ELECTRONIC COMMERCE ACT, 2000 / LOI DE 2000 SUR LE COMMERCE ÉLECTRONIQUE

CONTENTS

Monday 2 October 2000

Electronic Commerce Act, 2000, Bill 88, Mr Flaherty / Loi de 2000 sur le commerce électronique, projet de loi 88, M. Flaherty

STANDING COMMITTEE ON JUSTICE AND SOCIAL POLICY

Chair / Présidente
Ms Marilyn Mushinski (Scarborough Centre / -Centre PC)

Vice-Chair / Vice-Président

Mr Carl DeFaria (Mississauga East / -Est PC)

Mr Marcel Beaubien (Lambton-Kent-Middlesex PC)
Mr Michael Bryant (St Paul's L)
Mr Carl DeFaria (Mississauga East / -Est PC)
Mrs Brenda Elliott (Guelph-Wellington PC)
Mr Garry J. Guzzo (Ottawa West-Nepean / Ottawa-Ouest-Nepean PC)
Mr Peter Kormos (Niagara Centre / -Centre ND)
Mrs Lyn McLeod (Thunder Bay-Atikokan L)
Ms Marilyn Mushinski (Scarborough Centre / -Centre PC)

Substitutions / Membres remplaçants

Mr Brad Clark (Stoney Creek PC)
Mr Tony Martin (Sault Ste Marie ND)
Mr Gerry Martiniuk (Cambridge PC)
Mr Richard Patten (Ottawa Centre / -Centre L)

Also taking part / Autres participants et participantes

Mr John Gregory, general counsel,
Ministry of the Attorney General

Clerk / Greffier

Mr Tom Prins

Staff / Personnel

Ms Cornelia Schuh, Legislative counsel

The committee met at 1534 in room 151.

ELECTRONIC COMMERCE ACT, 2000 / LOI DE 2000 SUR LE COMMERCE ÉLECTRONIQUE

Consideration of Bill 88, An Act to promote the use of information technology in commercial and other transactions by resolving legal uncertainties and removing statutory barriers that affect electronic communication / Projet de loi 88, Loi visant à promouvoir l'utilisation des technologies de l'information dans les opérations commerciales et autres en éliminant les incertitudes juridiques et les obstacles législatifs qui ont une incidence sur les communications électroniques.

The Vice-Chair (Mr Carl DeFaria): I'd like to call to order the meeting of the standing committee on justice and social policy for clause-by-clause on Bill 88.

I'll start by calling for debate on section 1. I understand that there have been 10 amendments filed. I understand Mr Martiniuk intends to ask for unanimous consent on changing one of the amendments. But we'll get to that.

Mr Gerry Martiniuk (Cambridge): With the consent of the committee, may I suggest that Mr John Gregory, who is the draftsman of this very technical though short legislation, be permitted to sit there as we're going through this matter in case there are any questions. When I say "there," I mean at the table opposite me.

Mr Richard Patten (Ottawa Centre): Yes. No problem.

Mr Martiniuk: Thank you. Mr Gregory.

The Vice-Chair: Mr Martiniuk, would you like to move that amendment?

Mr Martiniuk: No, I'll start off into a section, if I may.

The Vice-Chair: Let me start with section 1, and when we get to that section you can move the amendment.

Mr Martiniuk: Fine. Thank you.

The Vice-Chair: Is there any debate on section 1 of the bill?

Mr Martiniuk: Excuse me, Mr Chair, may I move the adoption of section 1? Until there's a motion on the floor, I don't think we can debate it.

The Vice-Chair: In clause-by-clause we can proceed. It's much faster to proceed. We assume-

Mr Martiniuk: Assume away, Mr Chair.

The Vice-Chair: This is a government bill, so all those sections have been moved. I would just proceed with asking for any discussion. If there is none, shall section 1 carry? Carried.

Section 2: is there any debate on section 2? Seeing none, shall section 2 carry? Carried.

Section 3: This is the section, Mr Martiniuk, that you would like to move your amendment on.

Mr Martiniuk: I move that subsection 3(2) of the bill be struck out and the following substituted:

"Implied consent

"(2) Consent for the purpose of subsection (1) may be inferred from a person's conduct if there are reasonable grounds to believe that the consent is genuine and is relevant to the information or document."

The Vice-Chair: Any comments or debate on the amendment?

Mr Tony Martin (Sault Ste Marie): Could we have the counsel explain exactly what that means?

Mr John Gregory: There had been some concerns expressed by some counsel, both solicitor and litigators, about the wording of the provision in Bill 88. There is no intent in the motion to change the effect, which is that if you're going to imply consent you have to do it reasonably, and you can't imply consent to something out in the air. It has to be tailored to what you're dealing with.

The concern was that the expression "reasonable assurance" might suggest that you need some kind of document showing it. I'm not so sure, but it seemed to be an easy concern to allay just by saying "reasonable grounds" and saying that the consent applies to the information. There was a danger that it would be read too specifically, as if, "I consented to your saying yes, but I didn't consent to your saying no," which is obviously not the kind of argument we want to get into.

The amendment says that the consent has to be "relevant to the information or document." I don't think there is any change in the result. It just gets rid of a couple of lawyers' arguments that might be used to challenge it. If you're going to imply consent from conduct, you still have to believe on reasonable grounds that it's right and it still has to be relevant. As I said, I don't think we're changing the impact at all. We're simply getting rid of a couple of technical concerns.

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The Vice-Chair: Any comments or questions on this amendment?

Seeing none, shall the amendment carry? Carried.

Are there any further amendments? No.

Shall section 3, as amended, carry? Carried.

Section 4 has no amendments. Any discussion on section 4? Seeing none, shall section 4 carry? Carried.

There are no amendments to section 5. Any debate or comments on section 5? Seeing none, shall section 5 carry? Carried.

There are no amendments to section 6. Any comments or debate on section 6? Seeing none, shall section 6 carry? Carried.

There are no amendments filed on section 7. Any comments or debate on section 7? Shall section 7 carry? Carried.

Are there any amendments to section 8?

Mr Martiniuk: Yes, if I may explain. you have been provided with amendment number 2, I guess it is. That was filed within the appropriate time and sent out by this committee. Subsequent to that, certain parties suggested that the word "possession" in the amendment reading "possession of an electronic document" was inappropriate since the document was electronic, and that therefore "control of an electronic document" would be more appropriate under the circumstances.

I am asking the committee for unanimous consent to move a motion using the word "control" with the same wording as the amendment before you.

The Vice-Chair: Is there unanimous consent to this amendment to the amendment?

Mr Brad Clark (Stoney Creek): So you're deleting "possession" and you're adding "control"?

Mr Martiniuk: That's correct.

The Vice-Chair: Is there unanimous consent?

Mr Patten: Just a minute. Where is it in the bill?

Mr Clark: It's in the amendment.

Mr Patten: Subsection (4) is new?

Mr Martiniuk: Yes. It's a new subsection.

Mr Patten: Oh, it's an addition. OK.

Mr Martiniuk: Sorry, Mr Patten. I should have pointed that out.

Mr Patten: All right. So number (4) is a new subsection. Do you want to comment on it?

Mr Gregory: I'm not sure. The point of the amendment itself is to ensure that we do not have a claim under this act that someone is in possession of an electronic document and someone else has possession of a paper document that is the same document. Obviously that can't happen without somebody either being negligent or dishonest. Nevertheless, to avoid a conflict, what we're saying is that the electronic document will yield to a paper original in the case of being pledged as collateral.

This is something the bankers' association raised with us at the committee public hearings, so we talked to them to follow up on that. Their outside counsel was away the week we were doing the amendments, so they came in when it was too late to get a change and said we really shouldn't talk about possession of an electronic document because that suggests holding it in a way that you don't hold it. "Control" is the word generally used for electronic documents. It's used in the United States legislation on the same subject. It's one that financial institutions recognize in dealing with electronic documents as security. It should say that control of an electronic document does not constitute possession under the PPSA. It's a technical amendment, but it's an improvement.

The Vice-Chair: Will you read the amendment, as amended?

Mr Martiniuk: I move that section 8 of the bill be amended by adding the following subsection:

"Exception, Personal Property Security Act

"(4) Despite subsection (1), control of an electronic document does not constitute possession of the original document for the purposes of the Personal Property Security Act."

The Vice-Chair: Do we have unanimous consent for this amendment to go through? I see that there is unanimous consent.

Shall the amendment carry? Carried.

Shall section 8, as amended, carry? Carried.

Section 9 has no amendments. Any comments or debate on section 9? Seeing none, shall section 9 carry? Carried.

I understand there is a government motion to amend section 10.

Mr Martiniuk: Yes. I move that section 10 of the bill be amended by adding the following subsection:

"Same

"(2) For greater certainty, the following are examples of actions that constitute providing electronic information or an electronic document to a person, if section 6, 7 or 8 is otherwise complied with:

"1. Sending the electronic information or electronic document to the person by electronic mail.

"2. Displaying it to the person in the course of a transaction that is being conducted electronically."

The Vice-Chair: Any comments or discussion on this amendment? Seeing none, shall this amendment carry?

Mr Patten: I have a question. There's always the sender's responsibility. Presumably, if there is a dispute following and someone says, "I didn't really receive the"-this is all subject, of course, to confirmation, probably in print form, of the communication for record purposes, is it not?

Mr Gregory: Certainly sections 6, 7 and 8 deal with a case where if someone is required to provide information-that might be in the form of giving notice, sending notice, whatever-the person who has that obligation is going to have to prove that they complied with it if there's a dispute.

There's another section in the act, later, that talks about presumptions of receipt of electronic documents, but it's never more than a presumption. Ultimately, if you want to be sure that the person has got it, you'd better get an acknowledgement or something which can say, "I can prove-"

Mr Patten: Confirmation that-

Mr Gregory: Yes. It doesn't have to be in writing, but it's whatever you can demonstrate to whoever has to decide your dispute.

The Vice-Chair: Any further comments or discussion?

Shall the amendment carry? Carried.

Shall section 10, as amended, carry? Carried.

There is a government motion to amend section 11.

Mr Martiniuk: I move that section 11 of the bill be amended by adding the following subsection:

"Seal

"(6) The document shall be deemed to have been sealed if,

"(a) a legal requirement that the document be signed is satisfied in accordance with subsection (1), (3) or (4), as the case may be; and

"(b) the electronic document and electronic signature meet the prescribed seal equivalency requirements."

The Vice-Chair: Mr Martiniuk moved the amendment. Any comments or discussion? Seeing none, shall the amendment carry? Carried.

Shall section 11, as amended, carry? Carried.

There is a government motion to amend section 12.

Mr Martiniuk: I move that section 12 of the bill be amended by adding the following subsection:

"Previously retained electronic documents

"(3) A legal requirement described in subsection (2) is satisfied despite non-compliance with clause (2)(c) if the electronic document was retained before the day this act came into force."

Interjection.

Mr Martiniuk: "Comes"? I'm sorry. The Chair has corrected me. The last four words should read "act comes into force."

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The Vice-Chair: Any comments or discussion on this amendment? Seeing none, shall the amendment carry? Carried.

Shall section 12, as amended, carry? Carried.

Section 13 has no motions for amendment. Any comments or discussion on section 13? Seeing none, shall section 13 carry? Carried.

On sections 14 to 18, there are no motions for amendment. Can we proceed with them together? Is that OK, Mr Patten and Mr Martin?

Mr Patten: Yes.

The Vice-Chair: On sections 14 to 18, inclusive, there are no amendments. Shall those sections carry? Carried.

Section 19: there is a government motion to amend section 19.

Mr Martiniuk: I move that section 19 of the bill be amended by adding the following subsection:

"Legal recognition of electronic contracts

"(3) A contract is not invalid or unenforceable by reason only of being in electronic form."

The Vice-Chair: Are there any comments or discussion?

Mr Patten: There were some exceptions identified at the beginning of the bill in the preamble. This would still not apply to wills or documents of that sort. Is that correct? This is only in e-commerce; this is transactions.

Mr Martiniuk: There are still other exceptions that are specifically excluded from the act, are there not, Mr Gregory? I think they're five in number, including bills of exchange.

Mr Gregory: That's right. In section 26 and following, the whole act doesn't apply, including this part. No, it's not pushing it farther.

Mr Patten: Fine.

The Vice-Chair: Shall the amendment carry? Carried.

Shall section 19, as amended, carry? Carried.

Section 20 has no amendments filed. Any comments or discussion on section 20? Seeing none, shall section 20 carry? Carried.

Section 21: there is a government motion to amend section 21.

Mr Martiniuk: I move that section 21 of the bill be amended by striking out "has no legal effect" and substituting "is not enforceable by the other person."

The Vice-Chair: Mr Martiniuk moved the amendment of section 21. Is there any discussion to the amendment? No. Shall the amendment carry? Carried.

Shall section 21, as amended, carry? Carried.

Section 22: there are no amendments filed for section 22. Any comments or discussion on section 22? Seeing none, shall section 22 carry? Carried.

Section 23: again, there are no motions to amend. Any comments or discussion on section 23? Seeing none, shall section 23 carry? Carried.

Section 24: there is a government motion to amend.

Mr Martiniuk: I move that subsections 24(1) and (2) of the bill be struck out and the following substituted:

"Authority to prescribe, approve or provide form

"(1) Authority to prescribe, approve or provide a form includes authority to prescribe, approve or provide an electronic form and to prescribe requirements for its electronic signature.

"Authority to prescribe or approve manner of submitting form

"(2) Authority to prescribe or approve the manner of submitting a form includes authority to prescribe or approve that it be submitted electronically."

The Vice-Chair: Are there any comments with respect to this amendment?

Mr Patten: Can you elaborate on it, please?

Mr Gregory: The purpose of the amendment was just to ensure that wherever a form can be created, it can be created electronically. The original text of the bill says "authority to prescribe a form includes authority to prescribe...." It was pointed out-in fact, we noticed internally after the bill had been read-that there are a number of places where departments or ministers or the government are empowered to approve a form rather than prescribe it, or to provide a form, to hand it out to the public. We wanted to make sure those can be done electronically as well; it's not just where you need to make a regulation that you can replace it. So there's no greater authority to make or provide forms, just matching the authority to go electronic, the authority to do it all, on paper.

The Vice-Chair: Any other comments? Shall the amendment carry? Carried.

Shall section 24, as amended, carry? Carried.

Again, sections 25 to 30, inclusive, have no motions for amendment filed. Can we again proceed with those together?

Mr Clark: Agreed.

The Vice-Chair: All right. Shall section 25 to section 30, inclusive, carry? Carried.

Section 31, there is a government motion to amend.

Mr Martiniuk: I move that paragraph 4 of subsection 31(1) of the bill be struck out and the following substituted:

"4. Documents, including agreements of purchase and sale, that create or transfer interests in land and require registration to be effective against third parties."

The Vice-Chair: Are there any comments or discussions?

Mr Marcel Beaubien (Lambton-Kent-Middlesex): As a layman, could you explain to me what the difference is between the present 4 and this 4?

Mr Gregory: In fact, this is put in to give greater comfort to the laymen at the Ontario Real Estate Association who wrote asking that it be clarified. They weren't sure whether documents that create or transfer interest in land, which is the original language, extended to agreements of purchase and sale. I think in the legal view it would include them, but just so that their members, the real estate agents who generally aren't lawyers, know for sure, it's right there in their face that these are covered, that when you are transferring land when you sign that agreement of purchase of sale the real estate agent gives you, that cannot be electronic. This is essentially put in to respond to the request from that association.

Mr Clark: I don't have a question about this amendment, but I do have a question about another section in this clause, so if we can come back to me?

The Vice-Chair: All right. Any other comments on this amendment? Seeing none, shall the amendment carry? Carried.

Mr Clark?

Mr Clark: I wonder if I could have some clarification in section 31 on paragraph 3. It talks about "Powers of attorney, to the extent that they are in respect of an individual's financial affairs or personal care." I'm not sure whether or not this would include advance care directives under the Health Care Consent Act.

Mr Gregory: It's intended to do that, sir. The power of attorney in respect to personal care would be an advance health care directive. The reason there is a limit-we didn't simply say powers of attorney generally-is that there are powers of attorney that are used in business reorganizations, for example, where one person in a complex series of incorporations will have the power of attorney to shuffle things around until all the documents are done and in the right place, the way the reorganization is supposed to end up.

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We thought that was not something where the parties need protection. They can do that electronically if they want. What we're trying to do with paragraph 3 is to ensure that individuals don't do things electronically when they may not know enough about what they're doing to do it right, but certainly a power of attorney for personal care is intended to cover an advance health care directive, and I think it would. That's what it does.

The power of attorney is not a term of ours in the sense that it's not limited by statute to anyone in particular; it is the power for someone else to act in a legally effective way for you. If I do that for my health care, saying, "If something happens to me, this is what my treatment to be," that's clearly a power of attorney, and "personal care" is put in here just to make sure that it's covered.

Mr Clark: There's some controversy in that you hear from people saying that an advance care directive is not a power of attorney. That's why I'm concerned that the advance care directive is not identified. There is controversy there. I'm not sure whether "power of attorney," as it's worded here, would actually deal with an advance care directive, and I don't think an advance care directive should be excluded from this exemption.

Mr Gregory: It's not intended to exclude them-

Mr Clark: But potentially it could be, in an argument.

Mr Gregory: I can't say that we would not face that argument. Obviously people will make that argument. It seems to me that argument would not succeed. If you've got an advance health care directive and you have a statute referring to power of attorney for personal care, it's very difficult to say that it's something different. I'm not sure what the procedure would be if there was something to include advance health care directives. Certainly as a matter of policy there would be no objection to putting that in, but I'm in the hands of the committee as to how that would be put in. As I say, there's no intention not to have them included in that paragraph. I don't think it's going to be a problem, but if there were a problem that the committee wanted to resolve, we could resolve it if everyone wanted to.

Mr Patten: Do we have legal counsel?

Mr Clark: There's legislative counsel.

Mr Martiniuk: Would legal counsel like to comment on the point raised by Mr Clark?

Mr Clark: Chair, I only raised the point because I know that Dr Willy Malloy has been advocating something called a "Let Me Decide" booklet. There's a form inside that patients can fill out and it's an advance care directive. It's not identified as a power of attorney. So there are advance care directives that are being completed and they're not powers of attorney. I'm not sure whether it fits in here.

The Vice-Chair: I understand that, Mr Clark. I'm hoping legal counsel will be able to advise us on that.

Ms Cornelia Schuh: I wasn't familiar with that issue. I agree with Mr Gregory that if the argument were to be made that advance care directives are covered by the Electronic Commerce Act because they're not powers of attorney, that's not an argument that would succeed. I think at the end of the day a court would conclude that advance care directives were really intended to fall under paragraph 3.

I wish I were more familiar with the specifics of the advance care directive. I'd be reluctant to give any kind of an opinion on it right here and now without having had a chance to check a few things. But my conclusion is that Mr Gregory is right, that an argument that an advance care directive can be made electronically would fail.

Mr Patten: Another way to put it would be that it would be subject to any powers of attorney; in other words, powers of attorney would take precedence. Is that what you're saying?

Ms Schuh: No. I'm saying that I think the court would read paragraph 3 as including advance care directives and say, "No, the Legislature did not mean to say that advance care directives can be made electronically even though powers of attorney in respect of personal care cannot."

Mr Patten: What would happen if we included that term in this amendment?

Ms Schuh: Well-

Mr Clark: Can I ask you a question? What's the difference between a living will and a power of attorney?

Mr Patten: A will is yours. A power of attorney is someone else's.

Ms Schuh: I don't think "living will" is a term that has a precise meaning. A power of attorney for personal care might be something that people could call a living will, depending on what's in it; so might an advance care directive.

Mr Martin: I was just wondering, in terms of this whole advance care directive, has there been a circumstance where that has been brought before the courts to determine whether power of attorney supersedes advance care directive, if there's an argument? Somebody may have a power of attorney signed and then come along and put in place an advance care directive that seems to be relatively new here. Are there precedents here now?

Mr Clark: Personally, I'm not aware of any precedents but I can see that there can be potential for it. You could end up having a power of attorney in one situation that was crafted with a family and then later on the person involved decides to take out an advance care directive with their physician. The two can be distinctly different.

Mr Martin: And be in conflict.

Mr Clark: Not necessarily, because the power of attorney could be around finances and not around personal care. That's why I raise the issue. They can be two distinctly different things.

Mr Gregory: That's why the act refers to two different things, of course, in respect of an individual's financial affairs or personal care. But what you call them is less important than what they do. What they do is, they appoint someone else to make decisions for you when you're unable to do that. I can give a power of attorney for financial affairs simply because I'm out of the country and say, "Take care of my investments while I'm incommunicado." For personal care, of course, I have to be in the jurisdiction but I may well be incapable temporarily or permanently of dealing with that.

Mr Clark: That was my next point. Go ahead, Richard.

Mr Gregory: If you make two documents which are inconsistent, then that's going to be the same as making any other two documents that are inconsistent: the court is going to have to figure out which one gets complied with. It would usually be the later one, but there may be reasons why that's otherwise. But if I make a document saying my wife makes the decisions whether to pull the plug and then I make a later one saying my doctor gets to make that decision, then they're going to have to fight it out. I can't predict the outcome of that one in theory.

Mr Martin: Right now it seems to me that most people understand what a power of attorney is. This is the first time I've heard of advance care directives. I don't know what position we are in here, as relative lay folk in front of some very legal considerations, to begin to decide whether advance care directives should be in a piece of legislation that we're trying to put through the House. It worries me that we would do something that we could later regret. Otherwise, I have no difficulty. But I do have some difficulty if that's what it does.

Mr Clark: The other point that Richard and I kind of simultaneously thought of is substitute decision-makers under the Health Care Consent Act. For example, with Brian's Law we're moving forward with our amendments to the Mental Health Act, and substitute decision-makers go through the Consent and Capacity Board. The question is, do they fall under this also?

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The Vice-Chair: Mr Gregory, if I may just try to assist here: would paragraph 6 that talks about documents that are prescribed or belong to a prescribed class be something that the minister would, under regulations, deal with as these things come up?

Mr Gregory: I think that is exactly the kind of safety valve provision that we were using paragraph 6 for. Paragraph 6 is there not because we have a list of things we secretly want to do that we will spring on the world by regulation once the act is passed; it was really to say, "Oops, we forgot something. We don't have to reconvene the Legislature to exempt it." If there came a case where advance care directives were being made electronically, and someone decided relatively authoritatively that no, they are not powers of attorney-as I say, that's not my view, because they are-but if they weren't, it would be easy enough to make a regulation, when there's a problem, to say they're also excluded. The intent is that they should be excluded and if it ever came up, then we could exclude them. I don't think it's necessary to amend paragraph 3 at this point. We can use paragraph 6 if there is a problem. There's no intent to have people making those electronically without a lot more safeguards than this bill provides.

The Vice-Chair: My understanding of a lot of these advance care directives and so on is that they are things that usually are done, but we didn't-for example, the power of attorney for incapacity has a certain definition under the Substitute Decisions Act which gives them exactly all the powers under the act and gives certain guidelines under which the attorney can act and so on. All the other things like "advance care directives" and "living will" are expressions that often are used by lay people but they're not really defined under any statute.

A living will, like counsel said, could be a Substitute Decisions Act power of attorney because you could specify certain things. But it's not a living will, because you're giving power to somebody else to act on your behalf. But often people use it as an expression for a living will.

Mr Clark: All I'm saying is, I'm raising the issue that under the Health Care Consent Act, the living will and advance care directives are real entities that exist today. Quite literally, if Dr Malloy or any other doctor out there who wants to be an entrepreneur begins to sell living wills or advance care directives on the Internet, this is why you should have it: here's the form, fill out the form, send it in, we'll do our end and it's done. I'm not sure if it's identified here. I raise the caveat because it is a potential.

The Vice-Chair: Are you satisfied with paragraph 6?

Mr Clark: I've raised my caveat.

The Vice-Chair: OK. Any other comments on this? I guess the ministry will take that into account.

Mr Martin: How about giving direction to the ministry to take a look at this to make sure that if there's a problem there, it's caught and covered.

The Vice-Chair: Under regulation.

Mr Gregory: Sure. As I say, the policy intent is definitely that they should be covered. If there's a risk that they are not, we can make a regulation once the act is in force to have that covered and have that in health care directives or living wills. As I say, I don't think "living will" means anything in law. We can designate them just to throw a blanket over the whole area if necessary.

Mr Clark: Along with that direction, then, I'd suggest that they talk to Ministry of Health lawyers to find out exactly what is involved and what that does mean so that the regulation can be properly worded.

The Vice-Chair: Any other comments on section 31?

Mr Patten: So are we going to pull this or stand this one down?

The Vice-Chair: No. Not unless-

Mr Clark: They want to fix it under regulations.

The Vice-Chair: I think the ministry has been alerted to it and they will take it into consideration under regulations if they feel that they need to.

Mr Gregory: I would certainly be happy to consult with Ministry of Health lawyers on that one and make sure they're comfortable with this or, if they're not, that we make a regulation accordingly.

Mr Patten: I don't want to stand in the way of anything, but I think Brad has brought up a good point. The spirit of this we obviously disagree with is not a problem. But I'd feel more confident with some reaction from the ministry, having raised that. I don't know how urgent this is. My suggestion is we could still get it through very quickly, but if we had an opinion back quickly, we could pass everything else subject to this one, and away we go.

The Vice-Chair: Mr Martiniuk, I guess it's for you to respond to that.

Mr Martiniuk: I agree, and I will go on record that the ministry has received a recommendation, I think unanimously, from this committee that they will consult with the Ministry of Health solicitors to determine if there is any possibility of an ambiguity in regard that section. If there is, that ministry would consider a regulation that would specifically exempt if they saw fit. I think that's sufficient protection, surely, rather than holding up the bill. That's the very reason paragraph 6 is in there, "Documents that are prescribed or belong to a prescribed class," as I understand it.

Mr Patten: Sometimes these things have a way of coming back and biting you.

Mr Martiniuk: I'm going on record. That's as much as I can do, Mr Patten. It's on the record.

The Vice-Chair: Any other comments on section 31?

Shall section 31, as amended, carry? Carried.

Mr Patten: One dissenting vote.

The Vice-Chair: Would you like to call for a recorded vote?

Mr Martiniuk: I'll consent to a recorded vote.

AYES

Beaubien, Elliott, Martin, Martiniuk.

NAYS

Patten.

The Vice-Chair: Carried.

Mr Patten: Just out of respect for my colleague.

Mr Clark: Thank you.

The Vice-Chair: Section 32 has a government amendment to it.

Mr Martiniuk: I move that clause 32(c) of the bill be struck out and the following substituted:

"(c) prescribe documents or classes of documents, requirements as to method for electronic signatures and information technology standards for the purposes of subsection 11(4);

"(c.1) prescribe seal equivalency requirements for electronic signatures for the purposes of subsection 11(6)."

The Vice-Chair: Any comments or discussion on the amendment?

Mr Patten: Subsection 11(6).

Mr Clark: It's one of the amendments.

Mr Patten: I just want to see what it is.

Mr Martiniuk: Actually, I had a question of Mr Gregory. The seal provision is cherished and antiquated anachronism. I'm curious as to how we would derive an equivalent electronically.

Mr Gregory: One of the reasons we are providing the regulation-making power is because the more you look at seals, the more different things they tend to do. Sometimes it's to show that you're taking it seriously if you put one of those little red sticky things on real estate. It says, "Hey, this is serious. This has legal effect." On the other hand, sometimes the seal is to authenticate the source. If you get something sealed from a public official, you say, "Wow, this is the official record."

Interjection.

Mr Gregory: Sure. There are other kinds of seals that replace consideration in a contract. There are different seals for different purposes and one size doesn't fit all essentially. What we're saying is, rather than trying to do something between committee and now, we may be able to find equivalents for some parts of it. The suggestion that was made at the committee, for example, was to recite in the document "signed intending this to be under seal." If you sign that electronically, that will be deemed to be under seal. That's probably fine for taking it seriously, "All right, there it is," but it's not fine for showing the source. We said, "Well, gee, you could do one, but you can't do the other. We'd better just handle this a lot more cautiously."

Mr Martiniuk: Thank you.

The Vice-Chair: Any other comments?

Shall the amendment carry? Carried.

Shall section 32, as amended, carry? Carried.

Section 33: there are no amendments. Are there any comments or discussion on section 33?

Seeing none, shall section 33 carry? Carried.

Section 34: again there are no amendments. Any comments or discussion?

Seeing none, shall section 34 carry? Carried.

Shall the long title of the bill carry? Carried.

Shall Bill 88, as amended, carry? Carried.

Shall I report the bill, as amended, to the House? Carried.

Unless there is any other business for the committee, we shall adjourn.

The committee adjourned at 1624.