Better Tomorrow for Ontario Act (Budget Measures), 2011, S.O. 2011, c. 9 - Bill 173

• Jurisdiction: Ontario
• Date: 12 May 2011
• Bill Number: 173

EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 173 and does not form part of the law. Bill 173 has been enacted as Chapter 9 of the Statutes of Ontario, 2011.

The Bill implements measures contained in the 2011 Ontario Budget and enacts, amends or repeals various Acts and revokes various regulations. The major elements of the Bill are described below.

Schedule 1
agricultural and horticultural organizations act

Subsection 25 (4) of the Agricultural and Horticultural Organizations Act currently deems a local organizing committee that hosts the annual International Plowing Match to be an agricultural society for the purposes of a tax exemption under the Retail Sales Tax Act. The tax is no longer applicable and, consequently, subsection 25 (4) of the Act is repealed.

schedule 2
alcohol and gaming regulation and public protection ACT, 1996

A technical amendment is made to subsection 17 (1) of the Alcohol and Gaming Regulation and Public Protection Act, 1996 in connection with the expressions “sales year” and “production year”. Currently, those expressions are defined by regulation in relation to the production and sale of beer. The amendment places those definitions in the Act, instead. A related amendment is made to subsection 22 (5) of the Act.

A new section 18.1 of the Act establishes a limited tax exemption for the promotional distribution of beer by beer manufacturers and licensees of a brew pub, and a limited tax exemption for the promotional distribution of wine and wine coolers by wineries.

A new subsection 39 (2) of the Act provides for the deemed receipt of letters sent by registered mail under section 39 of the Act.

A new section 50.1 of the Act authorizes the Minister of Revenue to recover the reasonable costs and charges incurred in the course of obtaining payment of any amount required by the Act to be paid. This new authority is restricted to the recovery of costs and charges relating to the activities and the matters that are specified in the new section.

Currently, subsection 54 (2) of the Act provides that although a corporation is liable under subsection 54 (1) of the Act, its directors are not liable unless specified circumstances exist. A new clause 54 (2) (a.1) makes an addition to the list of specified circumstances.

schedule 3
assessment ACT

A new paragraph 7.1 of subsection 3 (1) of the Assessment Act is added to provide an exemption from taxation for non-profit hospices if prescribed conditions are satisfied.

Under a new subsection 3 (8) of the Act, if machinery or equipment used to produce electricity from a prescribed renewable energy source is installed on land that would otherwise be exempt from taxation, the land remains exempt from taxation under the prescribed circumstances.

schedule 4
broader public sector accountability ACT, 2010

The Broader Public Sector Accountability Act, 2010 is amended to authorize the Management Board of Cabinet to issue directives requiring designated broader public sector organizations to establish rules about perquisites, and to authorize the Management Board of Cabinet to issue guidelines with respect to allowable perquisites for publicly funded organizations.

schedule 5
commodity futures ACT

Part I of the Commodity Futures Act is repealed, dissolving the Commodity Futures Advisory Board.

Schedule 6
Community Care Access Corporations Act, 2001

The Community Care Access Corporations Act, 2001 is amended to give members of the public the right to communicate in French with community care access corporations, and to receive available services from community care access corporations in French. The right is subject to limits that are reasonable in the circumstances.

schedule 7
COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT, 1992

Part II of the Community Small Business Investment Funds Act, 1992, which governs Employee Ownership Labour Sponsored Venture Capital Corporations, is repealed. Consequential amendments are made to other provisions.

Clause 27 (2.1) (a) of the Act is amended to correct a date.

Schedule 8
Corporations Tax Act

Section 74.2 of the Corporations Tax Act currently provides rules relating to tax in respect of benefit plans. The rules allow certain funded benefit plans to elect to be treated as if they are unfunded benefit plans. Amendments are made to enable the Lieutenant Governor in Council to prescribe trusts that qualify to make the election and to prescribe conditions that a trust must satisfy to make the election.

Section 85 of the Act is amended to provide that the Minister of Revenue may move to the Superior Court of Justice to have a notice of appeal struck out. The court may strike out the notice of appeal if any requirements relating to the notice under section 85 have not been met.

New section 87.1 of the Act provides that the Minister may move to have an appeal dismissed for delay if the corporation appealing has failed to set the appeal down for trial within seven years of it being instituted.

A new subsection 93 (4.1) of the Act provides for the deemed receipt of registered letters sent under subsections 93 (2), (3) and (4) of the Act.

Currently, section 100 of the Act authorizes the Minister of Revenue to garnish, on account of a corporation’s liability under the Act, certain payments by third parties. In certain circumstances, the current subsection 100 (2) permits garnishment of payments made within 90 days after the Minister gives the garnishment notice. An amendment extends that period to 365 days.

Technical changes are made to section 104 of the Act, which is re-enacted. The re-enacted section authorizes the Minister of Revenue to recover the reasonable costs and charges incurred in the course of obtaining payment of any amount required by the Act to be paid. This new authority is restricted to the recovery of costs and charges relating to the activities and the matters that are specified in the section.

schedule 9
credit unions and caisses populaires ACT, 1994

The amendment corrects a cross-reference in paragraph 3 of subsection 331.3 (2) of the Credit Unions and Caisses Populaires Act, 1994.

Schedule 10
Education Act

The Education Act is amended as follows:

A definition of “third party program” is added to section 1 of the Act.

The regulatory authority respecting codes of conduct that apply to board members in section 218.2 of the Act is amended.

Various provisions of Part IX.1 of the Act are amended to allow for third party programs in addition to extended day programs.

In particular, section 259 of the Act is re-enacted. The new subsection 259 (1) requires boards to operate an extended day program or ensure that a third party program is operated for pupils enrolled in junior kindergarten and kindergarten in each elementary school of the board. The new subsection 259 (5) provides that a board may be relieved of its obligations under subsection 259 (1) with respect to a school if another board agrees to provide the program for junior kindergarten and kindergarten pupils enrolled in the school.

New sections 259.1 to 259.3 are added to the Act. Section 259.1 requires boards to ensure that a third party program meets certain requirements. Section 259.2 provides that the operator of a third party program is not an agent of a board. Section 259.3 governs situations in which a third party program is terminated or ceases to operate during a school year.

Section 260.1 of the Act is amended to require that the fees charged by boards for extended day programs accord with the regulations respecting fees.

New subsection 260.3 (3) of the Act states that enrolment in a school does not confer a right to be enrolled in a program operated under section 259 of the Act.

The Act is amended to provide that the authority to make policies, guidelines and regulations includes third party programs.

The regulatory authority respecting the fees that a board is required to charge for extended day programs is amended.

Section 300.1 of the Act is amended to allow principals to delegate their authority under Part XIII (Behaviour, Discipline and Safety) of the Act, in specified circumstances, to early childhood educators appointed to positions in extended day programs and to their supervisors.

Subsection 301 (5.3) of the Act is amended to extend the Minister’s authority to require specified individuals to report to the principal on certain matters to include individuals providing programs or services to pupils in a school.

SCHEDULE 11
ELECTION ACT

Sections 45.1 to 45.13, providing for special ballot procedures, were added to the Election Act in 2010 and come into effect on July 1, 2011. New section 45.5.1 is added to clarify the rules for write-in ballots.

schedule 12
Electricity ACT, 1998

A technical amendment is made to subsection 85.17 (2) of the Electricity Act, 1998 in connection with an amendment to the Retail Sales Tax Act in another Schedule to the Bill. That amendment governs the authority of the Minister of Revenue to ask a court to strike out a notice of appeal, or to dismiss an appeal for delay, in specified circumstances.

Technical amendments are made to section 85.19 and subsection 85.28 (2) of the Act in connection with amendments to the Retail Sales Tax Act in another Schedule to the Bill.

A new subsection 92.1 (10.1) of the Act provides for the deemed receipt of registered letters sent under subsection 92.1 (10) of the Act.

schedule 13
employer health tax ACT

Currently, section 18 of the Employer Health Tax Act authorizes the Minister of Revenue to garnish, on account of a taxpayer’s liability under the Act, certain payments by third parties. In certain circumstances, the current subsection 18 (3) permits garnishment of payments made within 90 days after the Minister gives the garnishment notice. An amendment extends that period to one year.

A technical amendment is made to section 20 of the Act, which authorizes the...