Bill 12, Northern Services Improvement Act, 1998

[36] Bill 12 As Amended by Standing Committee (PDF)

B012_E

Bill 12 1998

An Act to provide choice and flexibility to Northern Residents in the establishment of service delivery mechanisms that recognize the unique circumstances of Northern Ontario and to allow increased efficiency

and accountability in Area-wide Service Delivery

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

1. The Local Services Boards Act is amended by adding the following heading before section 1:

PART I

LOCAL SERVICES BOARDS

2. (1) Section 1 of the Act is amended by striking out "In this Act" at the beginning and substituting "In this Part".

(2) The definition of "Board" in section 1 of the Act is repealed and the following substituted:

"

Board" means a Local Services Board established under this Part. ("régie")

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 Section 2 of the Act is repealed and the following substituted:

Application

2. This Part applies only in territory without municipal organization.

4. Section 4 of the Act is amended by adding the following subsections:

Roads

(2) A Minister's order granting power to a Board with respect to roads in the Board area may also authorize the Board to exercise that power with respect to a road outside the Board area if that road is the extension of a road inside the Board area.

Same

(3) A Minister's order may,

(a) eliminate a local roads area established under the Local Roads Boards Act or reduce the size of a local roads area;

(b) dissolve a local roads board;

(c) provide for the disposition of the assets and liabilities of the local roads board as the Minister considers appropriate where the board is dissolved or the size of the local roads area is reduced; and

(d) abolish statute labour and the office of road commissioner under the Statute Labour Act in the Board area.

Definition

(4) In subsection (3), "

local roads board" means a board of a local roads area under the Local Roads Boards Act.

5. Section 11 of the Act is repealed and the following substituted:

Procedures

11. Subject to this Part, the Board may establish its own rules and procedures for transacting the business of the Board.

6. Subsection 14 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Duties

(4) In addition to the other duties prescribed by this Part, the secretary shall,

. . . . .

7. The English version of section 20 of the Act is amended by striking out "before in Form 2" in the fifth line and substituting "before him or her in Form 2".

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

Application of provisions

21.1 Subsections 23 (4) and (5) and sections 24, 25 and 26 do not apply with respect to a Board where the Board is in the area of jurisdiction of an area services board established by an order of the Minister under section 38 that provides that the model for funding service delivery in the area of jurisdiction of the area services board is the model set out in section 49.

9. The Act is amended by striking out "Minister of Revenue" and substituting in each case "Minister of Finance" in the following provisions:

1. Section 22, second line.

2. Subsection 24 (1), sixth and seventh lines.

3. Subsection 25 (1), sixth and seventh lines.

4. Subsection 25 (2), third line.

5. Subsection 26 (1), first line.

6. Subsection 26 (3), first line.

10. The Act is amended by adding the following Part after section 33:

PART II

AREA SERVICES BOARDS

Definitions

34. In this Part,

"

Board" means an area services board established by an order; ("régie")

"

Board area" means the geographic area within which a Board may exercise its jurisdiction; ("territoire de la régie")

"

council" means the council of a municipality; ("conseil municipal")

"

local roads board" means a board of a local roads area under the Local Roads Boards Act\; ("régie des routes locales")

"

Minister" means the Minister of Northern Development and Mines; ("ministre")

"

municipality" means a city, town, village or township located in a territorial district with respect to which this Part applies and includes The Regional Municipality of Sudbury; ("municipalité")

"

order" means an order under section 38; ("arrêté")

"

regulations" means the regulations made under this Part; ("règlements")

"

resident" means a person who is a permanent resident of, or a temporary resident having a permanent dwelling in, unorganized territory, who is a Canadian citizen and is at least 18 years of age; ("résident")

"

service" means a public service referred to in section 41; ("service")

"

unorganized territory" means a geographic area without municipal organization. ("territoire non érigé en municipalité")

Application

35. This Part applies with respect to the territorial districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay and Timiskaming.

Purpose of this Part

36. The purposes of this Part are,

(a) to provide for a process which allows the consolidation of service delivery in Northern Ontario to proceed in a timely and efficient manner;

(b) to facilitate the consolidation of service delivery over large geographic areas involving municipalities and unorganized territory;

(c) to facilitate the consolidation of service delivery of a significant nature which may include the elimination of a service delivery agency and the transfer of powers and responsibilities to Boards and changes to systems of funding service delivery; and

(d) to ensure the ongoing delivery of services by Boards.

Proposal to establish an area services board

37. (1) One or more municipalities or local services boards or the residents of unorganized territory may make a proposal to establish an area services board for the consolidation of service delivery by submitting to the Minister a report containing,

(a) a description of the proposal in a form and in such detail as the Minister may require, including,

(i) the boundaries of the proposed Board area,

(ii) the name of the proposed Board,

(iii) the number of Board members and the municipality, municipalities or unorganized territory to be represented by a member,

(iv) the names of proposed members for unorganized territory to be appointed to the first Board,

(v) the additional services under subsection 41 (2) that the proposed Board would provide,

(vi) the degree of support of the municipalities and local services boards and the residents of the unorganized territory in the Board area required to make a proposal to the Minister to amend an order and the manner of determining that support, and

(vii) other matters that the regulations require be dealt with in a proposal or that may be dealt with in an order;

(b) proof in a form satisfactory to the Minister,

(i) that the proposal has the prescribed degree of support of the municipalities and local services boards and of the residents of the unorganized territory in the Board area, and

(ii) that the support was determined in the prescribed manner.

Principles to be considered

(2) The Minister may establish principles that municipalities, local services boards and residents of unorganized territory shall consider when developing a proposal to be submitted to the Minister.

Three-year limit on proposals

(3) No proposal may be made after the third anniversary of the coming into force of this section.

Powers of Minister in making order

38. (1) Upon receiving a proposal that meets the requirements of section 37, the Minister may by order,

(a) establish a Board;

(b) establish the boundaries of the Board area;

(c) establish the number of Board members and specify the municipality, municipalities or unorganized territory to be represented by a member;

(d) establish the term of office of the first Board and appoint the member or members to represent unorganized territory on the first Board;

(e) designate the additional services under subsection 41 (2) that the Board shall provide;

(f) postpone the Board's duty to provide a service under subsections 41 (1) and (2) in all or part of the Board area and provide for such phase-in of the duty as the Minister considers appropriate;

(g) designate the service delivery agencies that are affected by the establishment of the Board, specify the powers or duties that shall no longer be exercised or performed by an affected service delivery agency, provide for the dissolution of a service delivery agency, except a municipality, and provide for the disposition of the assets and liabilities of a service delivery agency;

(h) provide for the system of funding service delivery that will apply in the Board area and the powers in respect of taxation that may be exercised by the Board, including area rating, tax phase-ins, tax deferrals and assessment-related adjustments;

(i) deem the Board to be a service delivery agency for the purposes of an Act or regulation under an Act and, where a provision of an Act or regulation under an Act would not otherwise apply with respect to the Board, specify for the purposes of this Part that the provision shall apply with respect to the Board, with necessary modifications, as specified;

(j) provide for such other matters as the Minister considers appropriate to facilitate the consolidation of service delivery and ensure ongoing service delivery in the Board area.

No derogation

(2) Despite any other provision of this Part, an order,

(a) shall not derogate from standards for the provision of services imposed under any Act; and

(b) shall be consistent with principles of taxation that apply to municipalities.

Amendment of order

(3) The Minister may amend an order as the Minister considers appropriate, at the Board's request or in any other circumstances.

Order conclusive evidence

(4) An order is conclusive evidence that the requirements of section 37 have been met.

Notice of order

(5) The Minister shall give a copy of an order to the proponents of the proposal and the service delivery agencies affected by it.

Publication and public inspection

(6) The Minister shall,

(a) publish a copy of an order, and any amendment to it, in the Ontario Gazette\;

(b) file a copy of an order, and any amendment to it, with the clerk of each municipality in the Board area and the person in charge of all Ministry offices in the Board area, who shall make it available for public inspection.

Order not a regulation

(7) An order is not a regulation within the meaning of the Regulations Act.

Tax consequences of transfer of assets

(8) Where assets are transferred to a Board under this Part, the transfer shall be without consideration and no tax shall be imposed under any Act as a consequence of the transfer.

Status of Board

39. (1) Every Board is a corporation without share capital that is composed of its members.

Not a municipal corporation

(2) A Board is not a municipal corporation or a local board of such a corporation.

Board members, eligibility

(3) A Board member shall,

(a) be a Canadian citizen;

(b) be at least 18 years old; and

(c) reside in the Board area or be the owner or tenant of land in the Board area, or the spouse of such a person.

Persons not eligible

(4) An employee of a Board is not eligible to hold office as a Board member.

Municipal members

(5) A Board member who represents a municipality shall be appointed by the council from among their number and, where a Board member represents more than one municipality, he or she shall be appointed by the members of the councils concerned from among their number.

Members for unorganized territory

(6) Except with respect to the first Board, a Board member who represents unorganized territory shall be elected by the residents of the unorganized territory at an election conducted at the same time and in the same manner as a regular election under the Municipal Elections Act, 1996.

Term of office

(7) Except with respect to the first Board, the term of office of a Board member is three years and is concurrent with the term of office of members of councils under the Municipal Elections Act, 1996.

Vacancy, etc.

(8) If a member who represents one or more municipalities becomes ineligible to hold office as a Board member, fails to attend three consecutive Board meetings without the Board's authorization, resigns or dies, the council or councils that appointed the member shall appoint a replacement member from among their number to serve for the remainder of the member's term.

Same

(9) If a member who represents unorganized territory becomes ineligible to hold office as a Board member, fails to attend three consecutive Board meetings without the Board's authorization, resigns or dies, the other members of the Board shall appoint a replacement from among the residents of the unorganized territory to serve for the remainder of the member's term.

Immunity

(10) No proceeding for damages or otherwise shall be commenced against a member, officer or employee of a Board for any act done in good faith in the performance or intended performance of a duty or authority of the Board or for any alleged neglect or default in the performance in good faith of the duty or authority.

Same

(11) Subsection (10) does not relieve a Board of liability to which it would otherwise be subject in respect of a tort committed by a member, officer or employee of the Board.

Indemnification

(12) Section 252 of the Municipal Act applies with necessary modifications with respect to members and former members of the Board.

Non-application of Acts

(13) The Corporations Act and the Corporations Information Act do not apply with respect to a Board.

Application of Acts

(14) The Municipal Conflict of Interest Act applies with respect to a Board and its members in the same manner as it applies with respect to a council and its members.

Same

(15) Subject to any other Act, the Municipal Freedom of Information and Protection of Privacy Act applies with respect to a Board in the same manner as it applies with respect to a municipal corporation.

Deemed employer

(16) A Board shall be deemed to be an employer for the purposes of the Ontario Municipal Employees Retirement System Act.

Procedures

40. (1) Subject to this Part, a Board may establish its own rules and procedures for transacting the business of the Board.

Chair

(2) A Board shall have a chair, to be elected by the members of the Board from among their number, who shall preside at all Board meetings.

Acting chair

(3) In the absence of the chair, or if the office of chair is vacant or the chair refuses to act, the Board may, from among its members, appoint an acting chair who, during such absence, vacancy or refusal to act, shall act in the place of the chair and preside at Board meetings.

Quorum

(4) A majority of the members of the Board constitutes a quorum.

Majority vote

(5) The vote of a majority of all members in attendance at a meeting is necessary to pass any by-law or resolution.

Meetings open

(6) All meetings of the Board shall be open to the public unless the Board is of the opinion that the subject-matter being considered is a financial, personal, security or other matter which should not be disclosed in the interests of any person affected or in the public interest.

Meetings conducted by distance communication

(7) A meeting of the Board may be conducted by tele-conference, video-conference or other means of distance communication.

Minutes to be made available

(8) If it is not practicable to open a meeting conducted by distance communication under subsection (7) that would otherwise be open to the public, the public shall be given access to the minutes of the meeting.

Improper conduct

(9) The chair may expel or exclude from any meeting any person, including a Board member, for improper conduct at the meeting.

Core services

41. (1) A Board shall provide or ensure the provision of the following services in the Board area, to the extent that a service delivery agency is required by law to provide them or ensure their provision:

1. Child care.

2. Assistance under the Ontario Works Act, 1997.

3. Public health services under the Health Protection and Promotion Act.

4. Social housing.

5. Land ambulance service under the Ambulance Act.

6. Homes for the aged under the Homes for the Aged and Rest Homes Act.

Additional services

(2) If required to do so by an order, a Board shall provide or ensure the provision of one or more of the following services to the extent that a service delivery agency is required by law to provide them or ensure their provision:

1. Services promoting economic development.

2. Airport service.

3. Land use planning under the Planning Act.

4. Administrative functions and prosecutions under Part X of the Provincial Offences Act.

5. Waste management.

6. Police services under the Police Services Act.

7. Emergency preparedness and response under the Emergency Plans Act.

8. Roads and bridges.

9. Any other service designated by the Minister.

Restriction

(2.1) An order shall not require the provision of any service mentioned in subsection (2) unless a proposal requesting its inclusion in an order has been made.

Area wide

(3) A Board shall provide the required services throughout the Board area, unless otherwise provided by the order.

Level of service

(4) A Board may provide the required services to the extent it considers appropriate beyond the level of services required by law.

Restriction

(5) No municipality, local board of a municipality or other service delivery agency shall provide the required services,

(a) unless otherwise provided by the order; or

(b) unless the Board enters into an agreement for their provision by the municipality, local board or service delivery agency.

Agreement with other Board

(5.1) A board may enter into an agreement with another Board for the provision of a required service by that Board in the Board area of the first Board.

Payment

(6) A Board may charge fees in respect of the required services it provides in the Board area.

Non-application of provisions

(7) An order may provide that a Board,

(a) shall not exercise the powers referred to in subsections (4) and (6) in respect of the required services specified in the order; and

(b) shall not enter into an agreement for the provision of a required service by an authority referred to in clause (5) (b), another Board or any other person or entity.

Police services

(8) Where a Board provides police services,

(a) the Board shall be deemed to be a municipality to which subsection 4 (1) of the Police Services Act applies; and

(b) subsection 4 (1) of the Police Services Act does not apply to any municipality in the Board area.

Administrative functions

(9) The Attorney General and a Board may enter into an agreement under Part X of the Provincial Offences Act and, without such an agreement, a board shall not provide the services referred to in paragraph 4 of subsection (2).

Definition

(10) In this section, "

required services" means the services that a Board is required by subsection (1) or (2) to provide.

Powers

42. (1) Every Board has the capacity and the rights, powers and privileges of a natural person for the carrying out of its purposes.

Investments, etc.

(2) A Board may make investments, incur debts and establish reserve funds in the same manner as a municipality as defined in the Municipal Act.

Restriction

(3) A Board is subject to the same restrictions as a municipality, as defined in the Municipal Act, with respect to the granting of bonuses in aid of manufacturing businesses or other industrial or commercial enterprises.

Taxation of real property

43. (1) For the purpose of funding service delivery in a Board area, tax may be levied on all real property in the Board area that is liable to assessment and taxation under the Assessment Act or the Provincial Land Tax Act.

Applicable system of funding service delivery

(2) An order shall provide that the provisions of section 44 or 49 apply for the purpose of funding service delivery in the Board area, except that the provisions of section 44,

(a) shall apply for the purposes of all Boards in 1999 or until such later date as may be determined by regulation of the Minister; and

(b) shall not apply for the purposes of any Boards after a date to be determined by regulation of the Minister.

Transition

(3) Despite subsection (2), an order may provide for such matters as the Minister considers appropriate to facilitate the transition from one system of funding service delivery and taxation to another and achieve the purposes of this Part.

Other Acts

(4) Where a provision of an Act or regulation under an Act would not otherwise apply with respect to the Board, the Province and municipalities, local services boards and local roads boards in the Board area, an order may specify, for the purposes of sections 44 and 49, that the provision shall apply with respect to any of them, with necessary modifications, as specified.

Contracting out, taxation functions

(5) An order may provide that a Board shall not enter into an agreement for the performance of any functions related to taxation, as specified, by any person or entity.

Assessment roll or other list

(6) The Ontario Property Assessment Corporation shall, as soon as practicable, give to the secretary of every Board a copy of any assessment roll under the Assessment Act and of any register, roll or list under the Provincial Land Tax Act showing the lands in the Board area liable to assessment and taxation and the amount of the assessment.

Taxation model 1

44. (1) A Board shall requisition from each municipality in the Board area and from the Province the amounts required for the Board's purposes in accordance with the apportionment formula established by the Lieutenant Governor in Council.

Levy and collection by municipalities

(2) A municipality shall levy and collect the amounts required to be raised by it for the Board's purposes by using the municipality's tax ratios established under the Municipal Act and shall remit the amounts to the Board.

Levy and collection by Minister of Finance in unorganized territory

(3) With respect to unorganized territory in the Board area, the Minister of Finance shall levy and collect the amounts required to be raised by the Province for the Board's purposes under the Provincial Land Tax Act and shall remit the amounts to the Board.

Application of sections

(4) Sections 45 to 48 apply for the purposes of this section.

Annual estimates

45. (1) Before December 1 in each year, a Board shall prepare and adopt annual estimates of all amounts required for the purposes of the Board for operating and capital expenditures for the next fiscal year.

Matters to be taken into account

(2) In preparing the estimates, the Board shall take into account any surplus from the previous year that will be available in the next year, any operating deficit from the previous year and any debt falling due within the year.

Contents of estimates

(3) The estimates shall set out,

(a) the amounts to be raised;

(b) the manner in which the amounts are to be raised; and

(c) the amounts, if any, which the Board proposes be added to the provincial land tax and to the levies of municipalities in the Board area.

To whom estimates, etc., sent

(4) Before December 10 in each year, the Board shall send, by registered mail, to the Minister of Finance and to all the municipalities in the Board area a copy of the estimates and the by-law adopting the estimates, and a copy of the Board's funding request.

Amounts under Provincial Land Tax Act and Municipal Act

46. The Board may by by-law passed before December 1 in any year request,

(a) the Minister of Finance to levy and collect under the Provincial Land Tax Act in the next calendar year the amounts apportioned to unorganized territory in the Board area; and

(b) the municipalities in the Board area to levy and collect under the Municipal Act in the next calendar year the amounts apportioned to municipalities in the Board area.

Levy under Provincial Land Tax Act and Municipal Act

47. (1) The Minister of Finance and the municipalities in the Board area shall, in accordance with subsection 43 (1), levy in the next calendar year the amounts set out in the by-law.

Deemed taxes

(2) The amounts levied under subsection (1) are deemed to be taxes and shall be collected as though they were for all purposes, respectively, provincial land taxes and municipal taxes.

Exemption

(3) Land belonging to the Board is exempt,

(a) from taxation under the Provincial Land Tax Act despite section 3 of that Act;

(b) from taxation under section 3 of the Assessment Act as if the Board were a municipality.

Payment to Board

(4) The Minister of Finance and the municipalities shall pay the amounts levied under subsection (1) to the Board.

When amounts paid to Boards

48. (1) In each calendar year beginning with the year 2000, a municipality in a Board area shall pay amounts levied for Board purposes in the following instalments:

1. Twenty-five per cent of the amount levied for the previous calendar year, on or before March 31.

2. Fifty per cent of the amount levied for the current calendar year less the amount of the instalment under paragraph 1, on or before June 30.

3. Twenty-five per cent of the amount levied for the current calendar year, on or before September 30.

4. The balance of the amount levied for the current calendar year, on or before December 15.

Non-payment on due date

(2) Where an instalment or a part of an instalment is not paid on the due date, the municipality in default shall pay interest to the Board from the date of default to the date that the payment is made, at the rate specified in subsection (4).

Payment ahead of due date

(3) Where, with the consent of the Board, an instalment or a part of an instalment is paid in advance of the due date, the Board shall allow the municipality a discount from the date of payment to the date on which the payment is due, at the rate specified in subsection (4).

Rate of interest

(4) For the purposes of subsections (2) and (3), the rate of interest payable or the rate of discount allowable, as the case may be, is the rate of 15 per cent per year, or such lower rate as the Board may by by-law determine, from the date of default in the case of subsection (2), or from the date of payment in the case of subsection (3).

Agreement

(5) Despite subsection (1), a Board may, by agreement with a majority of the municipalities in the Board area where the municipalities represent at least two-thirds of the assessment in all municipalities in the Board area taxable for the purposes of the Board according to the last returned assessment roll, vary the number of instalments and their amounts and due dates.

Same

(6) Where an agreement is entered into under subsection (5), it applies with respect to all municipalities in the Board area.

Taxation model 2

49. (1) A Board shall determine the tax ratios to be used by the Board and the municipalities in the Board area for all purposes on the basis of the classifications contained in the documents provided under subsection 43 (6).

Tax rates

(2) The Board shall set tax rates to be used by the Board and the municipalities in the Board area for all purposes, except that a municipality may establish its own tax rates for its own purposes under the Municipal Act.

Levy and collection by municipalities

(3) The municipalities shall levy and collect the amounts required by the Board and remit those amounts to the Board.

Levy and collection in unorganized territory

(4) With respect to unorganized territory in the Board area, the Board shall levy and collect the amounts required for the Board's purposes.

Requisition by Province and boards

(5) The Province and the local services boards and local roads boards in the Board area shall requisition from the Board the amounts required to fund the services they provide.

Levy and collection by Board

(6) The Board shall levy and collect the amounts required by the Province and remit those amounts to the Province.

Local services and local roads boards

(7) The Board shall levy and collect, from persons in the area of a Local Services Board or a local roads board who are liable to pay tax, the amounts required by those boards and remit those amounts to the boards.

Provincial Land Tax Act

(8) No tax shall be levied or collected in the Board area under the Provincial Land Tax Act.

Application of provisions

(9) Sections 50 to 56 apply for the purposes of this section.

Different system for establishing tax ratios

49.1 An order may provide for a different system of determining tax ratios than that set out in subsection 49 (1) where a proposal requesting the system has been made.

Definitions

50. In sections 51 to 56,

"

assessment" means the assessment for real property made under the Assessment Act according to the last returned assessment roll; ("évaluation")

"

property class" means a class of real property prescribed under the Assessment Act\; ("catégorie de biens")

"

residential/farm property class" means the residential/farm property class prescribed under the Assessment Act\; ("catégorie des biens résidentiels/agricoles")

"

tax rate" means the tax rate to be levied against property expressed as a percentage, to six decimal places, of the assessment of the property. ("taux d'imposition", "taux de l'impôt")

Establishment of tax ratios

51. (1) For the purposes of subsection 49 (1), a set of tax ratios shall be established by the Board in accordance with this section.

What tax ratios are

(2) The tax ratios are the ratios that the tax rate for each property class must be to the tax rate for the residential/farm property class. The tax ratio for the residential/farm property class is 1.

By-law

(3) The Board shall pass a by-law on or before March 15 in each year to establish the tax ratios for that year for the Board and the municipalities in the Board area.

Limitation

(3.1) A Board shall not pass a by-law under subsection (3) until transition ratios are established for the property classes that apply within the Board area, other than the residential/farm property class, the farmlands property class and the managed forests property class prescribed under the Assessment Act.

Ratios are uniform

(4) A by-law under subsection (3) must establish, for each property class, a single tax ratio for the Board and the municipalities in the Board area.

Ratios within prescribed ranges

(5) The tax ratio for a property class must be within the allowable range prescribed in the regulations for the property class.

Exception

(6) Despite subsection (5), the tax ratio for a property class may be outside the allowable range in the following circumstances:

1. For the first year in which section 49 applies in a Board area, the tax ratio may be,

i. above the range if it is less than or equal to the prescribed transition ratio for the property class, or

ii. below the range if it is greater than or equal to the prescribed transition ratio for the property class.

2. For a subsequent year the tax ratio may be,

i. above the range if it is less than or equal to the tax ratio for the property class for the previous year, or

ii. below the range if it is greater than or equal to the tax ratio for the property class for the previous year.

Regulations, Minister

(7) The Minister may make regulations,

(a) extending the time limit in subsection (3);

(b) requiring Boards to provide the Minister with the information prescribed in the regulations at the times, and in the manner, prescribed in the regulations;

(c) requiring Boards to give notice of the tax ratios established under this section to such persons and in such manner as the regulations prescribe.

Regulations extending time

(8) A regulation under clause (7) (a) extending a time limit may be made even if the time limit has expired.

Regulations, Minister of Finance

(9) The Minister of Finance may make regulations,

(a) prescribing, for the purposes of subsection (5), the allowable ranges for the tax ratios for the property classes;

(b) prescribing transition ratios for the property classes for the purposes of subsection (6) or prescribing a method for determining such ratios;

(b.1) prescribing average transition ratios for the purposes of subsection (19);

(b.2) providing for the application of optional property classes in a Board area for the purposes of this section;

(c) despite subsections (5) and (6), requiring Boards to establish, as the tax ratio for the year for each property class specified in the regulations, the ratio specified in the regulations for the property class.

Regulation under clause (9) (c), municipal request required

(10) A regulation under clause (9) (c) may not be made unless, before the regulation is made, each Board to be specified in the regulation passes a resolution requesting that such a regulation be made, specifying the property classes with respect to which the regulation is to apply and specifying what the tax ratio for each such class shall be.

Regulations can be specific

(11) A regulation under this section may be general or particular in its application and may be limited to specific Boards.

Regulations can be retroactive

(12) A regulation under subsection (9) may be retroactive to a date not earlier than January 1 of the year in which the regulation was made.

Farmlands and managed forests property class

(13) Despite anything in this section the tax ratios for the farmlands property class and the managed forests property class prescribed under the Assessment Act shall be .25.

New transition ratios

(14) The Minister of Finance may make regulations prescribing transition ratios for the first year in which new property classes are prescribed under the Assessment Act.

Effect of new transition ratios

(15) If transition ratios are prescribed under subsection (14) for a Board area, paragraph 1 of subsection (6) applies, with necessary modifications, for the year with respect to which the new transition ratios apply.

Replacement transition ratios

(16) The Minister of Finance may, by regulation, prescribe new transition ratios for a Board if, as a result of an error or of an event that occurs after the original transition ratios are prescribed, the application of the original transition ratios would result, in the opinion of the Minister, in a significant shift in taxation among classes of real property in the Board area.

Optional property classes

(17) In the first taxation year in which a Board establishes tax ratios, any optional property classes applicable in a municipality in the Board area shall cease to apply, and the Board may opt to have optional property classes, as set out in the regulations made under the Assessment Act, apply in the Board area.

Definitions

(18) In subsections (19) to (21), "

commercial classes" means the commercial property class and the property classes each of which is a property class that a Board may opt to have apply under the regulations made under the Assessment Act and that contains property that, if the Board did not opt to have the property class apply, would be in the commercial property class; ("catégories commerciales")

"

industrial classes" means the industrial property class prescribed under the Assessment Act and the property classes each of which is a property class that a Board may opt to have apply under the regulations made under the Assessment Act and that contains property that, if the Board did not opt to have the property class apply, would be in the industrial property class. ("catégories industrielles")

Average transition ratios

(19) For each Board, there shall be an average transition ratio for the commercial classes and an average transition ratio for the industrial classes, determined in accordance with the following:

1. For the year in which the Board is established, the average transition ratio shall be the prescribed average transition ratio.

2. For a subsequent year, the average transition ratio shall be the weighted average, for the previous year, of the tax ratios for the property classes to which the average transition ratio relates.

Special rule, commercial classes

(20) The tax ratio for a property class that is one of the commercial classes may be greater than what would be allowed under subsection (5) or (6) if the following are satisfied:

1. The tax ratio is less than or equal to the average transition ratio for the commercial classes for the year.

2. The weighted average, for the year, of the tax ratios for the commercial classes does not exceed the average transition ratio for the commercial classes for the year.

Special rule, industrial classes

(21) The tax ratio for a property class that is one of the industrial classes may be greater than what would be allowed under subsection (5) or (6) if the following are satisfied:

1. The tax ratio is less than or equal to the average transition ratio for the industrial classes for the year.

2. The weighted average, for the year, of the tax ratios for the industrial classes does not exceed the average transition ratio for the industrial classes for the year.

Weighted average

(22) For the purposes of subsections (19) to (21), the weighted average, for a year, of the tax ratios for property classes shall be determined as follows:

1. For each property class, multiply the tax ratio for the property class for the year by the total assessment of the properties in the property class for the year.

2. Add the amounts determined under paragraph 1 for each property class together.

3. Add the total assessments of the properties in the property classes for the year, used in the calculation under paragraph 1, together.

4. The weighted average is the amount determined under paragraph 2 divided by the amount determined under paragraph 3.

Replacement transition ratios

(23) The Minister of Finance may, by regulation, prescribe new average transition ratios for a Board if, as a result of an error or of an event that occurs after the original average transition ratios are prescribed, the application of the original average transition ratios would result, in the opinion of the Minister, in a significant shift in taxation among classes of real property in the Board area.

Effect

(24) If a new average transition ratio is prescribed for a Board under subsection (23), that average transition ratio applies for the year instead of the average transition ratio that would otherwise apply under subsection (19).

Yearly estimates

52. (1) A Board shall in each year prepare and adopt estimates of all amounts required during the year for the purposes of the Board and all amounts required to be raised for the purposes of the Province, local services boards and local roads boards under subsection 49 (5), including amounts sufficient to pay all debts of the Board falling due within the year and amounts required to be raised for sinking funds.

Detail and form

(2) The estimates shall set out the estimated revenues and expenditures in such detail and form as the Minister may require.

Allowance

(3) In preparing the estimates, the Board shall make due allowance for a surplus of any previous year that will be available during the current year and shall provide for any operating deficit of any previous year and for uncollectable taxes and may provide for taxes that it is estimated will not be collected during the year and for such reserves as the Board considers necessary.

Application

(4) Section 34 of the Assessment Act and section 421 of the Municipal Act apply with necessary modifications with respect to the Board.

General Board levy, etc.

53. (1) In this section,

"

general Board levy" means an amount sufficient for payment of the estimated expenditures adopted for the year under section 52 less the amount of any special Board levies to be raised; ("impôt général de régie")

"

special Board levy" means an amount to be raised on less than all taxable property in the Board area. ("impôt extraordinaire de régie")

General rating by-law

(2) For purposes of raising the general Board levy, the Board shall, on or before March 31 in each year, pass a by-law,

(a) directing the councils of the municipalities in the Board area to levy a separate tax rate, as specified in the by-law, on the assessment in each property class in the municipality rateable for Board purposes; and

(b) governing the levying of a separate tax rate, as specified in the by-law, on the assessment in each property class in the unorganized territory rateable for Board purposes.

Special levies

(3) If authorized by an order, for purposes of raising a special Board levy, the Board shall, on or before March 31 in each year, pass a by-law,

(a) directing each applicable municipality in the Board area to levy a separate tax rate, as specified in the by-law, on all or part of the assessment, as specified in the by-law, in each property class in the municipality rateable for Board purposes; and

(b) governing the levying of a separate tax rate, as specified in the by-law, on all or part of the assessment, as specified in the by-law, in each property class in the unorganized territory rateable for Board purposes.

Restrictions on rates

(4) The tax rates set out in a Board rating by-law are subject to the following restrictions:

1. The rates must be set so that when they are levied on the applicable assessment rateable for Board purposes, an amount equal to the general Board levy or special Board levy, as the case may be, is raised.

2. The rates on the different classes of property must be in the same proportion to each other as the tax ratios established under section 51 for the property classes are to each other.

Rates adopted

(5) In each year, the council of each municipality in the Board area shall levy, in accordance with the Board rating by-law passed for that year, the tax rates specified in the by-law.

Estimate of amount to be raised

(6) A Board rating by-law shall estimate the amount to be raised in a municipality in the Board area as a result of a levy being made in that municipality in accordance with the by-law.

When amounts paid to Boards

(7) A municipality in the Board area shall pay amounts levied for Board purposes in the following instalments:

1. Twenty-five per cent of the amount levied for the previous calendar year, on or before March 31.

2. Fifty per cent of the amount levied for the current calendar year less the amount of the instalment under paragraph 1, on or before June 30.

3. Twenty-five per cent of the amount levied for the current calendar year, on or before September 30.

4. The balance of the amount levied for the current calendar year, on or before December 15.

Non-payment on due date

(8) Where an instalment or a part of an instalment is not paid on the due date, the municipality in default shall pay interest to the Board from the date of default to the date that the payment is made, at the rate specified in subsection (10).

Payment ahead of due date

(9) Where, with the consent of the Board, an instalment or a part of an instalment is paid in advance of the due date, the Board shall allow the municipality a discount from the date of payment to the date on which the payment is due, at the rate specified in subsection (10).

Rate of interest

(10) For the purposes of subsections (8) and (9), the rate of interest payable or the rate of discount allowable, as the case may be, is the rate of 15 per cent per year, or such lower rate as the Board may by by-law determine, from the date of default in the case of subsection (8), or from the date of payment in the case of subsection (9).

Agreement

(11) Despite subsection (7), a Board may, by agreement with a majority of the municipalities in the Board area where the municipalities represent at least two-thirds of the assessment in all municipalities in the Board area taxable for the purposes of the Board according to the last returned assessment roll, vary the number of instalments and their amounts and due dates.

Same

(12) Where an agreement is entered into under subsection (11), it applies with respect to all municipalities in the Board area.

Deemed taxes

(13) The amount levied by a municipality in the Board area pursuant to a Board rating by-law shall be deemed to be taxes and is a debt of the municipality to the Board.

Amount payable, adjustments if estimate incorrect

(14) If the amount levied by a municipality pursuant to a Board rating by-law is different from the amount estimated in the by-law, the municipality is required to pay only the amount levied and the appropriate adjustments shall be made in respect of any amounts already paid.

Extension of time

(15) The Minister may make regulations extending the time for passing a Board rating by-law in any year.

Same

(16) A regulation under subsection (15),

(a) may be made even if the time limit set out in subsection (2) or (3) has expired; and

(b) may be general or particular in its application and may be limited to specific Boards.

Taxation of certain railway, power utility lands

54. (1) Every Board shall impose taxes, in accordance with the regulations, on the following land:

1. The roadway or right of way of a railway company, other than the structures, substructures and superstructures, rails, ties, poles and other property on the roadway or right of way, not including land leased by the railway company to another person for rent or other valuable consideration.

2. Land owned by a power utility prescribed by the Minister of Finance (other than a public utility defined in subsection 27 (1) of the Assessment Act) and used as a transmission or distribution corridor, not including land leased by the power utility to another person for rent or other valuable consideration.

Regulations

(2) The Minister of Finance may make regulations,

(a) prescribing, for each geographic area described in subsection (4), the rate of tax to be imposed by a Board on land described in subsection (1);

(b) prescribing power utilities for the purposes of paragraph 2 of subsection (1).

Same

(3) The following apply to regulations under subsection (2):

1. The regulations may provide for land described in paragraph 1 of subsection (1) to be taxed differently from land described in paragraph 2 of subsection (1).

2. A regulation may be general or particular in its application.

Geographic areas

(4) For the purposes of this section, the following are geographic areas:

1. The Regional Municipality of Sudbury and the districts of Algoma, Manitoulin and Sudbury.

2. The districts of Cochrane, Nipissing, Parry Sound and Temiskaming.

3. The districts of Kenora, Rainy River and Thunder Bay.

References to municipality and districts

(5) In the description of a geographic area in subsection (4), a reference to a municipality or district is a reference to the municipality or district as it was on December 31, 1997.

Collector's roll

(6) The secretary of a Board shall, for land described in subsection (1), enter on the collector's roll the number of acres or other measure showing the extent of the land and the amounts of the taxes under this section.

Transitional taxation for "grandparented" owners

(7) The Minister of Finance may make regulations providing for the taxation under this section for the taxation years 1998 to 2005, both inclusive, of land that the owner owned on December 31, 1997, for the purposes of providing for the transition from the taxation of such land as it was taxed in 1997.

Same

(8) The following apply to regulations under subsection (7):

1. The regulations may provide for land described in paragraph 1 of subsection (1) to be taxed differently from land described in paragraph 2 of subsection (1).

2. A regulation may be general or particular in its application.

3. The regulations may provide for different taxation of particular parcels of land or of parcels of land owned by particular owners.

Powers of Board, levying rates

55. (1) A Board that levies rates under section 49 has, for purposes of the collection, chargeback, cancellation, refund or rebate of the rates, the same powers and duties as a municipality has in respect of the collection, chargeback, cancellation, refund or rebate of rates levied for municipal purposes, including powers and duties relating to the sale of land for tax arrears.

Powers of officers

(2) The officers of a Board that levies rates under section 49 have the same powers and duties in respect of the collection, chargeback, cancellation, refund or rebate of rates, including powers and duties relating to the sale of land for tax arrears, as officers of a municipality have in respect of rates levied for municipal purposes.

Application of s. 382 of Municipal Act

(3) Section 382 of the Municipal Act applies to taxes levied under section 49.

Regulations

(4) The Minister may make regulations, which may be general or particular in their application, varying, limiting or excluding the powers and duties under this section of Boards and their officers.

When amounts paid to Boards

56. (1) In each calendar year, a Board shall pay amounts levied for provincial purposes and local services boards and local roads boards purposes in the following instalments:

1. Twenty-five per cent of the amount levied for the previous calendar year, on or before March 31.

2. Fifty per cent of the amount levied for the current calendar year less the amount of the instalment under paragraph 1, on or before June 30.

3. Twenty-five per cent of the amount levied for the current calendar year, on or before September 30.

4. The balance of the amount levied for the current calendar year, on or before December 15.

Non-payment on due date

(2) Where an instalment or a part of an instalment is not paid on the due date, the Board shall pay interest to the Province or the recipient Local Services Board or local roads board from the date of default to the date that the payment is made, at the rate specified in subsection (4).

Payment ahead of due date

(3) Where, with the consent of the Province or the recipient Local Services Board or local roads board, an instalment or a part of an instalment is paid in advance of the due date, the Province or recipient Local Services Board or local roads board shall allow the Board a discount from the date of payment to the date on which the payment is due, at the rate specified in subsection (4).

Rate of interest

(4) For the purposes of subsections (2) and (3), the rate of interest payable or the rate of discount allowable, as the case may be, is the rate of 15 per cent per year, or such lower rate as the Province may determine, from the date of default in the case of subsection (2), or from the date of payment in the case of subsection (3).

Agreement

(5) Despite subsection (1), a Board may, by agreement with the Province or a Local Services Board or local roads board in the Board area, vary the number of instalments and their amounts and due dates.

Payments to Board

57. (1) The Minister may pay to a Board annually out of money appropriated therefor by the Legislature such amount as the Minister considers appropriate after taking into account the estimates of the Board, taxes levied for Board purposes under section 44 or 49 and the fees collected by the Board.

Same

(2) The Minister may pay to a Board annually out of money appropriated therefor by the Legislature an amount in lieu of taxes in respect of the improved Crown land within the Board area.

Audit

58. (1) A Board shall appoint auditors and have audits carried out in the same manner as a municipality as defined in the Municipal Act.

Fiscal year

(2) The fiscal year of a Board is the 12-month period beginning on January 1.

Dissolution of Board

59. (1) The Minister may by order, where he or she considers it necessary to do so in the public interest,

(a) name, in place of a Board, any person to exercise the powers and perform the duties of the Board, subject to the Minister's supervision;

(b) dissolve a Board and assume its powers; or

(c) dissolve a Board and the Board area.

Transfer of assets and liabilities

(2) In an order for the dissolution of a Board under subsection (1), the Minister may make such provision with respect to the disposition of assets and liabilities of the Board as the Minister considers appropriate.

No local dissolution

(3) Only the Minister may dissolve a Board.

Immunity

(4) Where the Minister makes an order under clause (1) (a), no proceeding for damages or otherwise shall be commenced against the person or any officer or employee of the person for any act done in good faith in the performance or intended performance of a duty or authority of the Board or for any alleged neglect or default in the performance in good faith of the duty or authority.

Same

(5) Subsection (4) does not relieve the Crown of liability to which it would otherwise be subject in respect of a tort committed by the person, officer or employee.

Regulations, Minister

60. (1) The Minister may make regulations,

(a) for the purposes of subclause 37 (1) (a) (vii), requiring matters to be dealt with in a proposal;

(b) for the purposes of subclause 37 (1) (b) (i), prescribing the degree of support required to support a proposal;

(c) for the purposes of subclause 37 (1) (b) (ii), prescribing the manner of determining that support; and

(d) for the purposes of subsection 43 (2), determining dates respecting the application or non-application of section 44.

Scope

(2) A regulation may be general or particular in its application and may be limited to specific Boards.

11. (1) Clause (a) of item 2 of the Schedule to the Act is repealed and the following substituted:

(a) establish a fire department and for that purpose acquire, operate and maintain a fire-hall, fire engines and apparatus and equipment for use by volunteer firefighters in connection with fire suppression and other fire protection activities; or

. . . . .

(2) The Schedule to the Act is amended by adding the following item:

7. ROADS

The Board may by by-law,

(a) contract for the construction, inspection and maintenance of roads and bridges in the Board area;

(b) determine the work to be performed on roads and bridges in the Board area,

and may charge a fee for the cost of such services.

(3) The Schedule to the Act is amended by adding the following item:

8. PUBLIC LIBRARY SERVICE

The Board may by by-law,

(a) contract for the provision of public library service by a public library board, union board or county library board or by a board of an Ontario library service area acting under subsection 34 (2) of the Public Libraries Act\; or

(b) establish and maintain a public library service,

and may, subject to the Public Libraries Act, charge fees in respect of such service.

12. The title of the Local Services Boards Act is repealed and the following substituted:

NORTHERN SERVICES BOARDS ACT

Commencement

13. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

14. The short title of this Act is the Northern Services Improvement Act, 1998.

EXPLANATORY NOTE

The Bill adds a new Part II to the Local Services Boards Act. This Part provides for the consolidation of the delivery of specified public services in Northern Ontario through the establishment of area services boards. Communities in the territorial districts may make proposals to the Minister of Northern Development and Mines for the setting up of such a Board (proposed section 37 of the Act). Where the Minister makes an order so doing, the Board must provide services in the areas of child care, social assistance, public health, social housing, ambulance service and homes for the aged (new subsection 41 (1)). Proposed subsection 41 (2) outlines additional services that may become the responsibility of a Board. Funding for the activities of a Board derives from the application of one of the taxing models set out in sections 44 and 49. The proposal for the establishment of the Board will indicate the funding model preferred by the communities to be included in the area of jurisdiction of the Board. However, the model set out in section 44 may not be chosen after a date to be determined. No proposal for the establishment of a Board may be made more than three years after the day section 37 of the Act comes into force.

In addition to making a number of housekeeping amendments to the law relating to local services boards found in the newly titled Part I of the Act, the Bill (subsection 11 (2)) adds responsibility with respect to local roads and public libraries to the Schedule of services that a Local Services Board may provide.

The title of the Local Services Boards Act is changed to the Northern Services Boards Act.

Copyright © 1998

Office of the Legislative Assembly of Ontario

Toronto, Ontario, Canada.