Trade Union and Employees Association

Financial Disclosure Act, 1996

EXPLANATORY NOTES

The proposed Act applies to trade unions within the meaning of the Labour Relations Act, 1995 and employees associations under collective bargaining agreements that employ persons in Ontario, including persons employed as dependent contractors, directors or officers. It requires trade unions and employees associations to make available to the public without charge an annual statement of their assets and liabilities and an annual record of the names, positions, salaries and benefits of their employees to whom they pay salaries of at least $100,000 a year.

The Minister responsible for the administration of the Act may appoint a person licensed under the Public Accountancy Act to review a statement or record that a trade union or employees association is required to make available to the public. If the Minister is of the opinion that a trade union or employees association has made available to the public a statement or record under the Act that does not comply with the Act, the Minister may order that the trade union or employees association promptly prepare a revised statement or record that complies with the Act or the Minister may prepare the revised statement or record.

The Government may hold back part or all of its funding to a trade union or employees association that fails to make the annual statement or record available to the public.

The Act creates offences for a trade union or employees association that fails to comply with its obligations and for directors and officers of the trade union or employees association.

There is regulation making authority, among other things, to prescribe an amount of salary other than $100,000 for the purposes of the Act.

Bill1996

An Act to provide for Financial Disclosure

by Trade Unions and Employees Associations

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

Purpose

1. The purpose of this Act is to assure the public disclosure of,

(a) the assets and liabilities of trade unions and employees associations; and

(b) the salary and benefits that trade unions and employees associations pay in respect of employment to employees to whom they pay a salary of $100,000 or more in a year.

Definitions

2. In this Act,

"benefit" means each amount that an employee,

(a) is required by subsection 6 (1) of the Income Tax Act (Canada) to include in income from an office or employment, or

(b) is required by section 6 of that Act, except subsection 6 (1), (3) or (11), to include in income from an office or employment as a benefit, within the meaning of that Act, or as an amount in respect of a group term life insurance policy; ("avantage")

"employee" means a person employed by a trade union or an employees association in Ontario and includes a dependent contractor within the meaning of the Labour Relations Act, 1995, a director or an officer of a trade union or employees association; ("employé")

"employees association" means an association of employees that is recognized as the exclusive bargaining agent of the employees in an agreement in writing between the employees and their employer that sets out the terms of employment of the employees; ("association d'employés")

"salary" means the total of each amount received by an employee that is,

(a) an amount that the employee is required by section 5 of the Income Tax Act (Canada) to include in income from an office or employment,

(b) an amount deemed by subsection 6 (3) of that Act to be remuneration of the employee for the purposes of section 5 of that Act, or

(c) an amount received by the employee by reason of a right to receive a deferred amount under a salary deferral arrangement mentioned in subsection 6 (11) of that Act; ("traitement")

"trade union" means a trade union within the meaning of the Labour Relations Act, 1995. ("syndicat")

Disclosure Obligations

Asset and liability disclosure

3. (1) Not later than March 31 of each year beginning with the year 1997, every trade union and employees association shall make available for inspection by the public without charge an audited statement on its financial affairs to the end of its last fiscal year ending in the previous year.

Person making statement

(2) The statement shall be certified by the treasurer or any other officer of the trade union or employees association responsible for the handling and administration of its funds.

Contents of statement

(3) The statement shall indicate the year to which the information in it relates and shall list the assets and liabilities of the trade union or employees association in accordance with the standards that may be prescribed by the regulations made under this Act.

Location and time of inspection

(4) A trade union or employees association required by this section to make a statement available to the public by March 31 in a given year shall allow the public to inspect it without charge at a suitable location on the premises of the trade union or employees association at any time during the normal working hours of the trade union or employees association throughout the period beginning on March 31 and ending on March 30 of the following year.

Salary disclosure

4. (1) Not later than March 31 of each year beginning with the year 1997, every trade union and employees association shall make available for inspection by the public without charge a written record of the amount of salary and benefits that it paid in the previous year to or in respect of an employee to whom it paid at least $100,000 as salary.

Contents of record

(2) The record shall indicate the year to which the information in it relates, shall list employees alphabetically by surname, and shall show for each employee,

(a) the employee's name as shown on the payroll records of the trade union or employees association;

(b) the office or position last held by the employee in the trade union or the employees association in the year;

(c) the amount of salary that the trade union or the employees association paid to the employee in the year;

(d) the amount of benefits that the trade union or the employees association reported to Revenue Canada, Taxation under the Income Tax Act (Canada) for the employee in the year.

Statement instead of record

(3) For any year beginning in the year 1996 in which a trade union or an employees association has no employees to whom it paid at least $100,000 as salary, it shall, not later than March 31 of the following year, make available for inspection by the public without charge a written statement, certified by its highest ranking officer, that it paid no employees in the year a salary of $100,000 or more.

Location and time of inspection

(4) A trade union or employees association required by this section to make a record or statement available to the public by March 31 in a given year shall allow the public to inspect it without charge at a suitable location on the premises of the trade union or employees association at any time during the normal working hours of the trade union or employees association throughout the period beginning on March 31 and ending on March 30 of the following year.

Publication of record

(5) A trade union or employees association that normally issues an annual report or statement on its activities or financial affairs, shall include in the annual report or statement the record or statement that this section requires it to make available to the public for the year ending in the period covered by the annual report or statement.

Copy of statements

5. (1) Not later than March 31 of each year beginning with the year 1997, every trade union and employees association shall deliver to the Minister responsible for the administration of this Act without charge a copy of,

(a) the audited statement on its financial affairs that it is required to make available to the public under section 3 for its last fiscal year ending in the previous year; and

(b) the record or statement that it is required to make available to the public under section 4 with respect to salary and benefits that it paid in the previous year.

Copy to public

(2) A trade union or employees association shall promptly deliver to any person, other than the Minister responsible for the administration of this Act, a copy of a statement or record that it is required to make available to the public under section 3 or 4 if the person requests a copy and pays the trade union or employees association the fee prescribed by the regulations made under this Act.

Time of request

(3) Subsection (2) applies even if the request is made after the period mentioned in subsection 3 (4) or 4 (4).

List

(4) A trade union or employees association that delivers a copy of a statement or record under subsection (2) shall keep a list of the names and addresses of persons to whom it delivers a copy.

No copyright

(5) There is no copyright with regard to a statement or record mentioned in section 3 or 4, and the information contained in it may be published by any member of the public to whom it is made available.

Investigations

Reviewers

6. (1) The Minister responsible for the administration of this Act or a person authorized in writing by the Minister may appoint a person licensed under the Public Accountancy Act or a person who is a member of a firm whose partners are licensed under that Act to review a statement or record that a trade union or employees association is required to make available to the public under section 3 or 4.

Certificate of appointment

(2) The Minister responsible for the administration of this Act or a person authorized in writing by the Minister shall issue to every person appointed as a reviewer under subsection (1) a certificate of appointment bearing the Minister's signature or a facsimile of it.

Proof of appointment

(3) Every reviewer who exercises powers under this Act shall, upon request, produce the certificate of appointment as a reviewer.

Definition

7. In sections 8 and 9,

"record" includes a book of account, bank book, voucher, invoice, receipt, contract, correspondence and any other document regardless of whether the record is on paper or is in electronic, photographic or other form.

Investigation

8. (1) For the purpose of carrying out an investigation, a reviewer may,

(a) subject to subsection (2), enter any premises that a reviewer believes on reasonable grounds contains evidence of the information required to be included in a statement or record that a trade union or employees association is required to make available to the public under section 3 or 4;

(b) inquire into all financial transactions, records and other matters that are relevant to a statement or record that a trade union or employees association is required to make available to the public under section 3 or 4; or

(c) demand the production for inspection of anything described in clause (b).

Entry to dwellings

(2) A reviewer shall not, without the consent of the occupier, exercise a power to enter a place that is being used as a dwelling, except under the authority of a search warrant issued under section 158 of the Provincial Offences Act.

Time for exercising powers

(3) A reviewer shall exercise the powers mentioned in subsection (1) only during normal business hours for the place that the reviewer has entered.

Written demand

(4) A demand mentioned in clause (1) (c) shall be in writing and shall include a statement of the nature of the things required.

Obligation to produce

(5) If a reviewer makes a demand under clause (1) (c), the person having custody of the things shall produce them to the reviewer.

Removal of things produced

(6) On issuing a written receipt, the reviewer may remove the things that are produced and may,

(a) review or copy any of them; or

(b) bring them before a justice of the peace, in which case section 159 of the Provincial Offences Act applies to them.

Return of things produced

(7) The reviewer shall carry out any reviewing or copying of things with reasonable dispatch, and shall forthwith after the reviewing or copying return the things to the person who produced them.

Admissibility of copies

(8) A copy certified by a reviewer as a copy made under clause (6) (a) is admissible in evidence to the same extent, and has the same evidentiary value, as the thing copied.

Assistance

(9) A reviewer may call upon any expert for such assistance as the reviewer considers necessary in carrying out an investigation.

Computer search

(10) For the purpose of carrying out an investigation, a reviewer may use any data storage, processing or retrieval device or system belonging to the persons being investigated in order to produce a record in readable form.

Assistance required

9. (1) A reviewer may require information or material from a trade union or employees association that is the subject of an investigation under section 8 or from any person who the reviewer has reason to believe can provide information or material relevant to the investigation.

Obstruction

(2) No person shall obstruct a reviewer who is exercising powers under this Act.

Records

(3) A person who is required to produce a record for a reviewer shall, on request, provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce the record in a readable form.

Non-compellable witness

10. No person employed in the administration or enforcement of this Act shall be required to give testimony in any civil proceeding, except in a proceeding under this Act, with regard to information obtained in the discharge of the person's duties.

Enforcement

Correction of statements

11. (1) If the Minister responsible for the administration of this Act is of the opinion that a trade union or employees association under section 3 or 4 has made available to the public a statement or record that does not comply with either of those sections, as the case may be, the Minister may,

(a) order that the trade union or employees association promptly,

(i) prepare a revised statement or record that complies with section 3 or 4, as the case may be, and that is accurate and complete, and

(ii) deliver a copy of it without charge to the Minister and every person to whom the trade union or employees association has delivered a copy of the unrevised statement or record under subsection 5 (2); or

(b) prepare a revised statement or record that complies with section 3 or 4, as the case may be, and deliver a copy of it without charge to the trade union or employees association and every person to whom it has delivered a copy of the unrevised statement or record under subsection 5 (2).

Cost of revised statements

(2) The trade union or employees association shall reimburse the Minister for the cost of preparing a revised statement or record, as the case may be, under clause (1) (b).

Withholding payment

12. (1) If a trade union or employees association fails to comply with section 3, 4 or 5, subsection 8 (5) or section 9 or 11 or provides false or incomplete information in a statement or record that it is required to make available under this Act, the Management Board of Cabinet may require a ministry of the Crown to withhold part or all of any amount that the ministry is authorized by appropriation of the Legislature, by statute or by agreement to pay to the trade union or employees association to fund an activity or program of the trade union or employees association.

End of withholding

(2) Subject to subsection (3), an amount withheld under subsection (1) shall be paid to the trade union or employees association from whom it is withheld only when the trade union or employees association,

(a) complies with section 3, 4 or 5, subsection 8 (5) or section 9 or 11, as the case may be; and

(b) has not provided any false or incomplete information in the statements and records that it is required to make available under this Act.

Loss of right to payment

(3) A trade union or employees association ceases to be entitled to payment of an amount withheld under subsection (1) if it has not become entitled under subsection (2) to receive the amount by March 31 next following the date on which the direction to withhold was given, and in that case the amount withheld becomes part of the Consolidated Revenue Fund.

Offences

13. (1) A trade union or employees association is guilty of an offence if it,

(a) fails to comply with section 3, 4 or 5, subsection 8 (5) or section 9 or 11; or

(b) provides false or incomplete information in a statement or record that it is required to make available under this Act.

Penalty

(2) A trade union or employees association that is convicted of an offence under subsection (1) is liable to a fine of not more than $25,000.

Directors, officers

(3) Every director or officer of a trade union or employees association is guilty of an offence who,

(a) knowingly causes, authorizes, permits or participates in the commission by the trade union or employees association of an offence mentioned in subsection (1); or

(b) fails to take reasonable care to prevent the trade union or employees association from committing an offence mentioned in subsection (1).

Penalty

(4) A director or officer who is convicted of an offence under subsection (3) is liable to a fine of not more than $2,000 or to imprisonment for a term of not more than one year, or to both.

Penalty, other persons

(5) A person, other than a director or officer described in subsection (3), who fails to comply with subsection 8 (5) or section 9 is guilty of an offence and on conviction is liable to a fine of not more than $2,000 or to imprisonment for a term of not more than one year, or to both.

General

This Act prevails

14. The provisions of this Act prevail over any other Act, any regulation made under any other Act or any agreement unless another Act specifically mentions those provisions and provides otherwise.

Regulations

15. (1) The Lieutenant Governor in Council may make any regulations the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of this Act, including, without limiting the generality of the foregoing,

(a) exempting a trade union or employees association from a provision of this Act;

(b) prescribing standards that a trade union or employees association shall observe in preparing the audited statement on its financial affairs mentioned subsection 3 (1);

(c) providing that this Act applies, with necessary modifications, with regard to a specified aggregate amount of salary and benefits for a year in the same way that it applies with regard to a salary of $100,000 for the year and prescribing that aggregate amount of salary and benefits;

(d) providing that an amount other than $100,000 applies for the purposes of section 1, subsections 4 (1) and (3) and clause (c) of this subsection and prescribing that amount;

(e) providing that specified payments that a trade union or employees association makes to or in respect of an employee be included in or excluded from the definition of "salary" or "benefit" for the purpose of this Act and prescribing those payments;

(f) providing that a payment from a trade union or employees association to a corporation that provides to the trade union or employees association the services of an officer or employee of the corporation shall be deemed under specified circumstances to be a payment to an employee of the trade union or employees association for the purpose of this Act, prescribing those circumstances and prescribing the information that the trade union or employees association shall make public and include in a record under section 4 under those circumstances;

(g) prescribing methods in addition to or in place of those mentioned in this Act by which information to be made available to the public under this Act may be disclosed, and requiring trade unions, employees associations or classes of them to disclose information by a particular method;

(h) prescribing the fee that may be charged under subsection 5 (2) for furnishing a copy of a record or statement;

(i) defining "fund" for the purpose of subsection 12 (1) and "promptly".

Scope

(2) A regulation made under subsection (1) may be general or particular in its application and may be restricted in its application to the class or classes of trade union, employees associations or employees set out in the regulation.

Retroactivity

(3) A regulation made under subsection (1) is, if it so provides, effective with reference to a period in the year in which it is filed that predates the time at which it is filed.

Commencement

16. This Act comes into force on the day it receives Royal Assent.

Short title

17. The short title of this Act is the Trade Union and Employees Association Financial Disclosure Act, 1996.