bid circular.

Same

   (3)  Subsection (1) does not apply in such other circumstances as may be specified by regulation.

Making a Formal Bid

Duty to make bid to all security holders

   94.  An offeror shall make a formal bid to all holders of the class of securities subject to the bid who are in Ontario by sending the bid,

  (a)  to each holder of that class of securities whose last address as shown on the books of the offeree issuer is in Ontario; and

  (b)  to each holder of securities that, before the expiry of the deposit period referred to in the bid, are convertible into securities of that class, whose last address as shown on the books of the offeree issuer is in Ontario.

Commencement of formal bid

Take-over bid

   94.1  (1)  An offeror shall commence a formal take-over bid,

  (a)  by publishing an advertisement containing a brief summary of the bid in at least one major daily newspaper of general and regular paid circulation in Ontario; or

  (b)  by sending the bid to the security holders described in section 94.

Issuer bid

   (2)  An offeror shall commence a formal issuer bid by sending the bid to the security holders described in section 94.

Duty to prepare and send offeror's circular

   94.2  (1)  An offeror making a formal bid shall prepare a take-over bid circular or an issuer bid circular, as the case may be, containing the information required by the regulations and in the form required by the regulations and shall send the bid circular either as part of the bid or together with the bid.

Formal take-over bid commenced by advertising

   (2)  An offeror commencing a formal take-over bid by means of an advertisement under clause 94.1 (1) (a) shall,

  (a)  on or before the date of first publication of the advertisement, deliver the bid and the bid circular to the offeree issuer's principal office and file the bid, the bid circular and the advertisement;

  (b)  on or before the date of first publication of the advertisement, request from the offeree issuer a list of security holders described in section 94; and

   (c)  not later than two business days after receipt of the list of security holders referred to in clause (b), send the bid and the bid circular to those security holders.

Filing and delivery of take-over bid circular

   (3)  An offeror commencing a take-over bid under clause 94.1 (1) (b) shall file the bid and the bid circular and deliver them to the offeree issuer's principal office on the day the bid is sent, or as soon as practicable after that.

Filing of issuer bid circular

   (4)  An offeror making a formal issuer bid shall file the bid and the bid circular on the day the bid is sent, or as soon as practicable after that.

Change in information

   94.3  (1)  If, before the expiry of a formal bid or after the expiry of a bid but before the expiry of all rights to withdraw the securities deposited under the bid, a change has occurred in the information contained in the bid circular or any notice of change or notice of variation that would reasonably be expected to affect the decision of the security holders of the offeree issuer to accept or reject the bid, the offeror shall promptly,

  (a)  issue and file a news release; and

  (b)  send a notice of the change to every person or company to whom the bid was required to be sent and whose securities were not taken up before the date of the change.

Exception

   (2)  Subsection (1) does not apply to a change that is not within the control of the offeror or of an affiliate of the offeror unless it is a change in a material fact relating to the securities being offered in exchange for securities of the offeree issuer.

Variation not a change

   (3)  For the purposes of this section, a variation in the terms of a bid does not constitute a change in information.

Form and contents of notice

   (4)  A notice of change in relation to a bid circular shall contain the information required by the regulations and be in the form required by the regulations.

Variation of terms

   94.4  (1)  If there is a variation in the terms of a formal bid, including any extension of the period during which securities may be deposited under the bid, and whether or not that variation results from the exercise of any right contained in the bid, the offeror shall promptly issue and file a news release and send a notice of variation to every person or company to whom the bid was required to be sent and whose securities were not taken up before the date of the variation.

Form and contents of notice

   (2)  A notice of variation in relation to a formal bid shall contain the information required by the regulations and be in the form required by the regulations.

Expiry of bid after variation

   (3)  If there is a variation in the terms of a formal bid, the period during which securities may be deposited under the bid shall not expire before 10 days after the date of the notice of variation.

Exception

   (4)  Subsections (1) and (3) do not apply to a variation in the terms of a bid consisting solely of the waiver of a condition in the bid and any extension of the bid resulting from the waiver where the consideration offered for the securities consists solely of cash, but in that case the offeror shall promptly issue and file a news release announcing the waiver.

No variation after deposit period

   (5)  A variation in the terms of a formal bid, other than a variation that is the waiver by the offeror of a condition that is specifically stated in the bid as being waivable at the sole option of the offeror, shall not be made after the expiry of the period, including any extension of the period, during which the securities may be deposited under the bid.

Filing and sending notice of change or variation

   94.5  A notice of change or notice of variation in respect of a formal bid shall be filed and, in the case of a take-over bid, delivered to the offeree issuer's principal office on the day the notice of change or notice of variation is sent to security holders of the offeree issuer or as soon as practicable after that.

Change or variation in advertised take-over bid

   94.6  (1)  If a change or variation occurs to a formal take-over bid that was commenced by means of an advertisement and if the offeror has complied with clauses 94.2 (2) (a) and (b) but has not yet sent the bid and the bid circular as required by clause 94.2 (2) (c), the offeror shall,

  (a)  publish an advertisement that contains a brief summary of the change or variation in at least one major daily newspaper of general and regular paid circulation in Ontario;

  (b)  concurrently with the date of first publication of the advertisement,

           (i)  file the advertisement, and

          (ii)  file and deliver a notice of change or notice of variation to the offeree issuer's principal office; and

   (c)  subsequently send the bid, the bid circular and the notice of change or notice of variation to the security holders of the offeree issuer before the expiration of the period set out in clause 94.2 (2) (c).

Exemption from s. 94.5

   (2)  If an offeror satisfies the requirements of subsection (1), the notice of change or notice of variation is not required to be filed and sent under section 94.5.

Consent of expert, bid circular

   94.7  (1)  If a report, valuation, statement or opinion of an expert is included in or accompanies a bid circular or any notice of change or notice of variation, the written consent of the expert to the use of the report, valuation, statement or opinion shall be filed concurrently with the bid circular or notice of change or notice of variation.

Definition

   (2)  For the purposes of this section,

"expert" includes a notary in Quebec, a solicitor, an auditor, an accountant, an engineer, a geologist, an appraiser or any other person or company whose profession or business gives authority to a statement made in a professional capacity by that person or company.

Delivery and date of bid documents

   94.8  (1)  A formal bid, a bid circular and every notice of change or notice of variation shall be mailed by pre-paid mail to the intended recipient or delivered to the intended recipient by personal delivery, courier or other manner acceptable to the Director.

Same

   (2)  Except for a take-over bid commenced by means of an advertisement under clause 94.1 (1) (a), a bid, bid circular, notice of change or notice of variation sent in accordance with subsection (1) shall be deemed to be dated as of the date it was sent to all or substantially all of the persons and companies entitled to receive it.

Same

   (3)  If a take-over bid is commenced by means of an advertisement under clause 94.1 (1) (a), the bid, bid circular, notice of change or notice of variation shall be deemed to have been dated as of the date of first publication of the relevant advertisement.

Offeree Issuer's Obligations

Duty to prepare and send directors' circular

   95.  (1)  If a formal take-over bid has been made, the board of directors of the offeree issuer shall prepare and send, not later than 15 days after the date of the bid, a directors' circular to every person or company to whom the bid was required to be sent.

Duty to evaluate and advise

   (2)  The board of directors of the offeree issuer shall evaluate the terms of a formal take-over bid and, in the directors' circular,

  (a)  shall recommend to security holders that they accept or reject the bid and give reasons for the recommendation;

  (b)  shall advise security holders that the board is unable to make, or is not making, a recommendation and state the reasons for being unable to make a recommendation or for not making a recommendation; or

   (c)  shall advise security holders that the board is considering whether to make a recommendation to accept or reject the bid, shall state the reasons for not making a recommendation in the directors' circular and may advise security holders that they should not deposit their securities under the bid until they receive further communication from the board in accordance with clause (a) or (b).

Further communication

   (3)  If clause (2) (c) applies, the board of directors shall communicate to security holders a recommendation or the decision that it is unable to make, or is not making, a recommendation, together with the reasons for the recommendation or the decision, at least seven days before the scheduled expiry of the period during which securities may be deposited under the bid.

Form and contents of circular

   (4)  A directors' circular shall contain the information required by the regulations and be in the form required by the regulations.

Notice of change

   95.1  (1)  If, before the expiry of a take-over bid or after the expiry of a take-over bid but before the expiry of all rights to withdraw the securities deposited under the bid, a change has occurred in the information contained in the directors' circular or in any notice of change to the directors' circular that would reasonably be expected to affect the decision of the security holders to accept or reject the bid, the board of directors of the offeree issuer shall promptly issue and file a news release relating to the change and send a notice of the change to every person or company to whom the take-over bid was required to be sent disclosing the nature and substance of the change.

Form and contents of notice

   (2)  A notice of change in relation to a directors' circular shall contain the information required by the regulations and be in the form required by the regulations.

Filing directors' circular or notice of change

   95.2  The board of directors of the offeree issuer shall concurrently file the directors' circular or a notice of change in relation to it and deliver it to the principal office of the offeror not later than the date on which it is sent to the security holders of the offeree issuer, or as soon as practicable after that.

Individual director's or officer's circular

   96.  (1)  An individual director or officer may recommend acceptance or rejection of a take-over bid if the director or officer sends with the recommendation a separate director's or officer's circular to every person or company to whom the take-over bid was required to be sent.

Notice of change

   (2)  If, before the expiry of a take-over bid or after the expiry of a take-over bid but before the expiry of all rights to withdraw the securities deposited under the bid, a change has occurred in the information contained in a director's or officer's circular or any notice of change in relation to it that would reasonably be expected to affect the decision of the security holders to accept or reject the bid, other than a change that is not within the control of the director or officer, as the case may be, that director or officer shall promptly send a notice of change to every person or company to whom the take-over bid was required to be sent.

Form and contents of circular

   (3)  A director's or officer's circular shall contain the information required by the regulations and be in the form required by the regulations.

Delivery to offeree issuer

   (4)  A director's or officer's obligation to send a circular under subsection (1) or to send a notice of change under subsection (2) may be satisfied by sending the circular or the notice of change, as the case may be, to the board of directors of the offeree issuer.

Circulation of documents

   (5)  If a director or officer sends to the board of directors of the offeree issuer a circular under subsection (1) or a notice of change under subsection (2), the board, at the offeree issuer's expense, shall promptly send a copy of the circular or notice to every person or company to whom the take-over bid was required to be sent.

Filing

   (6)  The board of directors of the offeree issuer or the individual director or officer, as the case may be, shall concurrently file the director's or officer's circular or a notice of change in relation to it and send it to the principal office of the offeror not later than the date on which it is sent to the security holders of the offeree issuer, or as soon as practicable after that.

Form and contents of notice

   (7)  A notice of change in relation to a director's or officer's circular shall contain the information required by the regulations and be in the form required by the regulations.

Consent of expert, directors' circular, etc.

   96.1  If a report, valuation, statement or opinion of an expert, as defined in subsection 94.7 (2), is included in or accompanies a directors' circular, an individual director's or officer's circular or a notice of change, the written consent of the expert to the use of the report, valuation, statement or opinion shall be filed concurrently with the circular or notice.

Methods of delivery of offeree issuer's documents

   96.2  (1)  A directors' circular, an individual director's or officer's circular and every notice of change shall be mailed by pre-paid mail to the intended recipient or delivered to the intended recipient by personal delivery, courier or other manner acceptable to the Director.

Date of documents

   (2)  Any circular or notice sent in accordance with this section shall be deemed to be dated as of the date it was sent to all or substantially all of the persons and companies entitled to receive it.

Offeror's Obligations

Consideration

   97.  (1)  If a formal bid is made, all holders of the same class of securities shall be offered identical consideration.

Same

   (2)  Subsection (1) does not prohibit an offeror from offering an identical choice of consideration to all holders of the same class of securities.

Increase in consideration

   (3)  If a variation in the terms of a formal bid before the expiry of the bid increases the value of the consideration offered for the securities subject to the bid, the offeror shall pay that increased consideration to each person or company whose securities are taken up under the bid, whether or not the securities were taken up by the offeror before the variation of the bid.

Prohibition against collateral agreements

   97.1  (1)  If a person or company makes or intends to make a formal bid, the person or company or any person or company acting jointly or in concert with that person or company shall not enter into any collateral agreement, commitment or understanding that has the effect, directly or indirectly, of providing a security holder of the offeree issuer with consideration of greater value than that offered to the other security holders of the same class of securities.

Exception, employment benefit arrangements

   (2)  Subsection (1) does not apply to such employment compensation arrangements, severance arrangements or other employment benefit arrangements as may be specified by regulation.

Proportionate take up and payment

   97.2  (1)  If a formal bid is made for less than all of the class of securities subject to the bid and a greater number of securities is deposited under the bid than the offeror is bound or willing to acquire under the bid, the offeror shall take up and pay for the securities proportionately, disregarding fractions, according to the number of securities deposited by each security holder.

Deemed deposit, pre-bid transactions

   (2)  For the purposes of subsection (1), any securities acquired in a pre-bid transaction to which subsection 93.2 (1) applies shall be deemed to have been deposited under the bid by the person or company who was the seller in the pre-bid transaction.

Exceptions

   (3)  Subsection (1) does not apply in such circumstances as may be specified by regulation.

Financing arrangements

   97.3  (1)  If a formal bid provides that the consideration for the securities deposited under the bid is to be paid in cash or partly in cash, the offeror shall make adequate arrangements before the bid to ensure that the required funds are available to make full payment for the securities that the offeror has offered to acquire.

Conditional financing arrangements

   (2)  The financing arrangements required to be made under subsection (1) may be subject to conditions if, at the time the bid is commenced, the offeror reasonably believes the possibility to be remote that, if the conditions of the bid are satisfied or waived, the offeror will be unable to pay for the securities deposited under the bid due to a financing condition not being satisfied.

Bid Mechanics

Minimum deposit period

   98.  (1)  An offeror shall allow securities to be deposited under a formal bid for at least 35 days from the date of the bid.

Prohibition on take up

   (2)  An offeror shall not take up securities deposited under a formal bid until the expiration of 35 days from the date of the bid.

Withdrawal of securities

   98.1  (1)  A security holder may withdraw securities deposited under a formal bid,

  (a)  at any time before the securities have been taken up by the offeror;

  (b)  at any time before the expiration of 10 days from the date of a notice of change under section 94.3 or a notice of variation under section 94.4; or

   (c)  if the securities have not been paid for by the offeror within three business days after the securities have been taken up.

Exceptions

   (2)  The right of withdrawal under clause (1) (b) does not apply if the securities have been taken up by the offeror before the date of the notice of change or notice of variation or if one or both of the following circumstances occur:

    1.  A variation in the terms of the bid consisting only of an increase in consideration offered for the securities and an extension of the time for deposit to not later than 10 days after the date of the notice of variation.

    2.  A variation in the terms of the bid consisting solely of the waiver of one or more of the conditions of the bid where the consideration offered for the securities subject to the bid consists solely of cash.

Method of withdrawing

   (3)  The withdrawal of any securities under subsection (1) shall be made by sending a written notice to the depository designated in the bid circular and becomes effective on its receipt by the depository.

Duty to return securities

   (4)  If notice is given in accordance with subsection (3), the offeror shall promptly return the securities to the security holder.

Effect of market purchases

   98.2  If an offeror purchases securities under an exemption to subsection 93.1 (1), those purchased securities shall be counted in determining whether a condition as to the minimum number of securities to be deposited under a bid has been fulfilled, but shall not reduce the number of securities the offeror is bound to take up under the bid.

Obligation to take up and pay for deposited securities

   98.3  (1)  If all the terms and conditions of a formal bid have been complied with or waived, the offeror shall take up and pay for securities deposited under the bid not later than 10 days after the expiry of the bid or at the time required by subsection (2) or (3), whichever is earliest.

Same

   (2)  An offeror shall pay for any securities taken up under a formal bid as soon as possible, and in any event not later than three business days after the securities deposited under the bid are taken up.

Same

   (3)  Securities deposited under a formal bid subsequent to the date on which the offeror first takes up securities deposited under the bid shall be taken up and paid for by the offeror not later than 10 days after the deposit of the securities.

Bid not to be extended

   (4)  An offeror may not extend its formal bid if all the terms and conditions of the bid have been complied with or waived, unless the offeror first takes up all securities deposited under the bid and not withdrawn.

Maximum number of securities required to be taken up

   (5)  Despite subsections (3) and (4), if a formal bid is made for less than all of the class of securities subject to the bid, an offeror is only required to take up, by the times specified in those subsections, the maximum number of securities that the offeror can take up without contravening section 97 or 97.2 at the expiry of the bid.

Effect of waiver of terms or conditions

   (6)  Despite subsection (4), if the offeror waives any terms or conditions of a formal bid and extends the bid in circumstances where the rights of withdrawal conferred by clause 98.1 (1) (b) are applicable, the bid shall be extended without the offeror first taking up the securities which are subject to the rights of withdrawal.

Expiry of the bid

   98.4  A formal bid expires at the later of,

  (a)  the end of the period, including any extension, during which securities may be deposited under the bid; and

  (b)  the time at which the offeror becomes obligated by the terms of the bid to take up or reject securities deposited under the bid.

Return of deposited securities

   98.5  If, following the expiry of a bid, an offeror knows that it will not take up securities deposited under the bid, the offeror shall promptly issue and file a news release to that effect and return the securities to the security holders.

News release on expiry of bid

   98.6  If all the terms and conditions of a bid have been complied with or waived, the offeror shall issue and file a news release to that effect promptly after the expiry of the bid, and the news release shall disclose,

  (a)  the approximate number of securities deposited; and

  (b)  the approximate number that will be taken up.

Filing of documents

   98.7  An offeror making a formal bid, and an offeree issuer whose securities are the subject of a formal bid, shall file copies of the documents required by the regulations and any amendments to those documents, in accordance with the regulations, unless the documents and amendments have been previously filed.

Certification of bid circulars

   99.  (1)  A bid circular, or a notice of change or notice of variation in respect of the bid circular required under this Part shall contain a certificate of the offeror in the form required by the regulations and the certificate must be signed,

  (a)  if the offeror is a person or company other than an individual, by each of the following:

           (i)  the chief executive officer or, in the case of a person or company that does not have a chief executive officer, the individual who performs similar functions to a chief executive officer,

          (ii)  the chief financial officer or, in the case of a person or company that does not have a chief financial officer, the individual who performs similar functions to a chief financial officer, and

         (iii)  two directors, other than the chief executive officer and the chief financial officer, who are duly authorized by the board of directors of that person or company to sign on behalf of the board of directors; or

  (b)  if the offeror is an individual, by the individual.

Same, fewer than four directors

   (2)  For the purposes of clause (1) (a), if the offeror has fewer than four directors and officers, the certificate must be signed by all of the directors and officers.

Same, directors' circulars

   (3)  A directors' circular or a notice of change in respect of a directors' circular required under this Part must contain a certificate of the board of directors of the offeree issuer in the form required by the regulations and the certificate must be signed by two directors who are duly authorized by the board of directors of the offeree issuer to sign on behalf of the board of directors.

Same, individual director's or officer's circular

   (4)  Every person who files and sends an individual director's or officer's circular or a notice of change in respect of an individual director's or officer's circular under this Part shall ensure that the circular or notice contains a certificate in the form required by the regulations and the certificate must be signed by or on behalf of the director or officer sending the circular or notice.

Substitute signatories

   (5)  If the Director is satisfied that either or both of the chief executive officer or chief financial officer cannot sign a certificate required under this Part, the Director may accept a certificate signed by another officer or director.

Obligation to provide security holder list

   99.1  (1)  If a person or company makes or proposes to make a formal take-over bid for a class of securities of an issuer that is not otherwise required by law to provide a list of its security holders to the person or company, the issuer shall provide a list of holders of that class of securities, and any known holder of an option or right to acquire securities of that class, to enable the person or company to carry out the bid in compliance with this Part.

Access to corporate records

   (2)  For the purposes of subsection (1), section 21 of the Canada Business Corporations Act applies with necessary modifications to the person or company making or proposing to make the take-over bid and to the issuer, except that the affidavit that accompanies the request for the list of security holders shall state that the list will not be used except in connection with a formal take-over bid for securities of the issuer.

Exempt Take-over Bids

Normal course purchase exemption

   100.  A take-over bid is exempt from the formal bid requirements if all of the following conditions are satisfied:

    1.  The bid is for not more than 5 per cent of the outstanding securities of a class of securities of the offeree issuer.

    2.  The aggregate number of securities acquired in reliance on this exemption by the offeror and any person or company acting jointly or in concert with the offeror within any period of 12 months, when aggregated with acquisitions otherwise made by the offeror and any person or company acting jointly or in concert with the offeror within the same 12-month period, other than under a formal bid, does not exceed 5 per cent of the outstanding securities of that class at the beginning of the 12-month period.

    3.  There is a published market for the class of securities that are the subject of the bid.

    4.  The value of the consideration paid for any of the securities acquired is not in excess of the market price at the date of acquisition as determined in accordance with the regulations, plus reasonable brokerage fees or commissions actually paid.

Private agreement exemption

   100.1  (1)  A take-over bid is exempt from the formal bid requirements if all of the following conditions are satisfied:

    1.  Purchases are made from not more than five persons or companies in the aggregate, including persons or companies located outside of Ontario.

    2.  The bid is not made generally to security holders of the class of securities that is the subject of the bid, so long as there are more than five security holders of the class.

    3.  If there is a published market for the securities acquired, the value of the consideration paid for any of the securities, including brokerage fees or commissions, is not greater than 115 per cent of the market price of the securities at the date of the bid as determined in accordance with the regulations.

    4.  If there is no published market for the securities acquired, there is a reasonable basis for determining that the value of the consideration paid for any of the securities is not greater than 115 per cent of the value of the securities.

Determination of number of security holders

   (2)  For the purposes of subsection (1), if an offeror makes an offer to acquire securities from a person or company and the offeror knows or ought to know after reasonable enquiry that the person or company acquired the securities in order that the offeror might make use of the exemption under subsection (1), then each person or company from whom those securities were acquired shall be included in the determination of the number of persons and companies to whom an offer to acquire has been made.

Same

   (3)  For the purposes of subsection (1), if an offeror makes an offer to acquire securities from a person or company and the offeror knows or ought to know after reasonable enquiry that the person or company from whom the acquisition is being made is acting as a nominee, agent, trustee, executor, administrator or other legal representative for one or more other persons or companies having a direct beneficial interest in those securities, then each of those other persons or companies shall be included in the determination of the number of persons and companies to whom an offer to acquire has been made.

Same

   (4)  Despite subsection (3), a trust or estate is to be considered a single security holder in the determination of the number of persons and companies to whom an offer to acquire has been made,

  (a)  if an inter vivos trust has been established by a single settlor; or

  (b)  if an estate has not vested in all who are beneficially entitled to it.

Non-reporting issuer exemption

   100.2  A take-over bid is exempt from the formal bid requirements if the offeree issuer is not a reporting issuer and if such other conditions as may be specified by regulation are satisfied.

Foreign take-over bid exemption

   100.3  Subject to section 100.5, a take-over bid is exempt from the formal bid requirements if all of the following conditions are satisfied:

    1.  Security holders whose last address as shown on the books of the offeree issuer is in Canada hold less than 10 per cent of the outstanding securities of the class subject to the bid at the commencement of the bid.

    2.  The offeror reasonably believes that security holders in Canada beneficially own less than 10 per cent of the outstanding securities of the class subject to the bid at the commencement of the bid.

    3.  The published market on which the greatest dollar volume of trading in securities of that class occurred during the 12 months immediately preceding the commencement of the bid was not in Canada.

    4.  Security holders in Ontario are entitled to participate in the bid on terms at least as favourable as the terms that apply to the general body of security holders of the same class.

Exemption, fewer than 50 beneficial owners

   100.4  Subject to section 100.5, a take-over bid is exempt from the formal bid requirements if both of the following conditions are satisfied:

    1.  The number of beneficial owners of securities of the class subject to the bid in Ontario is fewer than 50 and the securities held by them constitute, in aggregate, less than 2 per cent of the outstanding securities of that class.

    2.  Security holders in Ontario are entitled to participate in the bid on terms at least as favourable as the terms that apply to the general body of security holders of the same class.

Restriction, required disclosure

   100.5  A take-over bid described in section 100.3 or 100.4 is not exempt from the formal bid requirements unless,

  (a)  the information and documents specified by regulation are provided to security holders in Ontario in accordance with the regulations; and

  (b)  the information specified by regulation about the bid is made public in accordance with the regulations.

Exemption by regulation

   100.6  A take-over bid is exempt from the formal bid requirements if it is exempted by the regulations.

Exempt Issuer Bids

Issuer acquisition or redemption exemption

   101.  An issuer bid for a class of securities is exempt from the formal bid requirements if any of the following conditions is satisfied:

    1.  The securities are purchased, redeemed or otherwise acquired in accordance with the terms and conditions attaching to the class of securities that permit the purchase, redemption or acquisition of the securities by the issuer without the prior agreement of the owners of the securities, or the securities are acquired to meet sinking fund or purchase fund requirements.

    2.  The purchase, redemption or other acquisition is required by the terms and conditions attaching to the class of securities or by the statute under which the issuer was incorporated, organized or continued.

    3.  The terms and conditions attaching to the class of securities contain a right of the owner to require the issuer of the securities to redeem, repurchase, or otherwise acquire the securities, and the securities are acquired pursuant to the exercise of the right.

Employee, executive officer, director and consultant exemption

   101.1  An issuer bid is exempt from the formal bid requirements if the securities are acquired from a current or former employee, executive officer, director or consultant of the issuer or of an affiliate of the issuer and, if there is a published market in respect of the securities,

  (a)  the value of the consideration paid for any of the securities acquired is not greater than the market price of the securities at the date of the acquisition, determined in accordance with the regulations; and

  (b)  the aggregate number of securities or, in the case of convertible debt securities, the aggregate principal amount of securities acquired by the issuer within any period of 12 months in reliance on the exemption provided by this subsection does not exceed 5 per cent of the securities of that class outstanding at the beginning of the 12-month period.

Normal course issuer bid exemptions

Designated exchange

   101.2  (1)  An issuer bid that is made in the normal course through the facilities of a designated exchange is exempt from the formal bid requirements if the bid is made in accordance with the bylaws, rules, regulations and policies of that exchange.

Other published markets

   (2)  An issuer bid that is made in the normal course on a published market, other than a designated exchange, is exempt from the formal bid requirements if all of the following conditions are satisfied:

    1.  The bid is for not more than 5 per cent of the outstanding securities of a class of securities of the issuer.

    2.  The aggregate number of securities or, in the case of convertible debt securities, the aggregate principal amount of securities acquired in reliance on this exemption by the issuer and any person or company acting jointly or in concert with the issuer within any period of 12 months does not exceed 5 per cent of the outstanding securities of that class at the beginning of the 12-month period.

    3.  The value of the consideration paid for any of the securities acquired is not in excess of the market price at the date of acquisition as determined in accordance with the regulations, plus reasonable brokerage fees or commissions actually paid.

News release

   (3)  An issuer making a bid under subsection (1) shall promptly file any news releases that the designated exchange requires to be issued.

Same

   (4)  An issuer making a bid under subsection (2) shall issue and file, at least five days before the commencement of the bid, a news release containing the information prescribed by the regulations.

Definition

   (5)  In this section,

"designated exchange" means the Toronto Stock Exchange, the TSX Venture Exchange or other exchange designated by the Commission for the purpose of this section.

Non-reporting issuer exemption

   101.3  An issuer bid is exempt from the formal bid requirements if the issuer is not a reporting issuer and if such other conditions as may be specified by regulation are satisfied.

Foreign issuer bid exemption

   101.4  Subject to section 101.6, an issuer bid is exempt from the formal bid requirements if all of the following conditions are satisfied:

    1.  Security holders whose last address as shown on the books of the offeree issuer is in Canada hold less than 10 per cent of the outstanding securities of the class subject to the bid at the commencement of the bid.

    2.  The offeror reasonably believes that security holders in Canada beneficially own less than 10 per cent of the outstanding securities of the class subject to the bid at the commencement of the bid.

    3.  The published market on which the greatest dollar volume of trading in securities of that class occurred during the 12 months immediately preceding the commencement of the bid was not in Canada.

    4.  Security holders in Ontario are entitled to participate in the bid on terms at least as favourable as the terms that apply to the general body of security holders of the same class.

Exemption, fewer than 50 beneficial owners

   101.5  Subject to section 101.6, an issuer bid is exempt from the formal bid requirements if both of the following conditions are satisfied:

    1.  The number of beneficial owners of securities of the class subject to the bid in Ontario is fewer than 50 and the securities held by them constitute, in aggregate, less than 2 per cent of the outstanding securities of that class.

    2.  Security holders in Ontario are entitled to participate in the bid on terms at least as favourable as the terms that apply to the general body of security holders of the same class.

Restriction, required disclosure

   101.6  An issuer bid described in section 101.4 or 101.5 is not exempt from the formal bid requirements unless,

  (a)  the information and documents specified by regulation are provided to security holders in Ontario in accordance with the regulations; and

  (b)  the information specified by regulation about the bid is made public in accordance with the regulations.

Exemption by regulation

   101.7  An issuer bid is exempt from the formal bid requirements if it is exempted by the regulations.

Early Warning System

Definitions

   102.  For the purposes of sections 102.1 and 102.2,

"acquiror" means a person or company who acquires a security other than by way of a formal bid; ("acquéreur")

"acquiror's securities" means securities of an offeree issuer that are beneficially owned, or over which control or direction is exercised, on the date of an offer to acquire, by an acquiror or by any person or company acting jointly or in concert with the acquiror. ("valeurs mobilières de l'acquéreur")

10 per cent rule

   102.1  (1)  Every acquiror who acquires beneficial ownership of, or the power to exercise control or direction over, voting or equity securities of any class of a reporting issuer or securities convertible into voting or equity securities of any class of a reporting issuer that, when added to the acquiror's securities of that class, would constitute 10 per cent or more of the outstanding securities of that class, shall disclose the acquisition in the manner and form required by regulation.

Same, further 2 per cent rule

   (2)  An acquiror who is required to make disclosure under subsection (1) shall make further disclosure in the manner and form required by regulation each time any of the following events occur:

    1.  The acquiror or any person or company acting jointly or in concert with the acquiror acquires beneficial ownership of, or the power to exercise control or direction over,

            i.  an additional 2 per cent or more of the outstanding securities of the class to which the disclosure required under subsection (1) relates, or

           ii.  securities convertible into an additional 2 per cent or more of the outstanding securities referred to in subparagraph i.

    2.  There is a change in any material fact in the disclosure required under paragraph 1 or under subsection (1).

Period when acquisitions prohibited

   (3)  During the period beginning on the occurrence of an event in respect of which disclosure is required to be made under this section and ending on the expiry of one business day after the date that the disclosure is made, the acquiror required to make the disclosure or any person or company acting jointly or in concert with the acquiror shall not acquire or offer to acquire beneficial ownership of any securities of the class in respect of which the disclosure is made or any securities convertible into securities of that class.

Exemption

   (4)  Subsection (3) does not apply to an acquiror who has beneficial ownership of, or the power to exercise control or direction over, securities that, together with the acquiror's securities of that class, constitute 20 per cent or more of the outstanding securities of that class.

Acquisitions during a bid by an acquiror, 5 per cent rule

   102.2  (1)  If, after a formal bid has been made for voting or equity securities of a reporting issuer and before the expiry of the bid, an acquiror acquires beneficial ownership of, or the power to exercise control or direction over, securities of the class subject to the bid which, when added to the acquiror's securities of that class, constitute 5 per cent or more of the outstanding securities of that class, the acquiror shall disclose the acquisition in the manner and form required by regulation.

Same, further 2 per cent rule

   (2)  An acquiror who is required to make disclosure under subsection (1) shall make further disclosure in the manner and form required by regulation each time the acquiror or any person or company acting jointly or in concert with the acquiror acquires beneficial ownership of, or the power to exercise control or direction over, an additional 2 per cent or more of the outstanding securities of the class to which the disclosure required under subsection (1) relates.

Applications and Exemptions

Definition

   103.  In sections 104 and 105,

"interested person" means,

  (a)  an offeree issuer,

  (b)  a security holder, director or officer of an offeree issuer,

   (c)  an offeror,

  (d)  an acquiror as defined in section 102,

  (e)  the Director, and

    (f)  any person or company who in the opinion of the Commission or the Superior Court of Justice, as the case may be, is proper to make an application under section 104 or 105, as the case may be.

Application to the Commission

   104.  (1)  On application by an interested person, if the Commission considers that a person or company has not complied with, or is not complying with, a requirement under this Part or the regulations related to this Part, the Commission may make an order,

  (a)  restraining the distribution of any document or any communication used or issued in connection with a take-over bid or an issuer bid;

  (b)  requiring an amendment to or variation of any document or any communication used or issued in connection with a take-over bid or an issuer bid and requiring the distribution of amended, varied or corrected documents or communications;

   (c)  directing any person or company to comply with a requirement under this Part or the regulations related to this Part;

  (d)  restraining any person or company from contravening a requirement under this Part or the regulations related to this Part; and

  (e)  directing the directors and officers of any person or company to cause the person or company to comply with or to cease contravening a requirement under this Part or the regulations related to this Part.

Exemptions

   (2)  On application by an interested person and subject to such terms and conditions as the Commission may impose, if the Commission is satisfied that it would not be prejudicial to the public interest, the Commission may,

  (a)  decide for the purposes of section 97.1 that an agreement, commitment or understanding with a selling security holder is made for reasons other than to increase the value of the consideration paid to the selling security holder for the securities of the selling security holder and that the agreement, commitment or understanding may be entered into despite that section;

  (b)  vary any time period set out in this Part or the regulations related to this Part; and

   (c)  exempt a person or company from any of the requirements of this Part or the regulations related to this Part.

Application to the court

   105.  On application by an interested person, if the Superior Court of Justice is satisfied that a person or company has not complied with a requirement under this Part or the regulations related to this Part, the Superior Court of Justice may make such interim or final order as the Court thinks fit, including, without limitation, an order,

  (a)  compensating any interested person who is a party to the application for damages suffered as a result of a contravention of a requirement of this Part or the regulations related to this Part;

  (b)  rescinding a transaction with any interested person, including the issue of a security or an acquisition and sale of a security;

   (c)  requiring any person or company to dispose of any securities acquired under or in connection with a take-over bid or an issuer bid;

  (d)  prohibiting any person or company from exercising any or all of the voting rights attaching to any securities; or

  (e)  requiring the trial of an issue.

Transitional Matters

Transition

   105.1  This Part and the regulations related to it, as they read immediately before this section comes into force, continue to apply in respect of every take-over bid and issuer bid commenced before this section comes into force.

   9.  (1)  The French version of subsection 131 (2) of the Act is amended by striking out "une circulaire de la direction" and substituting "une circulaire des administrateurs".

   (2)  The French version of clause 131 (5) (a) of the Act is amended by striking out "la circulaire de la direction" and substituting "la circulaire des administrateurs".

   (3)  The French version of clause 131 (5) (b) of the Act is amended by striking out "la circulaire de la direction" and substituting "la circulaire des administrateurs".

   (4)  Subsection 131 (10) of the Act is repealed and the following substituted:

Deemed issuer bid circular

   (10)  Where the offeror in an issuer bid that is exempted by subsection 101.2 (1) from the formal bid requirements of Part XX is required, by the by-laws, regulations or policies of the applicable designated stock exchange to file with it or deliver to security holders of the offeree issuer a disclosure document, the disclosure document shall be deemed, for the purposes of this section, to be an issuer bid circular delivered to the security holders as required by Part XX.

   10.  Section 133 of the Act is amended by striking out "were required to be delivered but were not delivered in compliance with section 95 or section 98" and substituting "were required under Part XX to be sent or delivered but were not sent or delivered in accordance with that Part".

   11.  (1)  The French version of clause (a) of the definition of "core document" in section 138.1 of the Act is amended by striking out "une circulaire de la direction" in the portion before subclause (i) and substituting "une circulaire des administrateurs".

   (2)  The French version of clause (b) of the definition of "core document" in section 138.1 of the Act is amended by striking out "une circulaire de la direction" in the portion before subclause (i) and substituting "une circulaire des administrateurs".

   (3)  The French version of the definition of "expert" in section 138.1 of the Act is amended by striking out "estimateur" and substituting "évaluateur".

   12.  (1)  The French version of sub-subparagraph 2 ii A of subsection 138.5 (1) of the Act is amended by striking out "le marché officiel" and substituting "un marché organisé".

   (2)  The French version of sub-subparagraph 2 ii B of subsection 138.5 (1) of the Act is amended by striking out "marché officiel" and substituting "marché organisé".

   (3)  The French version of subparagraph 3 i of subsection 138.5 (1) of the Act is amended by striking out "le marché officiel" and substituting "un marché organisé".

   (4)  The French version of subparagraph 3 ii of subsection 138.5 (1) of the Act is amended by striking out "marché officiel" and substituting "marché organisé".

   (5)  The French version of sub-subparagraph 2 ii A of subsection 138.5 (2) of the Act is amended by striking out "le marché officiel" and substituting "un marché organisé".

   (6)  The French version of sub-subparagraph 2 ii B of subsection 138.5 (2) of the Act is amended by striking out "marché officiel" and substituting "marché organisé".

   (7)  The French version of subparagraph 3 i of subsection 138.5 (2) of the Act is amended by striking out "le marché officiel" and substituting "un marché organisé".

   (8)  The French version of subparagraph 3 ii of subsection 138.5 (2) of the Act is amended by striking out "marché officiel" and substituting "marché organisé".

   13.  (1)  The French version of paragraph 27 of subsection 143 (1) of the Act is amended by striking out "valeurs mobilières participantes" and substituting "titres de participation" and by striking out "les valeurs mobilières sont détenues" and substituting "ces valeurs et ces titres sont détenus".

   (2)  Paragraph 28 of subsection 143 (1) of the Act is repealed and the following substituted:

  28.  Regulating take-over bids, issuer bids, insider bids, going-private transactions, business combinations and related party transactions, including,

            i.  providing for the matters that, under Part XX, may be specified by regulation or required by the regulations or that, under Part XX, must or may be determined or done in accordance with the regulations,

           ii.  varying the requirements of sections 93.1 to 93.4, providing exemptions from any of those sections or removing any exemption set out in those sections,

          iii.  varying the requirements of sections 94 to 99.1 or providing exemptions from any of those sections,

          iv.  removing any exemption set out in sections 100 to 100.4 or 101 to 101.5,

           v.  establishing exemptions under sections 100.6 and 101.7,

          vi.  varying the requirements of sections 102.1 and 102.2 or providing exemptions from either of those sections,

         vii.  prescribing requirements in respect of issuer bids, insider bids, going-private transactions and related party transactions, for disclosure, valuations, review by independent committees of boards of directors and approval by minority security holders,

        viii.  prescribing requirements respecting defensive tactics in connection with take-over bids, and

          ix.  varying any or all of the time periods in Part XX.

   (3)  The French version of subparagraph 39 v of subsection 143 (1) of the Act is amended by striking out "les circulaires de la direction" at the end and substituting "les circulaires des administrateurs".

   (4)  Subsection 143 (1) of the Act is amended by adding the following paragraph:

52.1 Permitting a distribution or additional distribution under subsection 57 (2.2) to proceed without a receipt for an amendment.

   14.  (1)  Section 143.10 of the Act is amended by adding the following subsection:

Exception

   (1.1)  Despite subsection (1), the Commission is not required to publish an agreement, memorandum of understanding or arrangement if the principal purpose of the agreement, memorandum of understanding or arrangement relates to,

  (a)  the provision of products or services by a party not named in subsection (1);

  (b)  the sharing of costs incurred by a party named in subsection (1); or

   (c)  the provision of services by, or the temporary transfer of, an employee of a party named in subsection (1).

   (2)  Subsection 143.10 (2) of the Act is amended by adding at the end "or, if publication under subsection (1) is not required, within 60 days after it is delivered to the Minister".

   (3)  Subsection 143.10 (4) of the Act is repealed and the following substituted:

Same

   (4)  If the Minister does not approve or reject the agreement, memorandum of understanding or arrangement within the 60-day period described in subsection (2), it comes into effect on the date specified in it or, if no date is specified, upon the expiry of that 60-day period.

   (4)  Subsection 143.10 (6) of the Act is repealed.

Commencement

   15.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1, 3, 4, 5, 6, 8, 9, 10, 11 and 13 come into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 39
Status of Ontario's Artists Act, 2007

Purpose

   1.  The purpose of this Act is to recognize that artists make contributions to Ontario's economy and quality of life by,

  (a)  strengthening and invigorating our arts and culture sector;

  (b)  helping to create liveable, vibrant communities;

   (c)  encouraging civic engagement in cultural life; and

  (d)  fostering a culture of innovation in Ontario.

Definitions

   2.  In this Act,

"artist" means an individual who is a professional creator, interpreter or performer in any artistic field, including,

  (a)  literary arts,

  (b)  visual arts,

   (c)  electronic, multimedia and Internet arts,

  (d)  film and video arts,

  (e)  crafts,

    (f)  performing arts, including theatre, opera, music, dance and variety entertainment,

  (g)  the recording of sound, and

   (h)  the recording of commercial advertisements; ("artiste")

"Minister" means the member of the Executive Council to whom administration for this Act is assigned under the Executive Council Act. ("ministre")

Recognition of artists

   3.  The Government of Ontario recognizes that,

  (a)  artists have made, and continue to make, invaluable contributions to Ontario's economy, quality of life and sense of identity;

  (b)  artists' creativity enables the arts and culture sector to innovate, grow and remain competitive;

   (c)  artists of all ages and backgrounds are central to Ontario's growth as a creative society;

  (d)  artists' diverse artistic and cultural traditions are the foundations of Ontario's cultural tourism;

  (e)  the work of artists contributes to Ontario's educational excellence and creates life-long learning opportunities; and

    (f)  artists enhance and enrich the cultural life of communities across the province and strengthen Ontario's social cohesion and economic vitality.

Minister's responsibility

   4.  The Minister is responsible for developing a strategy on arts and culture to guide the development of policies as they relate to artists.

Government undertaking

   5.  The Government of Ontario undertakes, as far as it considers it reasonable and appropriate to do so, to,

  (a)  encourage the development of provincial, national and international marketing and promotion strategies for Ontario's artists and their work;

  (b)  facilitate the creation of training and professional development opportunities for artists;

   (c)  develop partnerships across governments to foster a culture of innovation and creativity that promotes artists;

  (d)  engage Ontarians in the artistic and cultural life of the province by helping to make artists' work available to all Ontarians;

  (e)  promote artists' health and safety;

    (f)  foster the development of strategic partnerships between the technology sector and the arts and culture sector to create innovative new ways to promote artists and their work;

  (g)  strengthen the ability of arts and culture organizations to provide support to artists;

   (h)  create forums for artists to access information related to their work; and

    (i)  encourage municipalities to,

           (i)  promote artists as part of local cultural tourism initiatives, and

          (ii)  develop their own cultural policies.

Celebrate the Artist Weekend

   6.  (1)  The first weekend wholly in June in every year is proclaimed as Celebrate the Artist Weekend.

Same

   (2)  The purpose of Celebrate the Artist Weekend is to recognize and celebrate Ontario's artists.

Same

   (3)  For the purposes of subsection (1), a weekend is Saturday and Sunday.

Advisory committee

   7.  The Minister may establish one or more advisory committees to,

  (a)  consider issues relating to artists, the role they play in the arts and culture sector and any other matters that the Minister considers appropriate; and

  (b)  advise the Minister on those issues.

Commencement

   8.  The Act set out in this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Short title

   9.  The short title of the Act set out in this Schedule is the Status of Ontario's Artists Act, 2007.

 

Schedule 40
Tobacco Tax Act

   1.  Subsection 3 (4) of the Tobacco Tax Act is repealed and the following substituted:

Sale to retail dealer

   (4)  No wholesaler shall,

  (a)  sell, deliver or cause to be delivered tobacco to a person in Ontario who does not hold a vendor's permit issued to the person under the Retail Sales Tax Act; or

  (b)  deliver or cause to be delivered tobacco to a place in Ontario owned or occupied by a retail dealer if, at the time of the delivery, the place is the subject of a temporary prohibition under section 20 that is still in effect.

   2.  Subsection 5 (14) of the Act is repealed and the following substituted:

Offence

   (14)  Every person who purchases or receives tobacco from an importer who does not hold a registration certificate issued under this Act is guilty of an offence and on conviction is liable to a minimum fine equal to the sum of the following amounts:

    1.  An amount of not less than $500 and not more than $10,000.

    2.  An amount equal to three times the amount of tax that would be payable under section 2 had the tobacco purchased or received from the importer during the period when the importer did not hold a certificate been sold to a consumer liable to pay tax under this Act.

   3.  Subsection 11 (2) of the Act is amended by striking out "or" at the end of clause (d), by adding "or" at the end of clause (e) and by adding the following clause:

    (f)  the person is a wholesaler who contravened section 20 by delivering tobacco or causing tobacco to be delivered to a place owned or occupied by a retail dealer and, at the time of the delivery, the place was the subject of a temporary prohibition under section 20 that had not expired or been cancelled.

   4.  The Act is amended by adding the following section:

Tax on cross-border buyer

Definitions

   13.1.1  (1)  In this section and in sections 13.2 and 13.3,

"collection agent" means,

  (a)  Canada Post Corporation,

  (b)  a collection agent of Canada Post Corporation, or

   (c)  a person who is licensed under section 9 of the Customs Act (Canada) as a customs broker; ("agent de perception")

"cross-border buyer" means a person who,

  (a)  causes tobacco to be brought into Ontario from outside Canada, or

  (b)  receives delivery of tobacco in Ontario from outside Canada, but does not include a returning resident as defined under subsection 13.1 (1) or a registered importer. ("acheteur transfrontalier")

Application

   (2)  This section applies in respect of collection agents only if an agreement under subsection 13.3 (1.1) is in effect under which collection agents are authorized to act as agents of Her Majesty in right of Ontario.

Requirement to pay tax

   (3)  Every cross-border buyer shall, at the time he or she causes tobacco to be brought into Ontario or receives delivery of tobacco in Ontario,

  (a)  make such report to a customs officer or collection agent as that customs officer or collection agent requires with respect to the tobacco;

  (b)  provide the customs officer or collection agent with all information required by the customs officer or collection agent in respect of the tobacco; and

   (c)  remit the tax payable on the tobacco to the customs officer or collection agent as agent of the Minister.

Amount of tax payable

   (4)  For the purposes of subsection (3), the amount of tax payable by a cross-border buyer on the tobacco is the amount of tax that would have been payable under section 2 had the tobacco been purchased in Ontario by a consumer liable to pay tax under this Act.

   5.  (1)  Subsection 13.2 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Failure to report or pay tax

   (1)  If a returning resident or cross-border buyer fails or refuses to comply with subsection 13.1 (2) or 13.1.1 (3), the customs officer or collection agent may detain the tobacco until the earlier of,

.     .     .     .     .

   (2)  Subsection 13.2 (2) of the Act is amended by adding "or cross-border buyer" at the end.

   (3)  Subsection 13.2 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Immunity of customs officers, etc.

   (4)  No action or proceeding shall be brought against a customs officer or collection agent in respect of any act done or omitted to be done in good faith by the customs officer or collection agent,

.     .     .     .     .

   6.  (1)  Subsection 13.3 (1) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

   (c)  that is delivered in Ontario from outside Canada to a cross-border buyer.

   (2)  Section 13.3 of the Act is amended by adding the following subsection:

Agreement may authorize agreement with Canada Post Corporation

   (1.1)  An agreement entered into under subsection (1) may authorize the Government of Canada to enter into an agreement with Canada Post Corporation respecting the administration and enforcement of this Act by collection agents.

   7.  Section 18.1 of the Act is amended by adding the following subsection:

Exemption from payment of interest

   (6)  If, owing to special circumstances, it is considered inequitable that the whole amount of interest payable by any person under this Act be paid, the Minister may exempt the person from any payment of the whole or any part of the interest. 

   8.  Section 20 of the Act is repealed and the following substituted:

Temporary prohibition of tobacco sales

Definition

   20.  (1)  In this section,

"tobacco offence" means an offence under this Act or under subsection 3 (1) or (2) or section 5 or 6 of the Smoke Free Ontario Act.

Minister may impose prohibition

   (2)  If the conditions set out in subsection (3) are satisfied, the Minister may, for the period of time determined under this section,

  (a)  prohibit all persons from selling, offering for sale and storing tobacco in a particular place owned or occupied by a retail dealer; and

  (b)  if a prohibition is imposed on persons in respect of a particular place under clause (a), prohibit wholesalers from delivering tobacco or causing tobacco to be delivered to that place.

Same

   (3)  For the purposes of subsection (2), the conditions that must be satisfied in respect of a particular place owned or occupied by a retail dealer are as follows:

    1.  The retail dealer,

            i.  has been assessed a penalty under this Act relating to activities at or in connection with the particular place, or

           ii.  has been convicted of a tobacco offence relating to activities at or in connection with the particular place.

    2.  In the five-year period before the day the penalty was assessed or the retail dealer was convicted of the tobacco offence, as the case may be, the retail dealer,

            i.  was assessed one or more penalties under this Act relating to activities at or in connection with the particular place, or

           ii.  was convicted of one or more tobacco offences relating to activities at or in connection with the particular place.

    3.  The five-year period referred to in paragraph 2 commences on or after the day section 8 of Schedule 40 to the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Sales of tobacco, etc., prohibited at particular place during temporary prohibition period

   (4)  If the Minister imposes a temporary prohibition under this section in respect of a particular place owned or occupied by a retail dealer, no person shall sell, offer for sale or store tobacco in that place during the time the prohibition is in effect.

Notice of proposed temporary prohibition

   (5)  If the Minister proposes to impose a temporary prohibition under this section in respect of a particular place, the Minister shall, before imposing the prohibition, serve a notice of the proposal on the retail dealer who owns or occupies the place by personal service or by sending the notice by registered mail to the particular place or to the last known address of the retail dealer.

Show cause hearing

   (6)  A notice under subsection (5) must state that the retail dealer may, not more than five days after receiving the notice, request the opportunity to appear before the Minister or his or her delegate to show cause why the temporary prohibition should not be imposed.

Latest date for show cause hearing

   (7)  If a retail dealer makes a request under subsection (6), the day on which the retail dealer may appear before the Minister or his or her delegate must not be later than 15 days after the day the notice of the proposal was given by the Minister under subsection (5).

If no show cause hearing requested

   (8)  If a retail dealer does not make a request within the time limit set out in subsection (6), the Minister may immediately impose the temporary prohibition in accordance with subsection (11).

Minister may impose conditions, etc.

   (9)  The Minister may, in lieu of imposing a temporary prohibition, impose such reasonable conditions and limitations on the retail dealer as the Minister considers appropriate in the circumstances and shall notify the retail dealer of those conditions and limitations.

Immediate temporary prohibition

   (10)  Subsections (5), (6) and (7) do not apply and the Minister may immediately impose a temporary prohibition under this section if the retail dealer fails to comply with any conditions or limitations imposed by the Minister under subsection (9). 

Notice of temporary prohibition

   (11)  Where the Minister imposes a temporary prohibition in respect of a particular place owned or occupied by a retail dealer,

  (a)  the Minister shall,

           (i)  serve a notice of the temporary prohibition on the retail dealer by personal service or by sending the notice by registered mail to the particular place or to the last known address of the retail dealer, and

          (ii)  make a disclosure described in paragraph 10 of subsection 32.1 (1) and post the signs required under section 20.1 if they have not already been posted in accordance with that section; and

  (b)  the Minister may send a copy of the notice of temporary prohibition to all wholesalers who, to the Minister's knowledge, deliver tobacco or cause tobacco to be delivered to the particular place.

Duration of temporary prohibition 

   (12)  A temporary prohibition shall take effect on the date specified in the notice of the temporary prohibition under subsection (11) and shall continue for the period determined as follows:

    1.  Where the temporary prohibition is imposed because of an assessment of a penalty under this Act, the prohibition period ends not more than 15 days after the effective date specified in the notice of prohibition if, with respect to activities at or in connection with the particular place,

            i.  the retail dealer has been assessed not more than two penalties under this Act in the five-year period before the day the penalty was assessed, or

           ii.  the retail dealer has been convicted of one or more tobacco offences in the five-year period before the day the penalty was assessed.

    2.  Where the temporary prohibition is imposed because of an assessment of a penalty under this Act, the prohibition period ends not more than 30 days after the effective date specified in the notice of prohibition if, with respect to activities at or in connection with the particular place, the retail dealer has been assessed three or more penalties under this Act in the five-year period before the day the penalty was assessed.

    3.  Where the temporary prohibition is imposed because the retail dealer was convicted of a tobacco offence, the prohibition period ends not more than 15 days after the effective date specified in the notice of prohibition if, with respect to activities at or in connection with the particular place, the retail dealer has been assessed one or more penalties under this Act in the five-year period before the day of the conviction.

    4.  Where the temporary prohibition is imposed because the retail dealer was convicted of a tobacco offence, the prohibition period ends not more than 30 days after the effective date specified in the notice of prohibition if the retail dealer has been convicted of not more than one tobacco offence in the five-year period before the day of the conviction.

    5.  Where the temporary prohibition is imposed because the retail dealer was convicted of a tobacco offence, the prohibition period ends not more than 60 days after the effective date specified in the notice of prohibition if the retail dealer has been convicted of two tobacco offences in the five-year period before the day of the conviction.

    6.  Where the temporary prohibition is imposed because the retail dealer was convicted of a tobacco offence, the prohibition period ends not more than 180 days after the effective date specified in the notice of prohibition if the retail dealer has been convicted of three or more tobacco offences in the five-year period before the day of the conviction.

If retail dealer has been both convicted and assessed a penalty

   (13)  If the duration of a temporary prohibition could be determined under more than one paragraph of subsection (12), the Minister shall determine which of the paragraphs shall apply in  determining the length of the temporary prohibition.

Manner of establishing number of penalties and convictions

   (14)  The following rules apply in determining how many penalties have been assessed against a retail dealer and how many offences for which the retail dealer has been convicted in respect of a particular place:

    1.  If the retail dealer has been assessed more than one penalty under this Act with respect to the same or connected activities occurring as part of the same series of activities at or in connection with the particular place, the Minister may, at his or her discretion, consider all of the penalties to be one penalty for the purposes of this section.

    2.  If the retail dealer has been convicted of more than one tobacco offence with respect to the same or connected activities occurring as part of the same series of activities at or in connection with the particular place, the Minister may, at his or her discretion, consider all of the convictions to be one conviction for the purposes of this section.

    3.  If the retail dealer has been convicted of one or more tobacco offences and has been assessed one or more penalties under this Act with respect to the same or connected activities occurring as part of the same series of activities at or in connection with the particular place, the Minister may, at his or her discretion, consider all of the penalties and convictions to be one conviction for the purposes of this section.

Right to a hearing after immediate prohibition

   (15)  If the Minister imposes an immediate temporary prohibition under subsection (10), the retail dealer may, within 10 days after receiving the notice of the temporary prohibition under subsection (11), request a hearing before the Minister or his or her delegate, on a day to be fixed not more than 10 days after the Minister receives the request, to determine whether the prohibition should be cancelled or upheld.

Cancellation of prohibition

   (16)  The Minister may at any time cancel a temporary prohibition imposed under this section before the prohibition expires and, if the Minister considers it appropriate, impose reasonable conditions or limitations under subsection (9).

Signs

   20.1  (1)  Every retail dealer who owns or occupies a particular place that is the subject of a temporary prohibition under section 20 shall ensure that signs are posted at the place in accordance with the requirements prescribed by the Minister.

Signs under Smoke Free Ontario Act

   (2)  If the Minister has not made a regulation for the purposes of subsection (1) or the regulation is no longer in force, the provisions of the regulations made under the Smoke Free Ontario Act for the purposes of section 18 of that Act shall apply as if they were prescribed by the Minister for the purposes of this section, with such modifications as may be necessary or that the Minister considers appropriate in the circumstances.

Posting by person authorized by the Minister

   (3)  If any sign is not posted as required under this section, a person authorized by the Minister may enter the premises without a warrant and post the sign in accordance with this section.

Obstruction

   (4)  No person shall hinder, obstruct or interfere with a person acting under subsection (3). 

Signs not to be removed

   (5)  No person shall remove a sign required to be posted under this section while the prohibition remains in effect.

Penalties and offences, failure to comply with s. 20

Penalty, retail dealer

   20.2  (1)  Every person who contravenes subsection 20 (4) in respect of a temporary prohibition having a duration determined under paragraph 1 or 2 of subsection 20 (12) shall pay a penalty when assessed for it determined as follows:

    1.  If the duration of the temporary prohibition is determined under paragraph 1 of subsection 20 (12), the penalty is $5,000.

    2.  If the duration of the temporary prohibition is determined under paragraph 2 of subsection 20 (12), the penalty is $10,000.

Offence

   (2)  Every person who contravenes subsection 20 (4) in respect of a temporary prohibition having a duration determined under paragraph 3, 4, 5 or 6 of subsection 20 (12) is guilty of an offence and on conviction is liable to a minimum fine determined as follows:

    1.  If the duration of the temporary prohibition is determined under paragraph 3 of subsection 20 (12), the minimum fine is $5,000.

    2.  If the duration of the temporary prohibition is determined under paragraph 4 of subsection 20 (12), the minimum fine is $10,000.

    3.  If the duration of the temporary prohibition is determined under paragraph 5 of subsection 20 (12), the minimum fine is $30,000.

    4.  If the duration of the temporary prohibition is determined under paragraph 6 of subsection 20 (12), the minimum fine is $50,000.

Penalty, wholesaler

   (3)  Every wholesaler who is found to have delivered or caused to be delivered tobacco to a particular place owned or occupied by a retail dealer in respect of which a temporary prohibition under section 20 was in effect shall pay a penalty, when assessed for it, equal to three times the amount of tax that would be payable under this Act had the tobacco that the wholesaler delivered or caused to be delivered to the particular place during the period the prohibition was in effect been sold to a consumer.

   9.  The Act is amended by adding the following section:

Seizure of tobacco, s. 20 contravention

   23.2  If, on an inspection under subsection 23 (1), a person authorized by the Minister discovers that any person is contravening subsection 20 (4), the person authorized by the Minister may seize, impound, hold and dispose of all tobacco for sale or stored at the place that is subject to the temporary prohibition under section 20 as if the tobacco were unmarked cigarettes seized under section 23.1.

   10.  Subsection 28 (3) of the Act is amended by striking out the portion after clause (e) and substituting the following:

is guilty of an offence and, in addition to any penalty otherwise provided by this Act, is liable on conviction to a minimum fine equal to the sum of an amount of not less than $500 and not more than $10,000 plus an amount equal to twice the amount of the tax that should have been declared to be collectable or payable or that was sought to be evaded, or is liable to imprisonment for a term of not more than two years, or is liable to both the fine and imprisonment.

   11.  Subsection 32.1 (1) of the Act is amended by adding the following paragraphs:

  10.  Each retail dealer who is temporarily prohibited under section 20 from selling, offering for sale or storing tobacco at a particular place owned or occupied by the retail dealer.

  11.  Each retail dealer who is prohibited under section 16 of the Smoke Free Ontario Act from selling or storing tobacco at a particular place.

Commencement

   12.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 41
Workplace Safety and Insurance Act, 1997

   1.  (1)  Subsection 42 (3) of the Workplace Safety and Insurance Act, 1997 is amended by striking out "is suitable for the worker" and substituting "is suitable for the worker and is available".

   (2)  Subsection 42 (6) of the Act is amended by striking out "is suitable for the worker" and substituting "is suitable for the worker and is available".

   2.  (1)  Clause 43 (2) (b) of the Act is repealed and the following substituted:

  (b)  the net average earnings that he or she earns or is able to earn in suitable and available employment or business after the injury.

   (2)  Subsection 43 (4) of the Act is repealed and the following substituted:

Earnings after injury

   (4)  The Board shall determine the worker's earnings after the injury to be the earnings that the worker is able to earn from the employment or business that is suitable for the worker under section 42 and is available and,

  (a)  if the worker is provided with a labour market re-entry plan, the earnings shall be determined as of the date the worker completes the plan; or

  (b)  if the Board decides that the worker does not require a labour market re-entry plan, the earnings shall be determined as of the date the Board makes the decision.

   3.  (1)  Clause 44 (2.1) (c) of the Act is amended by adding at the beginning "after the 72-month period expires".

   (2)  Subsection 44 (2.1) of the Act is amended by striking out "or" at the end of clause (b) and by adding the following clauses:

  (d)  after the 72-month period expires, the worker suffers a significant deterioration in his or her condition that results in a determination of a permanent impairment under section 47;

  (e)  after the 72-month period expires, the worker suffers a significant deterioration in his or her condition that is likely, in the Board's opinion, to result in a redetermination of the degree of permanent impairment under section 47;

    (f)  after the 72-month period expires, the worker suffers a significant temporary deterioration in his or her condition that is related to the injury; or

  (g)  when the 72-month period expires,

           (i)  the worker and the employer are co-operating in the worker's early and safe return to work in accordance with section 40, or

          (ii)  the worker is co-operating in health care measures in accordance with section 34.

   (3)  Subsection 44 (2.4) of the Act is amended by striking out "and" at the end of clause (a) and by adding the following clause:

(a.1) within 30 days after the date on which the labour market re-entry plan is completed, where the Board redetermines the degree of permanent impairment of a worker who was provided with a labour market re-entry plan that is not completed when the 24-month period in clause (a) expires; and

   (4)  Section 44 of the Act is amended by adding the following subsections:

Time for review when clause (2.1) (d) applies

   (2.4.1)  If clause (2.1) (d) applies, the Board may review the payments,

  (a)  within 24 months after the date on which the Board determines the degree of permanent impairment under section 47; and

  (b)  within 30 days after the date on which the labour market re-entry plan is completed, where the Board determines the degree of permanent impairment of a worker who was provided with a labour market re-entry plan that is not completed when the 24-month period in clause (a) expires.

Time for review when clause (2.1) (e) applies

   (2.4.2)  If clause (2.1) (e) applies, the Board may review the payments during the period that begins on the day the Board determines that the significant deterioration in the worker's condition is likely to result in a redetermination of the degree of permanent impairment and ends on the day it makes the redetermination or determines that no redetermination shall be made.

Time for review when clause (2.1) (f) applies

   (2.4.3)  If clause (2.1) (f) applies, the Board may review the payments,

  (a)  at any time it considers appropriate in the period during which the worker is suffering a significant temporary deterioration in his or her condition; and

  (b)  when it determines that the worker has recovered from the significant temporary deterioration in his or her condition.

Time for review when clause (2.1) (g) applies

   (2.4.4)  If clause (2.1) (g) applies, the Board may review the payments up to 24 months after the date of the expiry of the 72-month period.

Additional review

   (2.4.5)  The Board may review the payments at any time,

  (a)  in a case to which clause (2.4) (a.1) or (2.4.1) (b) applies, if the worker, at any time on or before the day that is 30 days after the date on which the labour market re-entry plan is completed, fails to notify the Board of a material change in circumstances, or engages in fraud or misrepresentation in connection with his or her claim for benefits under the insurance plan;

  (b)  in a case to which clause (2.4.1) (a) or subsection (2.4.2), (2.4.3) or (2.4.4) applies, if the worker, at any time on or before the day on which the Board reviews the payments under that clause or subsection, fails to notify the Board of a material change in circumstances, or engages in fraud or misrepresentation in connection with his or her claim for benefits under the insurance plan.

   (5)  Subsections 44 (2.5) and (2.6) of the Act are repealed and the following substituted:

Transition

   (2.5)  Clause (2.1) (b) and subsection (2.3) apply with respect to,

  (a)  a worker who has been provided with a labour market re-entry plan that is not completed before November 26, 2002;

  (b)  a worker who is provided with a labour market re-entry plan on or after November 26, 2002.

Same

   (2.6)  Clauses (2.1) (c) and (2.4) (a) and (b) apply with respect to a worker whose degree of permanent impairment is redetermined by the Board on or after November 26, 2002.

Same

   (2.7)  Clauses (2.1) (c) and (2.4) (a.1) apply with respect to a worker whose degree of permanent impairment is redetermined by the Board on or after July 1, 2007.

Same

   (2.8)  Clauses (2.1) (d) and (e) and subsections (2.4.1) and (2.4.2) apply with respect to,

  (a)  a worker who, on or after July 1, 2007, is suffering a significant deterioration in his or her condition that began after the 72-month period expired and that,

           (i)  results in a determination of the degree of permanent impairment under section 47, or

          (ii)  in the Board's opinion, is likely to result in a redetermination of the degree of permanent impairment under section 47;

  (b)  a worker who is provided with a labour market re-entry plan that is not completed before July 1, 2007; and

   (c)  a worker who is provided with a labour market re-entry plan on or after July 1, 2007.

Same

   (2.9)  Clause (2.1) (f) and subsection (2.4.3) apply with respect to a worker who, on or after July 1, 2007, is suffering a significant temporary deterioration in his or her condition that began after the 72-month period expired.

Same

   (2.10)  Clause (2.1) (g) and subsection (2.4.4) apply with respect to a worker if the 72-month period expires before July 1, 2007.

Adjustments prospective

   (2.11)  Nothing in this section entitles a person to claim an adjustment of a loss of earning payment made under clauses (2.1) (c) and (2.4) (a.1) in respect of a period before July 1, 2007.

Same

   (2.12)  Nothing in this section entitles a person to claim an adjustment of a loss of earning payment made under clause (2.1) (d), (e), (f) or (g) in respect of a period before July 1, 2007.

   4.  Subsection 45 (6) of the Act is amended by striking out "$1,145.63" and substituting "$3,000".

   5.  Section 49 of the Act is amended by adding the following subsections:

Temporary suspension

   (3)  The general indexing factor,

  (a)  despite subsection (2), does not apply with respect to the calculation of amounts payable under this Part for the two years commencing January 1, 2008 and January 1, 2009; and

  (b)  applies with respect to the calculation of amounts payable under this Part for the year commencing January 1, 2010 and for all subsequent years.

Temporary indexing factor

   (4)  For the two years commencing January 1, 2008 and January 1, 2009, a temporary indexing factor of 2.5 per cent applies with respect to the calculation of the amounts payable under this Part that would otherwise have been adjusted by the general indexing factor in accordance with subsection (2).

   6.  Section 51 of the Act is amended by adding the following subsections:

Regulations

   (1.1)  Subsection (1) is subject to any regulations made under subsection 52.1 (1).

.     .     .     .     .

Annual adjustment, exception for 2008 and 2009

   (3)  Despite subsection (1), on January 1, 2008 and January 1, 2009, the amounts set out in this Act (as adjusted on the preceding January 1) shall be adjusted by the amount of the temporary indexing factor described in subsection 49 (4).

Same

   (4)  Subsections 49 (3) and (4) apply to the indexation of amounts set out in this Act, with necessary modifications.

Annual adjustment, prescribed temporary indexing factor

   (5)  Despite subsection (1), on January 1 in any calendar year specified in a regulation made under clause 52.1 (1) (a), the amounts set out in this Act (as adjusted on the preceding January 1) that would otherwise be adjusted by the amount of the general indexing factor shall be adjusted by the amount of the temporary indexing factor prescribed in the regulation.

Additional adjustment, July 1, 2007

   (6)  The amounts set out in this Act that were adjusted by the general indexing factor on January 1, 2007 shall be adjusted by an additional 2.5 per cent on July 1, 2007.

Prescribed additional adjustment

   (7)  On any date specified in a regulation made under clause 52.1 (1) (b), the amounts set out in this Act (as most recently adjusted under this Act) shall be adjusted by the prescribed additional adjustment.

   7.  (1)  Section 52 of the Act is amended by adding the following subsections:

Regulations

   (1.1)  Subsection (1) is subject to any regulations made under subsection 52.1 (1).

Annual adjustment, exception for 2008 and 2009

   (1.2)  Despite subsection (1), on January 1, 2008 and January 1, 2009, the Board shall adjust average earnings that would otherwise be subject to the general indexing factor by applying the temporary indexing factor described in subsection 49 (4) to the average earnings (as adjusted on the preceding January 1) and shall make consequential changes to the amounts payable under this Part.

Annual adjustment, prescribed temporary indexing factor

   (1.3)  Despite subsection (1), on January 1 in any calendar year specified in a regulation made under clause 52.1 (1) (a), the Board shall adjust average earnings that would otherwise be subject to the general indexing factor by applying the temporary indexing factor prescribed in the regulation to the average earnings (as adjusted on the preceding January 1) and shall make consequential changes to the amounts payable under this Part.

Additional adjustment, July 1, 2007

   (1.4)  On July 1, 2007, the Board shall adjust average earnings that were adjusted on January 1, 2007 by application of the general indexing factor, by applying an additional 2.5 per cent to the average earnings and shall make consequential changes to the amounts payable under this Part.

Prescribed additional adjustment

   (1.5)  On any date specified in a regulation made under clause 52.1 (1) (b), the Board shall adjust average earnings by the prescribed additional adjustment and shall make consequential changes to the amounts payable under this Part.

   (2)  Subsection 52 (3) of the Act is amended by striking out "subsection (1)" and substituting "subsections (1), (1.2), (1.3), (1.4) and (1.5)".

   8.  The Act is amended by adding the following section before the heading "Ancillary Matters":

Regulations re temporary indexing factor and additional adjustment

   52.1  (1)  The Lieutenant Governor in Council may, by regulation,

  (a)  prescribe a temporary indexing factor to replace the general indexing factor described in subsection 49 (1) for the purposes of subsections 51 (5) and 52 (1.3), and specify the calendar year for which the temporary indexing factor shall be applied;

  (b)  prescribe an additional adjustment for the purposes of subsections 51 (7) and 52 (1.5), and specify the date on which it shall be applied.

Same

   (2)  A temporary indexing factor prescribed under clause (1) (a),

  (a)  may be higher but shall not be less than the general indexing factor described in subsection 49 (1); or

  (b)  may be higher or lower than the alternate indexing factor described in subsection 50 (1).

Same

   (3)  An additional adjustment prescribed under clause (1) (b) may be higher or lower than,

  (a)  the general indexing factor described in subsection 49 (1); or

  (b)  the alternate indexing factor described in subsection 50 (1).

Conditions, etc.

   (4)  The application of a prescribed temporary indexing factor or prescribed additional adjustment may be subject to any terms, restrictions, limitations, conditions or exclusions that are set out in the regulation.

Classes

   (5)  A regulation made under this section may create different classes of workers and may impose different requirements or create different entitlements with respect to each class.

   9.  Subsection 107 (2) of the Act is repealed and the following substituted:

Same

   (2)  Subsection 43 (13) of the pre-1997 Act shall be deemed to be repealed.  Instead, subsections 44 (1) to (2.9) of this Act, except clause 44 (2.1) (g) and subsection 44 (2.4.4), apply with necessary modifications with respect to a review by the Board of the amount of compensation for future loss of earnings payable under section 43 of the pre-1997 Act.  However, a reference to "more than 72 months after the date of the worker's injury" in subsection 44 (2) of this Act shall be read as "more than 60 months after the date the compensation for future loss of earnings is determined by the Board under section 43 of the pre-1997 Act" and any reference to "72-month period" in subsections 44 (2.1), (2.8) and (2.9) of this Act shall be read as "60-month period".

   10.  (1)  Clause 162 (1) (c) of the Act is amended by striking out "a minimum of three and a maximum of seven members" and substituting "a minimum of seven and a maximum of nine members".

   (2)  Section 162 of the Act is amended by adding the following subsection:

Same

   (1.1)  For greater certainty, the positions of chair and president shall be held by different persons.

   11.  Clause 183 (1) (a) of the Act is repealed and the following substituted:

  (a)  prescribing anything that must or may be prescribed under this Act, except under section 52.1;

Commencement

   12.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 to 9, subsection 10 (2) and section 11 come into force on July 1, 2007.

Same

   (3)  Subsection 10 (1) comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 187 and does not form part of the law.  Bill 187 has been enacted as Chapter 7 of the Statutes of Ontario, 2007.

The major elements of the Bill are described below.

schedule 1
assessment act

A technical amendment to section 6.1 of the Assessment Act provides that both local and upper-tier municipalities may pass by-laws exempting land used by veterans from taxation.  This power was previously set out in section 325 of the Municipal Act, 2001, which was repealed on December 20, 2006.  Currently, section 6.1 of the Act gives this power to local municipalities only.

Currently, section 15 of the Act requires the Municipal Property Assessment Corporation to conduct enumerations for the purposes of elections under the Municipal Elections Act, 1996.  An amendment to the section permits the Minister of Finance to direct the corporation to conduct an enumeration in non-municipal territory for the purpose of local elections.

Section 19.2 of the Act currently specifies that, for every taxation year beginning with 2009, land is valued every year, and the valuation date is January 1 of the preceding taxation year.  An amendment provides that land is to be valued every four years, instead of every year, beginning with the 2009 taxation year.

Related to this amendment is the re-enactment of section 19.1 of the Act.  As re-enacted, it provides for the phasing in of an eligible increase in the current value of land that occurs in connection with a general reassessment.  An eligible increase is to be phased in over a four-year period.  Adjustments to the current value of land in other circumstances are to be governed by regulation.

A technical amendment is made to the Budget Measures Act, 2006 (No. 2) to change the commencement date for certain amendments to section 40 of the Act that were made in that Act.

schedule 2
capital investment plan act, 1993

A new subsection 8 (7) of the Capital Investment Plan Act, 1993 enables the Ontario Financing Authority to determine salary ranges and remuneration, excluding benefits, for certain classes of public servants who work in the Authority.  The salary ranges and remuneration prevail over those otherwise determined under the Public Service of Ontario Act, 2006.  A new subsection 8 (8) of the Act enables the Authority to determine benefits for those public servants in addition to the benefits otherwise determined under the Public Service of Ontario Act, 2006.

The re-enactment of section 20 of the Act removes references to provisions of the Insurance Act that were repealed in the Budget Measures Act, 2006 (No. 2).

A technical change is made to subsection 35 (1) of the Act, to replace current terminology with new terminology established in the Public Service of Ontario Act, 2006.

schedule 3
charitable gifts act

The re-enactment of section 6 of the Charitable Gifts Act makes technical wording changes to remove references to provisions of the Insurance Act that were repealed in the Budget Measures Act, 2006 (No. 2) and to add references to provisions of the Trustee Act.

schedule 4
city of toronto act, 2006

Currently, clause 323 (1) (h) of the City of Toronto Act, 2006 permits an application to be made to the city treasurer to cancel, reduce or refund property taxes if repairs or renovations to land prevented the normal use of the land for at least three months during a year.  Section 323 is amended to provide that taxes cannot be cancelled, reduced or refunded under that clause for 2007 or a subsequent taxation year if the land is eligible property under section 331.  Section 331 governs property tax rebates for vacant units.

A technical amendment is made to subsection 333 (20) of the Act.  This amendment is consequential to amendments that are made to the Environmental Protection Act in Schedule 13.

schedule 5
community small business investment funds act

Subsection 25 (4) of the Community Small Business Investment Funds Act currently permits investors to continue to qualify for the additional 5 per cent tax credit on investments after 2010 in research oriented investment funds if the investment is made during the first 60 days of 2011.  The re-enactment of the definition of "eligible year" in subsection 16.1 (7) of the Act corrects an inconsistency in the Act.

Subsection 17 (3) of the Act is amended to prevent the application of the subsection to investments in research oriented investment funds.

schedule 6
corporations tax act

Section 11.2 of the Corporations Tax Act provides corporations with a deduction in respect of scientific research and experimental development expenditures incurred in Ontario.  The amount of the deduction is determined with reference to the federal investment tax credit under the Income Tax Act (Canada).  The amendments to section 11.2 of the Act provide that if a federal investment tax credit is transferred to another corporation, the deduction under section 11.2 of the Act is also transferred.

In computing liability for corporate minimum tax under Part II.1 of the Act, corporations may deduct adjusted net losses for previous years.  In computing liability for income tax under Part II of the Act, corporations may deduct corporate minimum tax for previous years.  Sections 43.1 and 57.5 of the Act are amended to extend the carry-forward period in which corporations may deduct previous years' corporate minimum tax paid or adjusted net losses from 10 to 20 years.  The extension of the carry-forward period applies with respect to corporate minimum tax paid or adjusted net losses realized for taxation years ending after March 22, 2007.  A consequential amendment is made to subsection 44.1 (2) of the Act to add a cross reference to a clause added to section 43.1 of the Act.

Section 43.10 of the Act provides for the production services tax credit.  The amendments to the section increase the tax credit rate for the period from April 1, 2007 to March 31, 2008 from 11 per cent to 18 per cent.

Section 43.13 of the Act provides for the apprenticeship tax credit.  The amendments to the section extend the eligibility period for the tax credit to the end of 2014.

The amendments to subsections 61 (1), 62 (7) and 62.1 (2) of the Act require the inclusion of accumulated other comprehensive income in a corporation's paid-up capital for taxation years commencing after September 30, 2006.

The term "any other surplus" is currently defined in subsection 62 (4) of the Act to include amounts required to be included in a corporation's income, to the extent the amounts are not included in the corporation's income as shown on its financial statements.  The subsection is re-enacted to state expressly that the income to be included is the corporation's income for the current and previous taxation years.

Sections 66 and 66.1 of the Act currently provide that capital tax is payable only in respect of periods before January 1, 2012.  The amendments to those sections eliminate capital tax for periods after June 30, 2010.

schedule 7
credit unions and caisses populaires act, 1994 and related amendments

The Schedule makes a number of amendments to the Credit Unions and Caisses Populaires Act, 1994.  The following are some of the significant changes:

Transfer of functions

Many functions of the Superintendent of Financial Services are transferred to the Deposit Insurance Corporation of Ontario.  These include functions relating to capital and liquidity requirements, restrictions on borrowing, lending and investments and enforcement.  (See, for example, the amendments to subsection 5 (2) of the Act and sections 86, 87, 88, 89, 187, 188, subsections 189 (4), 191 (2) and (5), 197 (2), sections 197.0.1, 200, 201.1, 202, 202.1, subsection 204 (5) and section 279 of the Act.)  Related amendments are also made, for example, to allow the Corporation to exercise powers that the Superintendent can also exercise and to provide for certain information or notices to be given to the Corporation.  (See, for example, subsection 103 (2), sections 171.1 and 209.1, subsection 213 (7), sections 220, 226 and 229, subsections 300 (4.1) and 327 (1) of the Act.)

Functions relating to incorporation of credit unions are transferred from the Minister to the Superintendent.  (See the amendments to sections 15 and 16 of the Act and section 18 and subsections 309 (8), (8.1) and (10) of the Act.)

Procedural changes with respect to orders of the Superintendent or the Corporation

General provisions are included relating to the procedure to be followed before orders are made by the Superintendent or the Corporation, including provisions providing for a right to notice and a right to make representations.  (See sections 240.1 to 240.5 of the Act.)  The section relating to the procedure to be followed before orders are made (section 240.1 of the Act) is made applicable to many orders.  (See, for example, sections 85, 86, 101, 187, 189, 191, 197.0.1, 234, 240, 279, 294 and 301 of the Act.)  The amendments provide for a right to appeal for most orders.

Bond of association

What constitutes a bond of association, which the members of a credit union must come within, will no longer be specified by the Act.  (See amendments to section 30 of the Act.)

Patronage shares

Provision is made for the articles of a credit union to provide for patronage shares to be payable to members as a dividend or patronage return.  (See section 53 of the Act.)

Capital and liquidity requirements

Provision is made for credit unions to form a group with a league to assist the credit unions in satisfying the capital requirements.  (See subsection 84 (3) of the Act.)  Credit unions will be required to have prudent capital and liquidity policies.  (See section 85 of the Act.)

Governing the credit union

Two new grounds for disqualification of directors are added – a person will be disqualified from being a director if they cannot obtain a bond or if they are a listed person under the federal United Nations Suppression of Terrorism Regulations.  Any training requirements or qualifications will be established by the credit union, not by regulation.  The credit union will be able to set reasonable conditions or qualifications by by-law.  (See subsection 92 (1) of the Act.)  A candidate for director will be required to make the same disclosures of interests as directors must make.  (See section 94.1 of the Act.)

The board of directors will be prohibited from directly managing or being involved in the day to day activities of the credit union.  (See subsection 104 (2) of the Act.)  The Superintendent's power to restrict the remuneration of directors will be repealed.  Instead, the remuneration paid to the directors will have to be disclosed in the financial statements.  (See section 108 of the Act.)  The financial statements will also be required to disclose the prescribed information about the remuneration of officers and employees.  (See subsection 140 (5) of the Act.)

The Act will no longer specifically provide for an executive committee or a credit committee.  Instead, the board of directors will have a broad power to establish committees and, subject to certain restrictions, delegate powers to those committees.  (See section 109 of the Act and the repeal of sections 110 to 124 of the Act.)  A number of technical changes are also made relating to the audit committee.  (See sections 125 to 128 of the Act.)

The defence that directors, officers and employees have under section 155 of the Act is changed so that it is available if they exercised the care, diligence and skill of a reasonably prudent person.  (See subsection 155 (1) of the Act.)

Borrowing by credit unions

The limit on borrowing will be changed to 50 per cent of the credit union's regulatory capital and deposits unless that limit is lowered by its by-laws.  (See subsection 183 (3) of the Act.)  The previous limit was 25 per cent unless a by-law authorized a higher amount not exceeding 50 per cent.  The approval of the Superintendent will no longer be required for a credit union to create a security interest in its property.  Instead, the regulations will set out when such a security interest can be created.  (See section 184 of the Act.)

Loans by credit unions

Lending licences will no longer be required.  (See repeal of sections 193 and 196 of the Act.)  Some exceptions to the restrictions that loans can only be made to members are included.  (See clause 190 (1) (b) and subsection 190 (2) of the Act.)  Changes are made to the powers to make various orders.  (See subsections 191 (2) to (5), 197 (2) and section 197.0.1 of the Act.)

Investments by credit unions

Changes are made relating to investments made by credit unions.  (See sections 198 to 201.1 of the Act, amendments to section 202 of the Act and section 202.1 of the Act.)

Leagues

It will be possible to add additional objects for leagues by regulation.  (See clause 241 (2) (d) of the Act.)  The special rules for by-laws, withdrawal of members and disqualification of directors are repealed.  (See repeal of sections 242, 247 and 248 of the Act.)

Deposit Insurance Corporation of Ontario

A number of functions are transferred from the Superintendent of Financial Services to the Corporation.  (Referred to in more detail above.)  Credit unions will no longer be members of the Corporation.  (See repeal of subsection 249 (3) of the Act.)  The maximum number of directors of the Corporation is reduced from 11 to nine and the rule relating to the composition of the board of directors is repealed. (See subsection 250 (1) of the Act and the repeal of subsection 250 (2) of the Act.)  Rules for qualifications and disqualifications of directors are added.  (See subsections 250 (2) and (2.1) of the Act.)

The Minister will have the power to order an audit of the Corporation.  (See subsection 255 (2) of the Act.)  The Superintendent will no longer be required to examine the affairs of the Corporation each year.  (See repeal of section 257 of the Act.)  The Corporation will be required to advise the Minister at least annually.  (See subsection 260 (2) of the Act.)  The objects and powers of the Corporation are reorganized.  (See sections 261 and 262 of the Act.)  Changes are also made relating to deposit insurance.  (See amendments to sections 270 to 278 of the Act and clause 274 (1) (e) of the Act.)

Stabilization authorities

The Act currently provides for stabilization authorities which are the Deposit Insurance Corporation of Ontario and any league or association of credit unions that the Corporation designates.  The Corporation will no longer designate stabilization authorities and the term is removed from the Act.  (See the repeal of sections 282 to 293 of the Act and the repeal of the definition of "stabilization authority" in section 1 of the Act.)

Continuing as or ceasing to be an Ontario credit union

Provisions are added to provide for bodies incorporated outside Ontario or under another Ontario Act to be continued under the Credit Union and Caisses Populaires Act, 1994.  (See section 316 of the Act.)  Provisions are also added to provide for bodies under the Credit Union and Caisses Populaires Act, 1994 to be continued under the laws of another jurisdiction or under another Ontario Act.  (See sections 316.1 and 316.2 of the Act.)

Administrative penalties

New provisions are added to provide for administrative penalties.  (See sections 331.1 to 331.6 and 321.0.1 of the Act.)  The purposes for which such penalties may be imposed are set out.  The Superintendent or the Corporation will be able to impose penalties for contraventions of specified requirements.  An appeal to the Tribunal is provided.  A person or entity who pays a penalty cannot be charged with an offence under the Act for the same contravention.  The maximum administrative penalty will be $25,000 or such lesser amount as may be prescribed.

Five-year reviews

Ongoing five-year reviews of the operation of the Act and the regulations are provided for.  (See section 334 of the Act.)

Related amendments

Amendments are made to other Acts primarily to treat credit unions the same as banks and loan and trust corporations.  Minor amendments are made to the Securities Act to reflect changes in terminology and the introduction of patronage shares.

schedule 8
early childhood educators act, 2007 and a related amendment

The Schedule enacts the Early Childhood Educators Act, 2007, which sets out a scheme for the governance of the practice of early childhood education, including the establishment of the College of Early Childhood Educators.

Part I of the new Act sets out the definitions applicable to the Act and defines what constitutes the practice of early childhood education for the purposes of the Act.

Part II prohibits a person from engaging in the practice of early childhood education unless the person is a member of the College of Early Childhood Educators or is excluded from the prohibition under subsection 3 (2).  Sections 4 and 5 contain prohibitions relating to the use of certain titles and designations and the right to hold oneself out as a member of the College.

Part III contains general provisions relating to the objects, organization and administration of the College and its board of directors, the Council. This Part includes provisions respecting the relationship between the College and the Minister of Children and Youth Services. Membership in the College is defined and annual meetings of the members are required.

Part IV sets out the powers and duties of the Registrar and the Registration Appeals Committee in relation to the registration of members of the College. This Part also provides for the keeping of a register and for suspension by the Registrar for failure to pay fees or to provide information required by the by-laws.

Part V sets out the powers and duties of the Complaints Committee, the Discipline Committee and the Fitness to Practise Committee. The Complaints Committee is responsible for receiving complaints and referring them to the appropriate committee for consideration. The Discipline Committee is responsible for reviewing allegations of professional misconduct or incompetence and the Fitness to Practise Committee is responsible for reviewing allegations of incapacity.

Part VI provides for procedures for relief from sanctions imposed on members of the College under the Act.

Part VII permits appeals to the Divisional Court from decisions of the Registration Appeals Committee, the Discipline Committee or the Fitness to Practise Committee and sets out procedures for those appeals.

Part VIII permits the Registrar, in specified circumstances, to appoint an investigator to inquire into the conduct or actions of a member of the College.

Part IX provides authority to make regulations and by-laws.

Part X contains miscellaneous provisions, including provisions relating to confidentiality of information received by members while performing their duties as early childhood educators and provisions relating to offences.

Part XI contains transitional provisions.

Part XII contains a consequential amendment to the Fair Access to Regulated Professions Act, 2006.

schedule 9
education act

Subsection 248 (5) of the Education Act is repealed.  This removes references to provisions that were repealed in the Budget Measures Act, 2006 (No. 2).

A technical amendment is made to clause 257.12 (3) (d) of the Act.  Currently, that clause permits the Minister of Finance to prescribe different tax rates for different classes of property for education tax purposes.  An amendment specifies that the Minister may prescribe different tax rates for education tax purposes for different classes of property whether or not the municipality has opted to have a particular property class apply for the purpose of setting municipal property tax rates.

schedule 10
election act

Section 9.2 is added to the Election Act to provide that the writs for the October 2007 general election will be issued on September 10, 2007, resulting in 29 clear days for campaigning before polling day, October 10.  Section 44 of the Act is amended to govern the operation of advance polls when an alternate polling day has been established under subsection 9.1 (6).

schedule 11
election finances act

Currently, the Election Finances Act provides that a political party may apply to the Chief Election Officer to be registered if it has candidates in at least 50 per cent of electoral districts in a general election or, alternatively, provides with its application the signatures of 10,000 voters.  These requirements are modified so that a party may apply to be registered if it has candidates in at least two electoral districts in a general election (or in two or more concurrent by-elections) or provides the signatures of 1,000 voters.  (Subsection 10 (2) of Act)

The Act currently provides that one of the reasons for which the Chief Election Officer may deregister a party is its failure to have any candidates at a general election.  This element is rewritten so that the Chief Election Officer is required to deregister the party if it does not have candidates in at least two electoral districts in a general election.  (Subsection 12 (2.1) of Act)

The list of matters to be included in a party's application for registration is expanded to include a statement, attested to by the leader of the party, that participating in public affairs by endorsing candidates and supporting their election is a fundamental purpose of the party.  Each registered party is required to file a similar statement annually.  The Chief Election Officer may deregister a party that fails, in his or her opinion, to participate in public affairs in accordance with the statement.  (Clause 10 (3) (k) and subsections 10 (6.1) and 12 (2.1) of Act)

The electoral district of Thunder Bay-Superior North is incorrectly referred to as "Thunder Bay-Nipigon" in subsection 38 (3.3) of the Act.  This is corrected.

schedule 12
electricity act, 1998

The amendment to section 88 of the Electricity Act, 1998 amends the definition of "taxation year" to adopt the definition of that term in the Income Tax Act (Canada).  Section 89 of the Act is amended to parallel wording used in the amendments to sections 90 and 93 of the Act.

The amendments to sections 90, 93 and 94 of the Act apply only if Bill 174, the Strengthening Business through a Simpler Tax System Act, 2006, receives Royal Assent.  If Bill 174 is enacted, certain provisions of the Taxation Act, 2006 will apply for taxation years ending after December 31, 2008 instead of the provisions of the Corporations Tax Act that are currently referred to in sections 90, 93 and 94 of the Electricity Act, 1998.

schedule 13
environmental protection act

The Schedule amends the Environmental Protection Act.

The amendments extend the protection from liability to municipalities and conservation authorities if an action arises from an inaccuracy in a record of site condition in relation to the issuance of a permit under the Building Code Act, 1992 or the execution or intended execution of a power or duty under the Planning Act or another prescribed Act (subsection 168.3 (4) of the Environmental Protection Act).

There are changes in the manner in which records of site condition are processed.  Before being filed in the Environmental Site Registry, a record of site condition is submitted for filing in the Registry and the Director shall give notice of receipt to the owner once the Director is satisfied that everything required by subsection 168.4 (2) has been submitted.  Within the prescribed time after giving notice of receipt, the Director shall give notice that the record of site condition cannot be filed because it has not been completed in accordance with the regulations or that the record of site condition is subject to a review or may acknowledge that the record is filed in the Registry (section 168.4 of the Act).  The changes also include details of what must be in a notice where the Director finds a defect and set out the review procedure and the procedure for correcting a defect in relation to the record of site condition (subsections 168.4 (3.1), (3.2), (3.3) and (3.4) of the Act).

The Act is amended to require the owner of a property, in addition to the qualified person, to retain reports that have been relied upon to make a certification in the record of site condition (subsection 168.4 (5) of the Act).  In addition, the Act is also amended to require that the Director correct an error of a prescribed type, if the correction is made in the circumstance, if any, that is prescribed by the regulations (subsection 168.4 (10) of the Act).

The Act is amended to change the rule on what happens if a contaminant, after the certification date, moves from a property for which a record of site condition has been filed to another property.  Currently, the immunity conferred by subsection 168.7 (1) of the Act is lost in those circumstances.  The Act is amended so that the immunity for certain persons remains (subsection 168.7 (6.1) of the Act) or it remains if certain criteria are satisfied (section 168.7.1 of the Act).

The Act is amended to require the Director to file notice of an order with respect to a property for which a record of site condition has been filed in certain circumstances (subsections 168.7.2 (1) and (2) of the Act).  In certain circumstances, the Director may not file a notice of compliance with respect to such an order until a new record of site condition is filed (subsection 168.7.2 (3) of the Act).

The changes made to the Act also include changing the phrase "the owner of the property" to "the person who owns the property", so that it is clear the provision only applies with respect to a current owner.  This change is made in subsection 168.8 (1) of the Act.

The power of the Lieutenant Governor in Council to make regulations relating to Part XV.1 of the Act (Records of Site Condition) is amended to reflect the amendments made to the Act and in relation to qualified persons (subsection 176 (10) of the Act).

schedule 14
escheats act

The Escheats Act is amended to provide that the Crown has a lien for its fees and expenses calculated under the regulations,

  (a)   on any property that has become the property of the Crown by reason of the person last seised of it or entitled to it having died intestate and without lawful heirs, or that has become forfeited for any cause to the Crown; and

  (b)   on personal property not owned by the Crown that is situated on land that has become forfeited to the Crown. 

This lien takes priority over other rights to the property, other than certain deemed trusts and the claims of a municipality for real property taxes.  A method of enforcing the lien by sale is provided.

schedule 15
family responsibility and support arrears enforcement act, 1996

Several amendments are made to the Family Responsibility and Support Arrears Enforcement Act, 1996 to allow alternate names or aliases used by support payors to be obtained by the Director and listed in a writ of seizure and sale.

An amendment is made to allow the Director to obtain information from income sources as to the indexing factor applied in calculating a payor's income.

schedule 16
french language services act

The Schedule amends the French Language Services Act to provide for the appointment of a French Language Services Commissioner and the establishment of the Office of the French Language Services Commissioner.

The French Language Services Commissioner's functions include the following:

    1.   Encouraging compliance with the Act by conducting investigations into the extent and quality of such compliance, whether the investigations are carried out as a result of a complaint or at the Commissioner's own initiative.

    2.   Preparing reports on investigations, which may or may not include recommendations.

    3.   Monitoring government agencies for compliance with the Act and advising the Minister of Francophone Affairs on matters relating to its administration.

The Commissioner may choose not to investigate, or cease investigating, a complaint on specified grounds, in which case the decision must be communicated to the complainant, with reasons.

The Commissioner is required to report the results of an investigation to the Minister and to the appropriate head of a government agency concerned by the investigation and, where the investigation started with a complaint, to the complainant.

The Commissioner is required to prepare an annual report, and may prepare special reports, for submission to the Minister. He or she may request the Minister to submit a special report to the Speaker of the Assembly for tabling with the Assembly and, on such a request being made, the Minister shall do so without delay. The Commissioner may only publish a report mentioned in the Act 30 days after it has been given to the Minister, unless the Minister consents to earlier publication.

In addition, the Minister responsible for Francophone Affairs is given authority to make regulations generally for the better administration of the Act.

schedule 17
income tax act

Section 8 of the Income Tax Act is amended to authorize a regulation to be made to increase the income threshold for the property and sales tax credits for senior couples if the sum of the maximum monthly amounts payable for January, April, July and October, 2007 as pension under the Old Age Security Act (Canada), guaranteed income supplement under Part II of the Old Age Security Act (Canada) and guaranteed annual income increment under the Ontario Guaranteed Annual Income Act exceeds the sum of the maximum payments of those amounts for the same months in 2006.  If a regulation is made, the prescribed income threshold will apply for the 2007 and subsequent taxation years.

Section 8.4.5 of the Act is amended to extend the eligibility period for the apprenticeship training tax credit to the end of 2014.

Section 8.5 of the Act provides for the Ontario child care supplement for working families.  The change to the definition of "qualified dependant" adds the requirement that the dependant be born before July 1, 2011.  The re-enactment of subsection 8.5 (5) of the Act is consequential on the enactment of section 8.6.2 of the Act and provides for a reduction in the amount of the Ontario child care supplement for working families starting in July 2008 if a person also qualifies for the Ontario child benefit.

The enactment of section 8.6.2 of the Act implements the Ontario child benefit.  There is a single payment to qualifying individuals for the period from July 1, 2007 to June 30, 2008 equal to $250 for each qualified dependant, subject to a reduction if the family income exceeds $20,000.  Starting with July 2008, the Ontario child benefit is paid monthly to qualifying individuals.  The amount of each monthly payment, subject to a reduction if the family income exceeds $20,000, is one-twelfth of $600 for each qualified dependant from July 2008 to June 2009.  The amount of $600 used in the calculation of the monthly payments is increased to $805 for July 2009 to June 2010, to $900 for July 2010 to June 2011, and to $1,100 after June 2011.

The amendment to section 23 of the Act permits the amount of an Ontario child benefit to be the subject of a court determination on an appeal under the Act.

Clause 45 (3) (a) of the Act currently permits the communication of information between the Minister of National Revenue and the Minister of Finance.  The clause is re-enacted to permit the communication of information  between the Minister of National Revenue, the Minister of Finance and the Minister of Revenue.

The enactment of section 49.1 authorizes the Minister of Government Services to enter into an agreement to disclose information relating to corporations that is in records maintained by the Ministry of Government Services or an official appointed by the Minister of Government Services to the Canada Revenue Agency for the purpose of the collection by the Canada Revenue Agency of taxes payable by corporations.

schedule 18
insurance act

The amendments to the Insurance Act are technical wording changes required by reason of the amendments to the Act in the Budget Measures Act, 2006 (No. 2).

schedule 19
interim appropriation act, 2007

The Schedule enacts the Interim Appropriation Act, 2007, which authorizes expenditures for the fiscal year ending on March 31, 2008 up to specified maximum amounts.  The expenditures are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2008 that are tabled in the Assembly.

schedule 20
justices of the peace act

Section 2.1 of the Justices of the Peace Act establishes and governs the Justices of the Peace Appointments Advisory Committee.  Currently, the Committee's powers include the power to interview candidates for appointment.  An amendment establishes a quorum for conducting interviews.

Currently, the Committee is required to classify candidates as "Not Qualified", "Qualified" or "Highly Qualified", and a quorum is established for those decisions.  An amendment changes the quorum.

schedule 21
legislative assembly act

The electoral district of Thunder Bay-Superior North is incorrectly referred to as "Thunder Bay-Nipigon" in subsection 67 (6) of the Legislative Assembly Act.  This is corrected.

schedule 22
mining act

The Mining Act is amended to add provisions respecting the voluntary rehabilitation of mine hazards on Crown land or on other prescribed land. If a person conducts the rehabilitation in accordance with standards prescribed by regulation, certain orders under the Environmental Protection Act and the Ontario Water Resources Act may not be issued against the person.

The Schedule adds Part VIII of the Act regarding the payment of a royalty on diamonds. Every operator of a diamond mine who mines diamonds under the authority of a grant from the Crown is required to pay a royalty to the Crown on the net value of the diamonds produced by the mine. The rate of the royalty is set out in the Act. Part VIII also contains provisions regarding the administration of the royalty and conditions that must be met before diamonds produced at a diamond mine are removed from the mine or sold. Related regulation-making powers are also added.

schedule 23
mining tax act

The definition of "stone for ornamental or decorative purposes" in subsection 1 (1) of the Mining Tax Act is re-enacted to include diamonds, effective for taxation years ending after March 22, 2007.

schedule 24
ministry of citizenship and culture act

The Schedule amends the Ministry of Citizenship and Culture Act to permit the Minister of Citizenship and Culture to establish and charge fees for services provided by the Ministry.  (Note that, pursuant to orders in council under the Executive Council Act, the Minister of Citizenship and Immigration shall exercise all powers and duties under the Ministry of Citizenship and Culture Act in so far as they relate to citizenship and immigration, and the Minister of Culture shall exercise all powers and duties under the Ministry of Citizenship and Culture Act in so far as they relate to the powers and duties of the Minister of Culture.)

schedule 25
ministry of revenue act

The current authority of the Minister of Revenue under section 7 of the Ministry of Revenue Act to delegate his or her powers and duties is revised, and provision is made for the subdelegation of those powers and duties.

An amendment to section 14 of the Act authorizes the exchange of information and material between the Minister and public servants and among public servants for specified purposes, including the development and evaluation of tax policy.

schedule 26
municipal act, 2001

Currently, clause 357 (1) (g) of the Municipal Act, 2001 permits an application to be made to a local municipality to cancel, reduce or refund property taxes if repairs or renovations to land prevented the normal use of the land for at least three months during a year.  Section 357 is amended to provide that taxes cannot be cancelled, reduced or refunded under that clause for 2007 or a subsequent taxation year if the land is eligible property under section 364.  Section 364 governs property tax rebates for vacant units.

A technical amendment is made to subsection 365.1 (23) of the Act.  This amendment is consequential to amendments that are made to the Environmental Protection Act in Schedule 13.

schedule 27
municipal conflict of interest act

The amendment to subsection 14 (3) of the Municipal Conflict of Interest Act updates a statutory reference to the Insurance Act which was amended in the Budget Measures Act, 2006 (No. 2).

schedule 28
niagara escarpment planning and development act

The Schedule amends the Niagara Escarpment Planning and Development Act by adding section 31, which specifies that a prosecution for an offence under the Act shall not be commenced more than three years after the offence was committed or is alleged to have been committed.

schedule 29
ontario loan act, 2007

The Ontario Loan Act, 2007 is enacted.  It authorizes the Crown to borrow a maximum of $4.5 billion.

schedule 30
ontario water resources act

The Schedule amends the Ontario Water Resources Act. The Act is amended in a fashion similar to the amendments made to the Environmental Protection Act in Schedule 13. 

The Ontario Water Resources Act is amended to preserve immunity where, after the certification date, material moves from a property to which a record of site condition relates to another property (subsections 89.2 (3) and (4.1) and section 89.2.1 of the Act).

The Act is amended to require the Director to file notice of an order with respect to a property for which a record of site condition has been filed in certain circumstances (subsections 89.2.2 (1) and (2) of the Act).  In certain circumstances, the Director may not file a notice of compliance with respect to such an order until a new record of site condition is filed (subsection 89.2.2 (3) of the Act).

The changes made to the Act also include changing the phrase "the owner of the property" to "the person who owns the property", so that it is clear the provision only applies with respect to a current owner.  This change is made in section 89.3 of the Act.

schedule 31
pension benefits act

The definition of "multi-employer pension plan" in subsection 1 (1) of the Pension Benefits Act is amended.  Currently, a pension plan is not a multi-employer pension plan if all of the employers participating in the plan are affiliates.  An amendment provides, in addition, that the regulations may specify that a pension plan is not a multi-employer pension plan for the purposes of the Act.

A related amendment is made to subsection 8 (3) of the Act, concerning the persons and entities who are permitted to administer a pension plan.

An amendment to section 115 of the Act specifies that the regulations may establish classes of multi-employer pension plans.  A technical amendment is also made to the section.

schedule 32
police services act

An amendment to the Police Services Act adds a new Part which governs the transfer of assets between the Public Service Pension Plan and the Ontario Municipal Employees Retirement System in specified circumstances involving the transfer of police force employees between a municipal police force and the Ontario Provincial Police.  The expression "police force employee" is defined.

Section 131.2 of the Act permits the administrators of the Public Service Pension Plan and the Ontario Municipal Employees Retirement System to enter into agreements governing the transfer of assets between pension plans in respect of the pension benefits and ancillary benefits of eligible police force employees.  Under section 131.3, the agreements must be filed with the Superintendent of Financial Services.  Specified sections of the Pension Benefits Act do not apply with respect to the filed agreements or any amendments to a pension plan relating to the implementation of such an agreement.

Section 131.4 of the Act governs which police force employees are eligible for a transfer of assets under such an agreement in respect of their pension benefits and ancillary benefits.  Under section 131.5 of the Act, if an eligible police force employee consents to the transfer of assets, specified sections of the Pension Benefits Act do not apply with respect to the transfer.

schedule 33
prepaid hospital and medical services act

The re-enactment of section 16 of the Prepaid Hospital and Medical Services Act maintains the existing investment rules in that Act and is required by reason of amendments to the Insurance Act in the Budget Measures Act, 2006 (No. 2).

schedule 34
proceedings against the crown act

The Proceedings Against the Crown Act is amended to provide that where property vests in the Crown independent of the acts or the intentions of the Crown (for example, by reason of the dissolution of a corporation), the Crown is not subject to liability in tort by reason only of the property being so vested.  The Crown is also not liable in tort by reason of taking actions to investigate and secure such property.

schedule 35
registered insurance brokers act

The re-enactment of clause 11 (1) (n) of the Registered Insurance Brokers Act maintains the existing investment rules and is required by reason of amendments to the Insurance Act in the Budget Measures Act, 2006 (No. 2).

schedule 36
retail sales tax act

Subsection 1 (1.1) of the Retail Sales Tax Act provides that the fair value of transient accommodation sold before July 1, 2007 excludes a fee imposed by the vendor (commonly called the destination marketing fee) if the conditions set out in that subsection are satisfied.  The amendment to that subsection provides that the exclusion of the fee applies to transient accommodation sold before July 1, 2008.

Section 4.1 of the Act currently provides a tax credit of $100 in respect of the purchase of a new fuel efficient passenger car, payable by way of a deduction from the amount of retail sales tax payable by the purchaser at the time of the sale of the car.  The section is amended to provide that if the amount of retail sales tax payable at the time of the sale of the car by a purchaser described in clause 4.1 (3) (a) of the Act is less than $100, the vendor may pay the balance of the tax credit to the purchaser and deduct the amount of the payment from the amount of the retail sales tax otherwise collected by the vendor and required to be remitted to the Minister under section 13 of the Act.

Paragraph 26 of subsection 7 (1) of the Act provides an exemption from retail sales tax with respect to child seating and restraint systems that meet the specifications prescribed by the regulations made under section 106 of the Highway Traffic Act.  The amendment to this paragraph updates the statutory cross-reference to the Highway Traffic Act.

Clauses 48 (3) (r) and (s) of the Act authorize the Minister of Finance to make regulations providing for a rebate of all or part of the retail sales tax paid in respect of solar energy systems, wind energy systems, geo-thermal energy systems and micro hydro-electric systems that are purchased and incorporated into residential premises before November 26, 2007.  The amendments to those clauses extend the rebate program and authorize the Minister to make regulations providing tax rebates in respect of these types of systems purchased and incorporated into residential premises before January 1, 2010.

schedule 37
ryerson university act, 1977

The Schedule amends the Ryerson University Act, 1977.  The name of the University's Academic Council is changed to "Senate".  The members of the Senate are allowed to sit for up to three consecutive terms.  The current Act only allows members to sit for up to two consecutive terms.  The citizenship and residency requirements for Senate members are removed.  The maximum number of members elected to the Senate is increased to 51 members from 50 members.  The composition of the Senate is amended to include a representative of the librarians employed by the University.

schedule 38
securities act

Technical amendments are made to Part XV of the Securities Act, which governs prospectuses and distributions.  A related amendment is made to section 143 of the Act.  Highlights of the technical amendments include the following:

    1.   Amendments to section 57 of the Act provide that an issuer cannot proceed with a distribution or an additional distribution of securities pursuant to an amendment to a prospectus unless the Director has issued a receipt for the amendment.  Exceptions may be made by regulation.

    2.   An amendment to the definition of "waiting period" in subsection 65 (1) of the Act, which establishes the minimum period between the issuance of a receipt for a preliminary prospectus and the issuance of a receipt for a prospectus, permits the waiting period to be prescribed by regulation.

Technical amendments are made to expressions used in the French version of sections 35 and 72 of the Act.

Part XX of the Act, which governs take-over bids and issuer bids, is re-enacted.  The current requirements are reorganized, and technical amendments are made.  Related amendments are made to sections 1, 131, 133, 138.1, 138.5 and 143 of the Act.  Highlights of the technical amendments include the following:

    1.   The definitions of "take-over bid" and "issuer bid", which are set out in subsection 89 (1) of the Act, are amended to exclude purchases that are a step in a transaction that requires the approval of security holders.  The definition of "issuer bid" is also amended to exclude purchases where no valuable consideration is paid for the securities.

    2.   Section 91 of the Act re-enacts the provision governing the circumstances in which a person or company will be treated as acting jointly or in concert with an offeror.  The technical amendments reduce the burden of proof in certain circumstances where it is alleged that an offeror has acted jointly or in concert with another person or company.

    3.   Section 97 of the Act re-enacts the current requirement that all holders of the same class of securities must be offered identical consideration, if a formal bid is made.  The new subsection 97 (2) states that this requirement does not prohibit an offeror from offering an identical choice of consideration to those security holders.

    4.   Section 97.1 of the Act re-enacts the current prohibition against entering into a collateral agreement, commitment or understanding that has the effect of providing to one security holder consideration of greater value than the consideration offered to other holders of the same class of securities.  An amendment creates an exception for certain employment-related arrangements.

    5.   Current exemptions from the formal bid requirements are re-enacted.  Sections 100.3 and 101.4 create new exemptions for take-over bids and issuer bids that are carried out in accordance with the laws of a foreign jurisdiction, if more than 90 per cent of the securities that are subject to the bid are held outside Canada.

Technical amendments are also made to section 143.10 of the Act which governs certain agreements, memorandums of understanding and arrangements entered into by the Commission.  The amendments concern those that the Commission is not required to publish in its Bulletin.  The amendments provide for their review by the Minister and for the date on which they come into effect.

schedule 39
status of ontario's artists act, 2007

The Status of Ontario's Artists Act, 2007 is enacted to recognize the contributions that artists make to Ontario's economy and quality of life.

The Schedule sets out the responsibility of the Minister to develop and implement policies relating to artists and the arts and culture sector. In addition, the Schedule states the Government of Ontario's undertaking to address issues that concern artists and the arts and culture sector.

The first weekend in June in every year is proclaimed as Celebrate the Artist Weekend.

schedule 40
tobacco tax act

Subsection 3 (4) of the Tobacco Tax Act currently provides that no wholesaler may sell or deliver tobacco to a retailer who does not hold a vendor's permit under the Retail Sales Tax Act.  The subsection is re-enacted to also prohibit a wholesaler from delivering tobacco to a retail dealer while the retail dealer is temporarily prohibited from selling tobacco under section 20 of the Act.

The re-enactment of subsection 5 (14) of the Act and the amendment to subsection 28 (3) of the Act provide technical wording changes relating to the amount of the fines imposed under those provisions on a conviction. 

New section 13.1.1 of the Act authorizes the collection of tax from cross-border buyers by customs officers and, if an agreement is entered into under section 13.3 of the Act with Canada Post Corporation, by Canada Post Corporation and its collection agents.  Consequential amendments are made to section 13.2 of the Act to extend the application of that section to section 13.1.1.  Section 13.3 of the Act is amended to authorize collection agreements with Canada Post Corporation.

Subsection 20 (3) of the Act currently authorizes the Minister to provide an exemption from the payment of all or part of the interest payable by a person if, due to special circumstances, it would be inequitable to require full payment.  This provision is moved to section 18.1 of the Act and subsection 20 (3) of the Act is repealed.

New section 20 of the Act authorizes the Minister of Finance to temporarily prohibit all persons from selling and storing tobacco in a particular place owned or occupied by a retail dealer if, within a five-year period, the retail dealer has been assessed two or more penalties under the Act, has been convicted of two or more tobacco offences or has been both assessed a penalty and convicted of a tobacco offence, and the penalties and convictions relate to activities at or in connection with the particular place.  The length of the temporary prohibition depends on the number of penalties and convictions in the five-year period.  Wholesalers are prohibited from delivering tobacco to locations of retail dealers that are subject to a temporary prohibition.  Section 20.1 of the Act is enacted to require the retail dealer to post signs disclosing the prohibition at the place that is subject to the prohibition.

Under new section 20.2 of the Act, penalties may be assessed against a person or the person may be charged with an offence under the Act if he or she fails to comply with a temporary prohibition under section 20 of the Act.  Wholesalers may be assessed a penalty and may lose their wholesalers' permit if they deliver tobacco to a location of a retail dealer that is subject to a temporary prohibition. 

Section 23.2 of the Act is enacted to authorize the seizure of tobacco from a particular place owned or occupied by a retail dealer if any person is contravening subsection 20 (4) of the Act by selling or storing the tobacco at the particular place during a temporary prohibition under section 20.

Section 32.1 of the Act is amended to permit the disclosure of the name and address of every retail dealer who is subject to a temporary prohibition under section 20 of the Act or under section 16 of the Smoke-Free Ontario Act.

schedule 41
workplace safety and insurance act, 1997

The Schedule amends the Workplace Safety and Insurance Act, 1997.

Sections 42 and 43 of the Act are amended to require the Workplace Safety and Insurance Board to consider employment or business positions that are both suitable for a worker and available, when determining the worker's post-injury earnings or determining whether a labour market re-entry plan is required for the worker. Currently, the Act requires the Board to consider positions that are suitable for the worker, but not availability.

Several changes are made to section 44 of the Act.  Subsection 44 (2.1) is amended to provide for additional circumstances in which the Board may review a worker's loss of earnings benefit after the 72-month lock-in period.  The payment of any adjustment to a worker's loss of earnings benefit as a result of a review is payable only from the date the amendment comes into force, July 1, 2007. In addition, section 107 of the Act is amended to make these changes (except for the amendments dealing with early and safe return to work under section 40 and health care measures under section 34) apply to the pre-1997 Act.

Subsection 45 (6) of the Act currently provides that a benefit for loss of retirement income must be paid as a lump sum if the amount of the benefit is less than $1,145.63 per year.  This threshold is raised to $3,000 per year.

Section 49 of the Act is amended to establish a temporary indexing factor of 2.5 per cent for the years commencing January 1, 2008 and January 1, 2009.  This factor will be applied instead of the general indexing factor described in subsection 49 (1) of the Act, and an additional adjustment of 2.5 per cent will be made on July 1, 2007.  Corresponding amendments are made to sections 51 and 52 of the Act.

New section 52.1 of the Act authorizes the Lieutenant Governor in Council to make regulations prescribing a temporary indexing factor for any calendar year and prescribing an additional adjustment on any specific date.

Section 162 of the Act is amended to increase the size of the board of directors of the Workplace Safety and Insurance Board, and to clarify that the same person cannot serve as both chair and president.

 

 

[38] Bill 187 As Amended by Standing Committee (PDF)

Bill 187 2007

An Act respecting Budget measures, interim appropriations and other matters

Note: This Act amends or repeals more than one Act.  For the legislative history of these Acts, see Public Statutes – Detailed Legislative History on www.e-Laws.gov.on.ca.

 

CONTENTS

1.

2.

3.

Schedule 1

Schedule 2

Schedule 3

Schedule 4

Schedule 5

Schedule 6

Schedule 7

Schedule 8

Schedule 9

Schedule 10

Schedule 11

Schedule 12

Schedule 13

Schedule 14

Schedule 15

Schedule 16

Schedule 17

Schedule 18

Schedule 19

Schedule 20

Schedule 21

Schedule 22

Schedule 23

Schedule 24

Schedule 25

Schedule 26

Schedule 27

Schedule 28

Schedule 29

Schedule 30

Schedule 31

Schedule 32

Schedule 33

Schedule 34

Schedule 35

Schedule 36

Schedule 37

Schedule 38

Schedule 39

Schedule 40

Schedule 41

Contents of this Act

Commencement

Short title

Assessment Act

Capital Investment Plan Act, 1993

Charitable Gifts Act

City of Toronto Act, 2006

Community Small Business Investment Funds Act

Corporations Tax Act

Credit Unions and Caisses Populaires Act, 1994 and Related Amendments

Early Childhood Educators Act, 2007 and a Related Amendment

Education Act

Election Act

Election Finances Act

Electricity Act, 1998

Environmental Protection Act

Escheats Act

Family Responsibility and Support Arrears Enforcement Act, 1996

French Language Services Act

Income Tax Act

Insurance Act

Interim Appropriation Act, 2007

Justices of the Peace Act

Legislative Assembly Act

Mining Act

Mining Tax Act

Ministry of Citizenship and Culture Act

Ministry of Revenue Act

Municipal Act, 2001

Municipal Conflict of Interest Act

Niagara Escarpment Planning and Development Act

Ontario Loan Act, 2007

Ontario Water Resources Act

Pension Benefits Act

Police Services Act

Prepaid Hospital and Medical Services Act

Proceedings Against the Crown Act

Registered Insurance Brokers Act

Retail Sales Tax Act

Ryerson University Act, 1977

Securities Act

Status of Ontario's Artists Act, 2007

Tobacco Tax Act

Workplace Safety and Insurance Act, 1997

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

   1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

   2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

   (2)  The Schedules to this Act come into force as provided in each Schedule.

Same

   (3)  If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

   3.  The short title of this Act is the Budget Measures and Interim Appropriation Act, 2007.

 

Schedule 1
Assessment Act

   1.  (1)  Subsection 6.1 (2) of the Assessment Act is repealed and the following substituted:

Land in municipalities

   (2)  The council of a local or upper-tier municipality, as the case may be, may pass by-laws exempting land described in subsection (1) from taxation for its purposes on such conditions as may be set out in the by-laws.

   (2)  Section 6.1 of the Act is amended by adding the following subsection:

Transition

   (6)  Despite the repeal of section 325 of the Municipal Act, 2001 on December 20, 2006, a by-law passed under that section that was in effect on December 19, 2006 is, on and after December 20, 2006, deemed to have been authorized by subsection (2).

   2.  Section 15 of the Act is amended by adding the following subsection:

Same, non-municipal territory

   (2)  Where necessary for the purposes of elections to boards constituted under the District Social Services Administration Boards Act or under other provincial statutes, the Minister may direct the assessment corporation to conduct an enumeration of the inhabitants of all or part of the non-municipal territory and the assessment corporation shall do so at the times and in the manner required by the Minister.

   3.  Subsection 19 (1) of the Act is amended by striking out "or average current value, as determined under section 19.1" at the end.

   4.  Section 19.1 of the Act is repealed and the following substituted:

Adjustments for certain property classes

   19.1  (1)  In this section,

"eligible increase" has the meaning prescribed by the Minister; ("augmentation admissible")

"general reassessment" means the updating of assessments as a result of the application of a new valuation day under subsection 19.2 (1). ("réévaluation générale")

Property classes

   (2)  This section applies with respect to land in the residential property class, the farm property class, the managed forest property class and such other property classes or sub-classes as may be prescribed by the Minister.

Phasing in eligible increases

   (3)  For 2009 and subsequent taxation years, if the current value of land increases because of a general reassessment, the current value of the land shall be reduced according to the following rules:

    1.  For the first taxation year to which the general reassessment applies, the current value of the land is reduced by an amount equal to 75 per cent of the eligible increase.

    2.  For the taxation year following the taxation year in paragraph 1, the current value of the land is reduced by an amount equal to 50 per cent of the eligible increase.

    3.  For the taxation year following the taxation year in paragraph 2, the current value of the land is reduced by an amount equal to 25 per cent of the eligible increase.

Further adjustments

   (4)  The Minister may, by regulation, provide for such other adjustments to the current value of land for the 2009 and subsequent taxation years as he or she considers appropriate including, without limiting the generality of the foregoing,

  (a)  adjustments relating to a change made pursuant to section 32, 33 or 34;

  (b)  adjustments resulting from an application, a request for reconsideration or a complaint under section 39.1, 40 or 46;

   (c)  adjustments where there is no eligible increase in the current value;

  (d)  adjustments in such other circumstances as may be prescribed.

   5.  Subsections 19.2 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Valuation days

   (1)  Subject to subsection (5), the day as of which land is valued for a taxation year is determined as follows:

    1.  For the 2006, 2007 and 2008 taxation years, land is valued as of January 1, 2005.

    2.  For the period consisting of the four taxation years from 2009 to 2012, land is valued as of January 1, 2008.

    3.  For each subsequent period consisting of four consecutive taxation years, land is valued as of January 1 of the year preceding the first of those four taxation years.

   6.  Subsection 41 (4) of Schedule A to the Budget Measures Act, 2006 (No. 2) is repealed and the following substituted:

Same

   (4)  Subsection 18 (2), sections 22, 24, 25, 26, 28, 29, subsections 30 (1), (2), (3) and (4) and sections 36, 37, 38 and 39 come into force on January 1, 2008.

Same

   (5)  Subsections 30 (5), (6) and (7) come into force on January 1, 2007.

Commencement

   7.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on December 20, 2006.

Same

   (3)  Section 6 is deemed to have come into force on January 1, 2007.

 

Schedule 2
Capital Investment Plan Act, 1993

   1.  Section 8 of the Capital Investment Plan Act, 1993 is amended by adding the following subsections:

Ontario Financing Authority powers

   (7)  With the approval of the Minister of Finance, the Ontario Financing Authority may determine salary ranges and remuneration, excluding benefits, for public servants who work in the Authority and who are members of a prescribed class.

Same

   (8)  With the approval of the Minister of Finance, the Ontario Financing Authority may determine benefits to be provided in addition to the benefits determined under subsection 33 (3) of the Public Service of Ontario Act, 2006 for public servants who work in the Authority and who are members of a prescribed class.

Regulations re classes

   (9)  For the purposes of subsection (7) or (8) or both, the Minister of Finance may, by regulation, prescribe one or more of the classes that are created under subsection 33 (1) of the Public Service of Ontario Act, 2006.

Subclasses

   (10)  For the purposes of subsection (7) or (8) or both, the Ontario Financing Authority may establish subclasses within the prescribed classes of public servants and may determine different salary ranges, remuneration and benefits for each subclass.

Policies and procedures

   (11)  The Ontario Financing Authority may establish policies and procedures relating to the management and administration of the salary ranges and remuneration determined under subsection (7) and the additional benefits determined under subsection (8).

Conflict

   (12)  The salary ranges and remuneration determined under subsection (7) prevail over those determined under subsections 33 (2) and (3) of the Public Service of Ontario Act, 2006.

Same

   (13)  The policies and procedures established under subsection (11) prevail over directives of the Public Service Commission issued under subsection 43 (1) of the Public Service of Ontario Act, 2006 and over policies, procedures and directives issued under the Management Board of Cabinet Act.

   2.  Section 20 of the Act is repealed and the following substituted:

Authorized investments

   20.  Despite any other Act, securities issued by the corporations are authorized investments for public bodies as defined in section 29 and for trusts.

   3.  Subsection 35 (1) of the Act is amended by striking out "to an officer or employee of the Crown employed in or seconded to the Authority" and substituting "to the chief executive officer of the Authority or to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Authority".

Commencement

   4.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Sections 1 and 3 come into force on the day subsection 33 (2) of the Public Service of Ontario Act, 2006 comes into force.

Same

   (3)  Section 2 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

schedule 3
Charitable Gifts Act

   1.  Section 6 of the Charitable Gifts Act is repealed and the following substituted:

Investment of proceeds

   6.  The proceeds of any disposition pursuant to section 2 may be invested only in investments authorized under sections 27 to 31 of the Trustee Act, but no such investment shall be made that results in the person making the investment holding more than a 10 per cent interest in any one business. 

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 1 comes into force on the day section 15 of Schedule O to the Budget Measures Act, 2006 (No. 2) comes into force.

 

Schedule 4
City of Toronto Act, 2006

   1.  Section 323 of the City of Toronto Act, 2006 is amended by adding the following subsection:

Exception, vacant unit rebate

   (1.1)  For 2007 and subsequent taxation years, no cancellation, reduction or refund of taxes is permitted under clause (1) (h) in respect of land that is eligible property under section 331.

   2.  Subsection 333 (20) of the Act is repealed and the following substituted:

Notice to City

   (20)  The owner of an eligible property in respect of which a record of site condition has been filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act shall, within 30 days after the record of site condition is filed, notify the City of the filing and the City shall, within 30 days after receiving the notice, advise the Minister of Finance of the filing.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

Same

   (2)  Section 2 comes into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 5
Community Small Business Investment Funds Act

   1.  The definition of "eligible year" in subsection 16.1 (7) of the Community Small Business Investment Funds Act is repealed and the following substituted:

"eligible year" means a calendar year after 2000 and before 2012.

   2.  Subsection 17 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Disposition of investment

   (3)  For the purposes of this section, the labour sponsored investment fund corporation shall be deemed to continue to hold the investment,

.     .     .     .     .

Commencement

   3.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 6
Corporations Tax Act

   1.  Section 11.2 of the Corporations Tax Act is amended by adding the following subsections:

Effect of transfer

   (13.1)  For the purposes of this section, if a qualified Ontario SR & ED expenditure made or incurred by a corporation in a specified taxation year or in the taxation year preceding the first specified taxation year of a corporation is transferred to another corporation pursuant to subsection 127 (13) of the Federal Act, the amount transferred, 

  (a)  is deemed not to be a qualified Ontario SR & ED expenditure made or incurred by the transferor; and

  (b)  is deemed to be a qualified Ontario SR & ED expenditure made or incurred by the other corporation in the other corporation's first taxation year that ends after the specified taxation year or that preceding year, as the case may be.

Application of subs. (13.1)

   (13.2)  Subsection (13.1) applies in respect of a qualified Ontario SR & ED expenditure made or incurred by a corporation before or after subsection (13.1) comes into force.

   2.  (1)  Subsection 43.1 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Corporate minimum tax account, taxation years ending before March 23, 2007

   (3)  The amount of a corporation's corporate minimum tax account for a taxation year ending before March 23, 2007 is,

.     .     .     .     .

   (2)  Section 43.1 of the Act is amended by adding the following subsections:

Corporate minimum tax account, taxation years ending after
March 22, 2007

   (3.1)  The amount of a corporation's corporate minimum tax account for a taxation year ending after March 22, 2007 is determined as follows:

    1.  If the corporation is not a life insurance corporation, the amount of the corporation's corporate minimum tax account for the year is the sum of all amounts each of which is,

            i.  the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or

           ii.  the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year.

    2.  If the corporation is a life insurance corporation, the amount of the corporation's corporate minimum tax account for the year is the sum of all amounts each of which is,

            i.  the amount determined under subsection (3.2) in respect of a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or

           ii.  the amount determined under subsection (3.2) in respect of a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent that the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year.

Same

   (3.2)  For the purposes of subparagraphs 2 i and ii of subsection (3.1), the amount determined in respect of a previous taxation year is the amount by which the corporation's corporate minimum tax for that year, as determined under Part II.1 before any deduction permitted under subsection 57.3 (2), exceeds the greater of,

  (a)  the amount that would be determined in respect of the corporation under clause 74.1 (1) (a) for that year; and

  (b)  the amount of tax payable under this Part for that year after all deductions from tax to which the corporation is entitled for that year, other than a deduction permitted under this section.

   3.  (1)  Clause 43.10 (4) (b) of the Act is amended by striking out "April 1, 2007" and substituting "April 1, 2008".

   (2)  Clause 43.10 (4) (c) of the Act is amended by striking out "March 31, 2007" and substituting "March 31, 2008".

   4.  (1)  Clause (a) in the definition of "C", as set out in clause (b) of the definition of "A", in subsection 43.13 (3) of the Act is repealed and the following substituted:

  (a)  after May 18, 2004 and before January 1, 2015, and

   (2)  Paragraph 1 of subsection 43.13 (7) of the Act is repealed and the following substituted:

    1.  The apprentice's employment as an apprentice in an apprenticeship program with the corporation commenced before January 1, 2012.

   (3)  Subparagraphs 1 iii and 2 ii of subsection 43.13 (9) of the Act are amended by striking out "January 1, 2011" wherever it appears and substituting in each case "January 1, 2015".

   5.  Subsection 44.1 (2) of the Act is amended by striking out "clause 57.3 (2) (b)" and substituting "clause 43.1 (3.2) (b), 57.3 (2) (b)".

   6.  Subsection 57.5 (5) of the Act is repealed and the following substituted:

Eligible losses for a taxation year

   (5)  Except as provided in subsection (7), the amount of a corporation's eligible losses for a taxation year that is deducted or deemed to be deducted under this Part for the year is equal to the lesser of "A" and "B" where,

  "A"  is the amount by which "C" exceeds "D" where,

         "C"  is the sum of all amounts each of which is,

                 (a)  the corporation's adjusted net loss for a prior taxation year that commenced after 1993, ended before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, or

                 (b)  the corporation's adjusted net loss for a prior taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, and

         "D"  is the sum of all amounts each of which is an amount included in the amount determined under clause (a) or (b) of the definition of "C" that was deducted or is deemed to have been deducted as an eligible loss under this Part for a prior taxation year, and

  "B"  is the amount by which the corporation's adjusted net income for the taxation year exceeds the amount, if any, of its pre-1994 loss that is deducted or deemed to be deducted for the taxation year.

   7.  Subsection 61 (1) of the Act is amended by adding the following clause:

(b.1) for taxation years commencing after September 30, 2006, its accumulated other comprehensive income;

   8.  (1)  Subsection 62 (4) of the Act is repealed and the following substituted:

Definition, "any other surplus"

   (4)  For the purpose of this Part,

"any other surplus" includes, in respect of a corporation for a taxation year, in addition to any amount included under subsection (7), any amount required to be included in the corporation's income for the purposes of Part II for the taxation year or a previous taxation year to the extent that the amount is not included in the corporation's income as shown on its financial statements, but does not include,

  (a)  an amount referred to in subsection 11 (5) or (6) or 11.0.1 (3), or

  (b)  an amount referred to in paragraph 12 (1) (o) or subsection 15 (1) or (2), 17 (1) or 37.1 (3) of the Income Tax Act (Canada), as made applicable by subsection 11 (1).

   (2)  Subsection 62 (7) of the Act is amended by striking out the portion before clause (a) of the definition of "any other surplus", "total assets" and "cost of investments" and substituting the following:

Definitions

   (7)  For the purposes of this Part,

"accumulated other comprehensive income", "any other surplus", "cost of investments" and "total assets" includes any amount,

.     .     .     .     .

   9.  Subsection 62.1 (2) of the Act is amended by striking out "and" at the end of clause (d) and by adding the following clause:

(d.1) for taxation years commencing after September 30, 2006, the amount of its accumulated other comprehensive income; and

   10.  (1)  Subsection 66 (1.1) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year.

   (2)  Subsection 66 (1.2) of the Act is repealed and the following substituted:

No tax payable after June 30, 2010

   (1.2)  No tax is payable under this Part by a corporation that is not a financial institution for a taxation year commencing after June 30, 2010.

   (3)  The definition of "G" in subsection 66 (4.1) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.3 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (4)  The definition of "J" in subsection 66 (4.2) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (5)  The definition of "L" in subsection 66 (4.3) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.36 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year, and

   (6)  Subsection 66 (4.4) of the Act is repealed and the following substituted:

No tax payable after June 30, 2010 by financial institution

   (4.4)  No tax is payable under this Part by a financial institution for a taxation year commencing after June 30, 2010.

   11.  The definition of "D" in clause 66.1 (3.2) (b) of the Act is amended by adding "and" at the end of clause (b) and by repealing clauses (c) and (d) and substituting the following:

   (c)  0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the taxation year.

Commencement

   12.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2007 receives Royal Assent.

 

Schedule 7
Credit Unions and Caisses Populaires Act, 1994 and Related Amendments

   1.  (1)  The definitions of "association of credit unions", "auditor", "by-law" and "Commission" in section 1 of the Credit Unions and Caisses Populaires Act, 1994 are repealed.

   (2)  The definition of "credit union" in section 1 of the Act is repealed and the following substituted:

"credit union" means a corporation incorporated or continued as a credit union or caisse populaire under this Act or a predecessor of this Act; ("caisse", "caisse populaire")

   (3)  The definition of "deposit" in section 1 of the Act is repealed and the following substituted:

"deposit" includes money deposited with a credit union under a federal or provincial registered savings plan or fund; ("dépôt")

   (4)  Clauses (a) and (b) of the definition of "financial institution" in section 1 of the Act are repealed and the following substituted:

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada),

  (b)  an insurer licensed under the Insurance Act,

   (5)  The definition of "financial institution" in section 1 of the Act is amended by striking out "and" at the end of clause (e) and by adding the following clauses:

  (g)  a retail association as defined under the Cooperative Credit Associations Act (Canada), and

   (h)  such other entities or classes of entities as may be prescribed;

   (6)  The definition of "officer" in section 1 of the Act is repealed and the following substituted:

"officer", in respect of a credit union, means,

  (a)  the chair of the board required under section 94.2,

  (b)  the corporate secretary required under subsection 140 (1),

   (c)  the chief executive officer required under subsection 140 (1), and

  (d)  any other officer provided for in the by-laws referred to in subsection 140 (1); ("dirigeant")

   (7)  Section 1 of the Act is amended by adding the following definition:

"patronage share" means a share of a class provided for by the articles of a credit union in accordance with section 53; ("part de ristourne")

   (8)  The definition of "personal representative" in section 1 of the Act is amended by striking out "a tutor".

   (9)  The definitions of "real estate" and "stabilization authority" in section 1 of the Act are repealed.

   2.  The English version of subsection 2 (2) of the Act is amended by striking out "his or her" and substituting "their".

   3.  (1)  Subsection 5 (2) of the Act is amended by striking out "Superintendent" and substituting "Corporation".

   (2)  Subsection 5 (3) of the Act is repealed and the following substituted:

Revocation of order

   (3)  The Corporation may, by order, revoke an order under subsection (2) if the Corporation believes that the credit union has failed to comply with a term set out in the order under subsection (2) or that it is no longer appropriate to deem the corporate body in respect of which the order under subsection (2) was made to be an affiliate.

Procedural rules

   (4)  Section 240.1 applies with respect to an order under this section.

   4.  Section 7 of the Act is repealed and the following substituted:

Member

   7.  (1)  For the purposes of this Act, a person is a holder of a membership share of a credit union when, according to the register under section 230, the person is the owner of the membership share or is entitled to be entered in the register as the owner of the share.

Holder of membership share

   (2)  A reference in this Act to the holding of a membership share by or in the name of a person is a reference to the fact that the person is registered or is entitled to be registered in the register under section 230 as the holder of the share.

   5.  Part II of the Act is repealed.

   6.  Clause 13 (2) (c) of the Act is repealed and the following substituted:

   (c)  is an undischarged bankrupt or has been discharged as a bankrupt in the five years preceding the date the application to incorporate the credit union is made under subsection 15 (1).

   7.  Subsection 14 (1) of the Act is repealed and the following substituted:

Contents of articles

   (1)  The articles of incorporation must set out the prescribed information.

   8.  (1)  Subsection 15 (1) of the Act is repealed and the following substituted:

Application for incorporation

   (1)  An application to incorporate a credit union may be made by sending to the Superintendent two copies of the proposed articles of incorporation and the proposed by-laws of the credit union and paying the application fee established by the Minister.

   (2)  Subsection 15 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Inquiry before incorporation

   (2)  The Superintendent shall inquire into the circumstances, sufficiency and regularity of the articles and by-laws and may do any of the following before issuing a certificate of incorporation:

.     .     .     .     .

   9.  (1)  Subsection 16 (1) of the Act is repealed and the following substituted:

Certificate of incorporation

   (1)  Subject to subsection (2), the Superintendent shall issue a certificate of incorporation to the incorporators.

   (2)  Subsection 16 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Grounds for refusing certificate

   (2)  The Superintendent shall not issue a certificate of incorporation if the articles do not meet the requirements of section 14 or 15 or if the incorporators do not satisfy the Superintendent of the following matters:

.     .     .     .     .

   (3)  Paragraph 3 of subsection 16 (2) of the Act is repealed and the following substituted:

    3.  The credit union will be operated in such a way that deposits will be safeguarded without the likelihood of a claim against the Corporation.

   10.  Sections 18 and 19 of the Act are repealed and the following substituted:

Refusal of certificate

   18.  If the Superintendent decides, after giving the applicants for incorporation an opportunity to make written submissions, not to issue a certificate of incorporation, he or she shall notify the incorporators, in writing, and set out the reasons for the decision.

Language and form of corporate name

   19.  (1)  The corporate name of a credit union must be in the language and form authorized in the articles and approved by the Superintendent.

Use of "credit union"

   (2)  Subject to subsections (3) and (4), the corporate name of a credit union must include the words "credit union" or "caisse populaire".

Use of "caisse populaire"

   (3)  Only a corporation incorporated under this Act or a predecessor of this Act that provides financial services to its members and promotes the interests of the French-speaking community in Ontario by providing management and democratic control in French may include "caisse populaire" in its corporate name, and all other corporations incorporated under this Act or a predecessor of this Act shall include "credit union" in their corporate names.

Use of "Limited", etc.

   (4)  The corporate name of a credit union must have at the end of it one of the following: "Limited", "Ltd", "Limitée", "Ltée", "incorporated", "incorporée" or "Inc".

   11.  Subsections 19.1 (1) and (2) of the Act are repealed and the following substituted:

Use of other name

   (1)  A credit union shall not carry on business under or identify itself by a name other than its corporate name unless the Superintendent has approved that name.

Restriction on approval

   (2)  The Superintendent shall not approve a name under subsection (1),

  (a)  if the name includes "credit union" or "caisse populaire", unless the name is derived from the credit union's corporate name; or

  (b)  if the name would be precluded as a corporate name under section 21.

   12.  Section 20 of the Act is repealed and the following substituted:

Prohibition, use of "credit union", "caisse populaire"

   20.  No person, other than a credit union or prescribed person or entity, shall carry on business using a name in which "credit union" or "caisse populaire" is used.

   13.  (1)  The English version of subsection 21 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Restrictions re corporate names

   (1)  A credit union may not be incorporated under this Act with a corporate name that,

.     .     .     .     .

   (2)  Subsections 21 (3), (4) and (5) of the Act are repealed and the following substituted:

Exception for affiliates

   (3)  Clauses (1) (d) and (e) do not apply with respect to a credit union that is affiliated with another entity if the Superintendent is satisfied that the entity consents to it having a corporate name substantially similar to the entity's name.

Change of corporate name

   (4)  If a credit union has acquired a corporate name contrary to subsection (1), the Superintendent may, by order, issue a certificate of amendment to the articles changing the name of the credit union.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under subsection (4).

   14.  Section 22 of the Act is repealed and the following substituted:

Reserving a corporate name

   22.  (1)  A person may reserve a corporate name for a period of up to 90 days by making an application to the Superintendent and paying the fee established by the Minister.

Effect of reservation

   (2)  During the period that the corporate name is reserved, a body corporate is not entitled to acquire the name or a similar name without the written consent of the person for whose use and benefit the name is reserved.

Renewal of reservation of corporate name

   (3)  Within 30 days before the expiry of the reservation of a corporate name under subsection (1), the person who reserved the name may apply for a renewal of the reservation for a further period of not more than 90 days by submitting an application for the renewal to the Superintendent and paying the fee established by the Minister.

Corporate seal

   22.1  A credit union may, but need not, have a corporate seal.

   15.  (1)  Clause 24 (2) (d) of the Act is repealed and the following substituted:

  (d)  each member has only one vote at its general meetings or in respect of elections of its directors.

   (2)  Subsection 24 (3) of the Act is repealed and the following substituted:

Exception

   (3)  Clause (2) (d) does not prevent a member from voting as a proxy holder as allowed under section 217.3.

   16.  Part III of the Act is amended by adding the following sections:

Financial years

   27.1  (1)  The financial year of a credit union must end on December 31.

Existing financial years with different year ends

   (2)  The following apply if, on the day this section comes into force, a credit union's financial year ends on a date other than December 31:

    1.  The credit union's financial year need not be changed.

    2.  If the credit union's financial year is changed, it must be changed so that it ends on December 31.

Special rule not to apply to amalgamated credit unions

   (3)  Subsection (2) does not apply to a credit union formed by the amalgamation of two or more credit unions after the day this section comes into force; in such a case, the financial year of the amalgamated credit union must end on December 31.

Corporations Act not to apply

   27.2  The Corporations Act does not apply to credit unions.

   17.  Section 28 of the Act is repealed and the following substituted:

Membership

   28.  (1)  Membership in a credit union is governed by the credit union's by-laws, subject to the provisions of this Act and the credit union's articles.

Minimum membership shares required

   (2)  To be a member, a person or entity must hold the minimum number of membership shares required under the by-laws of the credit union.

Member who ceases to hold the minimum

   (3)  A member who ceases to hold enough shares to be a member shall, nonetheless, continue to be a member of the credit union for the purposes of this Act, subject to any limitations in the by-laws of the credit union, including limitations on the rights that member may exercise.

Ground for expulsion

   (4)  For greater certainty, subsection (3) does not prevent holding fewer than the minimum number of shares from being set out in the by-laws of the credit union as a ground for expulsion under subsection 47 (1).

   18.  (1)  Subsections 30 (1) and (2) of the Act are repealed and the following substituted:

Limitation on membership

   (1)  The by-laws of every credit union shall provide that the membership of the credit union is limited to persons, related persons and entities who come within a bond of association and shall specify the nature of the bond of association.

   (2)  Subsections 30 (4), (5), (6) and (7) of the Act are repealed.

   19.  Paragraph 3 of subsection 31 (1) of the Act is repealed and the following substituted:

    3.  Members who do not come within the bond of association must be identified as such in the register under section 230.

   20.  Subsection 33 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Record, information relating to membership

   (1)  Every person or entity whose name is registered in the register under section 230 is entitled to,

.     .     .     .     .

   21.  The heading immediately before section 35 and sections 35 and 36 of the Act are repealed.

   22.  Sections 38 and 39 of the Act are repealed and the following substituted:

Not bound by trust

   38.  (1)  A credit union is not bound to see to the execution of any trust to which any membership share is subject.

Application

   (2)  Subsection (1) applies whether the trust is express, implied or constructive.

Trusts for named beneficiaries

   39.  (1)  A credit union may accept deposits from a member in trust for a named beneficiary only if,

  (a)  the member holds, in trust for the beneficiary, the minimum number of membership shares required under subsection 28 (2);

  (b)  the member and the beneficiary are related persons;

   (c)  the deposits are money the member is required to hold in accordance with subsection 57 (1) of the Law Society Act; or

  (d)  the deposits are required or governed under an Act and are prescribed for the purposes of this clause.

Deposit is separate for deposit insurance purposes

   (2)  A deposit of a member in trust for a named beneficiary shall be deemed, for the purpose of paragraph 2 of subsection 270 (2), to be a deposit separate from any other deposit of the member.

Exercise of rights of membership shares held in trust

   (3)  The following apply with respect to membership shares held by a member in trust for a beneficiary:

    1.  The member shall exercise the rights attached to the shares, subject to paragraph 2.

    2.  At a meeting of members, the member does not have an additional vote as a result of holding the membership shares in trust.

Disclosure of beneficiary

   (4)  The member shall disclose to the credit union such personal information concerning the beneficiary as the credit union requires to comply with all applicable laws.

Failure to disclose

   (5)  A credit union may refuse to accept or maintain a deposit made by a member in trust for a named beneficiary if the member refuses or fails to provide the information referred to in subsection (4).

   23.  Section 41 of the Act is repealed and the following substituted:

Members under the age of 18 years

   41.  If permitted by the by-laws of a credit union, a person under the age of 18 years may be a member of the credit union, subject to such conditions and restrictions as may be set out in the by-laws.

   24.  Sections 42 and 43 of the Act are repealed and the following substituted:

Limited payment re deceased member

   42.  (1)  If a member of a credit union dies and the credit union makes a payment of an amount described in subsection (2) to such person as the credit union is satisfied is entitled to receive the amount, the payment discharges any obligation of the credit union and its board in respect of and to the extent of the amount paid even if the payment is made without letters probate or letters of administration being taken out.

Type of payments

   (2)  The payment referred to in subsection (1) is a payment of the following:

    1.  An amount not exceeding the prescribed amount payable from the amount on deposit in the name of the deceased or in consideration for the membership shares of the deceased.

    2.  An amount not exceeding the prescribed amount payable from any money that is received by the credit union under any policy of insurance on the life of the deceased.

Restrictions

   (3)  Subsection (1) applies only if the credit union pays the amount in good faith and the credit union receives, before the payment,

  (a)  a statutory declaration attesting to the person's entitlement to receive the amount; or

  (b)  such other evidence of the person's entitlement to the amount as the credit union considers to be appropriate in the circumstances.

Credit union can require more

   (4)  Nothing in this section prevents the credit union from requiring additional documentation or evidence as the credit union considers appropriate.

Recovery from recipient

   (5)  Subsection (1) does not affect any right of a person claiming to be entitled to recover the amount from the person to whom it was paid.

No limit on other powers, requirements

   (6)  For greater certainty, this section does not prevent a credit union from making a payment or transfer as otherwise allowed or required by law.

If deceased member was trustee

   (7)  If a member of a credit union dies holding membership shares or money on deposit in trust for a named beneficiary, the credit union may pay the amount of, or transfer, the membership shares or deposit and any interest or dividends on them,

  (a)  to the executor or administrator of the estate of the deceased member; or

  (b)  to the beneficiary if there is no executor or administrator of the estate of the deceased member or, if the beneficiary is a minor, to the beneficiary's parent or guardian.

   25.  The heading immediately before section 44 and sections 44 and 45 of the Act are repealed and the following substituted:

Liens

Lien for liability

   44.  (1)  A credit union has a lien on the deposits and membership shares of a member for any liability to it by the member, and may set off any sum standing to the credit of the member on the books of the credit union towards the payment of the liability.

Limitation, member's share account

   (2)  Despite subsection (1), a credit union shall not apply any service charges or other deductions against a member's share account except upon the termination of the membership.

   26.  Section 46 of the Act is amended by adding the following subsection:

Rights of withdrawing member

   (3)  The by-laws of a credit union shall set out the rights of a withdrawing member which shall include the right to receive payment for the member's membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.

   27.  (1)  Sections 47, 48 and 49 of the Act are repealed and the following substituted:

Expulsion of members

   47.  (1)  A member of a credit union may be expelled from membership, in accordance with the by-laws, by a resolution of the board on the grounds set out in the by-laws.

Member rights relating to expulsion

   (2)  The by-laws of a credit union shall provide for the following rights:

    1.  The right of a member to receive advance notice of any meeting of the board at which the board will consider a resolution to expel the member.

    2.  The right of the member not to be expelled without being given an opportunity to appear at the meeting of the board to make submissions and to be represented at the meeting by legal counsel or an agent.

    3.  The right of an expelled member to appeal the decision of the board at the next general meeting of the members.

    4.  The right of the expelled member to be reinstated as a member of the credit union if, at the next general meeting, the members, by a majority of the votes cast at the meeting, set aside the resolution of the board.

    5.  The right of the expelled member to receive payment for the member's membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.

Procedures to be set out in by-laws

   (3)  The by-laws of a credit union shall set out the following:

    1.  The procedures to be followed by the board to provide the advance notice referred to in paragraph 1 of subsection (2).

    2.  The procedures to be followed relating to the appeal referred to in paragraph 3 of subsection (2).

Notice of decision

   (4)  If the board passes a resolution expelling a member, the credit union shall, within five days after the resolution is passed, notify the member of the decision of the board by registered letter addressed to the member at the member's last known address.

   (2)  Paragraph 2 of subsection 47 (2) of the Act, as enacted by subsection (1), is amended by striking out "by legal counsel or an agent" and substituting "by a person authorized under the Law Society Act to represent the member".

   28.  The Act is amended by adding the following heading immediately before section 50:

Representative Actions by Members

   29.  Section 51 of the Act is repealed and the following substituted:

Classes of shares

   51.  (1)  The articles of a credit union must provide for a class of shares known as membership shares and may provide for additional classes of shares, including patronage shares referred to in section 53.

Nature of shares

   (2)  The shares of a credit union are personal property.

Form

   (3)  The shares of a credit union are without nominal or par value and, if they are not membership shares or patronage shares, must be in registered form.

   30.  Subsections 52 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Membership shares

   (1)  Membership shares confer on the holder the right to receive dividends declared on the shares and to receive the remaining property of the credit union on dissolution.

Number of shares that member can hold

   (2)  Subject to any prescribed limit or limit set out in the by-laws of the credit union, a member may hold more than the minimum number of membership shares required under subsection 28 (2) to be a member.

Transfer prohibited

   (3)  The holder of a membership share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.

   31.  Section 53 of the Act is repealed and the following substituted:

Patronage shares

   53.  (1)  The articles of a credit union may provide for a class of shares known as patronage shares to be payable to members as a dividend under section 65 or as a patronage return under section 66.

Nature of share

   (2)  A patronage share does not confer on the holder the right to vote at meetings of the members of the credit union, the right to notice of any meeting of members of the credit union, the right to receive dividends or the right to receive the remaining property of the credit union on dissolution.

Transfer prohibited

   (3)  The holder of a patronage share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.

Rights of classes

   53.1  (1)  For each class of shares, the articles must set out,

  (a)  the rights, privileges, restrictions and conditions attaching to the shares of the class; and

  (b)  the maximum number, if any, of shares of the class that the credit union is authorized to issue.

Restrictions

   (2)  Shares, other than membership shares, do not confer on their holder the right to vote at meetings of the members of the credit union except as permitted under this Act or the right to receive any of the remaining property of the credit union on dissolution.

   32.  (1)  Subsection 54 (1) of the Act is amended by striking out "determine" and substituting "set out".

   (2)  Subsection 54 (2) of the Act is amended by adding "and the limitations under this Act" at the end.

   (3)  Subsections 54 (6) and (7) of the Act are repealed and the following substituted:

Information to Superintendent

   (6)  Before issuing shares in series, the credit union must file with the Superintendent articles of amendment designating the series and setting out the rights, privileges, restrictions and conditions attaching to the shares.

   33.  Section 55 of the Act is repealed.

   34.  Subsection 56 (1) of the Act is amended by adding "or patronage shares" after "membership shares".

   35.  Subsection 57 (1) of the Act is amended by adding "or patronage shares" after "membership shares" in the portion before clause (a).

   36.  (1)  Subsection 59 (1) of the Act is amended by adding "other than a patronage share" after "share".

   (2)  Section 59 of the Act is amended by adding the following subsection:

Exception for certain asset purchases

   (1.1)  Subsection (1) does not apply to the issue of shares by a credit union if the issue is part of a transaction in which the credit union (the "purchaser credit union") acquires the assets of another credit union (the "vendor credit union") and, as part of that transaction, shareholders of the vendor credit union are to be issued with shares of the purchaser credit union.

   (3)  Subsection 59 (3) of the Act is repealed.

   37.  The English version of section 60 of the Act is amended by striking out "his or her" and substituting "the person's".

   38.  Subsection 62 (1) of the Act is repealed and the following substituted:

Purchase and redemption of shares

   (1)  A credit union may purchase or redeem its shares only in accordance with this section and the articles and by-laws of the credit union.

   39.  Sections 63 and 64 of the Act are repealed and the following substituted:

Cancellation of shares

   63.  A credit union shall cancel its shares or fractions of its shares that it has purchased, redeemed or otherwise acquired, other than through the realization of security.

Shares acquired through realization of security

   64.  (1)  If a credit union acquires any of its shares through the realization of security, the credit union shall sell, cancel or otherwise dispose of them within six months after the day of the realization.

Same

   (2)  If a subsidiary of a credit union acquires shares of the credit union through the realization of security, the credit union shall cause the subsidiary to sell or otherwise dispose of them within six months after the day of the realization.

   40.  The heading immediately before section 65 and section 65 of the Act are repealed and the following substituted:

Dividends and Patronage Returns

Declaration of dividend

   65.  (1)  The board may declare, subject to the by-laws, and the credit union may pay a dividend.

Form of dividend

   (2)  A dividend may be paid,

  (a)  in cash;

  (b)  by issuing patronage shares;

   (c)  by issuing fully paid shares, other than membership shares, or options or rights to acquire fully paid shares, other than membership shares, in any class or series of shares;

  (d)  in a combination of two or more forms of dividends described in clauses (a), (b) and (c); or

  (e)  in property, with the approval of the Superintendent.

   41.  Subsection 66 (2) of the Act is repealed and the following substituted:

Form of patronage return

   (2)  A patronage return may be paid,

  (a)  in cash;

  (b)  by issuing patronage shares;

   (c)  by issuing fully paid shares, other than membership shares, or options or rights to acquire fully paid shares, other than membership shares, in any class or series of shares; or

  (d)  in a combination of two or more forms of patronage returns described in clauses (a), (b) and (c).

Rebate of interest

   (3)  A patronage return may include a rebate of interest paid by members during a financial year in respect of loans from the credit union.

   42.  Subsections 68 (3) and (4) of the Act are repealed.

   43.  Subsection 69 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Adjustment due to conversion

   (1)  On a conversion of outstanding shares, other than membership shares or patronage shares, of a credit union into shares of another class or series, the credit union shall,

.     .     .     .     .

   44.  (1)  Subsection 72 (1) of the Act is repealed and the following substituted:

Reduction by special resolution

   (1)  The stated capital of a credit union may be reduced by special resolution of the members of the credit union.

   (2)  The French version of subsection 72 (4) of the Act is repealed and the following substituted:

Conditions d'approbation

   (4)  Le surintendant ne peut approuver la résolution extraordinaire que si la demande à cet effet a été présentée dans les trois mois qui suivent son adoption et qu'une copie de la résolution, accompagnée d'un avis de l'intention de demander son approbation, a été publiée dans la Gazette de l'Ontario.

   45.  Subsection 73 (2) of the Act is repealed and the following substituted:

Shares held by personal representative

   (2)  A person holding shares as a personal representative who is registered in the register under section 230 as a member or shareholder and described as the personal representative for a named person is not personally liable under subsection (1), but the named person is liable.

   46.  Section 74 of the Act is amended by adding "or patronage shares" after "membership shares".

   47.  The Act is amended by adding the following section immediately before the heading "Offering Statement":

Restrictions on transfer of securities

   74.1  (1)  A security issued under circumstances described in clause 75 (1) (a) shall not be transferred except to another member of the credit union or to a prescribed person.

Same

   (2)  The transfer of a security that is permitted under subsection (1) shall be made in the prescribed manner and subject to the prescribed conditions.

Same

   (3)  The transfer of a security that is permitted under subsection (1) is effective when the transfer is recorded in the register under section 230.

   48.  Clauses 75 (3) (a) and (b) of the Act are repealed and the following substituted:

  (a)  membership shares;

  (b)  patronage shares; or

   (c)  shares under section 65 or 66.

   49.  The French version of clause 76 (c) of the Act is repealed and the following substituted:

    c)  soit les personnes inscrites comme courtier en bourse, courtier en valeurs mobilières ou courtier négociant aux termes de la Loi sur les valeurs mobilières.

   50.  (1)  Subsections 77 (1) and (2) of the Act are repealed and the following substituted:

Offering statement

   (1)  Application for a receipt for an offering statement is made by filing with the Superintendent a copy of the offering statement and paying the fee established by the Minister.

Contents

   (2)  The offering statement must contain such information as may be prescribed.

   (2)  Subsection 77 (4) of the Act is repealed and the following substituted:

Certificate

   (4)  The offering statement must be accompanied by a disclosure certificate signed by the chair of the board and the chief executive officer, certifying that the offering statement satisfies the requirements of subsections (2) and (3).

   51.  Subsections 78 (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Refusal to issue, revocation

   (2)  The Superintendent may refuse to issue or may revoke a receipt for an offering statement in any of the following circumstances:

    1.  The credit union is in contravention of section 84.

    2.  The credit union is subject to the supervision of the Corporation or under the administration of the Corporation.

Same

   (3)  Before refusing to issue a receipt or revoking a receipt, the Superintendent shall give the applicant an opportunity to make written submissions.

Same

   (4)  A decision to refuse to issue a receipt or a decision to revoke a receipt must be given in writing and must include the reasons for the refusal or revocation.

Expiry of receipt

   (5)  A receipt for an offering statement expires on the earlier of,

  (a)  the date that is six months after the day it is issued; and

  (b)  the date on which the offering of securities contemplated by the offering statement for which the receipt is granted is closed in accordance with the offering statement.

   52.  Subsection 79 (1) of the Act is repealed and the following substituted:

Renewal of receipt

   (1)  Application for renewal of the receipt for an offering statement may be made by filing an application with the Superintendent with a copy of the statement and paying the fee established by the Minister.

   53.  Subsection 81 (3) of the Act is repealed and the following substituted:

Withdrawal from purchase

   (3)  An agreement of purchase and sale in respect of securities is not binding on the purchaser if the person from whom the purchaser has agreed to purchase the security receives written notice of the purchaser's intention not to be bound by the agreement not later than midnight on the second business day after receipt by the purchaser of the latest offering statement and any statement of material change.

Same

   (4)  Subsection (3) applies with necessary modifications in respect of a person who is subscribing for securities to be issued by a credit union.

Receipt by fax, etc., considered written notice

   (5)  Without limiting how else a written notice may be given, a written notice is considered to be received by a recipient for the purposes of subsection (3) if the recipient receives the notice by facsimile or electronic means.

Business day

   (6)  In subsection (3),

"business day" means a day that is not,

  (a)  Saturday, or

  (b)  Sunday or any other holiday, other than Easter Monday and Remembrance Day.

   54.  (1)  Subsection 82 (5) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Defence

   (5)  A person who signed the disclosure certificate required under subsection 77 (4) or a director is not liable under this section if the person proves one of the following:

.     .     .     .     .

   (2)  Paragraph 2 of subsection 82 (5) of the Act is repealed and the following substituted:

    2.  The person was not aware of the misrepresentation when the offering statement or material change statement was filed with the Superintendent. After the receipt for the statement was issued but before the purchaser bought the security, the person immediately after the person became aware of the misrepresentation advised the Superintendent that the person withdrew consent to the filing of the statement with the Superintendent.

   55.  Section 83 of the Act is repealed and the following substituted:

Restriction on Commission for Purchase or Sale

No commission by directors, officers, employees

   83.  None of the following persons shall charge or accept payment of a commission on the purchase or sale of a security of a credit union:

    1.  The directors, officers and employees of the credit union.

    2.  The related persons of a director, officer or employee of the credit union.

    3.  If the credit union is a member of a league, the directors, officers and employees of the league.

   56.  Section 84 of the Act is amended by adding the following subsections:

Forming of groups relating to capital requirements

   (3)  Subject to the regulations and with the approval of the Corporation, two or more credit unions may enter into an agreement with a league to form a group for the purposes of assisting the credit unions in satisfying the requirements of this section relating to capital.

Revocation of approval

   (4)  The Corporation may, by order, revoke its approval under subsection (3) on a prescribed ground.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under subsection (4).

   57.  Sections 85, 86, 87, 88 and 89 of the Act are repealed and the following substituted:

Capital and liquidity policies

   85.  (1)  A credit union shall establish capital and liquidity policies for the credit union consistent with the regulations governing adequate capital and liquidity and the credit union shall adhere to those policies.

Policies to be prudent

   (2)  The capital and liquidity policies of a credit union shall consist of policies, standards and procedures that a reasonable and prudent person would apply in order to ensure the financial soundness of the credit union, avoid undue risk of loss and obtain a reasonable return.

Approval and review by board

   (3)  The capital and liquidity policies of a credit union are subject to the approval of the board and the board shall review the policies at least once each year.

Order if policies inadequate, etc.

   (4)  If the Corporation considers the capital and liquidity policies of the credit union to be inadequate or imprudent, the Corporation may order the credit union to amend them in accordance with the order.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Additional requirements

   86.  (1)  The Corporation may order a credit union,

  (a)  to increase its capital; or

  (b)  to provide additional liquidity in such forms and amounts as the Corporation may require.

Circumstances

   (2)  Despite a credit union's compliance with the regulations governing adequate capital and liquidity, the Corporation may impose the requirements set out in subsection (1),

  (a)  if there are reasonable grounds to believe that the credit union is not complying with the requirements of this Act and the regulations concerning the management of risk in making loans and investments and in the general management of credit union business;

  (b)  if the Corporation considers that imposing the requirement is necessary to protect the interests of members, shareholders or depositors; or

   (c)  if the Corporation considers that imposing the requirement is necessary to ensure the financial security and integrity of the credit union.

Compliance

   (3)  The credit union shall comply with the order within such time as the Corporation specifies in the order.

Time for compliance if member of a group

   (4)  If the credit union is in a group formed under subsection 84 (3), the time for compliance specified under subsection (3) for an order under clause (1) (a) must be at least 30 days after the copy of the order is given to the credit union under section 240.2.

Procedural rules

   (5)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (6)  The credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Variation of requirements

   87.  (1)  A credit union may apply to the Corporation for a variation of the requirements under section 84.

Application

   (2)  An application must be in a form approved by the Corporation and must describe how and when the credit union will meet the requirements under section 84.

Variation

   (3)  The Corporation may grant the variation subject to any terms it considers appropriate if it considers that granting the variation is in the interest of the members of the credit union and that the credit union will meet the requirements under section 84 within a reasonable time.

Valuation of asset

   88.  If the Corporation has appraised the value of an asset held by a credit union or a subsidiary and the value determined by the Corporation varies materially from the value placed by the credit union or the subsidiary on the asset, the Corporation shall send to the credit union, its auditor and its audit committee a written notice of the value of the asset as determined by the Corporation.

Report re adequacy

   89.  A credit union shall provide a report in a form approved by the Corporation concerning its compliance with section 84 to such persons and at such times as required by the Corporation.

Notification if credit union insolvent

   89.1  If the Corporation believes that a credit union is unable to provide for the payment of its liabilities as they become due, the Corporation shall immediately notify the Superintendent in writing.

   58.  (1)  Section 92 of the Act is repealed and the following substituted:

Disqualified individuals

   92.  (1)  The following individuals are disqualified from being directors of a credit union:

    1.  One whose membership in any credit union has been terminated, other than voluntarily.

    2.  One who a court has decided is of unsound mind.

    3.  One who is an undischarged bankrupt or who has been discharged as a bankrupt in the five years preceding the date on which he or she may be elected as director.

    4.  One who is unable to obtain a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance.

    5.  One who is more than 90 days in arrears in the payment of a debt owed to the credit union unless the credit union has agreed to extend the time for repayment.

    6.  One who is a listed person within the meaning of the United Nations Suppression of Terrorism Regulations under the United Nations Act (Canada).

    7.  One who has been convicted, in the five years preceding the date on which he or she may be elected as a director, of an offence described in subsection (3) and who has not received a pardon for the offence.

    8.  One whose membership in a professional association has been terminated, in the five years preceding the date on which he or she may be elected as director, for professional misconduct.

    9.  An employee of the credit union or a league in which the credit union is a member or his or her spouse, parent or child.

  10.  A professional advisor who provides services to the credit union in his or her professional capacity or who has provided such services in the three years preceding the date on which he or she may be elected as a director.

  11.  An employee of the Corporation.

  12.  A public servant employed in regulating credit unions.

  13.  One who has not met the training requirements or qualifications for directors established by the credit union.

  14.  One who has not met any reasonable condition or qualification set out in the by-laws of the credit union.

Exception

   (2)  An individual is not an employee for the purposes of paragraph 9 of subsection (1) solely because he or she provides, without remuneration, services to the credit union or league that are ordinarily provided by an employee.

Type of offence

   (3)  An offence referred to in paragraph 7 of subsection (1) is an offence that,

  (a)  is related to the qualifications, functions or duties of a director of a body corporate;

  (b)  involves theft or fraud;

   (c)  involves a contravention or failure to comply with this Act, a predecessor of this Act or an Act governing a subsidiary of the credit union; or

  (d)  involves a contravention or failure to comply with the Securities Act.

   (2)  Paragraph 12 of subsection 92 (1) of the Act, as enacted by subsection (1), is repealed and the following substituted:

  12.  A public servant employed under Part III of the Public Service of Ontario Act, 2006 whose employment duties include regulating credit unions.

   59.  Subsection 93 (1) of the Act is repealed and the following substituted:

Number of directors

   (1)  Subject to subsection (2), the number of directors shall be as provided in the by-laws.

   60.  The Act is amended by adding the following sections:

Disclosure of interest by candidates

   94.1  (1)  A person who is a candidate for director of a credit union shall disclose, before the election, everything the person would have to disclose under section 146 if the person were a director.

Clarification, existing directors, etc.

   (2)  For greater certainty,

  (a)  subsection (1) applies in relation to the re-election of a director as well as to the election of a person who is not already a director;

  (b)  the obligation to disclose under subsection (1) is in addition to any requirement to disclose under section 146 and applies even if a disclosure has already been made under that section; and

   (c)  a general notice described in subsection 146 (6) is not sufficient disclosure of an interest in a contract for the purposes of subsection (1).

Disclosure to board

   (3)  A disclosure required under subsection (1) shall be made in writing to the board of the credit union.

Notice to members

   (4)  The board shall give the members notice of the disclosure before the election is held.

How notice to members given

   (5)  The by-laws of the credit union may specify how the board shall give notice of the disclosure under subsection (4).

Chair of board

   94.2  The directors shall elect or appoint a chair of the board from among themselves.

   61.  Subsection 95 (4) of the Act is repealed and the following substituted:

Maximum number

   (4)  The by-laws shall provide for a maximum number of consecutive terms for directors.

   62.  The Act is amended by adding the following section:

Term of office, chair

   95.1  (1)  The chair of the board shall hold office for such term as the by-laws provide.

Maximum number

   (2)  The by-laws shall provide for a maximum number of consecutive terms for the chair of the board.

   63.  Subsection 97 (1) of the Act is repealed and the following substituted:

Vacancies

   (1)  If a vacancy occurs in the board and a quorum of directors remains, the directors remaining in office may appoint a qualified individual to fill the vacancy until the next annual meeting of the members of the credit union.

   64.  (1)  Clause 98 (1) (e) of the Act is repealed and the following substituted:

  (e)  when the Corporation replaces the board and appoints a person to assume the powers of the board under subsection 295 (1).

   (2)  Section 98 of the Act is amended by adding the following subsection:

Notice if no quorum of directors

   (3)  The credit union shall notify the Superintendent if, after a director ceases to hold office, there is not a quorum of directors in office.

   65.  (1)  Subsections 100 (4) and (5) of the Act are repealed and the following substituted:

Right to make representations

   (4)  At the meeting, the director is entitled to speak to the resolution calling for his or her removal and may do so personally or through legal counsel or an agent.

   (2)  Subsection 100 (4) of the Act, as re-enacted by subsection (1), is amended by striking out "through legal counsel or an agent" and substituting "through a person authorized under the Law Society Act to represent the member".

   66.  Sections 101 and 102 of the Act are repealed and the following substituted:

Removal by Superintendent

   101.  (1)  The Superintendent may, by order, remove a director of a credit union if the Superintendent is of the opinion that the director is not suitable to hold office as a director on the basis of the character or competence of the director.

Risk of prejudice

   (2)  In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the members, depositors and creditors of the credit union have been or are likely to be prejudiced by the director's holding office.

Procedural rules

   (3)  Section 240.1 applies with respect to an order under this section.

Appeal to Tribunal

   (4)  The director who is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4.

Statement re opposition

   102.  (1)  A director who opposes any proposed action or resolution by the directors or members is entitled to give the credit union a written statement setting out why he or she opposes the proposed action or resolution.

Circulation of statement

   (2)  The credit union shall, within 30 days after receipt of the statement, send a copy of the statement to the Superintendent.

Immunity

   (3)  A credit union and a person acting on its behalf do not incur any liability by reason only of sending the statement as required by subsection (2).

   67.  Subsections 103 (2), (3), (4), (5) and (6) of the Act are repealed and the following substituted:

Information to Superintendent and Corporation

   (2)  The Superintendent or the Corporation may require the director to provide such information relating to the resignation as the Superintendent or the Corporation, as the case may be, specifies and the director shall promptly do so.

Statement re disagreement

   (3)  If a director resigns as a result of a disagreement with the other directors or the officers of a credit union, the director shall give the credit union, the Superintendent and the Corporation a written statement setting out the nature of the disagreement.

Advising members that statement available

   (4)  The credit union shall, within 30 days after receipt of the statement under subsection (3), advise every member that a copy of the statement is available on request.

Method of advising members

   (5)  The advising of the members under subsection (4) may be by deliveries permitted under section 335 or by such other method as is provided for in the credit union's by-laws.

Duty to give copy of statement

   (6)  The credit union shall give a copy of the statement to every member who requests it.

Immunity

   (7)  A credit union and a person acting on its behalf do not incur any liability by reason only of advising the members under subsection (4) or giving a copy of the statement to a member.

   68.  Subsections 104 (1) and (2) of the Act are repealed and the following substituted:

Duties of the board

   (1)  The board shall manage or supervise the management of the business and affairs of the credit union and shall perform such additional duties as may be imposed under this Act, the regulations, the by-laws of the Corporation respecting credit unions or the by-laws of the credit union.

Board, etc., not to manage day to day activities

   (2)  The board, a committee of the board or a director shall not directly manage, or be involved in, the day to day activities of the credit union.

   69.  Section 105 of the Act is amended by adding the following subsection:

Required matters

   (1.1)  The by-laws of a credit union shall provide for the following matters:

    1.  The appointment of officers of the credit union and the establishment of their duties.

    2.  The calling of meetings of the board, including the minimum number of times the board must meet each financial year if the minimum number of times exceeds the prescribed minimum number of times, the place or places where meetings of the board may be held and the manner in which notice of the meetings must be given.

   70.  Subsection 107 (2) of the Act is repealed and the following substituted:

Filing

   (2)  Within 30 days after a by-law is confirmed, the credit union shall file two copies of it with the Superintendent.

   71.  Section 108 of the Act is repealed and the following substituted:

Disclosure of expenses and remuneration

   108.  A credit union's annual audited financial statements must disclose the total expenses of the board and the total remuneration paid to the directors during the year.

   72.  The heading immediately before section 109 and section 109 of the Act are repealed and the following substituted:

Establishment of and delegation to committees

   109.  (1)  The board may establish committees and, subject to subsection (2), may delegate powers and assign duties to those committees.

Limitation on delegation

   (2)  The following powers cannot be delegated to a committee of the board:

    1.  Filling vacancies on the board or the audit committee.

    2.  Appointing or removing an officer or director of the credit union.

    3.  Appointing signing officers.

    4.  Adopting, amending or repealing by-laws.

    5.  Issuing securities except in the manner and on the terms authorized by the board.

    6.  Authorizing the payment of a commission upon the sale of shares.

    7.  Purchasing, redeeming or otherwise acquiring shares issued by the credit union.

    8.  Approving the financial statements.

    9.  Authorizing the purchase, sale, lease, exchange or other disposition of material assets.

  10.  Declaring dividends or patronage returns.

  11.  Expelling a member.

   73.  The heading immediately before section 110 and sections 110 to 120 of the Act are repealed.

   74.  The heading immediately before section 121 and sections 121 to 124 of the Act are repealed.

   75.  Sections 125 to 139 of the Act are repealed and the following substituted:

Audit Committee

Audit committee

   125.  (1)  The board of every credit union shall establish an audit committee composed of members appointed by the board from among the directors.

Minimum number of members

   (2)  The audit committee must have at least three members.

When member ceases to be member

   (3)  A person ceases to be a member of the audit committee of a credit union when he or she ceases to be a director or when he or she resigns from the committee or is replaced by the board.

Training

   (4)  Every member of an audit committee shall satisfy such training requirements or qualifications for audit committee members as are established by the credit union.

Meetings

   (5)  The audit committee shall hold a meeting no less frequently than once every quarter during each year and meetings may be called by the credit union's auditor, a member of the audit committee or any director.

Quorum

   (6)  A majority of the members of the audit committee constitutes a quorum.

Minutes

   (7)  The audit committee shall keep minutes of its meetings.

Report to the board

   (8)  The audit committee shall report to the board within 60 days after each committee meeting or at the next board meeting, whichever is earlier, setting out the results of the meeting.

Report to the members

   (9)  The audit committee shall report to the members of the credit union at the annual meeting by a report containing such information as may be prescribed.

Powers and duties of audit committee

   126.  The audit committee has such powers and duties as are set out in this Act, prescribed by the regulations or set out in the by-laws.

Notification about certain matters

   127.  (1)  The audit committee shall promptly notify the board, the credit union's auditor, the Corporation and the Superintendent if any of the following matters come to the attention of the committee:

    1.  Funds, securities or other property of the credit union have been or may have been misappropriated or misdirected.

    2.  The board, a director, an officer or an employee of the credit union has contravened or failed to comply with this Act, the regulations or the by-laws and the contravention or failure to comply materially affects the credit union.

Assistance

   (2)  Subject to the board's approval, which shall not be unreasonably withheld, the committee may retain one or more persons to assist it in determining whether a misappropriation or misdirection has occurred.

Remuneration

   (3)  The committee shall fix the remuneration payable to the persons retained under subsection (2) and the credit union shall pay it.

Power to call board meeting

   128.  The audit committee may call a meeting of the board to consider a matter of concern to the committee.

   76.  (1)  Subsection 140 (1) of the Act is repealed and the following substituted:

Officers

   (1)  In addition to the chair of the board required under section 94.2, a credit union must have a corporate secretary and a chief executive officer and may have such other officers as are provided for in the by-laws.

   (2)  Section 140 of the Act is amended by adding the following subsection:

Chief executive officer

   (3.1)  The chief executive officer shall be an employee of the credit union appointed by the board.

   (3)  Subsection 140 (5) of the Act is repealed and the following substituted:

Remuneration reported in financial statements

   (5)  A credit union's annual audited financial statements must disclose the prescribed information about the remuneration paid during the year to the officers and employees of the credit union.

   77.  Sections 142 and 143 of the Act are repealed and the following substituted:

Duty of confidentiality

   142.  (1)  Every director, officer, member of a committee or employee of a credit union shall keep confidential all information received by the credit union or by a subsidiary or other affiliate of the credit union that the director, officer, committee member or employee knows or should know is confidential to the credit union or subsidiary or other affiliate.

Use of information

   (2)  No director, officer, member of a committee or employee of a credit union shall make use of information referred to in subsection (1) in any transaction in order to obtain, directly or indirectly, a benefit or advantage for any person other than the credit union or a subsidiary or other affiliate of the credit union.

Confidentiality re members

   143.  (1)  Every director, officer, member of a committee or employee of a credit union shall keep confidential all information respecting members of the credit union.

Exception consent

   (2)  Despite subsection (1), information respecting a member may be disclosed with the consent of the member.

Exceptions

   (3)  Despite subsection (1), a director, officer or member of a committee or an employee authorized by the board may disclose information,

  (a)  to a person acting in a confidential or professional relationship to the credit union, including an employee of a league in which the credit union is a member;

  (b)  to a financial institution with which the credit union has transactions that may involve confidential matters;

   (c)  to another credit union with which the credit union of the director, officer, committee member or employee proposes to amalgamate, for the purposes of the amalgamation, if the credit unions have signed letters of intent to enter into an agreement for the amalgamation;

  (d)  to a person to whom the credit union proposes to sell assets, for the purposes of the sale, if the credit union and the person have signed letters of intent to enter into an agreement of purchase and sale for the sale;

  (e)  to a credit grantor or to a reporting agency, if the disclosure is for the purpose of determining the creditworthiness of the member;

    (f)  to the Superintendent and the Corporation; and

  (g)  to any other person entitled to the information by law.

   78.  Subsection 144 (1) of the Act is repealed and the following substituted:

Duty of care

   (1)  Every director, officer and member of a committee shall exercise the powers and discharge the duties of his or her office honestly, in good faith and in the best interests of the credit union.

   79.  Subsection 145 (1) of the Act is repealed and the following substituted:

Duty to comply

   (1)  Every director, officer, member of a committee and employee of a credit union shall comply with this Act, the regulations made under it and the articles and by-laws of the credit union.

   80.  Section 146 of the Act is repealed and the following substituted:

Disclosure of interest

   146.  (1)  This section applies to every director, officer, member of a committee or employee of a credit union who,

  (a)  is a party to a material contract or proposed material contract with the credit union;

  (b)  is a director or an officer of an entity that is a party to a material contract or proposed material contract with the credit union;

   (c)  has a material interest in a person who is a party to a material contract or proposed material contract with the credit union; or

  (d)  is a spouse, parent or child of an individual who is a party to a material contract or proposed material contract with the credit union.

Same

   (2)  The director, officer, committee member or employee shall disclose, in writing, to the credit union or ask to have the nature and extent of his or her interest entered in the minutes of board meetings.

Time of disclosure, director

   (3)  A director shall make the disclosure,

  (a)  at the board meeting at which a proposed contract is first considered;

  (b)  if the director was not then interested in a proposed contract, at the first meeting after the director becomes so interested;

   (c)  if the director becomes interested after a contract is made, at the first meeting after the director becomes so interested; or

  (d)  if a person who is interested in a contract later becomes a director, at the first meeting after he or she becomes a director.

Same, officer or committee member

   (4)  An officer, committee member or employee shall make the disclosure,

  (a)  promptly after he or she becomes aware that a proposed contract is to be considered or a contract has been considered at a board meeting;

  (b)  if he or she becomes interested after a contract is made, promptly after becoming so interested;

   (c)  if a person who is interested in a contract later becomes an officer, committee member or employee, promptly after becoming an officer, committee member or employee.

Same, no board approval

   (5)  If a material contract or proposed material contract is one that, in the ordinary course of business of the credit union, would not require approval by the board or the members, the director, officer, committee member or employee shall make the disclosure promptly after becoming aware of the contract or proposed contract.

Continuing disclosure

   (6)  A general notice to the board by a director, officer, committee member or employee declaring that he or she is a director or officer of an entity, or has a material interest in a person, and is to be regarded as interested in any contract made with that entity or person, is sufficient disclosure of an interest in relation to any contract so made.

   81.  Subsections 147 (1), (2) and (3) of the Act are repealed and the following substituted:

Voting

   (1)  A director to whom section 146 applies shall not be present at any meeting while the contract is being discussed or vote on, or attempt to influence the voting on, any resolution to approve the contract.

Exception

   (2)  Subsection (1) does not apply if the contract is,

  (a)  an arrangement by way of security for money lent to or obligations undertaken by the director for the benefit of the credit union or a subsidiary of it;

  (b)  a contract relating primarily to the director's remuneration as a director or as a member of a committee or an officer, employee or agent of the credit union or a subsidiary of it or an entity controlled by it;

   (c)  a contract for indemnity under section 157 or for insurance under section 156; or

  (d)  a contract with a subsidiary of the credit union.

   82.  Section 148 of the Act is repealed and the following substituted:

Avoidance standards

   148.  (1)  If a director, officer, committee member or employee made a required disclosure in respect of a contract referred to in subsection 146 (1), the contract was approved by the board or by the members of the credit union and the contract was reasonable and fair to the credit union at the time it was approved, the contract is neither void nor voidable by reason only,

  (a)  of the relationship between the person or entity and the director, officer, committee member or employee; or

  (b)  that an interested director is present at or is counted to determine the presence of a quorum at the board meeting that authorized the contract.

Application to court

   (2)  If a director, officer, committee member or employee of a credit union fails to disclose an interest in a material contract in accordance with section 146, a court may, on the application of the credit union or a member of the credit union, set aside the contract on such conditions as the court thinks fit.

   83.  Subsection 149 (1) of the Act is repealed and the following substituted:

Prohibition re acting for credit union

   (1)  This section applies with respect to a person who is a director of a credit union or a member of a committee.

   84.  The Act is amended by adding the following section immediately before the heading "Miscellaneous":

Prohibition re acting as trustee

   149.1  An officer or employee of a credit union shall not act as a trustee with respect to a deposit with the credit union or any other business or transaction with the credit union unless the beneficiary is a related person of the officer or employee.

   85.  Sections 150, 151 and 152 of the Act are repealed and the following substituted:

Validity of actions

   150.  An act by a director, officer or member of a committee is not invalid by reason only of a defect discovered afterward in his or her appointment, election or qualification.

Requirement for bond

   151.  (1)  Every director, officer or employee of a credit union who receives or has charge of money shall, on assuming his or her duties, furnish to the credit union a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance.

Bond

   (2)  The bond must be for an amount equal to or greater than the amount that is prescribed or determined in the prescribed manner, and must satisfy such conditions as may be prescribed.

Liability of directors, etc.

   152.  A liability imposed under this Act upon a director, officer or member of a committee is in addition to any other liability that is by law imposed upon him or her.

   86.  Section 155 of the Act is repealed and the following substituted:

Due diligence, reliance on statement, etc.

   155.  (1)  A director, officer, member of a committee or an employee of a credit union is not liable under section 153 or 209.1 and has fulfilled their duty under section 145 if they exercised the degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, including reliance in good faith on,

  (a)  financial statements of the credit union represented to them by an officer of the credit union or in a written report of the auditor of the credit union fairly to reflect the financial condition of the credit union; or

  (b)  a report of an accountant, lawyer or other professional person whose profession lends credibility to a statement made by the person.

Same

   (2)  A director, officer or member of a committee of a credit union has fulfilled their duty under section 144 if they relied in good faith on,

  (a)  financial statements of the credit union represented to them by an officer of the credit union or in a written report of the auditor of the credit union fairly to reflect the financial condition of the credit union; or

  (b)  a report of an accountant, lawyer or other professional person whose profession lends credibility to a statement made by the person.

   87.  (1)  Clause (a) of the definition of "eligible person" in subsection 157 (1) of the Act is repealed and the following substituted:

  (a)  a director, officer or member of a committee,

   (1.1)  Section 157 of the Act is amended by adding the following subsections:

Advance to pay for costs, etc.

   (3.1)  A credit union may advance money to an eligible person to pay for the costs, charges and expenses of any proceeding to which the person is made a party by reason of serving or having served in a qualifying capacity, but the person is required to repay the money if either of the conditions described in subsection (5) is not satisfied.

.     .     .     .     .

Advance to pay for costs, etc., derivative action

   (4.1)  With the approval of a court, a credit union may advance money to an eligible person to pay for the costs, charges and expenses of a proceeding described in subsection (4) to which the person is made a party by reason of serving or having served in a qualifying capacity, but the person is required to repay the money if either of the conditions described in subsection (5) is not satisfied.

   (2)  Clause 157 (9) (a) of the Act is repealed and the following substituted:

  (a)  acting or having acted as a director, officer or member of a committee; or

   88.  Subsection 159 (3) of the Act is repealed and the following substituted:

Vacancy

   (3)  In the event the office of auditor becomes vacant before the end of the incumbent auditor's term of office, the board may appoint an auditor to hold office until the close of the next annual meeting.

   89.  Subclause 160 (2) (b) (i) of the Act is amended by striking out the portion before sub-subclause (A) and by repealing sub-subclauses (A) and (B) and substituting the following:

           (i)  if that person, any partner of that person or any member of a firm of accountants of which that person is an employee,

                 (A)  is a director, officer, committee member or employee of the credit union, a subsidiary of the credit union or the Corporation,

                 (B)  is a business partner of any director, officer, committee member or employee of the credit union or a subsidiary of the credit union,

   90.  Subsections 164 (6) and (7) of the Act are repealed and the following substituted:

Replacement

   (6)  If the members remove the auditor from office, they shall appoint another auditor at the same meeting to hold office for the remainder of the auditor's term.

Vote

   (7)  The auditor appointed under subsection (6) must be appointed by a resolution passed by a majority of the votes cast at the meeting.

   91.  Section 165 of the Act is repealed and the following substituted:

Notice re resignation, etc.

   165.  A credit union shall promptly notify the Superintendent and the Corporation when an auditor resigns, is replaced or is removed from office and shall inform the Superintendent of the reasons.

   92.  Subsections 167 (1) and (2) of the Act are repealed and the following substituted:

Right of access

   (1)  The auditor of a credit union has a right of access at all times to all records and documents of the credit union.

Same

   (2)  The auditor is entitled to require from the board, directors, officers, employees and agents of the credit union such information and explanations as the auditor considers necessary to enable the auditor to make such reports as are required under this Act.

   93.  (1)  Subsections 169 (3) and (4) of the Act are repealed and the following substituted:

Qualified report

   (3)  If the auditor's report is not an unqualified report, the auditor shall state in the report the reasons for the qualified report.

Report to Superintendent, Corporation for certain purposes

   (3.1)  Within 10 days after the annual meeting, the auditor shall provide a copy of the audited financial statements and the auditor's report to the Superintendent and the Corporation for the purpose of assisting them in carrying out their duties and powers under this Act, including, without limiting the generality of the foregoing, for the purposes of the following:

    1.  Determining whether conditions on the deposit insurance of the credit union should be imposed or amended under section 270.

    2.  Determining whether the deposit insurance of the credit union should be cancelled under section 274.

    3.  Determining the annual premium for the credit union under section 276.1.

Facts discovered subsequently

   (4)  If facts come to the attention of an officer, the board or the audit committee which, if they had been known before the most recent annual meeting, would have required a material adjustment to the financial statement presented at the meeting, the officer, board or audit committee shall notify the auditor who reported to the members at the meeting and the board shall promptly amend the financial statement and send it to the auditor.

   (2)  Subsection 169 (7) of the Act is repealed and the following substituted:

Amended report to Superintendent, Corporation

   (7)  Within 10 days after providing the amended report to the credit union, the auditor shall provide a copy of the amended report to the Superintendent and the Corporation.

Auditing standards

   (8)  The auditor's examination referred to in subsection (1) shall, except as otherwise specified by the Corporation, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Canadian Institute of Chartered Accountants.

Report to address fair value, adequacy of capital, etc.

   (9)  The auditor's report shall address the fair value of the assets and liabilities of the credit union and the credit union's compliance with section 84.

   94.  Section 170 of the Act is repealed and the following substituted:

Duty at meetings

   170.  If the auditor is present at a meeting of members or shareholders, the auditor shall answer inquiries directed to the auditor concerning the basis for the auditor's report under section 169.

   95.  The Act is amended by adding the following section:

Extended examination required by Corporation

   171.1  The Corporation may exercise the powers of the Superintendent under section 171 and, for that purpose, the references to the Superintendent in section 171 shall be deemed to be references to the Corporation.

   96.  (1)  Subsection 172 (1) of the Act is repealed and the following substituted:

Duty to report contravention, etc.

   (1)  The auditor of a credit union shall report in writing to the chair of the board and to the audit committee of the credit union any transaction or conditions that have come to the auditor's attention adversely affecting the credit union that, in the auditor's opinion, are not satisfactory and require rectification.

   (2)  Subsection 172 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Same

   (2)  Without restricting the generality of subsection (1), the auditor shall report on,

.     .     .     .     .

   (3)  Clause 172 (4) (a) of the Act is repealed and the following substituted:

  (a)  the auditor shall transmit the report, in writing, to the chair of the board and to the audit committee;

   (4)  Clause 172 (4) (d) of the Act is repealed and the following substituted:

  (d)  the auditor shall, at the time of transmitting the report pursuant to clause (a), provide the Superintendent and the Corporation with a copy of the report.

   97.  Paragraphs 6 and 7 of section 173 of the Act are repealed.

   98.  (1)  Subsection 174 (1) of the Act is repealed and the following substituted:

Ancillary businesses

   (1)  A credit union shall not deal in goods or engage in any trade or business except as authorized by this Act or as prescribed.

   (2)  Subsection 174 (3) of the Act is repealed and the following substituted:

Prohibition re financial services

   (3)  A credit union shall not provide financial services prescribed as prohibited.

   99.  (1)  Subsection 178 (2) of the Act is repealed and the following substituted:

Authorization by the Corporation

   (2)  Despite subsection (1), the Corporation may authorize a credit union to guarantee a payment in circumstances other than those described in that subsection.

   (2)  Subsection 178 (5) of the Act is repealed and the following substituted:

Exemption

   (5)  The Corporation may exempt a credit union from the limit under subsection (4) on the aggregate value of guarantees.

   (3)  Subsection 178 (7) of the Act is repealed and the following substituted:

Non-application of s. (1) (a)

   (7)  Clause (1) (a) does not apply with respect to a guarantee given by a credit union on behalf of a league or a financial institution that is a member of the Canadian Payments Association if the payment guaranteed represents the obligation of the league or financial institution to settle for payment items in accordance with the by-laws and rules of the Canadian Payments Association or such other guarantees as may be prescribed.

   100.  Section 179 of the Act is repealed and the following substituted:

Appointment of receiver, etc.

   179.  A credit union shall not give a person the right to appoint a receiver or a receiver and manager of the property or business of the credit union.

   101.  (1)  Clause 180 (b) of the Act is repealed and the following substituted:

  (b)  the Corporation;

   (2)  Clause 180 (j) of the Act is repealed and the following substituted:

    (j)  leagues;

(j.1)  subject to any restrictions in the by-laws of the credit union, persons who have not become members of the credit union but whose deposit accounts were acquired by the credit union as a result of the purchase of all or part of the business of another financial institution that is not a credit union;

   (3)  Section 180 of the Act is amended by adding the following subsections:

Authority to accept deposits

   (2)  A credit union may, without the intervention of another person,

  (a)  accept a deposit from a person referred to in subsection (1) whether or not the person is qualified by law to enter into contracts; and

  (b)  pay all or part of the principal of the deposit and all or part of the interest earned on the deposit to or to the order of that person.

Exception

   (3)  Clause (2) (b) does not apply if, before the payment is made, the money deposited with the credit union is claimed by another person,

  (a)  in an action or proceeding to which the credit union is a party and in respect of which service of a claim or other process originating that action or proceeding has been made on the credit union; or

  (b)  in an action or proceeding pursuant to which an injunction or order made by the court requiring the credit union not to make payment of that money or to make payment of it to some person other than the depositor has been served on the credit union.

Same

   (4)  In the case of a claim referred to in subsection (3), the money may be paid to the depositor only with the consent of the claimant or to the claimant only with the consent of the depositor.

RRSPs for employees of a member

   (5)  Despite subsection (1), a credit union may accept deposits for RRSPs for employees of a member if the member was involved in the establishment of the RRSPs at the credit union and the member makes payments into the RRSPs on behalf of the employees.

Application of other provisions

   (6)  Subsections (2), (3) and (4) apply, with necessary modifications, with respect to employees re