SUBCOMMITTEE REPORT

RED TAPE REDUCTION ACT, 2000 / LOI DE 2000 VISANT À RÉDUIRE LES FORMALITÉS ADMINISTRATIVES

CENTRE FOR EQUALITY RIGHTS IN ACCOMMODATION

ROBERT MCPHERSON, DAVE CALLAGHAN, GORDON MCLEOD

SOUTH ETOBICOKE COMMUNITY LEGAL SERVICES

GREATER TORONTO TENANTS' ASSOCIATION

CONTENTS

Monday 30 October 2000

Subcommittee report

Red Tape Reduction Act, 2000, Bill 119, Mr Hodgson / Loi de 2000 visant à réduire les formalités administratives, projet de loi 119, M. Hodgson

Centre for Equality Rights in Accommodation,
Ms Jennifer Ramsay

Mr Robert McPherson; Mr Dave Callaghan; Mr Gordon McLeod

South Etobicoke Community Legal Services,
Mr Kenneth Hale

Greater Toronto Tenants' Association,
Mr Paul York

STANDING COMMITTEE ON GENERAL GOVERNMENT

Chair / Président

Mr Steve Gilchrist (Scarborough East / -Est PC)

Vice-Chair / Vice-Présidente

Mrs Julia Munro (York North / -Nord PC)

Mr Toby Barrett (Norfolk PC)
Mrs Marie Bountrogianni (Hamilton Mountain L)
Mr Ted Chudleigh (Halton PC)
Mr Garfield Dunlop (Simcoe North / -Nord PC)
Mr Steve Gilchrist (Scarborough East / -Est PC)

Mr Dave Levac (Brant L)
Mr Rosario Marchese (Trinity-Spadina ND)
Mrs Julia Munro (York North / -Nord PC)

Substitutions / Membres remplaçants

Mr David Caplan (Don Valley East / -Est L)
Mr Joseph Spina (Brampton Centre / -Centre PC)

Clerk / Greffière

Ms Anne Stokes

The committee met at 1532 in committee room 1.

SUBCOMMITTEE REPORT

The Chair (Mr Steve Gilchrist): I call the committee to order. Welcome, everyone, to the first day of hearings on Bill 119, An Act to reduce red tape, to promote good government through better management of Ministries and agencies and to improve customer service by amending or repealing certain Acts and by enacting two new Acts.

Interjections.

The Chair: I ask people to come to order. Rosie. Keep it down, please. The first order of business will be the adoption of the subcommittee report.

Mr Dave Levac (Brant): The standing committee on general government subcommittee on committee business: I respectfully submit this report of the subcommittee to the general committee.

Your subcommittee met on Thursday, October 26, 2000, to consider business before the committee and recommends the following:

(1) That the committee meet on Monday, October 30, 2000, and Wednesday, November 1, 2000, in Toronto to hold public hearings into Bill 119, An Act to reduce red tape, to promote good government through better management of Ministries and agencies and to improve customer service by amending or repealing certain Acts and by enacting two new Acts.

(2) That clause-by-clause consideration of the bill be undertaken on Wednesday, November 15, 2000.

(3) That an advertisement be placed on the Ont.Parl channel and the Legislative Assembly Web site. The clerk is authorized to place the ads immediately.

(4) That each caucus will provide the clerk with a list of names of those wishing to make presentations to the committee and that the Chair and clerk will schedule witnesses from these lists and the list of names that have contacted the clerk directly.

(5) That witnesses be given a deadline of Wednesday, November 1, 2000, at noon to make their request to appear before the committee.

(6) That witnesses be given a deadline of Tuesday. November 14, 2000, at 5 pm for written submissions.

(7) That witnesses be allotted 10 minutes for each presentation.

(8) That amendments should be received by the clerk of the committee by Friday, November 10, 2000, at 5 pm.

(9) That the clerk of the committee, in consultation with the Chair, be authorized prior to the passage of the report on the subcommittee to commence making any preliminary arrangements necessary to facilitate the committee's proceedings.

So moved.

The Chair: It has been moved by Mr Levac. Any discussion of the subcommittee report?

Seeing none, all those in favour of its adoption? It is adopted.

RED TAPE REDUCTION ACT, 2000 / LOI DE 2000 VISANT À RÉDUIRE LES FORMALITÉS ADMINISTRATIVES

Consideration of Bill 119, An Act to reduce red tape, to promote good government through better management of Ministries and agencies and to improve customer service by amending or repealing certain Acts and by enacting two new Acts / Projet de loi 119, Loi visant à réduire les formalités administratives, à promouvoir un bon gouvernement par une meilleure gestion des ministères et organismes et à améliorer le service à la clientèle en modifiant ou abrogeant certaines lois et en édictant deux nouvelles lois.

CENTRE FOR EQUALITY RIGHTS IN ACCOMMODATION

The Chair: That takes us to our first presentation. That will be from the Centre for Equality Rights in Accommodation, Ms Jennifer Ramsay. Good afternoon and welcome to the committee. We have 10 minutes for your presentation.

Ms Jennifer Ramsay: Hello. My name is Jennifer Ramsay. I'm from the Centre for Equality Rights in Accommodation. I'm the coordinator for the early intervention project at the centre. It is known as CERA for short. It is a long name.

It is a provincial human rights and housing agency founded in 1987. I'm here to talk to you about the amendments to the Tenant Protection Act, legislation that affects 1.5 million households in Ontario.

Before I begin my main remarks I feel compelled to comment on the process of these hearings. Bill 119 contains amendments to over 70 pieces of legislation, and yet hearings were called only Friday to set aside two days in which to get public input about everything from dog owners' liability to conservation. It is certainly efficient, but along the way true public consultation and effective democracy seem to have been dispensed with.

Efficiency is something this government takes great pride in, and the operations of the Ontario Rental Housing Tribunal are a testament to that commitment. As of September 30, the tribunal has very efficiently processed 46,104 applications to evict. In that same nine-month period, almost 30,000 of those eviction applications were granted by default order. That is, there was no hearing and the tenants were evicted by tribunal adjudicators, based solely on the landlord's word. Thirty thousand households in nine months were ordered removed from their homes with the stroke of a pen with no opportunity to have their say. These tenants were charged, tried and convicted in absentia. It is efficient, but it is barbaric.

One amendment to the Tenant Protection Act has called for even greater efficiency in the process of rendering people homeless. Trained adjudicators will no longer be required to sign off on those default orders. Instead, clerks or, as they are referred to in the amendments, "default order officers," would have that task. The default rate has already risen from 56% in 1998 to 64% as of last month. According to documents that were partially released to CERA under the freedom-of-information act, the tribunal's goal is to secure a 70% default rate.

Last Wednesday, in response to questions about the amendments, the minister said, "We're for the tenants who pay their rents on this side of the House. We're for the tenants who are law-abiding and deserve quiet enjoyment on this side of the House. What side is that party and that member on?"

Well, I'll tell you what side I'm on: the side that values fairness and due process over efficiency and expediency, the side that believes removing someone from their home is a profoundly serious act with devastating consequences, an act that can only be carried out after careful deliberation by people qualified to make such a decision. What the minister seems to be saying is that someone who has not paid their rent on the first of the month is not in any need of protection because they have crossed the line. How does the minister feel about a farmer who misses one month's mortgage payment? Has that farmer too crossed to the other side? Well, not according to the banks. They usually try to find out the circumstances before hauling in a bulldozer.

Mr Rosario Marchese (Trinity-Spadina): Not always.

Ms Ramsay: Usually. I said "usually," not always.

What I can tell you, after 14 months of communicating with 500 tenants a week, is that the minister's remarks are patently offensive and bordering on hateful. Through the early intervention project, an eviction and homelessness prevention program-and there are excerpts attached; you should have handouts of that-CERA has heard from thousands of tenants about their experience of the tribunal. There are a host of reasons why a tenant might need the protection of the law and, yes, 80% of eviction applications are for non-payment of rent. Assuming the landlord is telling the truth about non-payment, don't you want to know what arrangements the tenant tried to make to repay? Don't you want to know why the tenant has not paid? Could it be they were foolishly withholding a portion of their rent because they'd gone without hot water for six months? Could it be that they had to fly to a distant city to bury a parent and had discussed the whole situation in advance with the on-site superintendent only to find the owner feels differently? Could it be that after living there for 20 years without incident, the landlord has suddenly decided to evict them for persistent late payment where, coincidentally, the tenant's neighbour is paying $1,200 and she is still paying $850?

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It's no secret that the legislation has provided an incentive to evict, as vacated units can be rented at maximum rents. Any application can be made. The question is, what does the tribunal do with that application? Is justice served when the tribunal issues a default order to evict for $100 in arrears six days after the landlord files the application? Is there no difference between someone who prefers to make their BMW payment rather than pay rent and a widow whose world and finances are temporarily upside down? Ironically, if that first tenant misses a payment on his car, the car will not be taken away until a series of letters, phone calls and attempts at renegotiated payments have been pursued. The widow, the family where illness has struck, the student who has missed OSAP payments or the man whose job was declared redundant is given no such opportunity under the Tenant Protection Act. The amendments to the act offer none of the real protections that have been suggested to the minister and the chair and tribunal staff time and time again. These amendments further punish and demonize tenants.

A few days after the legislation was introduced, the tribunal sent out letters with the latest efficiency enhancement, the forms merge program to "address the needs of clients who serve notices or file applications with the tribunal in large volume." Each year, the tribunal's efficient machine churns out enough eviction orders to fill the SkyDome to capacity. The expedient processing of those evictions will probably result in catching the "tenants from hell," but will also shatter the lives of tens of thousands of people who no longer have a place to call home. Where do those people go and how much does it cost us economically and socially? Some people, if they're lucky, will slump on the couch of a sympathetic friend or relative. The alternative is the hostel system. This year, in Toronto alone, hostel services estimates that 6,000 of their guests will be children.

In conclusion, I would ask this committee to remove the amendments to the Tenant Protection Act from Bill 119. Thoughtful and substantial changes need to be made to this legislation. The amendments currently on the table are an insult to all 1.5 million tenant households and an affront to Canadians' notions of justice. The entire act requires a thorough legal and constitutional review before it can be brought back as a stand-alone bill.

The Chair: Thank you. That leaves us about two minutes for questions. Rotation will start with Mr Caplan.

Mr David Caplan (Don Valley East): Ms Ramsay, thank you very much for your presentation. I thought it was very thoughtful and quite excellent.

You mentioned earlier that there have been suggestions made "to the minister and the chair and tribunal staff" time and again for changes to the Tenant Protection Act which would provide in fact real protections. Maybe you could enlighten us all with some of the suggestions you have made for strengthening the act to protect tenants.

Ms Ramsay: Sure. One of the suggestions we made early on was that the Ontario Rental Housing Tribunal communicate directly with tenants. What we've found in our project is that almost a third of the tenants are not receiving copies of the notice of application. Of course, the other problem is that once they receive them, they don't understand them, but that's another issue. That was one of the recommendations that was made based on our research and our interviews with tenants.

Obviously the forms are confusing. That doesn't require a legislative amendment, but we've now heard from the tribunal for two years that changes will be made to the notice of hearing, and they haven't been made.

There are a number of situations that we come across quite regularly called "retaliatory applications" where a tenant has, for example, applied to the tribunal for abatement because of repair issues or because of harassment issues. Very often, right on the heels of that, the landlord will make an application to the tribunal for eviction. There's a pretty clear correlation between those things. The tribunal doesn't acknowledge there is such a correlation. There are a number of changes that need to be made in the act that would allow these cases to go directly to a hearing, so the tenant can then come forward and say, "Look, this is the sequence of events that happened."

I thought it was ironic that the only change that was made in terms of the amendments was to allow people who'd been accused of drug use to have a hearing, and that's OK. People who use drugs should also get to go to a hearing but what about the rest? I couldn't understand why that was. It was absolutely clear that people on drugs needed to have their say. I thought, well, what about people who are called "persistently late" and people who are saying they haven't paid, even though it could be an administrative error?

It's clear there are a number of different kinds-persistent late payment and personal use applications. It happens all the time. It's a fairly easy thing to say, "I actually need it for me or my family," and then if there's no hearing, there's no substantive proof and the tenant's gone. I think a hearing might clear up some of that. Those are some of the suggestions.

The Chair: Thank you very much, Ms Ramsay. We appreciate your taking the time to come and start off our hearings here today.

ROBERT MCPHERSON, DAVE CALLAGHAN, GORDON MCLEOD

The Chair: Our next presentation will be from Mr Robert McPherson.

Mr Robert McPherson: Mr Chairman, may I ask a question before I start?

The Chair: Certainly.

Mr McPherson: The next three people, myself, Mr Callaghan and Mr McLeod, are speaking on the same thing. It would be more expedient for us all to speak together and then for questions to be asked at the end of all three of us. Just so we might answer some questions before-

The Chair: Any objections from any of the committee members? That's fine. Your two colleagues are free to join you.

Mr Levac: Just a clarification then, Mr Chairman-

The Chair: We'll divide the speaking time equally.

Mr Levac: OK. Thank you.

Mr Joseph Spina (Brampton Centre): I'm just trying to understand the timing of this, and it's in response really to David's comment. How are we timing this?

The Chair: Instead of three, I'm assuming from Mr McPherson's request that instead of three 10-minute submissions, they want to combine their submissions.

Mr Spina: Oh, OK.

The Chair: And only because we have a gap afterwards, I'm prepared to do that. I'm not prepared to have this as a precedent. Normally each stands on their own, but because there is a gap-

Mr Marchese: For efficiency purposes.

Mr McPherson: Yes. That way, before you ask me questions, he might answer them and so and so forth.

Mr Marchese: We understand it.

Mr Spina: OK. So we're looking at about 30 minutes-

The Chair: We're probably down to about 28 and a half now, but away we go.

Mr Spina: I'm sorry. I didn't mean to do that.

The Chair: Mr McPherson, please proceed.

Mr McPherson: Good afternoon, ladies and gentlemen. My name is Robert McPherson. I'm here today to talk about the proposal in Bill 119, the reduction of red tape, to dismantle the Theatres Act of Ontario, specifically the removal of projection licensing.

It seems strange to me on two counts that this is being done: (1) Why were the people with licences never asked for any input into the removal of them? (2) I cannot see any way this helps companies cut "red tape" to make doing business easier.

I'm a member of local 173 of the International Alliance of Theatrical Stage Employees. I passed my examination for a licence in August 1981 and joined the union in March 1982. I have been employed at the same location, the Bloor Cinema, since September 1981. To pass my exam, I had to apprentice under a licensed projectionist for 1,000 hours with no pay. The idea of removing projectionists' licences is not new. It has been an ongoing battle with the theatre companies; in fact, in 1991 and 1994 the same questions were raised. Our union responded with a brief to the Honourable Marilyn Churley, and at that time it was decided to keep licensing for the welfare of the public.

A few things have changed since 1991, but most things are the same. The projectors, delivery systems and automations are the same as in 1991. The things that have changed: the theatres are getting larger, up to 30 screens, and public safety is a greater risk. How, you say? Well, let me tell you.

A projectionist's booth can be a very dangerous place. The light source in a projector is a xenon ball. It is a xenon gas and a quartz bulb under immense pressure, so much so that clothing that is provided for their handling is almost bulletproof. To strike or light this bulb, a 50,000-volt jolt is sent through it. Once lit, it runs at about 100 amps. There are transformers, rectifiers, exhaust fans, projectors, sound racks, spotlights, slide machines, automations and more. This is just in one theatre and they all require some kind of electricity. Multiply this by 10, 12, 30 screens and the danger is much greater.

There are, at any one time, between one and 30 projectors running. These are machines with gears, belts and many moving parts. As part of their birthday parties, some young children were allowed into the projection booth to see how it worked. At the request of our union, the companies stopped such practices because of safety concerns. As you can see, there are many dangers in a projection booth.

Another I would like to talk about is film or the new polyester Mylar film. This film is indestructible. This film cannot break and is supposed to be safety film, which means it does not burn. This was proven wrong last year when a projectionist in Kitchener walked into his already running booth and discovered the film burning away in the projector. With his quick action the fire was put out.

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The other claim, that the film will not break, is very true and it leads to more dangers. This is a trailer for the Blair Witch Project. This is the new stuff that is out nowadays. I'll show you, it will not break. It shouldn't anyway. It stretches before it breaks. This is the old stuff we used to use. You can just break it. You should be able to break it with your fingers, but it breaks much more readily and, as you can see, easily. I'll clean that up.

It has been said that if you wrap this around car bumpers, you could tow one of the cars. Please note that this film runs at a foot and a half per second or 90 feet a minute. There are cases of film jams where entire projection systems have been pulled over, platters dragged across the floor and rollers ripped out of the wall. Can you imagine if your arm or your hand got wrapped up in this and, God forbid, around your neck?

As you can see, theatres can be very dangerous for the untrained, the unlicensed and the public if the Theatres Act is dismantled. The Theatres Act is in place for public safety, not to defer business. Safety is my number one concern. Remember, the new Cineplex Odeon at Warden and Eglinton has a capacity of 10,000 people a day. Is their safety not first and foremost?

Mr Dave Callaghan: I'm Dave Callaghan. I have something to address besides the safety issues. I'll start with a couple of remarks here.

It can be easy to conclude that simply because we are living in a high-tech day and age that the film projectionist must surely also be superfluous by now, along with a number of other occupations from the past that have been replaced by new technologies. Perhaps the government believes this idea is true. It may be simply a case of housekeeping for them, eliminating from the books regulations that are considered unnecessary once the occupation they govern is thought to be obsolete.

Cinema Paradiso isn't a megaplex, but on the other hand, reality is more than the megaplex. I believe I can demonstrate that this idea of obsolescence is incorrect, since it is based on an incomplete understanding of the present-day exhibition industry. I can begin with a profile of this industry during the past decade in Ontario, highlighting the ongoing role served by film projectionists meeting the needs of this industry.

For the most part, the participants in the industry fall into one of two diametrically different camps. I can conclude with a recommendation based on this difference that I believe can better serve the real needs of today's industry than Bill 119.

The fundamental way that things fall out is that there are the major theatre chains, and they have names like AMC, Famous Players, Loews Cineplex. Everyone is familiar with those. But there are other players in this industry as well. There are small businesses that operate independent theatres, like the Bloor Cinema, the various festival cinemas, the Fox, the Revue, the Music Hall and so on. Besides these small businesses, there's another group in the industry that are, if you like, the film distributors and the head offices of the various exhibitors. They operate screening rooms where there are certain issues that I will explain in a moment.

The final element of the industry are the various film festivals which, as each year goes by-25 years ago we had the Toronto International Film Festival and this year it seems every week there's a new one: the British Film Festival, the Jewish Film Festival, the Italian Film Festival, HotDocs, Inside Out-it goes on and on.

The projection concerns of the last three groups I mentioned, the small businesses, the film festivals and the screening rooms, are quite different from what is required by the major chains. The consequences of projection not working properly in these other situations are quite different from what happens from a business perspective, even where you look at the consequences for those major chains. For example, a small business may have one screen. If there's a projection problem and they can't run the show for some reason, that's a loss of 100% of their receipts for the day. A major chain has hundreds of screens and if one screen goes down, that's not even 1% of the day's receipts.

You could look at the issue of projection problems as well in a major cinema chain where they base their business on many repeat screenings of a film, usually over a minimum two-week period. If a screen goes down, they can issue a pass for another day and someone can come back. There's lots of time to do that.

Imagine the situation in a screening room. Screening rooms are operated to promote the industry. This is where the media may go to watch the movie to be able to write their review. If there's a projection problem and they can't see the film, they may miss a deadline and then it comes time, the film opens and everything is concentrated on that opening weekend, so the film's distributor stands to lose that review, which is part of the promotional campaign for the film on the opening weekend that it be there. The box office receipts on the opening weekend are about as good as the entire run gets, so every review is a factor in maximizing box office and time is of the essence. They don't have time to come back necessarily.

Film festivals are somewhat like screening rooms. They have a limited number of screenings and these have become marketplaces now. A producer can face several possible financial losses resulting from a lost screening. It can be everything from the initial sale and arranging distribution of the film to marketing and promotion of the film to the wider public. If it doesn't play at the festival, what might have been a prizewinner at the festival, which would be part of that marketing campaign, suddenly what happens is that no one sees it and it doesn't even qualify.

As well, one of the things that happens at the film festivals is that the filmmakers actually attend. It's not like the main chain theatres where mostly it's just the public and they have somewhat lax standards in what they might be willing to accept in the presentation. But the people in the industry demand the top performance of their pictures done to the true industry standards. My argument would be that in all these situations, if you look at the resources of the major companies, they have technical people on standby, they have a certain amount of automation in the systems and they would argue, "Why do we need people who are trained as craft projectionists, with apprenticeship and all the rest, when all we need is someone to thread the projector?" I almost think that their argument is not that there isn't a place for this but that "There isn't one that we can use."

The professional projectionist's licence should represent and should be proof of a professional qualification because it did involve, up until September 28, 1995, an actual apprenticeship. There was a three-member panel of the Ontario Labour Relations Board that heard all these same arguments and they issued a written ruling on that date that said in section 17 of that ruling: "It is apparent to us that the licensing provision in the Theatres Act is not a frivolous requirement. The process by which projectionists are licensed is not a pro forma one but has the hallmarks of acquiring a trade or craft."

Outside of the major chains, all the other elements in the industry, because of various things, like it's a small business. You can't pay technical people to sit by to help you out; you rely on the services of a professional craft projectionist. The film festivals, the screening rooms, it's all the same; these are all manual operations, absolutely no automation. Sometimes, still to this day-on October 19 this year I worked at the Loews Cineplex screening room which has two machines, manual changeovers, and the projectors are probably about 30 years old. That's common for these screening rooms. So the idea of being able to function as a competent craft professional is still here today.

People might say, "Well, what about the digital cinema that's out there?" I would say this is so premature, with all the issues the industry has to resolve. There are two proposed systems that could do digital cinema. The entire industry hasn't even settled on one yet. So any company that goes out and says, "We're going to invest in this," at the cost of these systems, that's one of the issues to work out. I understand it's roughly $100,000 to buy one of these systems. So to convert a 10-screen theatre, it's a $1-million outlay. Someone is going to have to come up with this, and that they haven't worked out. So digital cinema is a non-starter at this time, and I believe it is still necessary to have professional people.

I can make some recommendations here and then I have one final matter to bring up. Given the entire scope of the industry and the course of this industry for the foreseeable future, I believe it's premature and excessive to eliminate projectionists' licences as a proof of professional competency at this time. It's plain that this industry functions in two ways that are so different that it might appear that a single solution cannot satisfy both sides. Nonetheless, I believe a solution exists that recognizes reality and still works for everyone involved.

A solution would be to amend the Theatres Act in the following way: on the one hand maintain apprenticeship, an examination and licence for the craft professional within those elements of the industry where professional competency still has meaning and value. You can also then amend theatre licensing to recognize what is happening anyway with regard to the employees of the major chains. Those employees are not expected to practise projection as a craft, and for the limited purpose of little more than threading a projector, it would be permitted as a condition of the theatre licence that they don't have to have apprenticeships, examinations and licensing. That would seem to me to solve the entire situation.

I'll mention one other issue. It's a condition under the current Theatres Act: "No person shall exhibit, distribute or offer to distribute or cause to be exhibited, distributed or offered for distribution in Ontario any film that has not been approved by the board."

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It's also under the section about projectionists that "the director may suspend the licence of a projectionist if he or she has contravened this act or the regulations." What that in essence says is that if something shows up at the theatre that doesn't have a censor band or certificate or whatever you want to call it, it should not be run. If I were to run it and someone came in and inspected the theatre, I could not be working tomorrow. I could be suspended for that.

On the night of October 14 there were two screenings: Pay It Forward, a Warner Bros picture, and Bamboozled, which is a release by Alliance. Both of those pictures arrived for two-for-one sneak previews and there was a certificate with each of those movies. Unfortunately, there was a trailer on each one where there was no certificate whatever. What are we to make of the idea of eliminating the licence and the penalty, which is suspension of the licence and the ability of a person to engage in a livelihood? That seems to me to be an effective way to monitor compliance with the classification system. What can I say? No certificate? Who might even bother to do this? I know I could lose my licence. If there's no penalty, part of the monitoring of this is being eliminated, and I don't know if that has really been considered.

Just one final example of what can come up as far as practising as a craft professional. This past weekend I worked as part of the Access Japan 2000 cultural event sponsored by the Japanese consulate. What I had to do just this past weekend was run a film print that must have been at least 20 years old. It took me longer to revise that print and prepare it for running than it did to actually watch it. This was a print that even had a wet splice in it. In the old days, that was how you did it. It went to tape splicing. Here's a print that I'm expected to be able to run, and I say that is a craft professional type of responsibility. It should be part of my competency to do that, and yesterday I ran 20-year-old film. The people who are trained by Famous Players or Cineplex Odeon are not competent to do this. What we're doing is eliminating a job qualification as well.

Mr Gordon McLeod: My name is Gordon McLeod. I'm the director of engineering and technical services for Entertainment Equipment Corp. We're based in Los Angeles, Washington, Toronto and Buffalo. We're the fourth-largest service corporation in North America servicing cinemas. I'm also on the committee of the SMPTE, which is the Society of Motion Picture and Television Engineers, and we have finally released to the industry a training manual for the craft of projection. It is approximately three and a half inches thick.

At the recent trade show called Show East in Orlando, Florida, we spent over 12½ hours meeting with Eastman Kodak and Dolby Laboratories to try to draw up standards, because one of the problems that is happening across the world now is that equipment being installed in theatres has a requirement on it from the Underwriters Laboratories or CSA that it be operated by professionally trained people only. That is stamped on the nameplate at the back, and their installation permission from these standards organizations is based on the fact that it will be operated by trained professionals. If a body chooses to do away with a standard for the training of these people, then the obligation of the liabilities on the manufacturer's part is going to be increased.

Presently, in Europe we're also preparing guidelines that are going to actually have a European standard and one licence for all of Europe for projectionists under the current EC. It was my concern that there is a liability that goes with this equipment, that it is designed for professional installations only and is marked as such. A lot of electrical authorities now are even getting concerned with these standards being used for these large digital sound systems. Voltages exist in them now that are fairly well lethal and require a higher classification of wiring standards than had been previously employed. Thank you.

The Chair: Thank you very much, gentlemen. You've used 20 minutes of your presentation, so that would give us about three and a third minutes for each caucus. We'll start the rotation with Mr Marchese.

Mr Marchese: Were you consulted at all before these changes were made?

Mr McPherson: No.

Mr Marchese: They didn't bother calling you to say, "We're about to change something because we think it's necessary"?

Mr McPherson: No.

Mr Marchese: They operate that way, by the way. The assumption that has been made with this change is that anybody can do your job. Is that basically it?

Mr McPherson: Yes.

Mr Marchese: Therefore we can save some money, and if there happens to be no union as a result, that's even better?

Mr McPherson: Yes. Per se, getting rid of licensing I don't think will get rid of the union, because we're very qualified to do our job. As they presented, at their screening rooms in Cineplex head office, Universal, they call us to run them. They don't want their people to run them because they know they can't do the job. They still call us to run them. What licensing does is make sure that the people are trained to do a job.

Mr Marchese: I understand.

Mr McPherson: In Ontario, hairdressers have a licence, auto mechanics-

Mr Marchese: I understand that, Rob. I'm on your side. Why is it that the government wants to do this, do you think? What's the point?

Mr McPherson: That's what I'd like to know. I have no idea.

Mr Marchese: The big folks who have the large screens, 10, 15, 20, whatever, they call you guys on a regular basis?

Mr McPherson: Oh, yes. We're there all the time.

Mr Marchese: And there are people there who can do that job at the moment, who are managing?

Mr McPherson: There are managers. Right now, they still train their, I call them, candy bar staff to come up and thread the projectors and start them. But once they've started them, and now in some of the complexes they start by themselves, they're gone. They go downstairs, there's nobody watching and they leave. When we're there, we are cleaning up their messes and maintaining the equipment so nothing happens.

Mr Marchese: Because there are safety questions that you raised earlier on.

Dave, you were proposing some changes that effectively leave the situation as it is, where you have licensing, and the big chains can keep on hiring these guys who just have to thread. But your point is that that's not a problem, because they keep on calling you anyway, so basically things would be as they are. So why remove the licensing?

Mr Callaghan: Someone in management in one of these companies said, "We can't do the festival-type situations." They know there's more to the job. I look at this and say, if they want to take on the liability issues of simply training one to thread the projector, because they're out to try and improve their bottom line, go ahead. But to say that therefore there's no recognition of people who have craft status would seem to me to be going further than we need to go.

Mr Marchese: You're also suggesting that if they do this, it doesn't cut red tape at all but rather will create different problems. If they go ahead with this, it will not be what they pretend to do in the act, which is to reduce red tape to promote good government for better management, but rather it will have the opposite effect.

Mr McLeod: It will involve other government levels in the safety standards of the equipment they're installing because it's all based on a premise that there are professional people operating it.

Mrs Julia Munro (York North): Thank you again for coming here today to give us some insight into this. I want to ask two questions. I'm going to go first to Mr McPherson.

You mentioned at the beginning that this had been done, that there had been some initiation of possible change back in the early 1990s. I wondered if you could explain briefly for us what motivated the conversation at that time.

Mr McPherson: The idea at that time-it's very simple-was to remove licensing, therefore remove the requirement we had at the time to become projectionists, therefore remove the union. Presumably, there would be no more union jobs. It was the film companies that were trying to go to the government to have it removed so we would lose our licences so anybody could do it, and therefore the union would be out. That was my understanding of why it was done.

Mrs Munro: All right. I want to come back to Mr Callaghan. You mentioned something about, and Mr Marchese made reference to it, some kind of amendment, because clearly what you've demonstrated here today is the fact that your skills are very much in demand. Could we just clarify or go over the suggestion you had for an amendment?

Mr Callaghan: Would you like me to just repeat it?

Mrs Munro: If you can, or if you could just add any further explanation to it.

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Mr Callaghan: In a way, what I'm thinking about here is that we could simply put into the law in writing what's actually happening now in any case. As I see it, we could maintain the existing system for those people who intend to practise this as a craft, have a proper apprenticeship. What happened in 1996 was that they eliminated any requirement to serve any amount of time. So there was a licence, but to read the letter of the law, you could have gotten a licence today and gone back after 1 o'clock in the morning and gone back after lunch, and if you could somehow do the test, you were considered to be capable of the same performance on the job, to the same standard I'm capable of. Someone could go in and get the licence in that circumstance. I've been doing this for more than 20 years and, as I say, I was working on film even yesterday on 20-year-old film.

I suggest that whatever requirements there are with regard to licensing theatres, like the exit should be such-and-such and conditions of this kind, and they have to observe that their classifications are monitored and so on-you don't sell restricted movie tickets to people who are 13 or whatever-another condition in there could be that this would be permitted. There would be very limited things these people could do. They can thread the projector and perhaps refocus it and so on. In fact, we have language of this kind in the current collective agreement. So we have it, and we may be ahead of the government here. That would accommodate the needs of the major chains, where they don't want to have to train and be, like myself, capable as a professional; they don't need that in their business. The other half of the business all needs it.

You could think, "We can't find one solution here, can we?" and I'd say no, we can't. What they do is hire people who are able to do this, and they can do duties in the theatre, and then another duty becomes to thread the projector, and that's basically what they're doing. If the government were to say something like, "Tomorrow all you PhDs out there who put in all this time, or all you medical doctors, we'll just eliminate that licence; there's somebody who wants to open a medical clinic and, well, brain surgeons are expensive, so let's not have this degree"-why do we have to do something like that to eliminate what amounts to a certificate, a diploma or anything else? The province has jurisdiction on education and training and such, and that's what my certificate is.

What's being proposed is that now I have no qualifications at all, when I think I can demonstrate that it still exists. Let's amend the Theatres Act, the theatre licensing. That we could do, and it would accomplish what the big chains want and it would also accomplish what everyone else needs.

Mr Levac: I'll try to do this quickly in rapid fire so we can get some quick answers out. In 1991 you said that was proposed. It didn't happen, did it?

Mr McPherson: No.

Mr Levac: The second question is, is there anything else in the act, in Bill 119, that you feel under the Theatres Act changes needs any work besides the ones you've mentioned as projectionist and the definitions?

Mr McPherson: I think it should be left the way it is. We just got hold of this and went through it, saw the problem that was going to affect us directly and are speaking to that issue. The other stuff we have not delved into.

Mr Levac: You mentioned the liability. Do you think the companies then will see that as an increased liability? If I heard you correctly, since they're not going to be licensed people and since they're not going to have the supposed training you're referring to, then the companies will just simply raise their liability, because they're assuming that because there are not licensed people, something is bound to go wrong?

Mr McLeod: Their insurance would probably increase, but the liability also will exist when the various electrical and fire inspectors come in to certify the installation of equipment, whether the level of the people operating it will be satisfactory for most of it to still pass, because their CSA or their UL certificates are based on being operated by a professionally trained person.

Mr Levac: A member on our side, the member from Sarnia-Lambton, Ms Di Cocco, indicated in one of her questions that the xenon bulbs and the 50,000 watts going through the system were an extremely important issue, a very strong health and safety issue that permeates beyond projectionists.

Mr McPherson: Do you mean one of these?

Mr Levac: Yes.

Mr McLeod: They are a regulated item even for destruction when they're used. They cannot be disposed of in landfill, garbage; they usually have to be returned to manufacturing.

Mr Levac: Given that safety issue in terms of it going beyond the projection room-it goes into the theatre, as you mentioned, 10,000 people; it goes into the malls in which these places are located etc-what do you think of a person who made the comment, "Why are we worried about this, because all we have to do is flick a switch off and on?"

Mr McPherson: Tell them to come and see me sometime.

The Chair: Thank you very much, gentlemen. I appreciate the three different viewpoints you brought and the time you took to craft some proposed amendments as well.

SOUTH ETOBICOKE COMMUNITY LEGAL SERVICES

The Chair: Our next presentation will be from the South Etobicoke Community Legal Services. Mr Hale, good afternoon. Welcome to the committee.

Mr Kenneth Hale: Good afternoon, Mr Chairman and members of the committee. My name is Kenneth Hale. I'm the lawyer-director of South Etobicoke Community Legal Services, a community legal aid clinic located in southwest Toronto.

I'm here to speak about the amendments to the Tenant Protection Act that are proposed in Bill 119. As I understand some other speakers have mentioned, they've found the process to be ridiculously quick for the kinds of serious matters the committee is dealing with. I don't really understand why the people of Ontario don't have more of a chance to find out what's in legislation and consider it and come up with some clear thoughts on it before we're rushed down to committee hearings while the bill gets rushed through. Having said that, I've tried to do my work over the weekend and look at what I thought really needed to be said about this bill, and that's why I'm here.

When I first heard the name "red-tape bill," I tried to imagine what it was that the government was talking about with red tape, so I looked it up in the Canadian Oxford Dictionary. The dictionary says that "red tape" is "excessive bureaucracy or adherence to formalities, especially in public business."

Tenants facing evictions who deal with the Ontario Rental Housing Tribunal are quite familiar with excessive adherence to formalities in the public business of determining whether tenants have a place to live. In order to be allowed to go to their hearing and contribute to the process of deciding whether they're going to lose their home, tenants have to wade through a document that's called Notice of Hearing, which is basically incomprehensible to most people. If they get through it, they discover that they have to file a written dispute within five calendar days. If they don't get this dispute in, they're going to lose their home without having an opportunity to be heard.

I think this would be the kind of red tape the people of Ontario need relief from, but nowhere in the Red Tape Reduction Act do I find any mention of the dispute and this excessive adherence to formalities, which makes me think that the government thinks that certain kinds of red tape that apply to certain people are just fine. Because the government didn't really deal with what we see as the most serious instance of red tape in this bill, it makes us wonder what your motives really are.

I suggest, if you're really serious about reducing red tape, amend the bill and put in an amendment to the Tenant Protection Act that deletes section 177, which requires a written dispute, and then when people get a notice of hearing they'll know they have a hearing and they can go to their hearing and say their piece and be heard by the adjudicators and defend themselves if they want to.

Having said that, I looked at a lot of the other changes to the Tenant Protection Act. There's quite a bit in there. A lot of them look fairly offensive, but I must say, like everyone else in this province, I haven't had a whole lot of time to really think about all the details of all of them. In fact, some of them may even turn out to be beneficial for tenants. But we don't really know how the adjudicators and the courts are going to interpret them, so it's really hard to say whether they're going to have any effect at all.

There is at least one change that I think is a direct attack on some of the most vulnerable people in the province, and the committee should recommend to the Legislature that it not proceed with it: the proposed change in the definition of "landlord."

One hundred years ago the Ontario Legislature realized that disputes between landlords and tenants were special kinds of disputes that required speedy, just resolutions. They passed something called the Landlord and Tenant Act, which allowed such cases to be dealt with outside of the normal stream of commercial litigation, which even 100 years ago was in somewhat of a state of backlog. Twenty-five years ago the Legislature realized that residential landlords and tenants needed specialized legislative provisions and they enacted part IV of the Landlord and Tenant Act, which recognized the vital interests that residential tenants have in their homes and started to move away from the strict commercial law principles that had governed landlord-tenant relations up to that time. In 1997, the Legislature tried to accommodate these same sort of ideas within a new decision-making structure. They enacted the Tenant Protection Act, which everyone claimed had these same protections which had been built up over the last 25 years, and it was just a new decision-making process and a new structure.

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But for some reason, the government is now proposing that a whole bunch of tenants should be thrown back into the 19th century. They are proposing that disputes between some residential tenants and their landlords not be dealt with by the Ontario Rental Housing Tribunal or not even be dealt with by the summary procedures under the Commercial Tenancies Act. They are proposing that certain kinds of residential tenants have their rights determined by the courts in the regular stream of commercial litigation. Any of you who are familiar with commercial litigation in the Superior Court know that's the home and the founding place where red tape was invented. I don't really think it's in anyone's interest to send more residential tenant disputes to the civil courts. Despite the fact that the courts have been making strenuous efforts to clear out the red tape, it's still there. That was one of the main arguments the government had for bringing in the Ontario Rental Housing Tribunal: the courts have too much red tape. So why are they turning their back on that principle for thousands and thousands of tenants?

Who are these tenants? If you thought that you were passing the Tenant Protection Act in order to cause rents to escalate crazily, well, it's been an unqualified success. Unfortunately, tenants' incomes haven't kept up, and the government hasn't been as successful at growing the incomes of people in the bottom fifth of the income scale. You've cut the welfare rates. You've refused to give people disability pensions. You've frozen minimum wages. You're attacking collective bargaining. This means that tenants' incomes are not rising anywhere near as fast as rents are. What this means is that many individuals and families can't afford to rent a house or an apartment; all they can afford to do is rent a part of a house or an apartment. Whether they rent one bedroom out of a three-bedroom apartment or whether they rent the upper floor of somebody's rented house, this is their home, this is what they can afford.

Unfortunately, they don't have any direct relationship with the owners of the property. The only relationship they have is that with their landlord, the person who rented the space to them, and that person, in turn, is the tenant of the person who actually owns the premises. There is nothing in the law that says there is anything wrong with this. It seemed we had restrictions on allowing people to profiteer from this situation by dividing things up and renting them for more than they're renting, but that protection is pretty well gone too. But there is no real reason in the world to do what the government is proposing to do, which is exclude landlords of tenants who rent from other tenants from the definition of "landlord" in the Tenant Protection Act.

The people who rent these places are tenants. They pay rent in return for the right to occupy their rental unit-that makes them a tenant under the Tenant Protection Act-but with this amendment, they would have no landlord. Any rights they would have would strictly come from the contract they have with their landlord, and that contract is only to be enforceable through the Superior Court, not the Ontario Rental Housing Tribunal.

If there is no provision in the contract requiring notice of termination, then they don't have to get an eviction notice before they get evicted. If the contract doesn't specify heat being provided, then there is nothing they can do if their children are freezing. If they actually do have rights in a contract, the Ontario Rental Housing Tribunal will refuse to enforce those rights for them.

Of course, when the tribunal turns them away, they are not going to be going down to Bay Street and hiring counsel to litigate in Superior Court. They are going to just go away, put up with the indignity and humiliation of losing their home, losing their property or whatever it is-whatever we do when we don't have a place to go and resolve our disputes. We don't generally expect people in this society to just be kicked around and abused without offering them any kind of realistic remedy.

On the other side, we shouldn't set up situations where people have the opportunity to take advantage of others without having any fear of legal consequences. When there are legal consequences to your disputes, you generally try to keep your disputes within civilized bounds because you know there are legal remedies if you don't. But the government is proposing that a large sector of the tenant population just be sent out into this legal no man's land where there are no constraints, and I don't think that's acceptable. I think the committee should really carefully look at this idea and reject the idea.

The Ontario Rental Housing Tribunal is a fact of life. It's there. It needs to be open to as many tenants as possible. We shouldn't have a group of people, especially people toward the bottom end of even the tenant population, who can't get any determination of their issues at the Ontario Rental Housing Tribunal. If this committee is looking at cutting red tape, I think it should be trying to improve the way the tribunal operates, not finding ways to keep people out of it.

I am asking that you reject subsection 6(1) of the bill and that the tribunal continue to deal with these kinds of cases on the merits of the individual case, and not excluding people as a class from its operation.

The Chair: Thank you, Mr Hale. Actually, we've gone over time but it was an important point that you were making, and I wanted you to have the opportunity to finish your brief. I do appreciate your raising it with us, and we'll certainly look into it further. Thank you for taking the time to come before us here this afternoon.

GREATER TORONTO TENANTS' ASSOCIATION

The Chair: Our final presentation this afternoon will be from the Greater Toronto Tenants' Association, Paul York. Good afternoon, Mr York. Welcome to the committee.

Mr Paul York: Thank you. This was hastily prepared because I was called late Friday and I just got the message this morning. This is being pushed through fairly fast. I don't know why that is, but I will try to address it.

The Greater Toronto Tenants' Association is a coalition of tenant associations which formed last year in response to the more draconian aspects of the Tenant Protection Act, including the fast-tracking of evictions, which we feel violates the right of a tenant to a fair hearing and diminishes security of tenure. We mainly deal with rent review, actually, not evictions. But in the course of doing rent review I've come across many eviction cases because, when you organize a building, you come across tenants who are being evicted because of high rents, and so we try to address those.

This bill, the Red Tape Reduction Act, Bill 118, I believe it is-what is it?

The Chair: Bill 119.

Mr York: Bill 119 is a further eroding of our already diminished rights. The provision of that bill that speaks to tenants, which allows for the fast-tracking, we think should be rejected.

Statistically, about half the cases are default-56%, I heard. Perhaps that is part of the government's rationale for further fast-tracking, to make the process faster and more expeditious to clear up the tribunal's heavy caseload of rent increase and eviction applications. It should be noted that, in my experience anyway, in the experience of GTTA, the vast majority of applications are made by landlords, not tenants. This statistic, instead of compelling you to fast-track the process more, should compel you to look at positive changes you can make to the TPA.

The provisions contained in Bill 36, David Caplan's bill, did away with the requirements to dispute an application in writing, required tenants to be served by a third party, and set an expiry date of six months on a notice of warning to terminate. Members of this committee, including Mr Gilchrist, I recall, actually spoke in favour of some of these procedural amendments while criticizing other parts of Bill 36. Yet Bill 119 doesn't provide the remedy that Bill 36 would have. It goes in the opposite direction. It seems to rob the tenant of the right of a fair hearing.

Security of tenure, the right to live in one's home without fear of arbitrary eviction, is a fundamental right which the government certainly ought to do everything within its power to protect. But we find this system is making many mistakes and is violating security of tenure in terms of demolition to make way for condominiums, in terms of fast-tracking evictions.

The appointment of default order officers is a frightening thought. We've already lost courts and judges to the TPA, replaced with political appointees, some of whom are fair within the confines of law, others who are not. The clerks at the three tribunal offices that we go to a lot frequently make mistakes in scheduling and processing claims. I can see them making the same sort of mistakes with these evictions, except instead of a wrong hearing date, which we can live with, the result will be children and seniors on the street. Even one mistake of this kind is too many.

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I was speaking with a Tory MPP recently who told me Bill 119 is intended to only speed up the process for getting rid of criminals and drug dealers, a sensible sounding argument if that were the only rationale behind it, but what I've seen is that Bill 119 has a broader scope, allowing for faster evictions of any tenant that is not present, tenants who very often were never served, never aware that an eviction is occurring until they receive the writ of possession. In fact, I knew a fellow who was the head of a tenants' association that was facing demolition and that's what happened to him. He was never served and now he's gone.

I asked the Tory MPP if this bill could be used by unscrupulous landlords to evict good tenants. He was mystified by my question. Why would a landlord do that? I told him to get higher rents on the vacant unit and to evict tenant leaders or those who were simply asking for their rights. I recalled an arrears judgment that I went to the set-aside for. The man was a senior from Russia. He did not speak English at all. He did not dispute the application in English within five days, obviously. There was a default judgment against him. He turned to his tenants' association which, fortunately, spoke Russian-one of our member buildings. We helped him get a set-aside hearing. He produced and we produced at the trial the cancelled cheques. The landlord withdrew his application. But this man was lucky because the tenants' association was there to help him. I can imagine many others falling between the cracks. They've called me. I've heard these stories of people for whom it's too late. I'm afraid that Bill 119, the way it is now, would result in more unfair evictions and more violations.

A major problem with the Tenant Protection Act, which we see every day in rent review, is the conflicting mandate it seems to have. Section 171 talks about having a fair hearing, but it also decides it's a need for an expeditious hearing. Adjudicators have denied many requests for adjournments because they felt compelled to weigh in more heavily on the side of the expeditious argument. I feel that a new adjudicator, somebody who is not seasoned, would feel compelled to go with the expeditious argument more frequently, and certainly that is the case already. I'm afraid that with the default order officers, as they're called, or the SWAT team, as you've called them, that it's simply a rubber-stamp exercise for them. They won't weigh the pros and cons. They won't give it a fair-they won't think of what's correct or just. It's a rubber-stamping exercise for them.

Once the eviction order is in, it's very hard to get a set-aside. We help tenants run around and get set-asides all the time and this is only because the tenants' association exists. What about those people for whom no tenants' association exists, who don't know that a legal clinic exists to call them to get that kind of help?

So we're asking: don't make this situation worse than it is. We feel that it will backfire. A million tenants of Toronto are already being awakened by the effects of the TPA. Perhaps in drafting this you're assuming that the tenant population will be in a state of slumber for another few years, that you can accommodate the landlords a little more. I think that's quite a gamble. This is playing with peoples' lives. I don't think the tenants are going to be in a state of sleep much longer.

We think the Tenant Protection Act is a failure. It didn't meet any of the tests of, when Al Leach drafted it, what he said it would succeed at, except making the system faster. It did succeed at that. But it didn't build new housing. We don't think that this mistake should be compounded. We'd like to see some positive changes to the TPA, and this is not one of them. So we agree with Mr Marchese. Instead of finding faster ways to evict families, the government should freeze rents for two years and also reject the provisions in Bill 119 that are offensive. Thank you for the opportunity.

The Chair: Thank you, Mr York. That leaves us about two minutes of questioning. This time in the rotation, it's the government.

Mr Spina: Thank you, Mr York, for coming forward and speaking. Mr York, I think you indicated-it is Mr York, is it not?

Mr York: Yes.

Mr Spina: You indicated that one of the concerns was that if an eviction order went through that there would be, basically, an unqualified individual that would be putting it through, sort of thing?

Mr York: I don't trust the clerks at all. I'm telling you-

Mr Spina: Pardon me?

Mr York: I do not trust the clerks down there. They make mistakes a lot. It's because there is a heavy caseload and it's very easy to make mistakes.

Mr Spina: You indicated also that, in the past, it was the tribunals that were essentially authorizing the final eviction notice, and you said that in some cases, because they are political appointees, they work, and in other cases they don't work. Could you elaborate on that a bit?

Mr York: Without generalizing too much, my experience has been that some of the younger ones, or the ones that have a landlord background-there is one fellow who used to work for a landlord law firm-tend to give unfair judgments, whereas the older ones that have been there before the TPA are fairer within the confines of the law, some of them.

Mr Spina: So would it be fair to say that if you remove the bias from a tribunal, because it is a political appointment, your concern is that the clerks or the staff could make errors because of the volume of work? Essentially, though, those people in that staff are far more experienced and would be more objective, would they not, in issuing the order or rejecting it? I think also that if there was an error that surfaced, that was discovered, there is plenty of opportunity, is there not, for the tenant to make an appeal?

Mr York: No. I don't believe that there is a lot of opportunity for the tenant to make appeals because the system is so fast right now and this amendment is going to make it faster. The tenant has to know how to do a set-aside, and this is a complicated procedure. If, for whatever reason, they didn't have time or ability to do the written dispute, how are they going to do the set-aside without help or instruction? There's not too much help out there. Most of the tenants are on their own.

The Chair: Thank you, Mr Spina, and thank you very much, Mr York. I appreciate your taking the time to come before us here again this afternoon.

With that, the committee stands adjourned until 3:30 on Wednesday.

The committee adjourned at 1638.