[38] Bill 197 Royal Assent (PDF)

Bill 197 2005

An Act to implement
Budget measures

Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.

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

Contents of this Act

1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2)  The Schedules to this Act come into force as provided in each Schedule.

Same

(3)  If a Schedule to this Act provides that all or any portion of the Schedule is to come into force on a day to be named by proclamation of the Lieutenant Governor, the proclamation may apply to any portion of the Schedule, and proclamations may be issued at different times as to any portion of the Schedule.

Short title

3.  The short title of this Act is the Budget Measures Act, 2005.

SCHEDULE A
AMENDMENTS TO THE
ASSESSMENT ACT

1.  Clause 2 (2) (c) of the Assessment Act is repealed.

2.  Subsection 19 (5.2) of the Act is repealed and the following substituted:

Conservation land, managed forests

(5.2)  The current value of land that is conservation land as defined in the regulations or land in the managed forests property class shall be based only on the current use of the land and not other uses to which the land could be put.

Current value of managed forests

(5.2.1)  Despite subsection (5.2) and any other provision of this Act, the Minister may, by regulation, provide that the current value of land in the managed forests property class shall be determined in accordance with the regulations.

3.  Clause 33 (4) (c) of the Act is repealed.

4.  Subclause 34 (1) (b) (iii) of the Act is repealed and the following substituted:

(iii) to be conservation land the current value of which is determined under subsection 19 (5.2),

(iii.1) to be land in the managed forests property class the current value of which is determined under subsection 19 (5.2) or (5.2.1),

Commencement

5.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE B
AMENDMENTS TO THE
BUSINESS CORPORATIONS ACT AND THE
REGULATED HEALTH PROFESSIONS ACT, 1991

Business Corporations Act

1.  (1)  Subsection 3.2 (2) of the Business Corporations Act is amended by adding "but subject to subsection (6)" after "Despite any other provision of this Act" in the portion before paragraph 1.

(2)  Subsection 3.2 (5) of the Act is amended by adding "Subject to subsection (6)" before "A unanimous shareholder agreement".

(3)  Section 3.2 of the Act is amended by adding the following subsection:

Special rules, health profession corporations

(6)  The Lieutenant Governor in Council may make regulations,

(a) exempting classes of health profession corporations, as defined in section 1 (1) of the Regulated Health Professions Act, 1991, from the application of subsections (1) and (5) and such other provisions of this Act and the regulations as may be specified and prescribing terms and conditions that apply with respect to the health profession corporations in lieu of the provisions from which they are exempted;

(b) exempting classes of the shareholders of those health profession corporations from the application of subsections 3.4 (2), (4) and (6) and such other provisions of this Act and the regulations as may be specified and prescribing rules that apply with respect to the shareholders in lieu of the provisions from which they are exempted;

(c) exempting directors and officers of those health profession corporations from the application of such provisions of this Act and the regulations as may be specified and prescribing rules that apply with respect to the directors and officers in lieu of the provisions from which they are exempted.

Regulated Health Professions Act, 1991

2.  (1)  Section 85.8 of Schedule 2 to the Regulated Health Professions Act, 1991 is repealed and the following substituted:

Professional corporations

85.8  (1)  Subject to the regulations made under subsection 43 (1) of the Regulated Health Professions Act, 1991 and the by-laws, one or more members of the same health profession may establish a health profession corporation for the purposes of practising their health profession.

Same

(2)  The provisions of the Business Corporations Act, including the regulations made under that Act, that apply with respect to professional corporations apply with respect to a health profession corporation established under subsection (1).

(2)  Subsection 85.14 (3) of Schedule 2 to the Act is repealed and the following substituted:

Prohibition, corporate matters

(3)  A health profession corporation shall not practise a health profession when it does not satisfy the requirements for a professional corporation under subsection 3.2 (2) of the Business Corporations Act or a requirement established under subsection 3.2 (6) of that Act.

Commencement

3.  This Schedule comes into force on January 1, 2006.

SCHEDULE C
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

1.  (1)  Section 17 of the Community Small Business Investment Funds Act is amended by adding the following subsection:

Exception

(2.1)  If rules are prescribed for the purposes of this subsection, subsections (1) and (2) do not apply and the prescribed rules apply instead.

(2)  Subsection 17 (3) of the Act is amended by striking out "For the purposes of this section" at the beginning and substituting "For the purposes of this section and subject to the regulations".

2.  Subsection 18 (10) of the Act is amended by striking out "non-compliance with clause (1) (b) or subclause (1) (d) (iii) or (x)" and substituting "non-compliance with clause (1) (b), subclause (1) (d) (iii) or (x) or another prescribed provision".

3.  (1)  Subsection 18.1 (5) of the Act is amended by striking out "exceeds 25 per cent" and substituting "exceeds 25 per cent or, if a per cent is prescribed, the prescribed per cent".

(2)  Section 18.1 of the Act is amended by adding the following subsection:

Exception

(9.1)  If rules are prescribed for the purposes of this subsection, subsections (8) and (9) do not apply and the prescribed rules apply instead.

(3)  Subsection 18.1 (10) of the Act is amended by striking out "For the purposes of subsection (8)" at the beginning and substituting "For the purposes of subsection (8) and subject to the regulations".

4.  Subsection 20 (2) of the Act is amended by striking out "$15 million" and substituting "$15 million or, if a different amount is prescribed, the prescribed amount".

5.  (1)  The French version of subsection 27.1 (9) of the Act is repealed and the following substituted:

Règlements

(9)  Le ministre peut, par règlement, prescrire des règles applicables dans les cas suivants :

(2)  Subsection 27.1 (9) of the Act is amended by adding the following clause:

(d) if two or more labour sponsored investment fund corporations are involved in a business combination.

6.  (1)  Subsection 45 (1) of the Act is amended by adding the following clauses:

(n) providing that the required investment level for labour sponsored investment fund corporations under subsection 17 (1) shall not be determined using the formula in that subsection and subsection 17 (2) or the rule set out in subsection 17 (3) and prescribing rules for determining the required investment level;

(o) prescribing circumstances in which a labour sponsored investment fund corporation may apply to the Minister for an order that failure to comply with a prescribed provision of the Act or the regulations does not preclude an investment by the corporation from being an eligible investment;

(p) prescribing a per cent in excess of 25 per cent for the purposes of subsection 18.1 (5) and providing that the prescribed per cent applies for the purposes of that subsection instead of 25 per cent;

(q) prescribing that subsection 18.1 (5) does not apply and prescribing rules for determining the maximum amount of investments in eligible businesses that are listed companies that may be made by a labour sponsored investment fund corporation and the circumstances in which the rules apply;

(r) providing that the required investment level for labour sponsored investment fund corporations under subsection 18.1 (8) shall not be determined using the formula in that subsection and subsection 18.1 (9) or the rule set out in subsection 18.1 (10) and prescribing rules for determining the required investment level;

(s) prescribing an amount in excess of $15 million for the purposes of subsection 20 (2) and providing that the prescribed amount applies for the purposes of that subsection instead of $15 million;

(t) exempting any person, class of persons or class of shares of a labour sponsored investment fund corporation, in whole or in part, with or without conditions, from this Act, the Business Corporations Act, the Securities Act or a regulation made under any of those Acts, if the Minister determines that the person, class of persons or class of shares complies with the intent of this Act;

(u) varying the application of this Act in respect of any person, class of persons or class of shares of a labour sponsored investment fund corporation, if the Minister determines that the person, class of persons or class of shares complies with the intent of this Act.

(2)  Section 45 of the Act is amended by adding the following subsection:

General or particular

(5)  A regulation made under subsection (1) may be general or particular in its application.

7.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE D
AMENDMENTS TO THE
CORPORATIONS TAX ACT

1.  (1)  Subclause 1 (3) (d) (iv) of the Corporations Tax Act is repealed and the following substituted:

(iv) where subclause (i) applies,

(A) the other provision shall be deemed to apply for the purposes of the application of sections 12 and 12.2, subsection 13 (7), paragraph 13 (7.1) (e), the definition of "I" in the definition of "undepreciated capital cost" in subsection 13 (21), subsection 14 (3), section 20, paragraphs 37 (1) (d) and (e), subparagraphs 53 (2) (c) (vi), (vii) and (viii) and 53 (2) (h) (ii), (iii) and (iv), sections 56 and 60, the definition of "L" in the definition of "cumulative Canadian exploration expense" in subsection 66.1 (6), section 66.8, paragraph 67.1 (2) (d), paragraph 84 (1) (c.3), section 88, the definition of "relevant tax factor" in subsection 95 (1), subsection 96 (2.1), paragraphs 110 (1) (k), 111 (1) (e) and 127.2 (6) (a), subsections 127.2 (8), 127.3 (6) and 128.1 (2), the definition of "Canadian property" in subsection 133 (8), subsection 137 (4.3), section 138, paragraph 138.1 (1) (k), section 248 and subsection 258 (5) of the Income Tax Act (Canada) for the purposes of this Act,

(B) subsections 192 (4.1) and 194 (4.1) of the Income Tax Act (Canada) shall be deemed to apply for the purposes of the application of subparagraph (b) (iii) of the definition of "paid-up capital" in section 89 of that Act for the purposes of this Act, and

(C) the other provision shall not apply for the purposes of the application of any provision of the Income Tax Act (Canada) for the purposes of this Act, except to the extent it is deemed to apply under sub-subclause (A) or (B),

(2)  Clause 1 (3) (d) of the Act is repealed.

(3)  Section 1 of the Act is amended by adding the following subsection:

Application of federal provisions referred to in federal provisions

(3.1)  The following rules apply if a provision of the Income Tax Act (Canada) is made applicable for the purposes of this Act and the provision refers to another provision of the Income Tax Act (Canada) (in this subsection called the "other provision"):

1. Subject to paragraph 3, if the other provision does not otherwise apply for the purposes of this Act, it shall apply for the purposes of the application of the following provisions of the Income Tax Act (Canada) for the purposes of this Act:

i. Section 12.

ii. Section 12.2.

iii. Subsection 13 (7), paragraph 13 (7.1) (e) and the definition of "I" in the definition of "undepreciated capital cost" in subsection 13 (21).

iv. Subsection 14 (3).

v. Section 20.

vi. Paragraphs 37 (1) (d) and (e).

vii. Clauses 53 (1) (e) (i) (B) and 53 (2) (c) (i) (B) and subparagraphs 53 (2) (c) (vi), (vii) and (viii) and 53 (2) (h) (ii), (iii) and (iv).

viii. Section 56.

ix. Section 60.

x. The definition of "L" in the definition of "cumulative Canadian exploration expense" in subsection 66.1 (6).

xi. Section 66.8.

xii. Paragraph 67.1 (2) (d).

xiii. Paragraph 84 (1) (c.3).

xiv. Section 88.

xv. The definition of "relevant tax factor" in subsection 95 (1).

xvi. Subsection 96 (2.1).

xvii. Paragraph 110 (1) (k).

xviii. Paragraph 111 (1) (e).

xix. Paragraph 127.2 (6) (a) and subsection 127.2 (8).

xx. Subsection 127.3 (6).

xxi. Subsection 128.1 (2).

xxii. The definition of "Canadian property" in subsection 133 (8).

xxiii. Subsection 137 (4.3).

xxiv. Section 138.

xxv. Paragraph 138.1 (1) (k).

xxvi. Section 248.

xxvii. Subsection 258 (5).

2. If the other provision is subsection 192 (4.1) or 194 (4.1), it shall apply for the purposes of the application of subparagraph (b) (iii) of the definition of "paid-up capital" in section 89 of the Income Tax Act (Canada) for the purposes of this Act.

3. If the other provision does not apply for the purposes of this Act because a provision of this Act is enacted to apply instead, the reference to the other provision in the provision of the Income Tax Act (Canada) that applies for the purposes of this Act shall be deemed to be a reference to the provision of this Act that applies instead.

4. If the application of the other provision for the purposes of this Act differs from the application of the other provision for the purposes of the Income Tax Act (Canada), the reference to the other provision in the provision of that Act shall be deemed to be a reference to the other provision as it applies for the purposes of this Act.

5. Despite paragraph 3, if the other provision is referred to in clause 53 (1) (e) (i) (B) or 53 (2) (c) (i) (B) of the Income Tax Act (Canada) or in the definition of "gross revenue" in subsection 248 (1) of that Act, the other provision shall apply for the purposes of the application of that clause or definition for the purposes of this Act.

6. Except as otherwise provided in paragraphs 1 to 5, if the other provision does not apply for the purposes of this Act, it shall not apply for the purposes of the application of any provision of the Income Tax Act (Canada) for the purposes of this Act.

(4)  Subsection 1 (12) of the Act is repealed.

2.  (1)  Subsections 2 (1) and (2) of the Act are repealed and the following substituted:

Taxes payable, resident corporation

(1)  Every corporation resident in Canada that has a permanent establishment in Ontario at any time in a taxation year shall pay to Her Majesty in right of Ontario the taxes for the taxation year imposed by this Act at the time and in the manner required by this Act.

Taxes payable, non-resident corporation

(2)  Every non-resident corporation shall pay to Her Majesty in right of Ontario the taxes for a taxation year imposed by this Act at the time and in the manner required by this Act if, at any time in the taxation year or in a previous taxation year,

(a) the corporation had a permanent establishment in Ontario within the meaning of section 4;

(b) the corporation owned real property, timber resource property or a timber limit in Ontario and the corporation's income from the property or timber limit,

(i) arose from the sale or rental of the property or timber limit, or

(ii) is a royalty or timber royalty; or

(c) the corporation disposed of property,

(i) that would be taxable Canadian property as defined in subsection 248 (1) of the Income Tax Act (Canada) if the reference in that definition to section 2 of that Act were read as a reference to this section, and

(ii) that is deemed under the regulations to be situated in Ontario.

(2)  Section 2 of the Act is amended by adding the following subsection:

Application of subss. (1) and (2)

(4)  Subsections (1) and (2) apply to corporations for taxation years ending after May 11, 2005 and subsections (1) and (2) as they read before that day continue to apply to corporations for taxation years ending on or before that day.

3.  (1)  Clause 11 (13) (a) of the Act is amended by striking out "subclause 1 (3) (d) (vi)" and substituting "paragraph 4 of subsection 1 (3.1)".

(2)  Clause 11 (17) (a) of the Act is amended by striking out "clause 1 (3) (d)" at the beginning and substituting "subsection 1 (3.1)".

4.  (1)  Subsection 14 (5) of the Act is repealed and the following substituted:

Adjustments to cost base

(5)  The following rules apply for the purposes of this Act in computing the adjusted cost base to a corporation of property as required under subsection (1):

1. If the property is a foreign resource property, the adjusted cost base of the property to the corporation,

i. shall be increased by the amount, if any, of the foreign exploration and development expenses incurred by the corporation after 1971 with respect to the property that has not been allowed as a deduction from income for the purposes of this Act, and

ii. shall be reduced by,

A. any amount that has become receivable by the corporation at a particular time in a taxation year as the result of a transaction that occurred after May 6, 1974 in which the consideration given by the corporation for the amount was property or services the original cost of which may reasonably be regarded as having been foreign exploration and development expenses, and

B. any amount required by subsection 80 (9) of the Income Tax Act (Canada) to be applied to reduce the adjusted cost base of the property at or before the end of the taxation year.

2. Clause 53 (2) (c) (ii) (B) of the Income Tax Act (Canada) applies, except that the clause shall be read without the words "and foreign resource pool expenses".

3. Subparagraph 53 (2) (k) (i) of the Income Tax Act (Canada) applies, except that the reference in clause 53 (2) (k) (i) (B) of that Act to section 65 shall be read as a reference to both section 65 of that Act and section 17 of this Act.

4. If the property is an interest in a partnership,

i. there shall be deducted in respect of each fiscal period of the partnership ending before that time all amounts deducted by the corporation for a taxation year commencing before that time,

A. under section 12 in respect of the corporation's share of the qualified expenditures made by the partnership in the fiscal period,

B. under section 13 in respect of the portion of the property of the partnership deemed to be eligible assets acquired by the corporation,

C. under section 13.1 in respect of an amount deducted under clause 11 (10) (a) by the partnership as an Ontario new technology tax incentive,

D. under sections 13.2 and 13.3 in respect of the corporation's share of the qualifying expenditures under each of those sections made by the partnership in the fiscal period,

E. under section 13.4 in respect of the corporation's share of the capital costs incurred by the partnership in the fiscal period, and

F. under section 13.5 in respect of the corporation's share of the amount described in subsection 13.5 (4), as determined under that subsection, and

ii. there shall be added in respect of each fiscal period of the partnership ending before that time all amounts included in the income of the corporation for a taxation year commencing before that time under subsection 12 (13) or section 11.1.

Exception

(5.1)  Despite paragraph 4 of subsection (5), if the corporation's partnership interest is in a limited partnership that had a non-capital loss for a fiscal period ending in a taxation year of the corporation, the following rules apply:

1. An amount described in subparagraph 4 i of subsection (5) shall be deducted from the adjusted cost base of the corporation's interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation's limited partnership loss for the taxation year.

2. An amount described in subparagraph 4 ii of subsection (5) shall be added to the adjusted cost base of the corporation's interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation's limited partnership loss for the taxation year.

(2)  Subsection 14 (8) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

5.  Subsection 17 (5) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

6.  Subsection 18 (16) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

7.  (1)  Section 31 of the Act is amended by adding the following subsection:

Application of s. 11.0.1

(1.2)  If a corporation holds a direct interest in and is a majority interest partner of a partnership at the end of a fiscal period of the partnership ending after December 31, 2002, the corporation's share of the income or loss of the partnership for the fiscal period in respect of that interest shall be the amount that would be determined if,

(a) section 11.0.1 applied to the partnership for the fiscal period on the basis that the partnership was a corporation and the fiscal period was its taxation year; and

(b) section 11.0.1 applied to any other partnership in which the corporation had an indirect interest through the partnership and of which the corporation is a majority interest partner at any time in the fiscal period on the basis that the partnership was a corporation and its fiscal period was its taxation year.

(2)  Subsections 31 (3) and (3.1) of the Act are repealed.

8.  Clause 32 (2) (a) of the Act is amended by striking out "clause 1 (3) (d)" at the beginning and substituting "subsection 1 (3.1)".

9.  (1)  Subsection 43.3 (3.5) of the Act is repealed.

(2)  Subsection 43.3 (3.6) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Rules for taxation years ending on or before May 11, 2005

(3.6)  The following rules apply for the purposes of subsection (3.2) for a taxation year that commences after December 8, 2002 and ends on or before May 11, 2005:

. . . . .

(3)  Section 43.3 of the Act is amended by adding the following subsection:

Rules for taxation years ending after May 11, 2005

(3.7)  The following rules apply for the purposes of subsection (3.2) for a taxation year ending after May 11, 2005:

1. A corporation that is required to compute its paid-up capital employed in Canada for a taxation year under Division C of Part III shall determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if it were a corporation resident in Canada.

2. A corporation that would be a financial institution, as defined in subsection 58 (2), in a taxation year if it carried on business in Canada and if it had been incorporated in Canada shall determine the amount that would be its adjusted taxable paid-up capital for the taxation year under Part III as if it were a financial institution, as defined in subsection 58 (2), that had a permanent establishment in Ontario.

3. A corporation that is a financial institution, as defined in subsection 58 (2), and that has a permanent establishment in Canada but not in Ontario in a taxation year shall determine the amount that would be its adjusted taxable paid-up capital for the taxation year under Part III as if it had a permanent establishment in Ontario.

4. A corporation that is an insurance corporation that was not resident in Canada at any time in a taxation year shall determine the amount that would be its taxable capital employed in Canada under Part I.3 of the Income Tax Act (Canada) as if it were resident in Canada at any time during the year.

5. A corporation that has a permanent establishment in Canada but not in Ontario shall, if the corporation is not a financial institution, as defined in subsection 58 (2), or an insurance corporation, determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if the corporation were resident in Canada and had a permanent establishment in Ontario.

6. A corporation that does not have a permanent establishment in Canada shall, if the corporation is not an insurance corporation or a corporation that would be a financial institution, as defined in subsection 58 (2), if it carried on business in Canada and had been incorporated in Canada, determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if the corporation were resident in Canada and had a permanent establishment in Ontario.

7. The taxable income of a non-resident corporation that does not have a permanent establishment in Canada shall be determined, for the purposes of calculating the expenditure limit of the corporation under subsection 127 (10.2) of the Income Tax Act (Canada) as it applies for the purposes of subsection (3.2), in accordance with that Act as if it were subject to tax under that Act.

10.  (1)  Subsection 43.5 (4.1) of the Act is repealed and the following substituted:

Eligible credit for first-time production

(4.1)  A qualifying production company's eligible credit for a taxation year in respect of a first-time production for which principal photography commences after October 31, 1997 is the total of the amounts determined under subsections (4.2) and (4.3).

Same, expenditures before January 1, 2005 or after December 31, 2009

(4.2)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the total of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure that relates to expenditures incurred before January 1, 2005 or after December 31, 2009:

1. 30 per cent of the lesser of,

i. the amount by which $240,000 exceeds the company's qualifying labour expenditure, if any, for the production for the previous taxation year, and

ii. the company's qualifying labour expenditure for the taxation year for the production less its qualifying labour expenditure, if any, for the production for the previous year,

2. 20 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the sum of,

i. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii, and

ii. the company's qualifying labour expenditure, if any, for the production for the previous taxation year.

3. If the production is a regional Ontario production, 10 per cent of the amount by which "A" exceeds "B" where,

"A" is that portion of the company's qualifying labour expenditure for the taxation year for the production that is related to expenditures that are incurred after May 2, 2000, and

"B" is that portion of the company's qualifying labour expenditure for the previous taxation year for the production that is related to expenditures that are incurred after May 2, 2000.

Same, expenditures incurred after December 31, 2004 and before January 1, 2010

(4.3)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the total of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure that relates to expenditures incurred after December 31, 2004 and before January 1, 2010:

1. 40 per cent of the lesser of,

i. the amount by which $240,000 exceeds the sum of "C" and "D" where,

"C" is the company's qualifying labour expenditure, if any, for the production for the previous taxation year, and

"D" is the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.2) for the production for the taxation year in respect of the portion of the company's qualifying labour expenditure for the production that relates to expenditures incurred before January 1, 2005 or after December 31, 2009, and

ii. the company's qualifying labour expenditure for the taxation year for the production less its qualifying labour expenditure, if any, for the production for the previous year.

2. 30 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the sum of,

i. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii, and

ii. the company's qualifying labour expenditure, if any, for the production for the previous taxation year.

3. If the production is a regional Ontario production, 10 per cent of the amount by which "E" exceeds "F" where,

"E" is the company's qualifying labour expenditure for the taxation year for the production, and

"F" is the company's qualifying labour expenditure for the previous taxation year for the production.

Exception, tax credit rate

(4.4)  If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in paragraph 1, 2 or 3 of subsection (4.2) or paragraph 1, 2 or 3 of subsection (4.3), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that paragraph.

(2)  Subsections 43.5 (6.1) and (6.1.1) of the Act are repealed and the following substituted:

Productions commenced after October 31, 1997 other than first-time production

(6.1)  Subject to subsection (6.1.1), the eligible credit of a qualifying production company for a taxation year in respect of an eligible Ontario production that is not a first-time production and for which principal photography commences after October 31, 1997 is the total of,

(a) 20 per cent of the amount by which the company's qualifying labour expenditure for the taxation year in respect of the production exceeds its qualifying labour expenditure, if any, for the production for the previous taxation year, as determined in relation to expenditures that are incurred before January 1, 2005 or after December 31, 2009 and included in the Ontario labour expenditure for the taxation year in respect of the production; and

(b) 30 per cent of the amount by which the company's qualifying labour expenditure for the taxation year in respect of the production exceeds its qualifying labour expenditure, if any, for the production for the previous taxation year, as determined in relation to expenditures that are incurred after December 31, 2004 and before January 1, 2010 and included in the Ontario labour expenditure for the taxation year in respect of the production.

Same, regional Ontario production

(6.1.1)  The eligible credit of a qualifying production company for a taxation year that ends after May 2, 2000 in respect of an eligible Ontario production that is a regional Ontario production and that is not a first-time production is the sum of "A" and "B" where,

"A" is 40 per cent of the amount by which the company's qualifying labour expenditure for the taxation year for the production exceeds its qualifying labour expenditure, if any, for the previous taxation year, as determined in relation to expenditures that are incurred after December 31, 2004 and before January 1, 2010 and included in the Ontario labour expenditure for the taxation year in respect of the production, and

"B" is 30 per cent of the amount by which the company's qualifying labour expenditure for the taxation year for the production exceeds its qualifying labour expenditure, if any, for the previous taxation year, as determined in relation to expenditures that are included in the Ontario labour expenditure for the taxation year in respect of the production and are incurred after May 2, 2000 and before January 1, 2005 or incurred after December 31, 2009.

Exception

(6.1.2)  If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in subsection (6.1) or (6.1.1), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that subsection in respect of the period to which the prescribed percentage applies.

(3)  Subsections 43.5 (7), (8) and (9) of the Act are amended,

(a) by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation"; and

(b) by striking out "Minister of Citizenship, Culture and Recreation" wherever it appears and substituting in each case "Minister of Culture".

(4)  Section 43.5 of the Act is amended by adding the following subsections:

Regulations

(22)  The Lieutenant Governor in Council may make regulations,

(a) prescribing a percentage for the purposes of paragraph 1, 2 or 3 of subsection (4.2) or paragraph 1, 2 or 3 of paragraph (4.3) and the period of time after December 31, 2004 to which it applies;

(b) prescribing a percentage for the purposes of clause (6.1) (a) and the period of time after December 31, 2009 to which it applies;

(c) prescribing a percentage for the purposes of clause (6.1) (b) and the period of time after December 31, 2004 and before January 1, 2010 to which it applies;

(d) prescribing a percentage for the purposes of the definition of "A" in subsection (6.1.1) and the period of time after December 31, 2004 and before January 1, 2010 to which it applies;

(e) prescribing a percentage for the purposes of the definition of "B" in subsection (6.1.1) and the period of time after December 31, 2009 to which it applies.

Same

(23)  A regulation under subsection (22) may prescribe different percentages in respect of different time periods in which expenditures are incurred.

11.  (1)  Subsections 43.8 (4), (5) and (6) of the Act are amended by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation".

(2)  Subsection 43.8 (16) of the Act is repealed and the following substituted:

Eligible labour expenditure

(16)  The eligible labour expenditure of a qualifying corporation in respect of an eligible production for a taxation year is the sum of the amounts, if any, determined under the following paragraphs:

1. The amount equal to the lesser of,

i. the portion of the corporation's Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities in respect of the eligible production that relates to expenditures incurred before May 12, 2005, and

ii. the amount by which 48 per cent of the prescribed cost of eligible computer animation and special effects activities incurred by the corporation in the taxation year and before May 12, 2005 in respect of the eligible production exceeds the amount of all government assistance, if any, in respect of eligible computer animation and special effects activities the cost of which is incurred before May 12, 2005 and included in the cost or capital cost of the eligible production that, at the time the corporation's return is required to be delivered under subsection 75 (1) for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive.

2. The amount by which "A" exceeds "B" where,

"A" is the portion of the corporation's Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities of the eligible production that relates to expenditures incurred after May 11, 2005 and that is determined without reference to any equity investment in the production held by a Canadian government film agency, and

"B" is an amount in respect of assistance relating to expenditures incurred after May 11, 2005 with respect to the eligible production, other than excluded government assistance, that, at the time the qualifying corporation's return is required to be delivered under subsection 75 (1) for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive, equal to the sum of,

(a) the amount of the assistance directly attributable to the portion of the Ontario labour expenditure referred to in the definition of "A", and

(b) the amount determined by multiplying the amount of the assistance that is not directly attributable to the portion of the Ontario labour expenditure referred to in the definition of "A" by the ratio of the amount of that portion of the Ontario labour expenditure in respect of the production to the amount of the prescribed cost that is incurred after May 11, 2005 of eligible computer animation and special effects activities of the eligible production.

(3)  Paragraph 3 of the definition of "eligible production" in subsection 43.8 (17) of the Act is amended by striking out "Minister of Citizenship, Culture and Recreation" and substituting "Minister of Culture".

(4)  Subsection 43.8 (17) of the Act is amended by adding the following definitions:

"assistance" means an amount that would be included under paragraph 12 (1) (x) of the Income Tax Act (Canada) in computing a corporation's income for a taxation year if that paragraph were read without reference to subparagraphs (v) to (vii); ("aide")

"Canadian government film agency" means a federal or provincial government agency whose mandate relates to the provision of assistance to film productions in Canada; ("organisme cinématographique gouvernemental canadien")

"excluded government assistance" means the tax credits listed in clauses (a) to (f) of the definition of "government assistance" in this subsection; ("aide gouvernementale exclue")

(5)  The definition of "government assistance" in subsection 43.8 (17) of the Act is amended by striking out "or" at the end of clause (c) and by adding the following clauses:

(e) a co-operative education tax credit under section 43.4 to the extent that it relates to expenditures incurred after May 11, 2005, or

(f) an apprenticeship training tax credit under section 43.13 to the extent that it relates to expenditures incurred after May 11, 2005.

(6)  The definition of "Ontario Film Development Corporation" in subsection 43.8 (17) of the Act is repealed.

(7)  Section 43.8 of the Act is amended by adding the following subsection:

Ontario Media Development Corporation

(18)  A reference in this section to the Ontario Media Development Corporation includes a reference to such person as the Minister of Culture may designate to carry out the functions of the Ontario Media Development Corporation for the purposes of this section.

12.  (1)  Subsection 43.10 (4) of the Act is repealed and the following substituted:

Eligible credit

(4)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible production is the total of,

(a) 11 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred before January 1, 2005;

(b) 18 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after December 31, 2004 and before April 1, 2006;

(c) 11 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after March 31, 2006; and

(d) in the case of a regional Ontario production, 3 per cent of the portion of its Ontario labour expenditure in respect of the production for the taxation year, that relates to expenditures incurred after May 2, 2000 and before January 1, 2005.

Exception, tax credit rate

(4.1)  If a percentage is prescribed by the regulations for the purposes of clause (4) (b) or (4) (c), the percentage prescribed for the purposes of that clause and not the percentage set out in that clause shall apply in determining an amount under that clause in respect of the period to which the prescribed percentage applies.

(2)  Subsections 43.10 (6), (7) and (8) of the Act are amended,

(a) by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation"; and

(b) by striking out "Minister of Citizenship, Culture and Recreation" wherever it appears and substituting in each case "Minister of Culture".

(3)  Section 43.10 of the Act is amended by adding the following subsections:

Regulations

(15.1)  The Lieutenant Governor in Council may make regulations,

(a) prescribing a percentage for the purposes of clause (4) (b) and the period of time after December 31, 2004 and before April 1, 2006 to which it applies;

(b) prescribing a percentage for the purposes of clause (4) (c) and the period of time after March 31, 2006 to which it applies.

Same

(15.2)  A regulation under subsection (15.1) may prescribe different percentages in respect of different time periods in which expenditures are incurred.

13.  Subsection 69 (2.5) of the Act is repealed and the following substituted:

Foreign corporation, taxation years ending on or before May 11, 2005

(2.5)  For the purposes of the definitions of "T" and "X" in subsection (2.4), if a corporation is incorporated under the laws of a jurisdiction outside Canada and its taxation year ends on or before May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.

Non-resident corporation, taxation years ending after May 11, 2005

(2.5.1)  For the purposes of the definitions of "T" and "X" in subsection (2.4), if a corporation is non-resident and its taxation year ends after May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.

Commencement

14.  (1)  Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Subsection 1 (1) shall be deemed to have come into force on December 1, 1991.

Same

(3)  Subsections 1 (2) and (3), section 3, subsection 4 (2), sections 5 and 6, subsection 7 (1) and section 8 shall be deemed to have come into force on January 1, 2003.

Same

(4)  Subsections 1 (4), 4 (1) and 7 (2) shall be deemed to have come into force on December 16, 2004.

Same

(5)  Sections 2, 9, 10, 11, 12 and 13 shall be deemed to have come into force on May 11, 2005.

SCHEDULE E
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

1.  Sections 15 and 15.1 of the Financial Administration Act are repealed and the following substituted:

Interim payments from CRF

Definition

15.  (1)  In this section,

"ministry" does not include a board, commission, authority, corporation or any other agency of the Government of Ontario the assets or revenues of which do not form part of the Consolidated Revenue Fund.

Eligible activities

(2)  This section applies if a ministry engages in any of the following activities:

1. Providing goods or services to another ministry, person or entity in exchange for payment of a fee or charge.

2. Permitting another ministry, person or entity to use property owned by the Crown in exchange for payment of a fee or charge.

3. Exercising a regulatory power or performing a regulatory duty and requiring regulated persons or entities to pay a fee, charge or assessment to the Crown for the purposes of cost recovery by the Crown.

4. Engaging in activities with respect to which, under a cost-sharing arrangement, the Crown will become entitled to receive funds from another person or entity or the ministry will become entitled to receive funds from an appropriation made to another ministry.

Interim payments

(3)  On the recommendation of the Minister of Finance, the Treasury Board may authorize the Minister of Finance to make interim payments from the Consolidated Revenue Fund to a ministry to pay the costs that the ministry incurs during a fiscal year in engaging in an activity described in subsection (2), but only if one or both of the following conditions is satisfied:

1. The corresponding payment, assessment or funds referred to in subsection (2) will be recovered or will become recoverable into the Consolidated Revenue Fund in the fiscal year in which the interim payment is made.

2. The interim payment will be charged or become chargeable to an appropriation relating to the fiscal year in which the interim payment is made.

Insufficient recovery

(4)  If any part of an interim payment (the "outstanding amount") is not recovered into the Consolidated Revenue Fund or charged to an appropriation by the time the books of the Government of Ontario for the fiscal year in which the interim payment is made are closed, the outstanding amount shall be repaid to the Consolidated Revenue Fund by a deduction from the ministry's appropriations for the following fiscal year and the deduction shall be made in such manner as the Minister of Finance considers appropriate.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on April 1, 2005.

SCHEDULE F
AMENDMENTS TO THE
FREEDOM OF INFORMATION AND
PROTECTION OF PRIVACY ACT

1.  (1)  Subsection 2 (1) of the Freedom of Information and Protection of Privacy Act is amended by adding the following definition:

"educational institution" means an institution that is a board of governors of a college of applied arts and technology or that is a university; ("établissement d'enseignement")

(2)  If subsection 2 (1) of Schedule S to the Good Government Act, 2005 comes into force before the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent, subsection (1) is without effect.

(3)  Subsection 2 (1) of the Act is amended by adding the following definition:

"educational institution" means an institution that is a college of applied arts and technology or a university; ("établissement d'enseignement")

2.  Clause 18 (1) (h) of the Act is repealed and the following substituted:

(h) information relating to specific tests or testing procedures or techniques that are to be used for an educational purpose, if disclosure could reasonably be expected to prejudice the use or results of the tests or testing procedures or techniques;

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

Information with respect to closed meetings

18.1  (1)  A head may refuse to disclose a record that reveals the substance of deliberations of a meeting of the governing body or a committee of the governing body of an educational institution if a statute authorizes holding the meeting in the absence of the public and the subject-matter of the meeting,

(a) is a draft of a by-law, resolution or legislation; or

(b) is litigation or possible litigation.

Exception

(2)  Despite subsection (1), the head shall not refuse to disclose a record under subsection (1) if,

(a) the information is not held confidentially;

(b) the subject-matter of the deliberations has been considered in a meeting open to the public; or

(c) the record is more than 20 years old.

Application of Act

(3)  The exemption in subsection (1) is in addition to any other exemptions in this Act.

4.  Section 19 of the Act is repealed and the following substituted:

Solicitor-client privilege

19.  A head may refuse to disclose a record,

(a) that is subject to solicitor-client privilege;

(b) that was prepared by or for Crown counsel for use in giving legal advice or in contemplation of or for use in litigation; or

(c) that was prepared by or for counsel employed or retained by an educational institution for use in giving legal advice or in contemplation of or for use in litigation.

5.  (1)  Section 41 of the Act is amended by striking out "or" at the end of clause (b), by adding "or" at the end of clause (c) and by adding the following clause:

(d) subject to subsection (2), an educational institution may use personal information in its alumni records for the purpose of its own fundraising activities, if the personal information is reasonably necessary for the fundraising activities.

(2)  Section 41 of the Act is amended by adding the following subsections:

Notice on using personal information for fundraising

(2)  In order to use personal information in its alumni records for the purpose of its own fundraising activities, an educational institution shall,

(a) give notice to the individual to whom the personal information relates when the individual is first contacted for the purpose of soliciting funds for fundraising of his or her right to request that the information cease to be used for fundraising purposes;

(b) periodically and in the course of soliciting funds for fundraising, give notice to the individual to whom the personal information relates of his or her right to request that the information cease to be used for fundraising purposes; and

(c) periodically and in a manner that is likely to come to the attention of individuals who may be solicited for fundraising, publish a notice of the individual's right to request that the individual's personal information cease to be used for fundraising purposes.

Discontinuing use of personal information

(3)  An educational institution shall, when requested to do so by an individual, cease to use the individual's personal information under clause (1) (d).

6.  (1)  Section 42 of the Act is amended by striking out "and" at the end of clause (m), by adding "and" at the end of clause (n) and by adding the following clause:

(o) subject to subsection (2), an educational institution may disclose personal information in its alumni records for the purpose of its own fundraising activities if,

(i) the educational institution and the person to whom the information is disclosed have entered into a written agreement that satisfies the requirements of subsection (3), and

(ii) the personal information is reasonably necessary for the fundraising activities.

(2)  Section 42 of the Act is amended by adding the following subsections:

Notice on disclosing personal information for fundraising

(2)  In order to disclose personal information in its alumni records for the purpose of its own fundraising activities, an educational institution shall ensure that,

(a) notice is given to the individual to whom the personal information relates when the individual is first contacted for the purpose of soliciting funds for fundraising of his or her right to request that the information cease to be disclosed for fundraising purposes;

(b) periodically and in the course of soliciting funds for fundraising, notice is given to the individual to whom the personal information relates of his or her right to request that the information cease to be disclosed for fundraising purposes; and

(c) periodically and in a manner that is likely to come to the attention of individuals who may be solicited for fundraising, notice is published in respect of the individual's right to request that the individual's personal information cease to be disclosed for fundraising purposes.

Fundraising agreement

(3)  An agreement between an educational institution and another person for the disclosure of personal information in the educational institution's alumni records for fundraising activities must,

(a) require that the notice requirements in subsection (2) are met;

(b) require that the personal information disclosed under clause (1) (o) be disclosed to the individual to whom the information relates upon his or her request; and

(c) require that the person to whom the information is disclosed shall cease to use the personal information of any individual who requests that the information not be used.

7.  Clause 49 (c) of the Act is repealed and the following substituted:

(c) that is evaluative or opinion material compiled solely for the purpose of determining suitability, eligibility or qualifications for the awarding of government contracts and other benefits where the disclosure would reveal the identity of a source who furnished information to the institution in circumstances where it may reasonably have been assumed that the identity of the source would be held in confidence;

(c.1) if the information is supplied explicitly or implicitly in confidence and is evaluative or opinion material compiled solely for the purpose of,

(i) assessing the teaching materials or research of an employee of an educational institution or of a person associated with an educational institution,

(ii) determining suitability, eligibility or qualifications for admission to an academic program of an educational institution, or

(iii) determining suitability for an honour or award to recognize outstanding achievement or distinguished service;

8.  (1)  Subsection 65 (1) of the Act is repealed and the following substituted:

Application of Act

(1)  This Act does not apply to records placed in the archives of an educational institution or the Archives of Ontario by or on behalf of a person or organization other than,

(a) an institution as defined in this Act or in the Municipal Freedom of Information and Protection of Privacy Act; or

(b) a health information custodian as defined in the Personal Health Information Protection Act, 2004.

(2)  Section 65 of the Act is amended by adding the following subsections:

Same

(8)  This Act does not apply,

(a) to a record respecting or associated with research conducted or proposed by an employee of an educational institution or by a person associated with an educational institution; or

(b) to a record of teaching materials collected, prepared or maintained by an employee of an educational institution or by a person associated with an educational institution for use at the educational institution.

Exception

(9)  Despite subsection (8), the head of the educational institution shall disclose the subject-matter and amount of funding being received with respect to the research referred to in that subsection.

Application of Act

(10)  Despite subsection (8), this Act does apply to evaluative or opinion material compiled in respect of teaching materials or research only to the extent that is necessary for the purpose of subclause 49 (c.1) (i).

Commencement

9.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Subsections 1 (1) and (2) and sections 2 to 8 come into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

Same

(3)  Subsection 1 (3) comes into force on the later of the day that subsection 2 (1) of Schedule S to the Good Government Act, 2005 comes into force and the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE G
HIGHER EDUCATION QUALITY COUNCIL
OF ONTARIO ACT, 2005

Definitions

1.  In this Act,

"Council" means the Higher Education Quality Council of Ontario established under section 2; ("Conseil")

"post-secondary educational institution" means a college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from the province for purposes of post-secondary education and any other institution prescribed by regulation; ("établissement d'enseignement postsecondaire")

"post-secondary education sector" includes all post-secondary educational institutions in Ontario; ("secteur postsecondaire")

"Minister" means the Minister of Training, Colleges and Universities. ("ministre")

Council

2.  (1)  A corporation without share capital is established under the name Higher Education Quality Council of Ontario in English and Conseil ontarien de la qualité de l'enseignement supérieur in French.

Members

(2)  The Council shall consist of the members of its board of directors.

Appointment of members

(3)  Subject to the regulations, the Lieutenant Governor in Council shall appoint no fewer than five and no more than seven members to the Council's board of directors.

Chair

(4)  The Minister shall designate one member to be the chair of the Council.

Ministry representative

(5)  At least one member of the Council shall be an employee of the Ministry of Training, Colleges and Universities, but that member shall not vote in the deliberations of the Council nor be designated chair.

Eligibility

(6)  A person may not be a member of the Council if the person is a member of the board or governing body of, or holds an executive or senior administrative position in,

(a) a post-secondary educational institution; or

(b) an association, advisory body or council established to promote the interests of such institutions or their employees or students.

Management of board

(7)  The affairs of the corporation shall be managed by the Council's board of directors.

No personal liability

3.  (1)  No action or other proceeding for damages may be instituted against any member of the Council or any one acting on behalf of the Council for any act done in the execution or intended execution of the person's duty or for any alleged neglect or default in the execution in good faith of the person's duty.

Crown liability

(2)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of any liability to which it would otherwise be subject in respect of a tort committed by a person referred to in subsection (1).

Crown agency

4.  The corporation is a Crown agency within the meaning of the Crown Agency Act.

Object

5.  The object of the Council is to assist the Minister in improving all aspects of the post-secondary education sector, including improving the quality of education provided in the sector, access to post-secondary education and accountability of post-secondary educational institutions.

Functions

6.  The functions of the Council are,

(a) to develop and make recommendations to the Minister,

(i) on targets to be achieved in improving the quality of post-secondary education, on the methods of achieving those targets and on the time frame for doing so, and

(ii) on performance measures to be used to evaluate the post-secondary education sector;

(b) to evaluate the post-secondary education sector, report to the Minister on the results of the evaluation and make the report available to the public;

(c) to conduct research on all aspects of post-secondary education with a view to helping the Council achieve its object, including research,

(i) on the development and design of various models of post-secondary education,

(ii) on the means of encouraging collaboration between various post-secondary educational institutions in general and in particular in matters relating to the recognition by such institutions of courses and programs of study provided at other such institutions, and

(iii) on other matters specified by the Minister; and

(d) to do such other things as may be prescribed by regulation.

Access to information

7.  A post-secondary educational institution shall provide the Council or a person designated by the Council with access to any information in its custody or control that the Council or person may require for the purpose of carrying out its object and functions.

Reports

8.  (1)  The Council shall deliver to the Minister,

(a) a yearly report on its activities, within 120 days of the end of its fiscal year; and

(b) any other reports required by the Minister, at such time as the Minister specifies.

Tabling

(2)  The Minister shall table the yearly report referred to in clause (1) (a) in the Legislative Assembly within 60 days after receiving it from the Council or, if at the end of the 60-day period the Assembly is not in session, at the beginning of the next session.

Regulations

9.  (1)  The Lieutenant Governor in Council may make regulations,

(a) prescribing institutions as post-secondary educational institutions for the purposes of this Act;

(b) governing the Council's constitution, management and structure, including the number of members of the board;

(c) prescribing objects of the Council in addition to the object described in section 5;

(d) prescribing functions of the Council in addition to those set out in section 6;

(e) respecting specific powers and duties of the Council and its members;

(f) respecting factors to be considered in appointing members;

(g) providing for the term of appointment and reappointment of Council members;

(h) respecting compensation for Council members;

(i) providing for a vice-chair of the Council;

(j) respecting the nature and scope of the yearly report required by section 8;

(k) respecting the frequency, nature and scope of reporting in addition to the yearly report required by section 8;

(l) respecting staff for the Council, including the status of Council staff, and their compensation;

(m) respecting funding for the Council;

(n) respecting audits of the statements and records of the Council;

(o) providing whether or not the Business Corporations Act, the Corporations Information Act or the Corporations Act or any provisions of those Acts apply to the Council;

(p) governing the procedures and administration of the Council;

(q) authorizing personal information to be collected by or on behalf of the Council other than directly from the individual to whom the information relates, and regulating the manner in which the information is collected;

(r) providing for anything necessary or advisable to facilitate the carrying out of the functions of the Council;

(s) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for carrying out the purposes and provisions of this Act.

Same

(2)  A regulation under this Act may be general or specific in its application, may create different categories or classes, and may make different provisions for different categories, classes or circumstances.

Same

(3)  A regulation authorized by clause (1) (m) may provide that the prescribed assets and revenues of the Council do not form part of the Consolidated Revenue Fund, despite Part I of the Financial Administration Act.

Commencement

10.  The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Short title

11.  The short title of the Act set out in this Schedule is the Higher Education Quality Council of Ontario Act, 2005.

SCHEDULE H
AMENDMENTS TO THE
MINISTRY OF REVENUE ACT

1.  Section 7 of the Ministry of Revenue Act is amended by adding the following subsection:

Exception

(1.1)  The Minister is not permitted to delegate the Minister's powers under subsection 11 (2.1).

2.  Subsection 11 (2) of the Act is repealed and the following substituted:

Authority to remit

(2)  Despite any other Act, the Lieutenant Governor in Council, on the recommendation of the Minister, may remit any tax, fee or penalty if the Lieutenant Governor in Council considers it to be in the public interest to do so.

Same

(2.1)  Despite any other Act, the Minister may remit any tax, fee or penalty that is $10,000 or less if the Minister considers it to be in the public interest to do so.

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE I
AMENDMENT TO THE MINISTRY OF TRAINING, COLLEGES AND UNIVERSITIES ACT

1.  The Ministry of Training, Colleges and Universities Act is amended by adding the following section:

Fundraising

5.1  (1)  An educational institution may collect information about identifiable individuals from published or public sources for the purpose of its own fundraising activities, if the information is reasonably necessary for the fundraising activities.

Definition

(2)  For the purpose of this section,

"educational institution" means an educational institution as defined in subsection 2 (1) of the Freedom of Information and Protection of Privacy Act.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE J
AMENDMENT TO THE
MUNICIPAL FREEDOM OF INFORMATION
AND PROTECTION OF PRIVACY ACT

1.  Clause 38 (c) of the Municipal Freedom of Information and Protection of Privacy Act is repealed and the following substituted:

(c) that is evaluative or opinion material compiled solely for the purpose of determining suitability, eligibility or qualifications for the awarding of contracts and other benefits by an institution if the disclosure would reveal the identity of a source who furnished information to the institution in circumstances where it may reasonably have been assumed that the identity of the source would be held in confidence;

(c.1) if the information is supplied explicitly or implicitly in confidence and is evaluative or opinion material compiled solely for the purpose of determining suitability for an honour or award to recognize outstanding achievement or distinguished service;

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE K
ONTARIO LOAN ACT, 2005

Borrowing authorized

1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $7.1 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

(2)  The authority to borrow conferred by this Act is in addition to that conferred by any other Act.

Expiry

2.  (1)  No order in council authorizing borrowing under this Act shall be made after December 31, 2007.

Same

(2)  The Crown shall not borrow money after December 31, 2008 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2008,

(a) the Crown has entered into an agreement to borrow the money under the order in council; or

(b) the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

3.  The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Short title

4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2005.

SCHEDULE L
PRIVATE CAREER COLLEGES ACT, 2005

PART I
INTERPRETATION

Definitions

1.  (1)  In this Act,

"Minister" means the Minister of Training, Colleges and Universities or such other member of the Executive Council to whom the administration of this Act may be assigned under the Executive Council Act; ("ministre")

"prescribed" means prescribed by regulations made under this Act; ("prescrit")

"private career college" means an educational institution or other institution, agency or entity that provides one or more vocational programs to students for a fee and pursuant to individual contracts with the students, but does not include,

(a) a college of applied arts and technology established under any Act,

(b) a university established under any Act,

(c) a school as defined in subsection 1 (1) of the Education Act,

(d) any other school maintained under any other Act, or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class; ("collège privé d'enseignement professionel")

"registrant" means a person who is registered under this Act to operate a private career college, and "registered" and "registration" have corresponding meanings; ("inscrit", "inscription")

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

"Superintendent" means the Superintendent of private career colleges appointed under section 2; ("surintendant")

"Tribunal" means the Licence Appeal Tribunal; ("Tribunal")

"vocational program" means instruction in the skills and knowledge required in order to obtain employment in a prescribed vocation. ("programme de formation professionnelle")

Interpretation re fees

(2)  In this Act, a reference to a fee in relation to a vocational program or charged by or paid to a private career college includes any fee charged by a private career college, including an application, administrative or tuition fee.

PART II
ADMINISTRATION AND FINANCIAL MATTERS

Superintendent

2.  (1)  There shall be a Superintendent of private career colleges who shall be appointed by the Minister.

Duties

(2)  The Superintendent may exercise the powers and shall perform the duties conferred or imposed upon him or her by or under this Act.

Training Completion Assurance Fund

3.  (1)  A fund to be known as the Training Completion Assurance Fund in English and Fonds d'assurance pour l'achèvement de la formation in French shall be established in accordance with the regulations.

Purpose of Fund

(2)  The purpose of the Fund is to ensure that in the event a private career college ceases to provide a vocational program in which students are enrolled, the students,

(a) will be given the opportunity to complete the vocational program as provided by another private career college or by another institution, agency or entity; or

(b) will receive a refund of that portion of the fees they paid in relation to the program for which they did not receive any instruction or other benefit.

Administration of Fund

(3)  The Fund shall be administered in accordance with the regulations.

Advisory board

4.  (1)  An advisory board shall be established in accordance with the regulations.

Functions

(2)  The advisory board shall advise the administrators of the Training Completion Assurance Fund and shall perform such other functions as may be prescribed.

Premiums and levies

5.  (1)  Private career colleges shall pay premiums and levies for the purposes of the Training Completion Assurance Fund in the amounts, on the terms and at the times determined in accordance with the regulations.

Same

(2)  Different classes of private career colleges may be required to pay different premiums and levies and to meet different terms in respect of the premiums and levies, in accordance with the regulations.

Payment

(3)  Every private career college shall remit the premiums and levies it is required to pay within 30 days of receiving a notice of a premium or levy in accordance with the regulations.

Failure to pay

(4)  If a private career college fails to pay a premium or levy within the required time, it may be charged interest on the amount of the premium or levy in accordance with the regulations.

Security

6.  Every private career college shall comply with the regulations respecting the providing of security or other methods of protecting the financial interests of its students.

PART III
PROHIBITIONS

Prohibition against operating a private career college

7.  (1)  No person shall operate a private career college unless the person is registered.

Holding oneself out

(2)  No person shall hold themself out as the operator of a private career college unless the person is registered.

Prohibition against providing vocational programs

8.  (1)  No person shall offer or provide a vocational program for a fee unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Exception

(2)  Subsection (1) does not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

Prohibition against charging fee

9.  (1)  No person shall charge or collect a fee in relation to a vocational program unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Exception

(2)  Subsection (1) does not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

Prohibition against use of credentials

10.  No person shall grant to another person a credential set out in a policy directive issued by the Superintendent or represent that such a credential may be obtained from an educational institution or other institution, agency or entity unless the person is registered and both the provision of the vocational program leading to the credential and the granting of the credential have been approved by the Superintendent.

Restrictions on advertising and soliciting

11.  (1)  Subject to the regulations, no person shall advertise a private career college or the establishment of a private career college unless the person is registered.

Same

(2)  Subject to the regulations, no person shall advertise the provision of a vocational program at a private career college unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Soliciting students

(3)  No person shall solicit another person to enrol as a student in a vocational program provided by a private career college unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Use of term

(4)  No person shall make use of the term "private career college" or any derivation or abbreviation of the term in any advertising relating to an educational institution or other institution, agency or entity unless the person is registered.

Prohibition against court actions

12.  (1)  No action shall be brought against a student for a fee in relation to a vocational program unless the vocational program was provided by a private career college the operator of which is registered and the provision of the vocational program has been approved by the Superintendent.

Same

(2)  The court may stay any action described in subsection (1) upon motion.

Exception

(3)  Subsections (1) and (2) do not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

PART IV
REGISTRATION

Application

13.  An application to be registered or to renew a registration shall be in a form approved by the Superintendent and shall contain such information as the Superintendent may require.

Registration

14.  (1)  The Superintendent shall register an applicant to operate a private career college and shall renew an applicant's registration if the Superintendent is satisfied that,

(a) it is in the public interest to grant the registration or to renew the registration;

(b) the applicant will operate the private career college in compliance with this Act and the regulations;

(c) the vocational programs that are provided, or are proposed to be provided, by the private career college meet, or are likely to meet, the requirements of this Act and the regulations;

(d) having regard to the applicant's financial position, the applicant can be expected to be financially responsible in the operation of the private career college;

(e) the past conduct of the applicant or, if the applicant is a corporation, of its officers and directors, provides grounds for the belief that the private career college will be operated in accordance with the law and with integrity and honesty; and

(f) the applicant is not carrying on activities that are, or will be, if the applicant is registered, in contravention of this Act or the regulations.

Criteria for public interest

(2)  In determining whether it is in the public interest to register a person or renew a registration under subsection (1), the Superintendent shall consider the prescribed criteria.

Several locations

(3)  If an applicant intends to provide a vocational program at more than one location, the Superintendent may register the applicant to operate one private career college at the several locations.

Certificate of registration

(4)  Upon registering a person to operate a private career college, the Superintendent shall issue a certificate of registration to the person.

Conditions

15.  (1)  A registration or renewal of a registration may be made subject to conditions specified by the Superintendent or prescribed by regulation.

Changes to conditions

(2)  The Superintendent may at any time, at the written request of the registrant or on his or her own initiative, add a condition to a registration or change or remove a condition of a registration that he or she had previously specified.

Registrant to comply with conditions

(3)  The registrant shall operate the private career college in accordance with the conditions applicable to the registrant's registration or renewal of registration.

Registration not transferable

16.  A registration is not transferable to another person.

Expiry of registration

17.  (1)  A first registration under this Act expires on the date specified in the registration.

Same

(2)  A renewal of a registration expires on the first anniversary of the date of the renewal.

Continuance pending renewal

(3)  If a registration expires after the application for renewal is made but before the Superintendent makes a decision with respect to the application for renewal, the registration shall continue,

(a) until the renewal is granted; or

(b) if the Superintendent proposes to refuse the renewal under section 18,

(i) until the time for requiring a hearing by the Tribunal under subsection 19 (3) expires, or

(ii) if a hearing is required, until the Tribunal makes its order.

Refusal to register

18.  (1)  Subject to section 19, the Superintendent may refuse to register an applicant if he or she is not satisfied that all of the requirements described in subsection 14 (1) are met.

Revocation, suspension, refusal to renew

(2)  Subject to section 19, the Superintendent may refuse to renew a registration or may suspend or revoke a registration if,

(a) the Superintendent believes that a requirement described in subsection 14 (1) is no longer met;

(b) the registrant has breached a condition of the registration;

(c) the registrant has failed to comply with a provision of this Act or the regulations;

(d) no students have enrolled in any vocational programs at the private career college for at least two successive periods of the college's registration under this Act; or

(e) the registrant has failed to pay a penalty imposed by notice of contravention under section 39.

Notice of refusal or revocation

19.  (1)  The Superintendent shall give the applicant or registrant notice in writing if he or she proposes to,

(a) refuse to register the applicant or refuse to renew the registrant's registration; or

(b) suspend or revoke the registrant's registration.

Content of notice

(2)  A notice under subsection (1) shall set out the reasons for the proposed action and shall inform the applicant or registrant that the applicant or registrant is entitled to a hearing by the Tribunal if, within 15 days after service of the notice under this section, the applicant or registrant gives written notice to that effect to the Superintendent and the Tribunal.

Entitlement to hearing

(3)  If an applicant or registrant receives notice of a proposed action under subsection (1), the applicant or registrant is entitled to a hearing by the Tribunal if, within 15 days after service of the notice, the applicant or registrant gives written notice to that effect to the Superintendent and the Tribunal.

Where no hearing

(4)  If an applicant or registrant does not require a hearing by the Tribunal, the Superintendent may carry out the proposal specified in the notice.

Where hearing required

(5)  If an applicant or registrant gives notice requiring a hearing under subsection (3), the Tribunal shall appoint a time for and hold a hearing.

Powers of Tribunal

(6)  At a hearing under subsection (5), the Tribunal may, by order, direct the Superintendent,

(a) to carry out the proposal specified in the notice;

(b) to refrain from carrying out the proposal;

(c) to attach such conditions to a registration as the Tribunal considers appropriate; or

(d) to take such other action as the Tribunal considers appropriate.

Parties

(7)  The Superintendent, the applicant or registrant that has required the hearing and such other persons as the Tribunal may specify are parties to the proceedings before the Tribunal under this section.

Oral evidence

(8)  The oral evidence taken before the Tribunal at a hearing shall be recorded and, if so required, copies of a transcript of the oral evidence shall be furnished upon the same terms as in the Superior Court of Justice.

Appeal to court

(9)  Any party to a hearing before the Tribunal may appeal from the decision of the Tribunal to the Divisional Court.

Minister entitled to be heard

(10)  The Minister is entitled to be heard, by counsel or otherwise, upon the argument of an appeal under this section.

Record to be filed in court

(11)  The chair of the Tribunal shall certify to the Superior Court of Justice the record of the proceedings before the Tribunal which, together with a transcript of the evidence before the Tribunal if it is not part of the Tribunal's record, shall constitute the record in the appeal.

Powers on appeal

(12)  The Divisional Court may confirm or alter the decision of the Tribunal or direct the Superintendent to do any act the court considers appropriate.

No stay on appeal

(13)  An appeal from a decision of the Tribunal to the Divisional Court does not operate as a stay in the matter unless the Tribunal or the Divisional Court orders a stay of the decision.

Immediate suspension

20.  (1)  The Superintendent may suspend a registration immediately by giving the registrant a notice of immediate suspension if the Superintendent is of the opinion that it is necessary to do so,

(a) for the immediate protection of the interests of the students or prospective students of the private career college; or

(b) to prevent a contravention of an Act of the Legislature or of Canada.

Content of notice

(2)  A notice of immediate suspension shall set out,

(a) the reasons for the immediate suspension;

(b) any additional action described in subsection 19 (1) that the Superintendent proposes to take; and

(c) the right to require a hearing by the Tribunal if, within 15 days after service of the notice, the registrant gives written notice to that effect to the Superintendent and the Tribunal.

Hearing and appeal

(3)  Subsections 19 (3) and (5) to (13) apply with necessary modifications to an immediate suspension and subsections 19 (2) to (13) apply with necessary modifications to any additional action described in subsection 19 (1) that the Superintendent proposes to take.

Suspension immediate and not stayed by hearing

(4)  An immediate suspension is effective immediately upon giving the registrant the written notice of the suspension and is not stayed by a request for a hearing by the Tribunal.

Lifting of suspension

(5)  The Superintendent or the Tribunal may order that an immediate suspension be lifted upon being satisfied that the reasons for the suspension no longer exist.

Application for registration after refusal, revocation

21.  (1)  A person who is refused registration may reapply for registration at any time if the person satisfies the Superintendent that there has been a material change in the person's circumstances.

Same

(2)  A person who is refused renewal of registration or the registration of which is revoked may reapply for registration if the person satisfies the Superintendent that there has been a material change in the person's circumstances, but the person may not reapply for registration until two years have elapsed since the renewal was refused or the revocation took effect.

Surrender of registration

22.  A registrant may surrender the registrant's registration at any time by giving the Superintendent written notice of the surrender accompanied by the certificate of registration.

PART V
APPROVAL OF VOCATIONAL PROGRAMS

Approval required to provide vocational programs

23.  (1)  It is a condition of every registration that the private career college only provide those vocational programs for which it has received the approval of the Superintendent under this section.

Same

(2)  An application for approval to provide a specified vocational program shall be in a form approved by the Superintendent and shall contain such information as the Superintendent may require.

Same

(3)  The Superintendent shall approve the provision of a specified vocational program by a private career college if the Superintendent is satisfied that,

(a) the program will provide the skills and knowledge required in order to obtain employment in a prescribed vocation; and

(b) the program is likely to meet the applicable standards and performance objectives set out in the Superintendent's policy directives.

Conditions

(4)  The Superintendent may approve the provision of a specified vocational program by a private career college subject to such conditions as the Superintendent may specify and may, as a condition of the approval, specify performance indicators for the vocational program and standards and performance objectives that the vocational program must meet in addition to the performance indicators, standards and performance objectives set out in the Superintendent's policy directives.

Duration of approval

(5)  The approval to provide a specified vocational program shall be valid for a prescribed period or for a period determined in accordance with the regulations and may be renewed upon application.

Changes to vocational programs

(6)  A private career college shall not make a substantial change to a vocational program that it has been approved to provide without the further approval of the Superintendent.

Same

(7)  Subsections (2) to (5) apply with necessary modifications to an application for approval of a substantial change to a vocational program and to an application to renew an approval.

Non-vocational programs

(8)  Nothing in this section affects the right of a private career college to provide programs that are not vocational programs.

Revocation of vocational program approval

24.  (1)  The Superintendent may revoke a private career college's approval to provide a specified vocational program if the Superintendent believes that the program fails to meet the conditions of the approval or the applicable standards or performance objectives set out in the Superintendent's policy directives.

Notice

(2)  The Superintendent shall give a registrant notice in writing of the revocation of approval.

Effective date

(3)  The revocation of approval is effective upon the registrant being served with the notice under subsection (2), or on such other date specified in the notice.

Credentials

25.  Upon approving the provision of a specified vocational program by a private career college, the Superintendent shall also approve the credential that the college may grant a student who successfully completes the program, in accordance with the policy directives issued by the Superintendent.

Information re performance indicators, objectives

26.  Every private career college shall make public, at the times and in the manner determined in accordance with the Superintendent's policy directives, the information required by the policy directives relating to the performance indicators and performance objectives applicable to the college's vocational programs.

PART VI
OPERATION OF PRIVATE CAREER COLLEGES

Duties of Registrant

Duties of registrant

27.  (1)  Every registrant shall operate a private career college in accordance with this Act and the regulations.

Same

(2)  The registrant is responsible for complying with the obligations imposed on a private career college under this Act.

Protection of Student Interests

Contract to be in writing

28.  (1)  Every private career college shall ensure that each contract entered into by the college and a student for the provision of one or more vocational programs for a fee is in writing.

Copy to student

(2)  Every private career college shall give each student who has entered into such a contract with the college a copy of that student's contract in accordance with the regulations.

Fee refund policy

29.  (1)  Every private career college shall adopt a policy relating to the refund of fees paid by students to the college.

Content of policy

(2)  The fee refund policy shall include the prescribed provisions, including prescribed provisions respecting the refund of fees paid by international students.

Inclusion in contracts

(3)  The private career college shall include its fee refund policy in every contract entered into by the private career college and a student.

Definition

(4)  In this section,

"international student" means an individual who applied for or received a temporary resident visa as a member of the student class under the Immigration and Refugee Protection Act (Canada).

Access to transcripts

30.  (1)  Every private career college shall ensure that each of its students and former students has access to his or her transcripts for at least 25 years after the student terminates studies at the college.

Same

(2)  Every private career college shall follow the prescribed rules and practices to ensure that its students and former students have access to their transcripts.

Limitation

(3)  Subsections (1) and (2) only apply in respect of students who are enrolled in a private career college or who terminate studies at a private career college on or after the day this section comes into force.

Complaint procedure

31.  (1)  Every private career college shall establish a procedure to resolve student complaints.

Content of procedure

(2)  The student complaint procedure shall include the prescribed procedures and rules.

Inclusion in contracts

(3)  The private career college shall include its student complaint procedure in every contract entered into by the private career college and a student.

Statement of students' rights and responsibilities

32.  The private career college shall include the statement of students' rights and responsibilities developed by the Superintendent under section 54 in every contract made between the private career college and a student.

General

Advertising

33.  A private career college shall not advertise the college or any vocational programs offered or provided by the college or permit such an advertisement unless the advertisement complies with such standards as may be prescribed.

Notice of change

34.  (1)  Every private career college shall, within five days after the event, notify the Superintendent in writing of,

(a) any change in,

(i) if the registrant for the college is a corporation, the officers or directors of the corporation,

(ii) if the registrant for the college is a partnership, the membership of the partnership; and

(b) any other prescribed change.

Same

(2)  Every private career college shall, at least 10 days before the event, notify the Superintendent in writing of,

(a) any proposed change in its address for service or in its legal or operating name; and

(b) any other proposed prescribed change.

Sale of students' goods and services

35.  (1)  A private career college shall not sell or permit the sale of the goods or services of a student of the college except as provided in subsections (2) and (3).

Same

(2)  A private career college may sell any goods produced or created by a student in the course of a vocational program provided by the college and may provide a student's services to the public or arrange for the provision of such services to the public if the goods are produced or created or the services are provided in order to satisfy the occupational training and experience requirements of a vocational program.

No profit

(3)  The amount for which a student's goods or services may be sold shall not exceed the amount of the following costs incurred by the private career college, as may be applicable:

1. The costs of any materials or facilities provided by the college and used by the student in producing, creating or selling the goods.

2. The costs of providing or arranging for the provision of the services to the public.

Rescission of contract

36.  (1)  Any person who enters into a written contract with a private career college to receive instruction in a vocational program may rescind the contract by delivering a written notice of rescission to the private career college within two days after the person receives a copy of the contract as required by subsection 28 (2).

Address of private career college

(2)  A notice of rescission shall be delivered to the private career college at the address shown in the contract.

Return of goods and money

(3)  A person who delivers a notice of rescission shall immediately return any goods received under the contract and the private career college shall return any money received under the contract.

Meetings with students

37.  (1)  The Superintendent or his or her designate may at any time hold a meeting with the students and prospective students of a private career college to advise the students and prospective students of any issues affecting the college and of their rights under this Act.

Same

(2)  A meeting under subsection (1) may be held at any location specified by the Superintendent or his or her designate, including at the private career college and, in that case, the private career college shall permit the meeting to be held at the college.

PART VII
ENFORCEMENT

Inquiries and Examinations

Inquiries and examinations

Of registrants

38.  (1)  The Superintendent or a person designated by the Superintendent may make inquiries and conduct examinations of the affairs of a registrant to ensure that the registrant is complying with the conditions of the registrant's registration and the requirements of this Act and the regulations.

Of other persons

(2)  If, in the Superintendent's opinion, a person that is not a registrant is or was required to be registered, the Superintendent or a person designated by the Superintendent may make such inquiries and conduct such examinations of the person's affairs as the Superintendent or designate considers appropriate in the circumstances.

Powers

(3)  The Superintendent or designate may, without a warrant, do any of the following things in the course of making an inquiry or conducting an examination:

1. Enter and inspect any premises used in connection with the registrant's or person's business or activities.

2. Photograph the premises.

3. Inspect documents or other things that may be relevant to the inquiry or examination.

4. Require a person to answer questions about anything that may be relevant to the inquiry or examination.

5. Require a person to produce a document, record or other thing and provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce information.

6. In order to produce information, use any data storage, processing or retrieval device or system that is used in connection with the registrant's or person's business or activities.

7. Remove for examination and copying anything that may be relevant to the inquiry or examination, including removing any data storage, processing or retrieval device in order to produce information.

8. Observe instruction given in a program and activities of students in producing or creating goods and providing services that appear to be part of the program.

9. Take samples of materials, books, lessons and equipment used in providing a program.

Entry into dwelling

(4)  The Superintendent or designate shall not enter any part of a premises that is used as a dwelling without a warrant unless the occupant consents to the entry.

Time of entry

(5)  The power to enter and inspect premises without a warrant may be exercised only during the regular business hours of the premises or during daylight hours if there are no regular business hours.

Duty to assist

(6)  If the Superintendent or designate requires a person to answer questions, to produce a document, record or other thing or to provide assistance, the person shall do so in the manner and within the period specified by the Superintendent or designate.

Receipt for things removed

(7)  The Superintendent or designate shall give a receipt for anything that he or she removes for examination or copying and the Superintendent or designate shall promptly return the thing to the person who produced it.

Identification

(8)  Upon request, the designate shall produce evidence of his or her designation.

Copy admissible in evidence

(9)  A copy of a record that purports to be certified by the Superintendent or designate as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Obstruction

(10)  No person shall hinder, obstruct or interfere with the Superintendent or designate conducting an inquiry or examination, refuse to answer questions on matters relevant to the inquiry or examination or provide the Superintendent or designate with information on matters relevant to the inquiry or examination that the person knows to be false or misleading.

Report to Superintendent

(11)  A designate shall report to the Superintendent on the results of each inquiry or examination.

Administrative Penalties

Notice of contravention

39.  (1)  If the Superintendent or person designated by the Superintendent believes that a person has contravened a prescribed provision of this Act or the regulations, the Superintendent or designate may issue a notice of contravention to the person setting out his or her belief and requiring the person to pay the administrative penalty prescribed for the contravention in question.

Purpose of administrative penalty

(2)  The following are the purposes for which a person may be required to pay an administrative penalty under this section:

1. To encourage compliance with this Act and the regulations.

2. To encourage compliance with an order made under section 46.

3. To prevent a person from deriving, directly or indirectly, any economic benefit as a result of a contravention of this Act or the regulations.

Amount of administrative penalty

(3)  The amount of an administrative penalty prescribed for a contravention shall reflect the purposes referred to in subsection (2).

One-year limitation

(4)  A notice of contravention shall not be issued under this section more than one year after the contravention first came to the knowledge of the Superintendent or his or her designate.

Content of notice of contravention

(5)  The notice of contravention shall,

(a) contain or be accompanied by information setting out the nature of the contravention;

(b) set out the amount of the penalty to be paid and specify the time and manner of the payment; and

(c) inform the person of his or her right to request a review of the notice by the Minister.

Right to review

(6)  A person who receives a notice of contravention may require the Minister to review the notice of contravention by applying to the Minister for a review in a form approved by the Superintendent,

(a) within 15 days after receipt of the notice of contravention; or

(b) if the Minister considers it appropriate in the circumstances to extend the time for applying, within the period specified by the Minister.

If no review requested

(7)  If a person who has received a notice of contravention does not apply for a review under subsection (6), the person shall pay the penalty within 30 days after the day the notice of contravention was served.

If review requested

(8)  If a person who has received a notice of contravention applies for a review under subsection (6), the Minister shall conduct the review in accordance with the regulations.

Minister's decision

(9)  Upon a review, the Minister may,

(a) find that the person did not contravene the provision of this Act or regulations specified in the notice of contravention and rescind the notice;

(b) find that the person did contravene the provision of this Act or regulations specified in the notice of contravention and affirm the notice; or

(c) find that the person did contravene the provision but that the prescribed penalty is excessive in the circumstances and amend the notice by reducing the amount of the penalty.

Decision final

(10)  A decision by the Minister is final.

Payment after review

(11)  If the Minister finds that a person has contravened the provision of this Act or regulations specified in the notice of contravention, the person shall pay the penalty required by the Minister within 30 days after the day of the Minister's decision.

Payment to Minister of Finance

(12)  A person who is required to pay a penalty under this section shall pay the penalty to the Minister of Finance.

Enforcement of administrative penalty

40.  (1)  If a person who is required to pay an administrative penalty under section 39 fails to pay the penalty within the time required under subsection 39 (7) or (11), the notice of contravention or the Minister's decision, as the case may be, may be filed with a local registrar of the Superior Court of Justice and may be enforced as if it were an order of the court.

Same

(2)  Section 129 of the Courts of Justice Act applies in respect of a notice of contravention or decision filed with the Superior Court of Justice under subsection (1) and, for the purpose, the date on which the notice of contravention or decision is filed under subsection (1) shall be deemed to be the date of the order that is referred to in section 129 of the Courts of Justice Act.

Crown debt

41.  An administrative penalty imposed under section 39 that is not paid within the time required under that section is a debt due to the Crown and enforceable as such.

Superintendent may authorize collector

42.  (1)  The Superintendent may authorize any person to act as a collector for the purposes of this section and sections 43 and 44 and to exercise the powers that the Superintendent specifies in the authorization to collect administrative penalties owing under this Act.

Costs of collection

(2)  Despite clause 22 (a) of the Collection Agencies Act, the Superintendent may also authorize a collector to collect a reasonable fee or reasonable disbursements or both from each person from whom the collector seeks to collect administrative penalties owing under this Act. 

Same

(3)  The Superintendent may impose conditions on an authorization under subsection (2) and may determine what constitutes a reasonable fee or reasonable disbursements for the purposes of that subsection.

Exception re disbursements

(4)  The Superintendent shall not authorize a collector who is required to be registered under the Collection Agencies Act to collect disbursements. 

Collector's powers

43.  (1)  A collector may exercise any of the powers specified in an authorization of the Superintendent under section 42.

Fees and disbursements part of order

(2)  If a collector is seeking to collect an administrative penalty owing under a notice of contravention, any fees and disbursements authorized under subsection 42 (2) shall be deemed to be owing under and shall be deemed to be added to the amount of the penalty set out in the notice of contravention. 

Distribution of money collected

(3)  A collector shall pay the amount collected under this section with respect to the penalty to the Minister of Finance and may retain the amount collected with respect to the collector's fees and disbursements.

Settlement by collector

44.  (1)  A collector may agree to a settlement with the person from whom he or she seeks to collect money, but only with the written agreement of the Superintendent.

Payment

(2)  The person who owes money under a settlement shall pay the amount agreed upon to the collector, who shall pay it out in accordance with subsection 43 (3). 

Other means not a bar

45.  The Superintendent or a person designated by the Superintendent may issue a notice of contravention to a person under subsection 39 (1) even though an order has been made or may be made against the person under section 46 or 47 or the person has been or may be prosecuted for or convicted of an offence with respect to the same contravention.

Restraining and Compliance Orders

Superintendent's orders

46.  (1)  If the Superintendent believes that a person has contravened this Act or the regulations, the Superintendent may order the person to restrain from contravening this Act or the regulations.

Same

(2)  If the Superintendent believes that a registrant has breached a condition of the registrant's registration or has otherwise contravened or failed to comply with a provision of this Act or the regulations, the Superintendent may order the registrant to comply with the conditions of the registration or with the provisions of this Act or the regulations.

Restraining orders by court

47.  (1)  On the application of the Superintendent, a judge of the Superior Court of Justice may make an order to restrain a person from contravening this Act or the regulations if the court is satisfied that there are reasonable grounds to believe that the person has contravened or is likely to contravene this Act or the regulations.

Interim order

(2)  In a proceeding under subsection (1), a judge may, on application of the Superintendent, grant an interim order described in that subsection if the judge believes, based on the evidence before him or her, that it is in the public interest to do so.

Same

(3)  A judge may grant an interim order even though the Superintendent has not established that irreparable harm will be done if the order is not issued.

Same

(4)  A judge shall not require the Superintendent to post a bond or give an undertaking as to damages when granting an interim order.

Other means not a bar

(5)  An order may be granted under subsection (1) even though a notice of contravention has been or may be issued to the person under subsection 39 (1), an order has been or may be issued to the person under section 46 or the person has been or may be prosecuted for or convicted of an offence with respect to the same contravention.

Offences

Offences

48.  (1)  Every person is guilty of an offence if the person,

(a) knowingly furnishes false information in any application under this Act or in any statement or return required to be furnished under this Act;

(b) fails to comply with any order, direction or other requirement made under this Act; or

(c) contravenes any provision of this Act or the regulations.

Penalty

(2)  A person who is guilty of an offence under subsection (1) is liable on conviction,

(a) in the case of an individual, to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both; and

(b) in the case of a corporation, to a fine of not more than $100,000.

Officers and directors of corporation

(3)  Every director or officer of a corporation who knowingly concurs in the commission of an offence under subsection (1) by the corporation is guilty of an offence and on conviction is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both.

Limitation

(4)  No proceeding under clause (1) (a) shall be commenced more than one year after the facts upon which the proceeding is based first came to the knowledge of the Superintendent.

Same

(5)  No proceeding under clause (1) (b) or (c) shall be commenced more than two years after the time when the subject-matter of the proceeding arose.

PART VIII
GENERAL

Publication of information

Refusals and contraventions

49.  (1)  The Superintendent shall publish particulars of,

(a) every refusal to renew a registration and every suspension or revocation of a registration once the period under subsection 19 (3) to require a hearing by the Tribunal in respect of a proposal to take such action has expired or, if such a hearing has been required, once the Tribunal has made its order;

(b) every notice of contravention issued under subsection 39 (1) once the period to apply for a review of the notice of contravention under subsection 39 (6) has expired or, if such a review has been required, once the Minister has made his or her decision; and

(c) every decision of the Minister under subsection 39 (9).

Orders

(2)  The Superintendent may publish particulars of any order made under section 46 or 47.

Program approvals

(3)  The Superintendent shall publish the name of the private career college, the name of the vocational program and the credential that may be granted on successful completion of the program for every approval given for a private career college to provide a specified vocational program.

Performance indicators, objectives

(4)  The Superintendent shall publish such information respecting performance indicators and performance objectives for every private career college as he or she considers appropriate.

Policy directives, statement of students' rights and responsibilities

(5)  The Superintendent shall publish the policy directives issued by him or her under section 53 and the statement of students' rights and responsibilities developed by him or her under section 54.

Methods of publication

(6)  The material that the Superintendent is required or authorized to publish under this section shall be posted on the Ministry of Training, Colleges and Universities website and may be published in such other manner as the Superintendent considers advisable.

Posting of information

(7)  The Superintendent may also post a copy of anything published under this section in a conspicuous place at the premises of the private career college to which it relates.

Same

(8)  No person shall remove the copy of the publication posted under subsection (7) unless they do so at the written direction, or with the written approval, of the Superintendent.

Information and disclosure

50.  (1)  For the purpose of carrying out his or her responsibilities under this Act, the Superintendent may require a private career college or an applicant for registration to provide the Superintendent with information, including personal information within the meaning of section 38 of the Freedom of Information and Protection of Privacy Act or section 2 of the Personal Information Protection and Electronic Documents Act (Canada), in respect of students, officers, directors or employees of the private career college.

Limitation

(2)  The personal information in respect of students that may be required under subsection (1) shall be limited to students' names, addresses, phone numbers and other contact information and shall be used only,

(a) for the purpose of contacting students to advise them of their rights under this Act, including the provisions respecting the protection of students' financial interests;

(b) for the purpose of collecting information on the performance indicators applicable to vocational programs provided by private career colleges; or

(c) for the purpose of determining whether the private career college has met the performance objectives applicable to its vocational programs under section 23.

Consent to release of information

(3)  Every private career college shall include in every contract for the provision of a vocational program the prescribed wording for the student to consent, or to refuse to consent, to the release of his or her personal information as described in subsection (2) to the Superintendent for any or all of the purposes set out in that subsection.

Service

51.  (1)  Any notice, order or other document that is required to be given, issued, delivered or served under this Act or the regulations shall be given, issued, delivered or served only,

(a) by personal delivery;

(b) by mail addressed to the person's last known business or residential address using a method of mail delivery that permits the delivery to be verified; or

(c) by fax of the document or by electronic mail if the person is equipped to receive such transmissions.

Same, corporations

(2)  If the person receiving a notice, order or other document is a corporation, the notice or order may be given, issued, delivered or served,

(a) on a director or officer of the corporation or on any manager, secretary or other person apparently in charge of any business premises of the corporation using any method described in subsection (1); or

(b) on the corporation at its last known business address using one of the methods described in clause (1) (b) or (c).

Deemed receipt

(3)  If a notice, order or other document is given, issued, delivered or served by mail, it shall be deemed to be received on the third day after the day of mailing unless the person to whom it is given, issued, delivered or served establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person's control, receive the notice, order or other document until a later date.

Same

(4)  A notice, order or other document that is given, issued, delivered or served by a means described in clause (1) (c) on a Saturday, Sunday or a public holiday or on any other day after 5 p.m. shall be deemed to have been received on the next day that is not a Saturday, Sunday or public holiday.

Certificate as evidence

52.  (1)  A statement of the Superintendent certifying any of the following facts is, without proof of the office or signature of the Superintendent, evidence of those facts in any action, prosecution or other proceeding:

1. The registration or non-registration of any person.

2. The filing or non-filing of any document or material required or permitted to be filed with the Superintendent under this Act.

3. The time when any facts first came to the knowledge of the Superintendent or his or her designate.

4. The approval given to a private career college to provide a specified vocational program or the revocation of such an approval.

5. Any other matter pertaining to an application for registration or renewal, an application for approval to provide a specified vocational program, a registration or non-registration, an approval or non-approval, a filing or non-filing or conditions of a registration or approval.

Same, notice of contravention

(2)  A certificate of the Superintendent or Superintendent's designate who issued a notice of contravention under subsection 39 (1) is evidence of its issuance, service of it on the person and the receipt of it by the person if,

(a) the certificate is accompanied by a copy of the notice that the Superintendent or designate certifies to be true; and

(b) the Superintendent or designate certifies that the notice was served on the person and sets out the method of service used.

Proof of Minister's signature

(3)  Any document under this Act purporting to be signed by the Minister, or any certified copy of such document, is receivable in evidence in any action, prosecution or other proceeding without proof of the office or signature of the Minister.

Policy directives

53.  (1)  The Superintendent may issue policy directives,

(a) setting out standards, performance indicators and performance objectives for vocational programs or classes of vocational programs and governing the publication of information by private career colleges respecting the performance indicators and performance objectives applicable to their vocational programs;

(b) setting out credentials that private career colleges may grant, and the classes of vocational programs for which such credentials may be granted;

(c) exempting private career colleges, or any class of them, from the requirement that they obtain approval for a specified class of vocational programs under section 23.

Binding

(2)  The policy directives are binding on private career colleges and every private career college shall comply with and be operated in accordance with the policy directives.

General or particular

(3)  A policy directive may be general or particular in its application.

Classes

(4)  A policy directive may create different classes of persons, private career colleges, vocational programs and students and may contain different provisions in respect of each class.

Regulations Act does not apply

(5)  A policy directive issued under this section is not a regulation within the meaning of the Regulations Act.

Statement of students' rights and responsibilities

54.  The Superintendent shall develop a statement of students' rights and responsibilities.

Regulations

55.  (1)  The Lieutenant Governor in Council may make regulations,

1. prescribing anything that is required or permitted to be prescribed or that is required or permitted to be done in accordance with the regulations;

2. prescribing programs or classes of programs that are and are not vocational programs;

3. prescribing powers and duties of the Superintendent;

4. governing the Training Completion Assurance Fund to be established under section 3, including its establishment, functions, form, term and administration and prescribing rules governing its investment powers, including the securities in which it may and may not invest;

5. prescribing rules for the cancellation of bonds provided by private career colleges as security under the Private Career Colleges Act before its repeal;

6. governing the advisory board to be established under section 4, including its composition, appointment, functions, powers, duties, activities and procedures;

7. prescribing forms of security or other methods of protecting the financial interest of students for the purpose of section 6, prescribing requirements relating to them, including the means of realizing the security or enforcing the other methods of protection if the requirements are not met and governing the making of claims against the security or other protection and the settlement of such claims;

8. governing applications for registration and for renewal of registration;

9. prescribing changes in a person's circumstances that constitute a material change and those that do not constitute a material change for the purpose of section 21;

10. governing advertising for the purpose of section 11 and prescribing advertising standards for the purpose of section 33;

11. governing applications for approval to provide a specified vocational program and for renewal of such approvals;

12. prescribing changes to a vocational program that constitute a substantial change and those that do not constitute a substantial change for the purpose of subsection 23 (6);

13. governing the revocation of approval to provide a specified vocational program;

14. governing the refund policy that private career colleges are required to adopt under section 29;

15. governing the student complaint procedure that private career colleges are required to establish under section 31;

16. governing the determination of costs under section 35;

17. prescribing terms required to be included in contracts entered into by students and private career colleges;

18. prescribing the accommodation and equipment required by private career colleges;

19. prescribing requirements for admission of students, including international students as defined in subsection 29 (4);

20. prescribing qualifications of instructors of vocational programs;

21. governing the type of evidence needed to demonstrate a student's successful completion of a vocational program;

22. prescribing maximum fees that may be charged by private career colleges;

23. governing the change of ownership of a registrant;

24. requiring and governing books, accounts and records to be kept by registrants;

25. governing administrative penalties for the purposes of section 39 and all matters necessary and incidental to the administration of a system of administrative penalties under this Act;

26. requiring registrants to make returns and furnish information to the Superintendent and governing such returns and information;

27. exempting any person, private career college or vocational program, or any class of them, from any provision of this Act or the regulations and prescribing conditions or circumstances for any such exemption to apply;

28. providing for any transitional matter relating to the application of this Act and the repeal of the Private Career Colleges Act.

Administrative penalties

(2)  A regulation under paragraph 25 of subsection (1) may,

(a) provide that the amount of a penalty prescribed for a contravention is increased by a prescribed amount for each subsequent contravention that occurs within a prescribed period;

(b) provide for penalties in the form of lump sum amounts and of daily amounts, prescribe the circumstances in which either or both types of amounts may be required and, in the case of a daily amount, prescribe the maximum number of days for which a daily amount may be imposed; and

(c) provide for the time and manner of payment.

General or particular

(3)  A regulation may be general or particular in its application. 

Classes

(4)  A regulation may create different classes of persons, private career colleges, vocational programs and students and may contain different provisions in respect of each class.

Conflicts re transitional regulations

(5)  If there is a conflict between a regulation made under paragraph 28 of subsection (1) and any Act or any regulation, the regulation made under paragraph 28 of subsection (1) prevails. 

Forms

56.  The Superintendent may approve forms for the purposes of this Act and provide for their use.

Review of Act

57.  The Superintendent shall undertake a review of this Act and, by the seventh anniversary of the day this section comes into force, shall recommend to the Minister any amendment he or she believes will improve the effectiveness and administration of this Act.

Transition

58.  (1)  A person that is registered under the Private Career Colleges Act immediately before this section comes into force shall be deemed to be registered under this Act and shall be deemed to have the approval under this Act to provide any vocational program that it offers or provides on that day.

Same

(2)  Any bond provided by a private career college that has been declared forfeit before this section comes into force remains in effect in accordance with the terms and for the purposes specified under Private Career Colleges Act, as it read immediately before its repeal.

Same

(3)  A contract between a private career college and a student entered into before this section comes into force remains in effect.

PART IX
AMENDMENT, REPEAL, COMMENCEMENT
AND SHORT TITLE

Licence Appeal Tribunal Act, 1999

59.  Section 11 of the Licence Appeal Tribunal Act, 1999 is amended by adding "Private Career Colleges Act, 2005" to the list of Acts.

Repeal

60.  The Private Career Colleges Act is repealed.

Commencement

61.  (1)  Subject to subsection (2), this Act comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Sections 1 to 60 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

62.  The short title of the Act set out in this Schedule is the Private Career Colleges Act, 2005.

SCHEDULE M
AMENDMENTS TO THE
RETAIL SALES TAX ACT

1.  Subsection 1 (1.1) of the Retail Sales Tax Act is amended by striking out "May 19, 2005" in the portion before paragraph 1 and substituting "July 1, 2006".

2.  (1)  Paragraph 26 of subsection 7 (1) of the Act is repealed and the following substituted:

26. Child seating and restraint systems that meet the specifications prescribed by the regulations made under subsection 106 (9) of the Highway Traffic Act.

(2)  Paragraph 55 of subsection 7 (1) of the Act is repealed and the following substituted:

55. Publications, as defined by the Minister, purchased or produced by a religious, charitable or benevolent organization.

Commencement

3.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on May 19, 2005.

Same

(3)  Subsection 2 (1) comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(4)  Subsection 2 (2) comes into force on May 12, 2005.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 197 and does not form part of the law. Bill 197 has been enacted as Chapter 28 of the Statutes of Ontario, 2005.

The Bill implements measures contained in the 2005 Budget. The major elements of the Bill are described below.

SCHEDULE A
AMENDMENTS TO THE
ASSESSMENT ACT

Currently, subsection 19 (5.2) of the Assessment Act specifies that the current value of conservation land and managed forests land must be based only on the current use of the land. A new subsection 19 (5.2.1) allows the Minister of Finance to make regulations providing that the current value of land in the managed forests property class shall be determined in accordance with the regulations. Consequential amendments are made to other provisions of the Act.

SCHEDULE B
AMENDMENTS TO THE
BUSINESS CORPORATIONS ACT AND THE REGULATED HEALTH PROFESSIONS ACT, 1991

Currently, the Business Corporations Act authorizes a professional corporation to practise a profession in the circumstances specified in section 3.1 and requires such corporations to comply with the requirements set out in section 3.2. Amendments to section 3.2 authorize the Lieutenant Governor in Council to make regulations to exempt classes of health profession corporations from these and other requirements of the Act and to impose different requirements in their place. The regulations may also provide exemptions for their shareholders, directors and officers and may impose different requirements in their place.

Complementary amendments are made to the Regulated Health Professions Act, 1991.

SCHEDULE C
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

Amendments to the Community Small Business Investment Funds Act permit investment thresholds in the Act to be changed by regulation and authorize the making of regulations to vary the application of the Act in prescribed circumstances if there is compliance with the intent of the Act and to prescribe rules relating to business combinations of two or more labour sponsored investment fund corporations.

SCHEDULE D
AMENDMENTS TO THE
CORPORATIONS TAX ACT

Clause 1 (3) (d) of the Corporations Tax Act is amended to update references to the Income Tax Act (Canada), retroactive to 1991. The clause is repealed and replaced, effective January 1, 2003, with new subsection 1 (3.1) of the Act to improve clarity. New subsection 1 (3.1) of the Act and the re-enactment of subsection 14 (5) of the Act provide that the partnership rules dealing with the resource allowance and the non-deductibility of Crown royalties do not affect the calculation of the adjusted cost base of partnership interests under the Act. New subsection 1 (3.1) of the Act and the repeal of subsection 1 (12) of the Act also result in the determination of "gross revenue" in the same way for Ontario and federal purposes. Consequential amendments are made to sections 11, 14, 17, 18 and 32 of the Act as a result of the repeal of clause 1 (3) (d) of the Act.

Subsections 2 (1) and (2) of the Act currently establish a corporation's liability for taxes under the Act, depending on whether the corporation is incorporated in or outside Canada. Effective for taxation years ending after May 11, 2005, the re-enactment of subsections 2 (1) and (2) of the Act provides that the extent of a corporation's liability for taxes depends in all cases on whether the corporation is resident in or outside Canada. Consequential amendments are made to sections 43.3 and 69 of the Act.

Section 31 of the Act is amended to provide that a corporation's share of partnership income is determined without any allowance for the deduction of Crown royalties if the corporation is a majority interest partner of the partnership.

Amendments to section 43.5 of the Act increase the Ontario film and television tax credit from 20 per cent to 30 per cent in respect of a qualifying production company's qualifying labour expenditure incurred after December 31, 2004 and before January 1, 2010. The tax credit rate will be restored to 20 per cent in respect of expenditures incurred after December 31, 2009. These amendments will maintain the additional 10 per cent credit for regional Ontario productions as well as the additional 10 per cent credit for the first $240,000 of qualifying expenditures relating to a first-time production. Section 43.5 is also amended to allow the tax credit rates to be changed by regulation.

Section 43.8 of the Act is amended to eliminate the 48 per cent restriction on qualifying costs for the Ontario computer animation and special effects tax credit, effective for the portion of the corporation's Ontario labour expenditure incurred after May 11, 2005. Technical amendments are also made to this section to provide that equity investments by Canadian government film agencies are not taken into account in the calculation of a corporation's Ontario labour expenditure after May 11, 2005. Other amendments provide for consistency with the rules for the Ontario film and television tax credit in the treatment of assistance received by the corporation.

Section 43.10 of the Act provides for the Ontario production services tax credit in respect of certain Ontario labour expenditures incurred in producing film or television productions. Amendments to the section increase the tax credit rate from 11 per cent to 18 per cent, subject to the regulations, in respect of labour expenditures incurred after December 31, 2004 and before April 1, 2006. The tax credit rate in respect of expenditures incurred after March 31, 2006 is 11 per cent, except as otherwise prescribed by the regulations. The additional 3 per cent credit for regional Ontario productions is eliminated with respect to expenditures incurred after December 31, 2004. The enactment of subsection 43.10 (15.1) of the Act authorizes the making of regulations to prescribe tax credit rates instead of 18 per cent and 11 per cent.

SCHEDULE E
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

Currently, section 15.1 of the Financial Administration Act authorizes interim payments for goods or services to be made from the Consolidated Revenue Fund to a ministry in specified circumstances for fiscal years commencing on or after April 1, 2003. Section 15 authorized interim payments to be made for earlier fiscal years.

An amendment replaces those sections with a new section 15 that authorizes interim payments to be made from the Consolidated Revenue Fund to a ministry. The new section authorizes interim payments to be made to pay the costs that the ministry incurs during a fiscal year in engaging in an activity described in that section. All interim payments must be approved by the Treasury Board on the recommendation of the Minister of Finance. Provision is made for the amount of the interim payments to be recovered into the Consolidated Revenue Fund or to be charged against an appropriation before the books of the Government for the fiscal year are closed. Any unrecovered amount is to be deducted from the applicable ministry's appropriations for the following year.

This amendment is made retroactive to April 1, 2005.

SCHEDULE F
AMENDMENTS TO THE
FREEDOM OF INFORMATION AND
PROTECTION OF PRIVACY ACT

The Freedom of Information and Protection of Privacy Act is amended in order to accommodate the inclusion of universities as institutions under the Act. A definition of "educational institution" is added to subsection 2 (1) of the Act. Amendments relating to educational institutions are made to several sections of the Act. Sections 41 and 42 of the Act are amended with respect to the use and disclosure personal information in the alumni records of an educational institution for the purposes of fundraising.

Currently, section 49 of the Act provides that, in the circumstances described in that section, a head may refuse to disclose to an individual specified personal information relating to him or her. An amendment to that section adds an exemption from disclosure for evaluations of research and teaching materials, evaluations relating to admission to an educational institution, and evaluations relating to honours and awards, if the evaluations were supplied in confidence. A technical amendment is also made.

Currently, subsection 65 (1) of the Act provides that the Act does not apply to records placed in the Archives of Ontario by a person or organization other than an institution or a health information custodian as defined in the Personal Health Information Protection Act, 2004. The subsection is re-enacted to provide that the Act does not apply to records placed in the archives of an educational institution or the Archives of Ontario by or on behalf of a person or organization other than an institution as defined in the Act or in the Municipal Freedom of Information and Protection of Privacy Act or a health information custodian as defined in the Personal Health Information Protection Act, 2004.

Section 65 is also amended to provide that the Act does not apply to certain records relating to research at an educational institution or to certain teaching materials prepared or maintained for use at an educational institution.

SCHEDULE G
HIGHER EDUCATION QUALITY COUNCIL
OF ONTARIO ACT, 2005

The Higher Education Quality Council of Ontario Act, 2005 is enacted. It establishes the Higher Education Quality Council of Ontario, provides for its functions and reporting, and provides a framework to make regulations concerning the organization and work of that Council.

SCHEDULE H
AMENDMENTS TO THE
MINISTRY OF REVENUE ACT

Currently, subsection 11 (2) of the Ministry of Revenue Act authorizes the Lieutenant Governor in Council to remit any tax, fee or penalty on the recommendation of the Minister. An amendment clarifies that the remission may be made if the Lieutenant Governor in Council considers it to be in the public interest. A new subsection 11 (2.1) authorizes the Minister to make the remission if the tax, fee or penalty is $10,000 or less and if the Minister considers it to be in the public interest to do so.

SCHEDULE I
AMENDMENT TO THE MINISTRY OF TRAINING, COLLEGES AND UNIVERSITIES ACT

The new section 5.1 of the Ministry of Training, Colleges and Universities Act authorizes educational institutions, as defined in the Freedom of Information and Protection of Privacy Act, to collect information about identifiable individuals from published or public sources for the purposes of their own fundraising activities, if the information is reasonably necessary for the fundraising activities.

SCHEDULE J
AMENDMENT TO THE
MUNICIPAL FREEDOM OF INFORMATION
AND PROTECTION OF PRIVACY ACT

Section 38 of the Municipal Freedom of Information and Protection of Privacy Act provides that, in the circumstances described in that section, a head may refuse to disclose to an individual specified personal information relating to him or her. An amendment to that section adds an exemption from disclosure for evaluations relating to honours and awards, if the evaluations were supplied in confidence. A technical amendment is also made.

SCHEDULE K
ONTARIO LOAN ACT, 2005

The Ontario Loan Act, 2005 is enacted. It authorizes the Crown to borrow a maximum of $7.1 billion.

SCHEDULE L
PRIVATE CAREER COLLEGES ACT, 2005

The Private Career Colleges Act, 2005 is enacted and the current Private Career Colleges Act is repealed. The new Act contains a more extensive regulatory scheme governing private career colleges. The major changes fall under four headings: quality control of private career colleges and vocational programs; protection of students' interests; enforcement; accountability.

Quality control of private career colleges and vocational programs

Under the new Act, the Superintendent of private career colleges is authorized to issue policy directives that are binding on private career colleges setting out standards, performance indicators and performance objectives for vocational programs, as well as the credentials that may be granted for different classes of programs.

In order to be registered to operate a private career college, or to renew a registration, the Superintendent of private career colleges must be satisfied that the applicant will operate the college in accordance with the law, that the vocational programs provided at the college will meet the requirements of the Act and the regulations and that the applicant is financially viable. In addition, the Superintendent must be satisfied that the registration is in the public interest.

A private career college cannot provide a vocational program without the Superintendent's approval of the program and his or her approval of the credential to be earned on successful completion of the program. The Superintendent may attach standards, performance indicators and performance objectives to the approval of a vocational program, in addition to those required by the policy directives.

Private career colleges are required to report publicly on their performance indicators and performance objectives.

Protection of students' interests

Private career colleges are required to institute policies to protect students' interests: every contract with a student must be in writing and the colleges must give each student a copy of the contract; they must have a fee refund policy and include that policy in the contract; they must ensure students have access to their transcripts for 25 years after completing their studies; they must have a procedure for resolving student complaints and include that policy in the contract; they must include a statement of students' rights and responsibilities as developed by the Superintendent in each contract.

The new Act establishes the Training Completion Assurance Fund, the purpose of which is to ensure that, in the event that a private career college ceases to provide a vocational program, students in the program are allowed to complete the program elsewhere or are reimbursed their fees. Private career colleges are required to pay premiums and levies to the Fund, in amounts to be determined in accordance with the regulations. Private career colleges may be required by regulation to provide additional financial security besides the premiums and levies paid in respect of the Fund.

An advisory board will be established to advise the administrators of the Training Completion Assurance Fund and to perform other prescribed functions.

The Superintendent or his or her designate is authorized to meet with students and prospective students of a private career college to discuss issues relating to the college and their rights under the Act.

Enforcement

The Superintendent or his or her designate is given the power to enter a place without a warrant and conduct detailed inquiries and investigations to determine whether the Act and regulations and the conditions of a registration are being complied with. The power to enter and make inquiries and investigations is extended to apply to persons who are not registered but who the Superintendent or his or her designate thinks should be registered.

The Superintendent or his or her designate is authorized to impose administrative penalties for prescribed contraventions of the Act or regulations.

The Superintendent is given the power to make compliance orders and to seek restraining orders from the Superior Court of Justice.

Under the current Act, the maximum penalty for offences is a fine of $1,000 for individuals or one year imprisonment, or both. The new Act increases the maximum fine to $25,000 for individuals and enacts a maximum $100,000 fine for corporations.

Accountability

The Superintendent is required to publish the following: his or her policy directives; information relating to registrations and vocational program approvals; information relating to refusals to renew registrations and revocations and suspensions of registrations; information relating to enforcement measures taken; information on the performance indicators and performance objectives for individual private career colleges.

The Superintendent is required to review the Act and to make recommendations to the Minister to improve its effectiveness and administration within seven years after it comes into force.

SCHEDULE M
AMENDMENTS TO THE RETAIL SALES TAX ACT

Currently, subsection 1 (1.1) of the Retail Sales Tax Act exempts a purchaser from tax in respect of a fee imposed by a provider of transient accommodation on or after May 19, 2004 and before May 19, 2005, subject to certain conditions. The exemption is extended to transient accommodation purchased before July 1, 2006.

The re-enactment of paragraph 26 of subsection 7 (1) of the Act extends the current exemption from tax for child car seats to "booster seats" for children.

Currently, paragraph 55 of subsection 7 (1) of the Act provides an exemption from tax for prescribed publications "of" a religious, charitable or benevolent organization. The paragraph is re-enacted to clarify that the exemption applies to publications purchased or produced by the organization.

[38] Bill 197 Original (PDF)

Bill 197 2005

An Act to implement Budget measures

Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.

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

Contents of this Act

1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2)  The Schedules to this Act come into force as provided in each Schedule.

Same

(3)  If a Schedule to this Act provides that all or any portion of the Schedule is to come into force on a day to be named by proclamation of the Lieutenant Governor, the proclamation may apply to any portion of the Schedule, and proclamations may be issued at different times as to any portion of the Schedule.

Short title

3.  The short title of this Act is the Budget Measures Act, 2005.

SCHEDULE A
AMENDMENTS TO THE ASSESSMENT ACT

1.  Clause 2 (2) (c) of the Assessment Act is repealed.

2.  Subsection 19 (5.2) of the Act is repealed and the following substituted:

Conservation land, managed forests

(5.2)  The current value of land that is conservation land as defined in the regulations or land in the managed forests property class shall be based only on the current use of the land and not other uses to which the land could be put.

Current value of managed forests

(5.2.1)  Despite subsection (5.2) and any other provision of this Act, the Minister may, by regulation, provide that the current value of land in the managed forests property class shall be determined in accordance with the regulations.

3.  Clause 33 (4) (c) of the Act is repealed.

4.  Subclause 34 (1) (b) (iii) of the Act is repealed and the following substituted:

(iii) to be conservation land the current value of which is determined under subsection 19 (5.2),

(iii.1) to be land in the managed forests property class the current value of which is determined under subsection 19 (5.2) or (5.2.1),

Commencement

5.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE B
AMENDMENTS TO THE BUSINESS CORPORATIONS ACT AND THE
REGULATED HEALTH PROFESSIONS ACT, 1991

Business Corporations Act

1.  (1)  Subsection 3.2 (2) of the Business Corporations Act is amended by adding "but subject to subsection (6)" after "Despite any other provision of this Act" in the portion before paragraph 1.

(2)  Subsection 3.2 (5) of the Act is amended by adding "Subject to subsection (6)" before "A unanimous shareholder agreement".

(3)  Section 3.2 of the Act is amended by adding the following subsection:

Special rules, health profession corporations

(6)  The Lieutenant Governor in Council may make regulations,

(a) exempting classes of health profession corporations, as defined in section 1 (1) of the Regulated Health Professions Act, 1991, from the application of subsections (1) and (5) and such other provisions of this Act and the regulations as may be specified and prescribing terms and conditions that apply with respect to the health profession corporations in lieu of the provisions from which they are exempted;

(b) exempting classes of the shareholders of those health profession corporations from the application of subsections 3.4 (2), (4) and (6) and such other provisions of this Act and the regulations as may be specified and prescribing rules that apply with respect to the shareholders in lieu of the provisions from which they are exempted;

(c) exempting directors and officers of those health profession corporations from the application of such provisions of this Act and the regulations as may be specified and prescribing rules that apply with respect to the directors and officers in lieu of the provisions from which they are exempted.

Regulated Health Professions Act, 1991

2.  (1)  Section 85.8 of Schedule 2 to the Regulated Health Professions Act, 1991 is repealed and the following substituted:

Professional corporations

85.8  (1)  Subject to the regulations made under subsection 43 (1) of the Regulated Health Professions Act, 1991 and the by-laws, one or more members of the same health profession may establish a health profession corporation for the purposes of practising their health profession.

Same

(2)  The provisions of the Business Corporations Act, including the regulations made under that Act, that apply with respect to professional corporations apply with respect to a health profession corporation established under subsection (1).

(2)  Subsection 85.14 (3) of Schedule 2 to the Act is repealed and the following substituted:

Prohibition, corporate matters

(3)  A health profession corporation shall not practise a health profession when it does not satisfy the requirements for a professional corporation under subsection 3.2 (2) of the Business Corporations Act or a requirement established under subsection 3.2 (6) of that Act.

Commencement

3.  This Schedule comes into force on January 1, 2006.

SCHEDULE C
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

1.  (1)  Section 17 of the Community Small Business Investment Funds Act is amended by adding the following subsection:

Exception

(2.1)  If rules are prescribed for the purposes of this subsection, subsections (1) and (2) do not apply and the prescribed rules apply instead.

(2)  Subsection 17 (3) of the Act is amended by striking out "For the purposes of this section" at the beginning and substituting "For the purposes of this section and subject to the regulations".

2.  Subsection 18 (10) of the Act is amended by striking out "non-compliance with clause (1) (b) or subclause (1) (d) (iii) or (x)" and substituting "non-compliance with clause (1) (b), subclause (1) (d) (iii) or (x) or another prescribed provision".

3.  (1)  Subsection 18.1 (5) of the Act is amended by striking out "exceeds 25 per cent" and substituting "exceeds 25 per cent or, if a per cent is prescribed, the prescribed per cent".

(2)  Section 18.1 of the Act is amended by adding the following subsection:

Exception

(9.1)  If rules are prescribed for the purposes of this subsection, subsections (8) and (9) do not apply and the prescribed rules apply instead.

(3)  Subsection 18.1 (10) of the Act is amended by striking out "For the purposes of subsection (8)" at the beginning and substituting "For the purposes of subsection (8) and subject to the regulations".

4.  Subsection 20 (2) of the Act is amended by striking out "$15 million" and substituting "$15 million or, if a different amount is prescribed, the prescribed amount".

5.  (1)  The French version of subsection 27.1 (9) of the Act is repealed and the following substituted:

Règlements

(9)  Le ministre peut, par règlement, prescrire des règles applicables dans les cas suivants :

(2)  Subsection 27.1 (9) of the Act is amended by adding the following clause:

(d) if two or more labour sponsored investment fund corporations are involved in a business combination.

6.  (1)  Subsection 45 (1) of the Act is amended by adding the following clauses:

(n) providing that the required investment level for labour sponsored investment fund corporations under subsection 17 (1) shall not be determined using the formula in that subsection and subsection 17 (2) or the rule set out in subsection 17 (3) and prescribing rules for determining the required investment level;

(o) prescribing circumstances in which a labour sponsored investment fund corporation may apply to the Minister for an order that failure to comply with a prescribed provision of the Act or the regulations does not preclude an investment by the corporation from being an eligible investment;

(p) prescribing a per cent in excess of 25 per cent for the purposes of subsection 18.1 (5) and providing that the prescribed per cent applies for the purposes of that subsection instead of 25 per cent;

(q) prescribing that subsection 18.1 (5) does not apply and prescribing rules for determining the maximum amount of investments in eligible businesses that are listed companies that may be made by a labour sponsored investment fund corporation and the circumstances in which the rules apply;

(r) providing that the required investment level for labour sponsored investment fund corporations under subsection 18.1 (8) shall not be determined using the formula in that subsection and subsection 18.1 (9) or the rule set out in subsection 18.1 (10) and prescribing rules for determining the required investment level;

(s) prescribing an amount in excess of $15 million for the purposes of subsection 20 (2) and providing that the prescribed amount applies for the purposes of that subsection instead of $15 million;

(t) exempting any person, class of persons or class of shares of a labour sponsored investment fund corporation, in whole or in part, with or without conditions, from this Act, the Business Corporations Act, the Securities Act or a regulation made under any of those Acts, if the Minister determines that the person, class of persons or class of shares complies with the intent of this Act;

(u) varying the application of this Act in respect of any person, class of persons or class of shares of a labour sponsored investment fund corporation, if the Minister determines that the person, class of persons or class of shares complies with the intent of this Act.

(2)  Section 45 of the Act is amended by adding the following subsection:

General or particular

(5)  A regulation made under subsection (1) may be general or particular in its application.

7.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE D
AMENDMENTS TO THE CORPORATIONS TAX ACT

1.  (1)  Subclause 1 (3) (d) (iv) of the Corporations Tax Act is repealed and the following substituted:

(iv) where subclause (i) applies,

(A) the other provision shall be deemed to apply for the purposes of the application of sections 12 and 12.2, subsection 13 (7), paragraph 13 (7.1) (e), the definition of "I" in the definition of "undepreciated capital cost" in subsection 13 (21), subsection 14 (3), section 20, paragraphs 37 (1) (d) and (e), subparagraphs 53 (2) (c) (vi), (vii) and (viii) and 53 (2) (h) (ii), (iii) and (iv), sections 56 and 60, the definition of "L" in the definition of "cumulative Canadian exploration expense" in subsection 66.1 (6), section 66.8, paragraph 67.1 (2) (d), paragraph 84 (1) (c.3), section 88, the definition of "relevant tax factor" in subsection 95 (1), subsection 96 (2.1), paragraphs 110 (1) (k), 111 (1) (e) and 127.2 (6) (a), subsections 127.2 (8), 127.3 (6) and 128.1 (2), the definition of "Canadian property" in subsection 133 (8), subsection 137 (4.3), section 138, paragraph 138.1 (1) (k), section 248 and subsection 258 (5) of the Income Tax Act (Canada) for the purposes of this Act,

(B) subsections 192 (4.1) and 194 (4.1) of the Income Tax Act (Canada) shall be deemed to apply for the purposes of the application of subparagraph (b) (iii) of the definition of "paid-up capital" in section 89 of that Act for the purposes of this Act, and

(C) the other provision shall not apply for the purposes of the application of any provision of the Income Tax Act (Canada) for the purposes of this Act, except to the extent it is deemed to apply under sub-subclause (A) or (B),

(2)  Clause 1 (3) (d) of the Act is repealed.

(3)  Section 1 of the Act is amended by adding the following subsection:

Application of federal provisions referred to in federal provisions

(3.1)  The following rules apply if a provision of the Income Tax Act (Canada) is made applicable for the purposes of this Act and the provision refers to another provision of the Income Tax Act (Canada) (in this subsection called the "other provision"):

1. Subject to paragraph 3, if the other provision does not otherwise apply for the purposes of this Act, it shall apply for the purposes of the application of the following provisions of the Income Tax Act (Canada) for the purposes of this Act:

i. Section 12.

ii. Section 12.2.

iii. Subsection 13 (7), paragraph 13 (7.1) (e) and the definition of "I" in the definition of "undepreciated capital cost" in subsection 13 (21).

iv. Subsection 14 (3).

v. Section 20.

vi. Paragraphs 37 (1) (d) and (e).

vii. Clauses 53 (1) (e) (i) (B) and 53 (2) (c) (i) (B) and subparagraphs 53 (2) (c) (vi), (vii) and (viii) and 53 (2) (h) (ii), (iii) and (iv).

viii. Section 56.

ix. Section 60.

x. The definition of "L" in the definition of "cumulative Canadian exploration expense" in subsection 66.1 (6).

xi. Section 66.8.

xii. Paragraph 67.1 (2) (d).

xiii. Paragraph 84 (1) (c.3).

xiv. Section 88.

xv. The definition of "relevant tax factor" in subsection 95 (1).

xvi. Subsection 96 (2.1).

xvii. Paragraph 110 (1) (k).

xviii. Paragraph 111 (1) (e).

xix. Paragraph 127.2 (6) (a) and subsection 127.2 (8).

xx. Subsection 127.3 (6).

xxi. Subsection 128.1 (2).

xxii. The definition of "Canadian property" in subsection 133 (8).

xxiii. Subsection 137 (4.3).

xxiv. Section 138.

xxv. Paragraph 138.1 (1) (k).

xxvi. Section 248.

xxvii. Subsection 258 (5).

2. If the other provision is subsection 192 (4.1) or 194 (4.1), it shall apply for the purposes of the application of subparagraph (b) (iii) of the definition of "paid-up capital" in section 89 of the Income Tax Act (Canada) for the purposes of this Act.

3. If the other provision does not apply for the purposes of this Act because a provision of this Act is enacted to apply instead, the reference to the other provision in the provision of the Income Tax Act (Canada) that applies for the purposes of this Act shall be deemed to be a reference to the provision of this Act that applies instead.

4. If the application of the other provision for the purposes of this Act differs from the application of the other provision for the purposes of the Income Tax Act (Canada), the reference to the other provision in the provision of that Act shall be deemed to be a reference to the other provision as it applies for the purposes of this Act.

5. Despite paragraph 3, if the other provision is referred to in clause 53 (1) (e) (i) (B) or 53 (2) (c) (i) (B) of the Income Tax Act (Canada) or in the definition of "gross revenue" in subsection 248 (1) of that Act, the other provision shall apply for the purposes of the application of that clause or definition for the purposes of this Act.

6. Except as otherwise provided in paragraphs 1 to 5, if the other provision does not apply for the purposes of this Act, it shall not apply for the purposes of the application of any provision of the Income Tax Act (Canada) for the purposes of this Act.

(4)  Subsection 1 (12) of the Act is repealed.

2.  (1)  Subsections 2 (1) and (2) of the Act are repealed and the following substituted:

Taxes payable, resident corporation

(1)  Every corporation resident in Canada that has a permanent establishment in Ontario at any time in a taxation year shall pay to Her Majesty in right of Ontario the taxes for the taxation year imposed by this Act at the time and in the manner required by this Act.

Taxes payable, non-resident corporation

(2)  Every non-resident corporation shall pay to Her Majesty in right of Ontario the taxes for a taxation year imposed by this Act at the time and in the manner required by this Act if, at any time in the taxation year or in a previous taxation year,

(a) the corporation had a permanent establishment in Ontario within the meaning of section 4;

(b) the corporation owned real property, timber resource property or a timber limit in Ontario and the corporation's income from the property or timber limit,

(i) arose from the sale or rental of the property or timber limit, or

(ii) is a royalty or timber royalty; or

(c) the corporation disposed of property,

(i) that would be taxable Canadian property as defined in subsection 248 (1) of the Income Tax Act (Canada) if the reference in that definition to section 2 of that Act were read as a reference to this section, and

(ii) that is deemed under the regulations to be situated in Ontario.

(2)  Section 2 of the Act is amended by adding the following subsection:

Application of subss. (1) and (2)

(4)  Subsections (1) and (2) apply to corporations for taxation years ending after May 11, 2005 and subsections (1) and (2) as they read before that day continue to apply to corporations for taxation years ending on or before that day.

3.  (1)  Clause 11 (13) (a) of the Act is amended by striking out "subclause 1 (3) (d) (vi)" and substituting "paragraph 4 of subsection 1 (3.1)".

(2)  Clause 11 (17) (a) of the Act is amended by striking out "clause 1 (3) (d)" at the beginning and substituting "subsection 1 (3.1)".

4.  (1)  Subsection 14 (5) of the Act is repealed and the following substituted:

Adjustments to cost base

(5)  The following rules apply for the purposes of this Act in computing the adjusted cost base to a corporation of property as required under subsection (1):

1. If the property is a foreign resource property, the adjusted cost base of the property to the corporation,

i. shall be increased by the amount, if any, of the foreign exploration and development expenses incurred by the corporation after 1971 with respect to the property that has not been allowed as a deduction from income for the purposes of this Act, and

ii. shall be reduced by,

A. any amount that has become receivable by the corporation at a particular time in a taxation year as the result of a transaction that occurred after May 6, 1974 in which the consideration given by the corporation for the amount was property or services the original cost of which may reasonably be regarded as having been foreign exploration and development expenses, and

B. any amount required by subsection 80 (9) of the Income Tax Act (Canada) to be applied to reduce the adjusted cost base of the property at or before the end of the taxation year.

2. Clause 53 (2) (c) (ii) (B) of the Income Tax Act (Canada) applies, except that the clause shall be read without the words "and foreign resource pool expenses".

3. Subparagraph 53 (2) (k) (i) of the Income Tax Act (Canada) applies, except that the reference in clause 53 (2) (k) (i) (B) of that Act to section 65 shall be read as a reference to both section 65 of that Act and section 17 of this Act.

4. If the property is an interest in a partnership,

i. there shall be deducted in respect of each fiscal period of the partnership ending before that time all amounts deducted by the corporation for a taxation year commencing before that time,

A. under section 12 in respect of the corporation's share of the qualified expenditures made by the partnership in the fiscal period,

B. under section 13 in respect of the portion of the property of the partnership deemed to be eligible assets acquired by the corporation,

C. under section 13.1 in respect of an amount deducted under clause 11 (10) (a) by the partnership as an Ontario new technology tax incentive,

D. under sections 13.2 and 13.3 in respect of the corporation's share of the qualifying expenditures under each of those sections made by the partnership in the fiscal period,

E. under section 13.4 in respect of the corporation's share of the capital costs incurred by the partnership in the fiscal period, and

F. under section 13.5 in respect of the corporation's share of the amount described in subsection 13.5 (4), as determined under that subsection, and

ii. there shall be added in respect of each fiscal period of the partnership ending before that time all amounts included in the income of the corporation for a taxation year commencing before that time under subsection 12 (13) or section 11.1.

Exception

(5.1)  Despite paragraph 4 of subsection (5), if the corporation's partnership interest is in a limited partnership that had a non-capital loss for a fiscal period ending in a taxation year of the corporation, the following rules apply:

1. An amount described in subparagraph 4 i of subsection (5) shall be deducted from the adjusted cost base of the corporation's interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation's limited partnership loss for the taxation year.

2. An amount described in subparagraph 4 ii of subsection (5) shall be added to the adjusted cost base of the corporation's interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation's limited partnership loss for the taxation year.

(2)  Subsection 14 (8) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

5.  Subsection 17 (5) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

6.  Subsection 18 (16) of the Act is amended by striking out "clause 1 (3) (d)" and substituting "subsection 1 (3.1)".

7.  (1)  Section 31 of the Act is amended by adding the following subsection:

Application of s. 11.0.1

(1.2)  If a corporation holds a direct interest in and is a majority interest partner of a partnership at the end of a fiscal period of the partnership ending after December 31, 2002, the corporation's share of the income or loss of the partnership for the fiscal period in respect of that interest shall be the amount that would be determined if,

(a) section 11.0.1 applied to the partnership for the fiscal period on the basis that the partnership was a corporation and the fiscal period was its taxation year; and

(b) section 11.0.1 applied to any other partnership in which the corporation had an indirect interest through the partnership and of which the corporation is a majority interest partner at any time in the fiscal period on the basis that the partnership was a corporation and its fiscal period was its taxation year.

(2)  Subsections 31 (3) and (3.1) of the Act are repealed.

8.  Clause 32 (2) (a) of the Act is amended by striking out "clause 1 (3) (d)" at the beginning and substituting "subsection 1 (3.1)".

9.  (1)  Subsection 43.3 (3.5) of the Act is repealed.

(2)  Subsection 43.3 (3.6) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Rules for taxation years ending on or before May 11, 2005

(3.6)  The following rules apply for the purposes of subsection (3.2) for a taxation year that commences after December 8, 2002 and ends on or before May 11, 2005:

. . . . .

(3)  Section 43.3 of the Act is amended by adding the following subsection:

Rules for taxation years ending after May 11, 2005

(3.7)  The following rules apply for the purposes of subsection (3.2) for a taxation year ending after May 11, 2005:

1. A corporation that is required to compute its paid-up capital employed in Canada for a taxation year under Division C of Part III shall determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if it were a corporation resident in Canada.

2. A corporation that would be a financial institution, as defined in subsection 58 (2), in a taxation year if it carried on business in Canada and if it had been incorporated in Canada shall determine the amount that would be its adjusted taxable paid-up capital for the taxation year under Part III as if it were a financial institution, as defined in subsection 58 (2), that had a permanent establishment in Ontario.

3. A corporation that is a financial institution, as defined in subsection 58 (2), and that has a permanent establishment in Canada but not in Ontario in a taxation year shall determine the amount that would be its adjusted taxable paid-up capital for the taxation year under Part III as if it had a permanent establishment in Ontario.

4. A corporation that is an insurance corporation that was not resident in Canada at any time in a taxation year shall determine the amount that would be its taxable capital employed in Canada under Part I.3 of the Income Tax Act (Canada) as if it were resident in Canada at any time during the year.

5. A corporation that has a permanent establishment in Canada but not in Ontario shall, if the corporation is not a financial institution, as defined in subsection 58 (2), or an insurance corporation, determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if the corporation were resident in Canada and had a permanent establishment in Ontario.

6. A corporation that does not have a permanent establishment in Canada shall, if the corporation is not an insurance corporation or a corporation that would be a financial institution, as defined in subsection 58 (2), if it carried on business in Canada and had been incorporated in Canada, determine the amount that would be its taxable paid-up capital for the taxation year under Part III as if the corporation were resident in Canada and had a permanent establishment in Ontario.

7. The taxable income of a non-resident corporation that does not have a permanent establishment in Canada shall be determined, for the purposes of calculating the expenditure limit of the corporation under subsection 127 (10.2) of the Income Tax Act (Canada) as it applies for the purposes of subsection (3.2), in accordance with that Act as if it were subject to tax under that Act.

10.  (1)  Subsection 43.5 (4.1) of the Act is repealed and the following substituted:

Eligible credit for first-time production

(4.1)  A qualifying production company's eligible credit for a taxation year in respect of a first-time production for which principal photography commences after October 31, 1997 is the total of the amounts determined under subsections (4.2) and (4.3).

Same, expenditures before January 1, 2005 or after December 31, 2009

(4.2)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the total of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure that relates to expenditures incurred before January 1, 2005 or after December 31, 2009:

1. 30 per cent of the lesser of,

i. the amount by which $240,000 exceeds the company's qualifying labour expenditure, if any, for the production for the previous taxation year, and

ii. the company's qualifying labour expenditure for the taxation year for the production less its qualifying labour expenditure, if any, for the production for the previous year,

2. 20 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the sum of,

i. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii, and

ii. the company's qualifying labour expenditure, if any, for the production for the previous taxation year.

3. If the production is a regional Ontario production, 10 per cent of the amount by which "A" exceeds "B" where,

"A" is that portion of the company's qualifying labour expenditure for the taxation year for the production that is related to expenditures that are incurred after May 2, 2000, and

"B" is that portion of the company's qualifying labour expenditure for the previous taxation year for the production that is related to expenditures that are incurred after May 2, 2000.

Same, expenditures incurred after December 31, 2004 and before January 1, 2010

(4.3)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the total of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure that relates to expenditures incurred after December 31, 2004 and before January 1, 2010:

1. 40 per cent of the lesser of,

i. the amount by which $240,000 exceeds the sum of "C" and "D" where,

"C" is the company's qualifying labour expenditure, if any, for the production for the previous taxation year, and

"D" is the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.2) for the production for the taxation year in respect of the portion of the company's qualifying labour expenditure for the production that relates to expenditures incurred before January 1, 2005 or after December 31, 2009, and

ii. the company's qualifying labour expenditure for the taxation year for the production less its qualifying labour expenditure, if any, for the production for the previous year.

2. 30 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the sum of,

i. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii, and

ii. the company's qualifying labour expenditure, if any, for the production for the previous taxation year.

3. If the production is a regional Ontario production, 10 per cent of the amount by which "E" exceeds "F" where,

"E" is the company's qualifying labour expenditure for the taxation year for the production, and

"F" is the company's qualifying labour expenditure for the previous taxation year for the production.

Exception, tax credit rate

(4.4)  If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in paragraph 1, 2 or 3 of subsection (4.2) or paragraph 1, 2 or 3 of subsection (4.3), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that paragraph.

(2)  Subsections 43.5 (6.1) and (6.1.1) of the Act are repealed and the following substituted:

Productions commenced after October 31, 1997 other than first-time production

(6.1)  Subject to subsection (6.1.1), the eligible credit of a qualifying production company for a taxation year in respect of an eligible Ontario production that is not a first-time production and for which principal photography commences after October 31, 1997 is the total of,

(a) 20 per cent of the amount by which the company's qualifying labour expenditure for the taxation year in respect of the production exceeds its qualifying labour expenditure, if any, for the production for the previous taxation year, as determined in relation to expenditures that are incurred before January 1, 2005 or after December 31, 2009 and included in the Ontario labour expenditure for the taxation year in respect of the production; and

(b) 30 per cent of the amount by which the company's qualifying labour expenditure for the taxation year in respect of the production exceeds its qualifying labour expenditure, if any, for the production for the previous taxation year, as determined in relation to expenditures that are incurred after December 31, 2004 and before January 1, 2010 and included in the Ontario labour expenditure for the taxation year in respect of the production.

Same, regional Ontario production

(6.1.1)  The eligible credit of a qualifying production company for a taxation year that ends after May 2, 2000 in respect of an eligible Ontario production that is a regional Ontario production and that is not a first-time production is the sum of "A" and "B" where,

"A" is 40 per cent of the amount by which the company's qualifying labour expenditure for the taxation year for the production exceeds its qualifying labour expenditure, if any, for the previous taxation year, as determined in relation to expenditures that are incurred after December 31, 2004 and before January 1, 2010 and included in the Ontario labour expenditure for the taxation year in respect of the production, and

"B" is 30 per cent of the amount by which the company's qualifying labour expenditure for the taxation year for the production exceeds its qualifying labour expenditure, if any, for the previous taxation year, as determined in relation to expenditures that are included in the Ontario labour expenditure for the taxation year in respect of the production and are incurred after May 2, 2000 and before January 1, 2005 or incurred after December 31, 2009.

Exception

(6.1.2)  If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in subsection (6.1) or (6.1.1), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that subsection in respect of the period to which the prescribed percentage applies.

(3)  Subsections 43.5 (7), (8) and (9) of the Act are amended,

(a) by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation"; and

(b) by striking out "Minister of Citizenship, Culture and Recreation" wherever it appears and substituting in each case "Minister of Culture".

(4)  Section 43.5 of the Act is amended by adding the following subsections:

Regulations

(22)  The Lieutenant Governor in Council may make regulations,

(a) prescribing a percentage for the purposes of paragraph 1, 2 or 3 of subsection (4.2) or paragraph 1, 2 or 3 of paragraph (4.3) and the period of time after December 31, 2004 to which it applies;

(b) prescribing a percentage for the purposes of clause (6.1) (a) and the period of time after December 31, 2009 to which it applies;

(c) prescribing a percentage for the purposes of clause (6.1) (b) and the period of time after December 31, 2004 and before January 1, 2010 to which it applies;

(d) prescribing a percentage for the purposes of the definition of "A" in subsection (6.1.1) and the period of time after December 31, 2004 and before January 1, 2010 to which it applies;

(e) prescribing a percentage for the purposes of the definition of "B" in subsection (6.1.1) and the period of time after December 31, 2009 to which it applies.

Same

(23)  A regulation under subsection (22) may prescribe different percentages in respect of different time periods in which expenditures are incurred.

11.  (1)  Subsections 43.8 (4), (5) and (6) of the Act are amended by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation".

(2)  Subsection 43.8 (16) of the Act is repealed and the following substituted:

Eligible labour expenditure

(16)  The eligible labour expenditure of a qualifying corporation in respect of an eligible production for a taxation year is the sum of the amounts, if any, determined under the following paragraphs:

1. The amount equal to the lesser of,

i. the portion of the corporation's Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities in respect of the eligible production that relates to expenditures incurred before May 12, 2005, and

ii. the amount by which 48 per cent of the prescribed cost of eligible computer animation and special effects activities incurred by the corporation in the taxation year and before May 12, 2005 in respect of the eligible production exceeds the amount of all government assistance, if any, in respect of eligible computer animation and special effects activities the cost of which is incurred before May 12, 2005 and included in the cost or capital cost of the eligible production that, at the time the corporation's return is required to be delivered under subsection 75 (1) for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive.

2. The amount by which "A" exceeds "B" where,

"A" is the portion of the corporation's Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities of the eligible production that relates to expenditures incurred after May 11, 2005 and that is determined without reference to any equity investment in the production held by a Canadian government film agency, and

"B" is an amount in respect of assistance relating to expenditures incurred after May 11, 2005 with respect to the eligible production, other than excluded government assistance, that, at the time the qualifying corporation's return is required to be delivered under subsection 75 (1) for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive, equal to the sum of,

(a) the amount of the assistance directly attributable to the portion of the Ontario labour expenditure referred to in the definition of "A", and

(b) the amount determined by multiplying the amount of the assistance that is not directly attributable to the portion of the Ontario labour expenditure referred to in the definition of "A" by the ratio of the amount of that portion of the Ontario labour expenditure in respect of the production to the amount of the prescribed cost that is incurred after May 11, 2005 of eligible computer animation and special effects activities of the eligible production.

(3)  Paragraph 3 of the definition of "eligible production" in subsection 43.8 (17) of the Act is amended by striking out "Minister of Citizenship, Culture and Recreation" and substituting "Minister of Culture".

(4)  Subsection 43.8 (17) of the Act is amended by adding the following definitions:

"assistance" means an amount that would be included under paragraph 12 (1) (x) of the Income Tax Act (Canada) in computing a corporation's income for a taxation year if that paragraph were read without reference to subparagraphs (v) to (vii); ("aide")

"Canadian government film agency" means a federal or provincial government agency whose mandate relates to the provision of assistance to film productions in Canada; ("organisme cinématographique gouvernemental canadien")

"excluded government assistance" means the tax credits listed in clauses (a) to (f) of the definition of "government assistance" in this subsection; ("aide gouvernementale exclue")

(5)  The definition of "government assistance" in subsection 43.8 (17) of the Act is amended by striking out "or" at the end of clause (c) and by adding the following clauses:

(e) a co-operative education tax credit under section 43.4 to the extent that it relates to expenditures incurred after May 11, 2005, or

(f) an apprenticeship training tax credit under section 43.13 to the extent that it relates to expenditures incurred after May 11, 2005.

(6)  The definition of "Ontario Film Development Corporation" in subsection 43.8 (17) of the Act is repealed.

(7)  Section 43.8 of the Act is amended by adding the following subsection:

Ontario Media Development Corporation

(18)  A reference in this section to the Ontario Media Development Corporation includes a reference to such person as the Minister of Culture may designate to carry out the functions of the Ontario Media Development Corporation for the purposes of this section.

12.  (1)  Subsection 43.10 (4) of the Act is repealed and the following substituted:

Eligible credit

(4)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible production is the total of,

(a) 11 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred before January 1, 2005;

(b) 18 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after December 31, 2004 and before April 1, 2006;

(c) 11 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after March 31, 2006; and

(d) in the case of a regional Ontario production, 3 per cent of the portion of its Ontario labour expenditure in respect of the production for the taxation year, that relates to expenditures incurred after May 2, 2000 and before January 1, 2005.

Exception, tax credit rate

(4.1)  If a percentage is prescribed by the regulations for the purposes of clause (4) (b) or (4) (c), the percentage prescribed for the purposes of that clause and not the percentage set out in that clause shall apply in determining an amount under that clause in respect of the period to which the prescribed percentage applies.

(2)  Subsections 43.10 (6), (7) and (8) of the Act are amended,

(a) by striking out "Ontario Film Development Corporation" wherever it appears and substituting in each case "Ontario Media Development Corporation"; and

(b) by striking out "Minister of Citizenship, Culture and Recreation" wherever it appears and substituting in each case "Minister of Culture".

(3)  Section 43.10 of the Act is amended by adding the following subsections:

Regulations

(15.1)  The Lieutenant Governor in Council may make regulations,

(a) prescribing a percentage for the purposes of clause (4) (b) and the period of time after December 31, 2004 and before April 1, 2006 to which it applies;

(b) prescribing a percentage for the purposes of clause (4) (c) and the period of time after March 31, 2006 to which it applies.

Same

(15.2)  A regulation under subsection (15.1) may prescribe different percentages in respect of different time periods in which expenditures are incurred.

13.  Subsection 69 (2.5) of the Act is repealed and the following substituted:

Foreign corporation, taxation years ending on or before May 11, 2005

(2.5)  For the purposes of the definitions of "T" and "X" in subsection (2.4), if a corporation is incorporated under the laws of a jurisdiction outside Canada and its taxation year ends on or before May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.

Non-resident corporation, taxation years ending after May 11, 2005

(2.5.1)  For the purposes of the definitions of "T" and "X" in subsection (2.4), if a corporation is non-resident and its taxation year ends after May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.

Commencement

14.  (1)  Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Subsection 1 (1) shall be deemed to have come into force on December 1, 1991.

Same

(3)  Subsections 1 (2) and (3), section 3, subsection 4 (2), sections 5 and 6, subsection 7 (1) and section 8 shall be deemed to have come into force on January 1, 2003.

Same

(4)  Subsections 1 (4), 4 (1) and 7 (2) shall be deemed to have come into force on December 16, 2004.

Same

(5)  Sections 2, 9, 10, 11, 12 and 13 shall be deemed to have come into force on May 11, 2005.

SCHEDULE E
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

1.  Sections 15 and 15.1 of the Financial Administration Act are repealed and the following substituted:

Interim payments from CRF

Definition

15.  (1)  In this section,

"ministry" does not include a board, commission, authority, corporation or any other agency of the Government of Ontario the assets or revenues of which do not form part of the Consolidated Revenue Fund.

Eligible activities

(2)  This section applies if a ministry engages in any of the following activities:

1. Providing goods or services to another ministry, person or entity in exchange for payment of a fee or charge.

2. Permitting another ministry, person or entity to use property owned by the Crown in exchange for payment of a fee or charge.

3. Exercising a regulatory power or performing a regulatory duty and requiring regulated persons or entities to pay a fee, charge or assessment to the Crown for the purposes of cost recovery by the Crown.

4. Engaging in activities with respect to which, under a cost-sharing arrangement, the Crown will become entitled to receive funds from another person or entity or the ministry will become entitled to receive funds from an appropriation made to another ministry.

Interim payments

(3)  On the recommendation of the Minister of Finance, the Treasury Board may authorize the Minister of Finance to make interim payments from the Consolidated Revenue Fund to a ministry to pay the costs that the ministry incurs during a fiscal year in engaging in an activity described in subsection (2), but only if one or both of the following conditions is satisfied:

1. The corresponding payment, assessment or funds referred to in subsection (2) will be recovered or will become recoverable into the Consolidated Revenue Fund in the fiscal year in which the interim payment is made.

2. The interim payment will be charged or become chargeable to an appropriation relating to the fiscal year in which the interim payment is made.

Insufficient recovery

(4)  If any part of an interim payment (the "outstanding amount") is not recovered into the Consolidated Revenue Fund or charged to an appropriation by the time the books of the Government of Ontario for the fiscal year in which the interim payment is made are closed, the outstanding amount shall be repaid to the Consolidated Revenue Fund by a deduction from the ministry's appropriations for the following fiscal year and the deduction shall be made in such manner as the Minister of Finance considers appropriate.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on April 1, 2005.

SCHEDULE F
AMENDMENTS TO THE FREEDOM OF INFORMATION AND
PROTECTION OF PRIVACY ACT

1.  (1)  Subsection 2 (1) of the Freedom of Information and Protection of Privacy Act is amended by adding the following definition:

"educational institution" means an institution that is a board of governors of a college of applied arts and technology or that is a university; ("établissement d'enseignement")

(2)  If subsection 2 (1) of Schedule S to the Good Government Act, 2005 comes into force before the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent, subsection (1) is without effect.

(3)  Subsection 2 (1) of the Act is amended by adding the following definition:

"educational institution" means an institution that is a college of applied arts and technology or a university; ("établissement d'enseignement")

2.  Clause 18 (1) (h) of the Act is repealed and the following substituted:

(h) information relating to specific tests or testing procedures or techniques that are to be used for an educational purpose, if disclosure could reasonably be expected to prejudice the use or results of the tests or testing procedures or techniques;

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

Information with respect to closed meetings

18.1  (1)  A head may refuse to disclose a record that reveals the substance of deliberations of a meeting of the governing body or a committee of the governing body of an educational institution if a statute authorizes holding the meeting in the absence of the public and the subject-matter of the meeting,

(a) is a draft of a by-law, resolution or legislation; or

(b) is litigation or possible litigation.

Exception

(2)  Despite subsection (1), the head shall not refuse to disclose a record under subsection (1) if,

(a) the information is not held confidentially;

(b) the subject-matter of the deliberations has been considered in a meeting open to the public; or

(c) the record is more than 20 years old.

Application of Act

(3)  The exemption in subsection (1) is in addition to any other exemptions in this Act.

4.  Section 19 of the Act is repealed and the following substituted:

Solicitor-client privilege

19.  A head may refuse to disclose a record,

(a) that is subject to solicitor-client privilege;

(b) that was prepared by or for Crown counsel for use in giving legal advice or in contemplation of or for use in litigation; or

(c) that was prepared by or for counsel employed or retained by an educational institution for use in giving legal advice or in contemplation of or for use in litigation.

5.  (1)  Section 41 of the Act is amended by striking out "or" at the end of clause (b), by adding "or" at the end of clause (c) and by adding the following clause:

(d) subject to subsection (2), an educational institution may use personal information in its alumni records for the purpose of its own fundraising activities, if the personal information is reasonably necessary for the fundraising activities.

(2)  Section 41 of the Act is amended by adding the following subsections:

Notice on using personal information for fundraising

(2)  In order to use personal information in its alumni records for the purpose of its own fundraising activities, an educational institution shall,

(a) give notice to the individual to whom the personal information relates when the individual is first contacted for the purpose of soliciting funds for fundraising of his or her right to request that the information cease to be used for fundraising purposes;

(b) periodically and in the course of soliciting funds for fundraising, give notice to the individual to whom the personal information relates of his or her right to request that the information cease to be used for fundraising purposes; and

(c) periodically and in a manner that is likely to come to the attention of individuals who may be solicited for fundraising, publish a notice of the individual's right to request that the individual's personal information cease to be used for fundraising purposes.

Discontinuing use of personal information

(3)  An educational institution shall, when requested to do so by an individual, cease to use the individual's personal information under clause (1) (d).

6.  (1)  Section 42 of the Act is amended by striking out "and" at the end of clause (m), by adding "and" at the end of clause (n) and by adding the following clause:

(o) subject to subsection (2), an educational institution may disclose personal information in its alumni records for the purpose of its own fundraising activities if,

(i) the educational institution and the person to whom the information is disclosed have entered into a written agreement that satisfies the requirements of subsection (3), and

(ii) the personal information is reasonably necessary for the fundraising activities.

(2)  Section 42 of the Act is amended by adding the following subsections:

Notice on disclosing personal information for fundraising

(2)  In order to disclose personal information in its alumni records for the purpose of its own fundraising activities, an educational institution shall ensure that,

(a) notice is given to the individual to whom the personal information relates when the individual is first contacted for the purpose of soliciting funds for fundraising of his or her right to request that the information cease to be disclosed for fundraising purposes;

(b) periodically and in the course of soliciting funds for fundraising, notice is given to the individual to whom the personal information relates of his or her right to request that the information cease to be disclosed for fundraising purposes; and

(c) periodically and in a manner that is likely to come to the attention of individuals who may be solicited for fundraising, notice is published in respect of the individual's right to request that the individual's personal information cease to be disclosed for fundraising purposes.

Fundraising agreement

(3)  An agreement between an educational institution and another person for the disclosure of personal information in the educational institution's alumni records for fundraising activities must,

(a) require that the notice requirements in subsection (2) are met;

(b) require that the personal information disclosed under clause (1) (o) be disclosed to the individual to whom the information relates upon his or her request; and

(c) require that the person to whom the information is disclosed shall cease to use the personal information of any individual who requests that the information not be used.

7.  Clause 49 (c) of the Act is repealed and the following substituted:

(c) that is evaluative or opinion material compiled solely for the purpose of determining suitability, eligibility or qualifications for the awarding of government contracts and other benefits where the disclosure would reveal the identity of a source who furnished information to the institution in circumstances where it may reasonably have been assumed that the identity of the source would be held in confidence;

(c.1) if the information is supplied explicitly or implicitly in confidence and is evaluative or opinion material compiled solely for the purpose of,

(i) assessing the teaching materials or research of an employee of an educational institution or of a person associated with an educational institution,

(ii) determining suitability, eligibility or qualifications for admission to an academic program of an educational institution, or

(iii) determining suitability for an honour or award to recognize outstanding achievement or distinguished service;

8.  (1)  Subsection 65 (1) of the Act is repealed and the following substituted:

Application of Act

(1)  This Act does not apply to records placed in the archives of an educational institution or the Archives of Ontario by or on behalf of a person or organization other than,

(a) an institution as defined in this Act or in the Municipal Freedom of Information and Protection of Privacy Act; or

(b) a health information custodian as defined in the Personal Health Information Protection Act, 2004.

(2)  Section 65 of the Act is amended by adding the following subsections:

Same

(8)  This Act does not apply,

(a) to a record respecting or associated with research conducted or proposed by an employee of an educational institution or by a person associated with an educational institution; or

(b) to a record of teaching materials collected, prepared or maintained by an employee of an educational institution or by a person associated with an educational institution for use at the educational institution.

Exception

(9)  Despite subsection (8), the head of the educational institution shall disclose the subject-matter and amount of funding being received with respect to the research referred to in that subsection.

Application of Act

(10)  Despite subsection (8), this Act does apply to evaluative or opinion material compiled in respect of teaching materials or research only to the extent that is necessary for the purpose of subclause 49 (c.1) (i).

Commencement

9.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Subsections 1 (1) and (2) and sections 2 to 8 come into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

Same

(3)  Subsection 1 (3) comes into force on the later of the day that subsection 2 (1) of Schedule S to the Good Government Act, 2005 comes into force and the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE G
HIGHER EDUCATION QUALITY COUNCIL OF ONTARIO ACT, 2005

Definitions

1.  In this Act,

"Council" means the Higher Education Quality Council of Ontario established under section 2; ("Conseil")

"post-secondary educational institution" means a college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from the province for purposes of post-secondary education and any other institution prescribed by regulation; ("établissement d'enseignement postsecondaire")

"post-secondary education sector" includes all post-secondary educational institutions in Ontario; ("secteur postsecondaire")

"Minister" means the Minister of Training, Colleges and Universities. ("ministre")

Council

2.  (1)  A corporation without share capital is established under the name Higher Education Quality Council of Ontario in English and Conseil ontarien de la qualité de l'enseignement supérieur in French.

Members

(2)  The Council shall consist of the members of its board of directors.

Appointment of members

(3)  Subject to the regulations, the Lieutenant Governor in Council shall appoint no fewer than five and no more than seven members to the Council's board of directors.

Chair

(4)  The Minister shall designate one member to be the chair of the Council.

Ministry representative

(5)  At least one member of the Council shall be an employee of the Ministry of Training, Colleges and Universities, but that member shall not vote in the deliberations of the Council nor be designated chair.

Eligibility

(6)  A person may not be a member of the Council if the person is a member of the board or governing body of, or holds an executive or senior administrative position in,

(a) a post-secondary educational institution; or

(b) an association, advisory body or council established to promote the interests of such institutions or their employees or students.

Management of board

(7)  The affairs of the corporation shall be managed by the Council's board of directors.

No personal liability

3.  (1)  No action or other proceeding for damages may be instituted against any member of the Council or any one acting on behalf of the Council for any act done in the execution or intended execution of the person's duty or for any alleged neglect or default in the execution in good faith of the person's duty.

Crown liability

(2)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of any liability to which it would otherwise be subject in respect of a tort committed by a person referred to in subsection (1).

Crown agency

4.  The corporation is a Crown agency within the meaning of the Crown Agency Act.

Object

5.  The object of the Council is to assist the Minister in improving all aspects of the post-secondary education sector, including improving the quality of education provided in the sector, access to post-secondary education and accountability of post-secondary educational institutions.

Functions

6.  The functions of the Council are,

(a) to develop and make recommendations to the Minister,

(i) on targets to be achieved in improving the quality of post-secondary education, on the methods of achieving those targets and on the time frame for doing so, and

(ii) on performance measures to be used to evaluate the post-secondary education sector;

(b) to evaluate the post-secondary education sector, report to the Minister on the results of the evaluation and make the report available to the public;

(c) to conduct research on all aspects of post-secondary education with a view to helping the Council achieve its object, including research,

(i) on the development and design of various models of post-secondary education,

(ii) on the means of encouraging collaboration between various post-secondary educational institutions in general and in particular in matters relating to the recognition by such institutions of courses and programs of study provided at other such institutions, and

(iii) on other matters specified by the Minister; and

(d) to do such other things as may be prescribed by regulation.

Access to information

7.  A post-secondary educational institution shall provide the Council or a person designated by the Council with access to any information in its custody or control that the Council or person may require for the purpose of carrying out its object and functions.

Reports

8.  (1)  The Council shall deliver to the Minister,

(a) a yearly report on its activities, within 120 days of the end of its fiscal year; and

(b) any other reports required by the Minister, at such time as the Minister specifies.

Tabling

(2)  The Minister shall table the yearly report referred to in clause (1) (a) in the Legislative Assembly within 60 days after receiving it from the Council or, if at the end of the 60-day period the Assembly is not in session, at the beginning of the next session.

Regulations

9.  (1)  The Lieutenant Governor in Council may make regulations,

(a) prescribing institutions as post-secondary educational institutions for the purposes of this Act;

(b) governing the Council's constitution, management and structure, including the number of members of the board;

(c) prescribing objects of the Council in addition to the object described in section 5;

(d) prescribing functions of the Council in addition to those set out in section 6;

(e) respecting specific powers and duties of the Council and its members;

(f) respecting factors to be considered in appointing members;

(g) providing for the term of appointment and reappointment of Council members;

(h) respecting compensation for Council members;

(i) providing for a vice-chair of the Council;

(j) respecting the nature and scope of the yearly report required by section 8;

(k) respecting the frequency, nature and scope of reporting in addition to the yearly report required by section 8;

(l) respecting staff for the Council, including the status of Council staff, and their compensation;

(m) respecting funding for the Council;

(n) respecting audits of the statements and records of the Council;

(o) providing whether or not the Business Corporations Act, the Corporations Information Act or the Corporations Act or any provisions of those Acts apply to the Council;

(p) governing the procedures and administration of the Council;

(q) authorizing personal information to be collected by or on behalf of the Council other than directly from the individual to whom the information relates, and regulating the manner in which the information is collected;

(r) providing for anything necessary or advisable to facilitate the carrying out of the functions of the Council;

(s) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for carrying out the purposes and provisions of this Act.

Same

(2)  A regulation under this Act may be general or specific in its application, may create different categories or classes, and may make different provisions for different categories, classes or circumstances.

Same

(3)  A regulation authorized by clause (1) (m) may provide that the prescribed assets and revenues of the Council do not form part of the Consolidated Revenue Fund, despite Part I of the Financial Administration Act.

Commencement

10.  The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Short title

11.  The short title of the Act set out in this Schedule is the Higher Education Quality Council of Ontario Act, 2005.

SCHEDULE H
AMENDMENTS TO THE MINISTRY OF REVENUE ACT

1.  Section 7 of the Ministry of Revenue Act is amended by adding the following subsection:

Exception

(1.1)  The Minister is not permitted to delegate the Minister's powers under subsection 11 (2.1).

2.  Subsection 11 (2) of the Act is repealed and the following substituted:

Authority to remit

(2)  Despite any other Act, the Lieutenant Governor in Council, on the recommendation of the Minister, may remit any tax, fee or penalty if the Lieutenant Governor in Council considers it to be in the public interest to do so.

Same

(2.1)  Despite any other Act, the Minister may remit any tax, fee or penalty that is $10,000 or less if the Minister considers it to be in the public interest to do so.

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE I
AMENDMENT TO THE MINISTRY OF TRAINING, COLLEGES AND UNIVERSITIES ACT

1.  The Ministry of Training, Colleges and Universities Act is amended by adding the following section:

Fundraising

5.1  (1)  An educational institution may collect information about identifiable individuals from published or public sources for the purpose of its own fundraising activities, if the information is reasonably necessary for the fundraising activities.

Definition

(2)  For the purpose of this section,

"educational institution" means an educational institution as defined in subsection 2 (1) of the Freedom of Information and Protection of Privacy Act.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE J
AMENDMENT TO THE MUNICIPAL FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT

1.  Clause 38 (c) of the Municipal Freedom of Information and Protection of Privacy Act is repealed and the following substituted:

(c) that is evaluative or opinion material compiled solely for the purpose of determining suitability, eligibility or qualifications for the awarding of contracts and other benefits by an institution if the disclosure would reveal the identity of a source who furnished information to the institution in circumstances where it may reasonably have been assumed that the identity of the source would be held in confidence;

(c.1) if the information is supplied explicitly or implicitly in confidence and is evaluative or opinion material compiled solely for the purpose of determining suitability for an honour or award to recognize outstanding achievement or distinguished service;

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on the day that is 180 days after the Budget Measures Act, 2005 receives Royal Assent.

SCHEDULE K
ONTARIO LOAN ACT, 2005

Borrowing authorized

1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $7.1 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

(2)  The authority to borrow conferred by this Act is in addition to that conferred by any other Act.

Expiry

2.  (1)  No order in council authorizing borrowing under this Act shall be made after December 31, 2007.

Same

(2)  The Crown shall not borrow money after December 31, 2008 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2008,

(a) the Crown has entered into an agreement to borrow the money under the order in council; or

(b) the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

3.  The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Short title

4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2005.

SCHEDULE L
PRIVATE CAREER COLLEGES ACT, 2005

PART I
INTERPRETATION

Definitions

1.  (1)  In this Act,

"Minister" means the Minister of Training, Colleges and Universities or such other member of the Executive Council to whom the administration of this Act may be assigned under the Executive Council Act; ("ministre")

"prescribed" means prescribed by regulations made under this Act; ("prescrit")

"private career college" means an educational institution or other institution, agency or entity that provides one or more vocational programs to students for a fee and pursuant to individual contracts with the students, but does not include,

(a) a college of applied arts and technology established under any Act,

(b) a university established under any Act,

(c) a school as defined in subsection 1 (1) of the Education Act,

(d) any other school maintained under any other Act, or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class; ("collège privé d'enseignement professionel")

"registrant" means a person who is registered under this Act to operate a private career college, and "registered" and "registration" have corresponding meanings; ("inscrit", "inscription")

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

"Superintendent" means the Superintendent of private career colleges appointed under section 2; ("surintendant")

"Tribunal" means the Licence Appeal Tribunal; ("Tribunal")

"vocational program" means instruction in the skills and knowledge required in order to obtain employment in a prescribed vocation. ("programme de formation professionnelle")

Interpretation re fees

(2)  In this Act, a reference to a fee in relation to a vocational program or charged by or paid to a private career college includes any fee charged by a private career college, including an application, administrative or tuition fee.

PART II
ADMINISTRATION AND FINANCIAL MATTERS

Superintendent

2.  (1)  There shall be a Superintendent of private career colleges who shall be appointed by the Minister.

Duties

(2)  The Superintendent may exercise the powers and shall perform the duties conferred or imposed upon him or her by or under this Act.

Training Completion Assurance Fund

3.  (1)  A fund to be known as the Training Completion Assurance Fund in English and Fonds d'assurance pour l'achèvement de la formation in French shall be established in accordance with the regulations.

Purpose of Fund

(2)  The purpose of the Fund is to ensure that in the event a private career college ceases to provide a vocational program in which students are enrolled, the students,

(a) will be given the opportunity to complete the vocational program as provided by another private career college or by another institution, agency or entity; or

(b) will receive a refund of that portion of the fees they paid in relation to the program for which they did not receive any instruction or other benefit.

Administration of Fund

(3)  The Fund shall be administered in accordance with the regulations.

Advisory board

4.  (1)  An advisory board shall be established in accordance with the regulations.

Functions

(2)  The advisory board shall advise the administrators of the Training Completion Assurance Fund and shall perform such other functions as may be prescribed.

Premiums and levies

5.  (1)  Private career colleges shall pay premiums and levies for the purposes of the Training Completion Assurance Fund in the amounts, on the terms and at the times determined in accordance with the regulations.

Same

(2)  Different classes of private career colleges may be required to pay different premiums and levies and to meet different terms in respect of the premiums and levies, in accordance with the regulations.

Payment

(3)  Every private career college shall remit the premiums and levies it is required to pay within 30 days of receiving a notice of a premium or levy in accordance with the regulations.

Failure to pay

(4)  If a private career college fails to pay a premium or levy within the required time, it may be charged interest on the amount of the premium or levy in accordance with the regulations.

Security

6.  Every private career college shall comply with the regulations respecting the providing of security or other methods of protecting the financial interests of its students.

PART III
PROHIBITIONS

Prohibition against operating a private career college

7.  (1)  No person shall operate a private career college unless the person is registered.

Holding oneself out

(2)  No person shall hold themself out as the operator of a private career college unless the person is registered.

Prohibition against providing vocational programs

8.  (1)  No person shall offer or provide a vocational program for a fee unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Exception

(2)  Subsection (1) does not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

Prohibition against charging fee

9.  (1)  No person shall charge or collect a fee in relation to a vocational program unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Exception

(2)  Subsection (1) does not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

Prohibition against use of credentials

10.  No person shall grant to another person a credential set out in a policy directive issued by the Superintendent or represent that such a credential may be obtained from an educational institution or other institution, agency or entity unless the person is registered and both the provision of the vocational program leading to the credential and the granting of the credential have been approved by the Superintendent.

Restrictions on advertising and soliciting

11.  (1)  Subject to the regulations, no person shall advertise a private career college or the establishment of a private career college unless the person is registered.

Same

(2)  Subject to the regulations, no person shall advertise the provision of a vocational program at a private career college unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Soliciting students

(3)  No person shall solicit another person to enrol as a student in a vocational program provided by a private career college unless the person is registered and the provision of the vocational program has been approved by the Superintendent.

Use of term

(4)  No person shall make use of the term "private career college" or any derivation or abbreviation of the term in any advertising relating to an educational institution or other institution, agency or entity unless the person is registered.

Prohibition against court actions

12.  (1)  No action shall be brought against a student for a fee in relation to a vocational program unless the vocational program was provided by a private career college the operator of which is registered and the provision of the vocational program has been approved by the Superintendent.

Same

(2)  The court may stay any action described in subsection (1) upon motion.

Exception

(3)  Subsections (1) and (2) do not apply to,

(a) a college of applied arts and technology established under any Act;

(b) a university established under any Act;

(c) a school as defined in subsection 1 (1) of the Education Act;

(d) any other school maintained under any other Act; or

(e) a prescribed institution, agency or entity or an institution, agency or entity belonging to a prescribed class.

PART IV
REGISTRATION

Application

13.  An application to be registered or to renew a registration shall be in a form approved by the Superintendent and shall contain such information as the Superintendent may require.

Registration

14.  (1)  The Superintendent shall register an applicant to operate a private career college and shall renew an applicant's registration if the Superintendent is satisfied that,

(a) it is in the public interest to grant the registration or to renew the registration;

(b) the applicant will operate the private career college in compliance with this Act and the regulations;

(c) the vocational programs that are provided, or are proposed to be provided, by the private career college meet, or are likely to meet, the requirements of this Act and the regulations;

(d) having regard to the applicant's financial position, the applicant can be expected to be financially responsible in the operation of the private career college;

(e) the past conduct of the applicant or, if the applicant is a corporation, of its officers and directors, provides grounds for the belief that the private career college will be operated in accordance with the law and with integrity and honesty; and

(f) the applicant is not carrying on activities that are, or will be, if the applicant is registered, in contravention of this Act or the regulations.

Criteria for public interest

(2)  In determining whether it is in the public interest to register a person or renew a registration under subsection (1), the Superintendent shall consider the prescribed criteria.

Several locations

(3)  If an applicant intends to provide a vocational program at more than one location, the Superintendent may register the applicant to operate one private career college at the several locations.

Certificate of registration

(4)  Upon registering a person to operate a private career college, the Superintendent shall issue a certificate of registration to the person.

Conditions

15.  (1)  A registration or renewal of a registration may be made subject to conditions specified by the Superintendent or prescribed by regulation.

Changes to conditions

(2)  The Superintendent may at any time, at the written request of the registrant or on his or her own initiative, add a condition to a registration or change or remove a condition of a registration that he or she had previously specified.

Registrant to comply with conditions

(3)  The registrant shall operate the private career college in accordance with the conditions applicable to the registrant's registration or renewal of registration.

Registration not transferable

16.  A registration is not transferable to another person.

Expiry of registration

17.  (1)  A first registration under this Act expires on the date specified in the registration.

Same

(2)  A renewal of a registration expires on the first anniversary of the date of the renewal.

Continuance pending renewal

(3)  If a registration expires after the application for renewal is made but before the Superintendent makes a decision with respect to the application for renewal, the registration shall continue,

(a) until the renewal is granted; or

(b) if the Superintendent proposes to refuse the renewal under section 18,

(i) until the time for requiring a hearing by the Tribunal under subsection 19 (3) expires, or

(ii) if a hearing is required, until the Tribunal makes its order.

Refusal to register

18.  (1)  Subject to section 19, the Superintendent may refuse to register an applicant if he or she is not satisfied that all of the requirements described in subsection 14 (1) are met.

Revocation, suspension, refusal to renew

(2)  Subject to section 19, the Superintendent may refuse to renew a registration or may suspend or revoke a registration if,

(a) the Superintendent believes that a requirement described in subsection 14 (1) is no longer met;

(b) the registrant has breached a condition of the registration;

(c) the registrant has failed to comply with a provision of this Act or the regulations;

(d) no students have enrolled in any vocational programs at the private career college for at least two successive periods of the college's registration under this Act; or

(e) the registrant has failed to pay a penalty imposed by notice of contravention under section 39.

Notice of refusal or revocation

19.  (1)  The Superintendent shall give the applicant or registrant notice in writing if he or she proposes to,

(a) refuse to register the applicant or refuse to renew the registrant's registration; or

(b) suspend or revoke the registrant's registration.

Content of notice

(2)  A notice under subsection (1) shall set out the reasons for the proposed action and shall inform the applicant or registrant that the applicant or registrant is entitled to a hearing by the Tribunal if, within 15 days after service of the notice under this section, the applicant or registrant gives written notice to that effect to the Superintendent and the Tribunal.

Entitlement to hearing

(3)  If an applicant or registrant receives notice of a proposed action under subsection (1), the applicant or registrant is entitled to a hearing by the Tribunal if, within 15 days after service of the notice, the applicant or registrant gives written notice to that effect to the Superintendent and the Tribunal.

Where no hearing

(4)  If an applicant or registrant does not require a hearing by the Tribunal, the Superintendent may carry out the proposal specified in the notice.

Where hearing required

(5)  If an applicant or registrant gives notice requiring a hearing under subsection (3), the Tribunal shall appoint a time for and hold a hearing.

Powers of Tribunal

(6)  At a hearing under subsection (5), the Tribunal may, by order, direct the Superintendent,

(a) to carry out the proposal specified in the notice;

(b) to refrain from carrying out the proposal;

(c) to attach such conditions to a registration as the Tribunal considers appropriate; or

(d) to take such other action as the Tribunal considers appropriate.

Parties

(7)  The Superintendent, the applicant or registrant that has required the hearing and such other persons as the Tribunal may specify are parties to the proceedings before the Tribunal under this section.

Oral evidence

(8)  The oral evidence taken before the Tribunal at a hearing shall be recorded and, if so required, copies of a transcript of the oral evidence shall be furnished upon the same terms as in the Superior Court of Justice.

Appeal to court

(9)  Any party to a hearing before the Tribunal may appeal from the decision of the Tribunal to the Divisional Court.

Minister entitled to be heard

(10)  The Minister is entitled to be heard, by counsel or otherwise, upon the argument of an appeal under this section.

Record to be filed in court

(11)  The chair of the Tribunal shall certify to the Superior Court of Justice the record of the proceedings before the Tribunal which, together with a transcript of the evidence before the Tribunal if it is not part of the Tribunal's record, shall constitute the record in the appeal.

Powers on appeal

(12)  The Divisional Court may confirm or alter the decision of the Tribunal or direct the Superintendent to do any act the court considers appropriate.

No stay on appeal

(13)  An appeal from a decision of the Tribunal to the Divisional Court does not operate as a stay in the matter unless the Tribunal or the Divisional Court orders a stay of the decision.

Immediate suspension

20.  (1)  The Superintendent may suspend a registration immediately by giving the registrant a notice of immediate suspension if the Superintendent is of the opinion that it is necessary to do so,

(a) for the immediate protection of the interests of the students or prospective students of the private career college; or

(b) to prevent a contravention of an Act of the Legislature or of Canada.

Content of notice

(2)  A notice of immediate suspension shall set out,

(a) the reasons for the immediate suspension;

(b) any additional action described in subsection 19 (1) that the Superintendent proposes to take; and

(c) the right to require a hearing by the Tribunal if, within 15 days after service of the notice, the registrant gives written notice to that effect to the Superintendent and the Tribunal.

Hearing and appeal

(3)  Subsections 19 (3) and (5) to (13) apply with necessary modifications to an immediate suspension and subsections 19 (2) to (13) apply with necessary modifications to any additional action described in subsection 19 (1) that the Superintendent proposes to take.

Suspension immediate and not stayed by hearing

(4)  An immediate suspension is effective immediately upon giving the registrant the written notice of the suspension and is not stayed by a request for a hearing by the Tribunal.

Lifting of suspension

(5)  The Superintendent or the Tribunal may order that an immediate suspension be lifted upon being satisfied that the reasons for the suspension no longer exist.

Application for registration after refusal, revocation

21.  (1)  A person who is refused registration may reapply for registration at any time if the person satisfies the Superintendent that there has been a material change in the person's circumstances.

Same

(2)  A person who is refused renewal of registration or the registration of which is revoked may reapply for registration if the person satisfies the Superintendent that there has been a material change in the person's circumstances, but the person may not reapply for registration until two years have elapsed since the renewal was refused or the revocation took effect.

Surrender of registration

22.  A registrant may surrender the registrant's registration at any time by giving the Superintendent written notice of the surrender accompanied by the certificate of registration.

PART V
APPROVAL OF VOCATIONAL PROGRAMS

Approval required to provide vocational programs

23.  (1)  It is a condition of every registration that the private career college only provide those vocational programs for which it has received the approval of the Superintendent under this section.

Same

(2)  An application for approval to provide a specified vocational program shall be in a form approved by the Superintendent and shall contain such information as the Superintendent may require.

Same

(3)  The Superintendent shall approve the provision of a specified vocational program by a private career college if the Superintendent is satisfied that,

(a) the program will provide the skills and knowledge required in order to obtain employment in a prescribed vocation; and

(b) the program is likely to meet the applicable standards and performance objectives set out in the Superintendent's policy directives.

Conditions

(4)  The Superintendent may approve the provision of a specified vocational program by a private career college subject to such conditions as the Superintendent may specify and may, as a condition of the approval, specify performance indicators for the vocational program and standards and performance objectives that the vocational program must meet in addition to the performance indicators, standards and performance objectives set out in the Superintendent's policy directives.

Duration of approval

(5)  The approval to provide a specified vocational program shall be valid for a prescribed period or for a period determined in accordance with the regulations and may be renewed upon application.

Changes to vocational programs

(6)  A private career college shall not make a substantial change to a vocational program that it has been approved to provide without the further approval of the Superintendent.

Same

(7)  Subsections (2) to (5) apply with necessary modifications to an application for approval of a substantial change to a vocational program and to an application to renew an approval.

Non-vocational programs

(8)  Nothing in this section affects the right of a private career college to provide programs that are not vocational programs.

Revocation of vocational program approval

24.  (1)  The Superintendent may revoke a private career college's approval to provide a specified vocational program if the Superintendent believes that the program fails to meet the conditions of the approval or the applicable standards or performance objectives set out in the Superintendent's policy directives.

Notice

(2)  The Superintendent shall give a registrant notice in writing of the revocation of approval.

Effective date

(3)  The revocation of approval is effective upon the registrant being served with the notice under subsection (2), or on such other date specified in the notice.

Credentials

25.  Upon approving the provision of a specified vocational program by a private career college, the Superintendent shall also approve the credential that the college may grant a student who successfully completes the program, in accordance with the policy directives issued by the Superintendent.

Information re performance indicators, objectives

26.  Every private career college shall make public, at the times and in the manner determined in accordance with the Superintendent's policy directives, the information required by the policy directives relating to the performance indicators and performance objectives applicable to the college's vocational programs.

PART VI
OPERATION OF PRIVATE CAREER COLLEGES

Duties of Registrant

Duties of registrant

27.  (1)  Every registrant shall operate a private career college in accordance with this Act and the regulations.

Same

(2)  The registrant is responsible for complying with the obligations imposed on a private career college under this Act.

Protection of Student Interests

Contract to be in writing

28.  (1)  Every private career college shall ensure that each contract entered into by the college and a student for the provision of one or more vocational programs for a fee is in writing.

Copy to student

(2)  Every private career college shall give each student who has entered into such a contract with the college a copy of that student's contract in accordance with the regulations.

Fee refund policy

29.  (1)  Every private career college shall adopt a policy relating to the refund of fees paid by students to the college.

Content of policy

(2)  The fee refund policy shall include the prescribed provisions, including prescribed provisions respecting the refund of fees paid by international students.

Inclusion in contracts

(3)  The private career college shall include its fee refund policy in every contract entered into by the private career college and a student.

Definition

(4)  In this section,

"international student" means an individual who applied for or received a temporary resident visa as a member of the student class under the Immigration and Refugee Protection Act (Canada).

Access to transcripts

30.  (1)  Every private career college shall ensure that each of its students and former students has access to his or her transcripts for at least 25 years after the student terminates studies at the college.

Same

(2)  Every private career college shall follow the prescribed rules and practices to ensure that its students and former students have access to their transcripts.

Limitation

(3)  Subsections (1) and (2) only apply in respect of students who are enrolled in a private career college or who terminate studies at a private career college on or after the day this section comes into force.

Complaint procedure

31.  (1)  Every private career college shall establish a procedure to resolve student complaints.

Content of procedure

(2)  The student complaint procedure shall include the prescribed procedures and rules.

Inclusion in contracts

(3)  The private career college shall include its student complaint procedure in every contract entered into by the private career college and a student.

Statement of students' rights and responsibilities

32.  The private career college shall include the statement of students' rights and responsibilities developed by the Superintendent under section 54 in every contract made between the private career college and a student.

General

Advertising

33.  A private career college shall not advertise the college or any vocational programs offered or provided by the college or permit such an advertisement unless the advertisement complies with such standards as may be prescribed.

Notice of change

34.  (1)  Every private career college shall, within five days after the event, notify the Superintendent in writing of,

(a) any change in,

(i) if the registrant for the college is a corporation, the officers or directors of the corporation,

(ii) if the registrant for the college is a partnership, the membership of the partnership; and

(b) any other prescribed change.

Same

(2)  Every private career college shall, at least 10 days before the event, notify the Superintendent in writing of,

(a) any proposed change in its address for service or in its legal or operating name; and

(b) any other proposed prescribed change.

Sale of students' goods and services

35.  (1)  A private career college shall not sell or permit the sale of the goods or services of a student of the college except as provided in subsections (2) and (3).

Same

(2)  A private career college may sell any goods produced or created by a student in the course of a vocational program provided by the college and may provide a student's services to the public or arrange for the provision of such services to the public if the goods are produced or created or the services are provided in order to satisfy the occupational training and experience requirements of a vocational program.

No profit

(3)  The amount for which a student's goods or services may be sold shall not exceed the amount of the following costs incurred by the private career college, as may be applicable:

1. The costs of any materials or facilities provided by the college and used by the student in producing, creating or selling the goods.

2. The costs of providing or arranging for the provision of the services to the public.

Rescission of contract

36.  (1)  Any person who enters into a written contract with a private career college to receive instruction in a vocational program may rescind the contract by delivering a written notice of rescission to the private career college within two days after the person receives a copy of the contract as required by subsection 28 (2).

Address of private career college

(2)  A notice of rescission shall be delivered to the private career college at the address shown in the contract.

Return of goods and money

(3)  A person who delivers a notice of rescission shall immediately return any goods received under the contract and the private career college shall return any money received under the contract.

Meetings with students

37.  (1)  The Superintendent or his or her designate may at any time hold a meeting with the students and prospective students of a private career college to advise the students and prospective students of any issues affecting the college and of their rights under this Act.

Same

(2)  A meeting under subsection (1) may be held at any location specified by the Superintendent or his or her designate, including at the private career college and, in that case, the private career college shall permit the meeting to be held at the college.

PART VII
ENFORCEMENT

Inquiries and Examinations

Inquiries and examinations

Of registrants

38.  (1)  The Superintendent or a person designated by the Superintendent may make inquiries and conduct examinations of the affairs of a registrant to ensure that the registrant is complying with the conditions of the registrant's registration and the requirements of this Act and the regulations.

Of other persons

(2)  If, in the Superintendent's opinion, a person that is not a registrant is or was required to be registered, the Superintendent or a person designated by the Superintendent may make such inquiries and conduct such examinations of the person's affairs as the Superintendent or designate considers appropriate in the circumstances.

Powers

(3)  The Superintendent or designate may, without a warrant, do any of the following things in the course of making an inquiry or conducting an examination:

1. Enter and inspect any premises used in connection with the registrant's or person's business or activities.

2. Photograph the premises.

3. Inspect documents or other things that may be relevant to the inquiry or examination.

4. Require a person to answer questions about anything that may be relevant to the inquiry or examination.

5. Require a person to produce a document, record or other thing and provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce information.

6. In order to produce information, use any data storage, processing or retrieval device or system that is used in connection with the registrant's or person's business or activities.

7. Remove for examination and copying anything that may be relevant to the inquiry or examination, including removing any data storage, processing or retrieval device in order to produce information.

8. Observe instruction given in a program and activities of students in producing or creating goods and providing services that appear to be part of the program.

9. Take samples of materials, books, lessons and equipment used in providing a program.

Entry into dwelling

(4)  The Superintendent or designate shall not enter any part of a premises that is used as a dwelling without a warrant unless the occupant consents to the entry.

Time of entry

(5)  The power to enter and inspect premises without a warrant may be exercised only during the regular business hours of the premises or during daylight hours if there are no regular business hours.

Duty to assist

(6)  If the Superintendent or designate requires a person to answer questions, to produce a document, record or other thing or to provide assistance, the person shall do so in the manner and within the period specified by the Superintendent or designate.

Receipt for things removed

(7)  The Superintendent or designate shall give a receipt for anything that he or she removes for examination or copying and the Superintendent or designate shall promptly return the thing to the person who produced it.

Identification

(8)  Upon request, the designate shall produce evidence of his or her designation.

Copy admissible in evidence

(9)  A copy of a record that purports to be certified by the Superintendent or designate as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Obstruction

(10)  No person shall hinder, obstruct or interfere with the Superintendent or designate conducting an inquiry or examination, refuse to answer questions on matters relevant to the inquiry or examination or provide the Superintendent or designate with information on matters relevant to the inquiry or examination that the person knows to be false or misleading.

Report to Superintendent

(11)  A designate shall report to the Superintendent on the results of each inquiry or examination.

Administrative Penalties

Notice of contravention

39.  (1)  If the Superintendent or person designated by the Superintendent believes that a person has contravened a prescribed provision of this Act or the regulations, the Superintendent or designate may issue a notice of contravention to the person setting out his or her belief and requiring the person to pay the administrative penalty prescribed for the contravention in question.

Purpose of administrative penalty

(2)  The following are the purposes for which a person may be required to pay an administrative penalty under this section:

1. To encourage compliance with this Act and the regulations.

2. To encourage compliance with an order made under section 46.

3. To prevent a person from deriving, directly or indirectly, any economic benefit as a result of a contravention of this Act or the regulations.

Amount of administrative penalty

(3)  The amount of an administrative penalty prescribed for a contravention shall reflect the purposes referred to in subsection (2).

One-year limitation

(4)  A notice of contravention shall not be issued under this section more than one year after the contravention first came to the knowledge of the Superintendent or his or her designate.

Content of notice of contravention

(5)  The notice of contravention shall,

(a) contain or be accompanied by information setting out the nature of the contravention;

(b) set out the amount of the penalty to be paid and specify the time and manner of the payment; and

(c) inform the person of his or her right to request a review of the notice by the Minister.

Right to review

(6)  A person who receives a notice of contravention may require the Minister to review the notice of contravention by applying to the Minister for a review in a form approved by the Superintendent,

(a) within 15 days after receipt of the notice of contravention; or

(b) if the Minister considers it appropriate in the circumstances to extend the time for applying, within the period specified by the Minister.

If no review requested

(7)  If a person who has received a notice of contravention does not apply for a review under subsection (6), the person shall pay the penalty within 30 days after the day the notice of contravention was served.

If review requested

(8)  If a person who has received a notice of contravention applies for a review under subsection (6), the Minister shall conduct the review in accordance with the regulations.

Minister's decision

(9)  Upon a review, the Minister may,

(a) find that the person did not contravene the provision of this Act or regulations specified in the notice of contravention and rescind the notice;

(b) find that the person did contravene the provision of this Act or regulations specified in the notice of contravention and affirm the notice; or

(c) find that the person did contravene the provision but that the prescribed penalty is excessive in the circumstances and amend the notice by reducing the amount of the penalty.

Decision final

(10)  A decision by the Minister is final.

Payment after review

(11)  If the Minister finds that a person has contravened the provision of this Act or regulations specified in the notice of contravention, the person shall pay the penalty required by the Minister within 30 days after the day of the Minister's decision.

Payment to Minister of Finance

(12)  A person who is required to pay a penalty under this section shall pay the penalty to the Minister of Finance.

Enforcement of administrative penalty

40.  (1)  If a person who is required to pay an administrative penalty under section 39 fails to pay the penalty within the time required under subsection 39 (7) or (11), the notice of contravention or the Minister's decision, as the case may be, may be filed with a local registrar of the Superior Court of Justice and may be enforced as if it were an order of the court.

Same

(2)  Section 129 of the Courts of Justice Act applies in respect of a notice of contravention or decision filed with the Superior Court of Justice under subsection (1) and, for the purpose, the date on which the notice of contravention or decision is filed under subsection (1) shall be deemed to be the date of the order that is referred to in section 129 of the Courts of Justice Act.

Crown debt

41.  An administrative penalty imposed under section 39 that is not paid within the time required under that section is a debt due to the Crown and enforceable as such.

Superintendent may authorize collector

42.  (1)  The Superintendent may authorize any person to act as a collector for the purposes of this section and sections 43 and 44 and to exercise the powers that the Superintendent specifies in the authorization to collect administrative penalties owing under this Act.

Costs of collection

(2)  Despite clause 22 (a) of the Collection Agencies Act, the Superintendent may also authorize a collector to collect a reasonable fee or reasonable disbursements or both from each person from whom the collector seeks to collect administrative penalties owing under this Act. 

Same

(3)  The Superintendent may impose conditions on an authorization under subsection (2) and may determine what constitutes a reasonable fee or reasonable disbursements for the purposes of that subsection.

Exception re disbursements

(4)  The Superintendent shall not authorize a collector who is required to be registered under the Collection Agencies Act to collect disbursements. 

Collector's powers

43.  (1)  A collector may exercise any of the powers specified in an authorization of the Superintendent under section 42.

Fees and disbursements part of order

(2)  If a collector is seeking to collect an administrative penalty owing under a notice of contravention, any fees and disbursements authorized under subsection 42 (2) shall be deemed to be owing under and shall be deemed to be added to the amount of the penalty set out in the notice of contravention. 

Distribution of money collected

(3)  A collector shall pay the amount collected under this section with respect to the penalty to the Minister of Finance and may retain the amount collected with respect to the collector's fees and disbursements.

Settlement by collector

44.  (1)  A collector may agree to a settlement with the person from whom he or she seeks to collect money, but only with the written agreement of the Superintendent.

Payment

(2)  The person who owes money under a settlement shall pay the amount agreed upon to the collector, who shall pay it out in accordance with subsection 43 (3). 

Other means not a bar

45.  The Superintendent or a person designated by the Superintendent may issue a notice of contravention to a person under subsection 39 (1) even though an order has been made or may be made against the person under section 46 or 47 or the person has been or may be prosecuted for or convicted of an offence with respect to the same contravention.

Restraining and Compliance Orders

Superintendent's orders

46.  (1)  If the Superintendent believes that a person has contravened this Act or the regulations, the Superintendent may order the person to restrain from contravening this Act or the regulations.

Same

(2)  If the Superintendent believes that a registrant has breached a condition of the registrant's registration or has otherwise contravened or failed to comply with a provision of this Act or the regulations, the Superintendent may order the registrant to comply with the conditions of the registration or with the provisions of this Act or the regulations.

Restraining orders by court

47.  (1)  On the application of the Superintendent, a judge of the Superior Court of Justice may make an order to restrain a person from contravening this Act or the regulations if the court is satisfied that there are reasonable grounds to believe that the person has contravened or is likely to contravene this Act or the regulations.

Interim order

(2)  In a proceeding under subsection (1), a judge may, on application of the Superintendent, grant an interim order described in that subsection if the judge believes, based on the evidence before him or her, that it is in the public interest to do so.

Same

(3)  A judge may grant an interim order even though the Superintendent has not established that irreparable harm will be done if the order is not issued.

Same

(4)  A judge shall not require the Superintendent to post a bond or give an undertaking as to damages when granting an interim order.

Other means not a bar

(5)  An order may be granted under subsection (1) even though a notice of contravention has been or may be issued to the person under subsection 39 (1), an order has been or may be issued to the person under section 46 or the person has been or may be prosecuted for or convicted of an offence with respect to the same contravention.

Offences

Offences

48.  (1)  Every person is guilty of an offence if the person,

(a) knowingly furnishes false information in any application under this Act or in any statement or return required to be furnished under this Act;

(b) fails to comply with any order, direction or other requirement made under this Act; or

(c) contravenes any provision of this Act or the regulations.

Penalty

(2)  A person who is guilty of an offence under subsection (1) is liable on conviction,

(a) in the case of an individual, to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both; and

(b) in the case of a corporation, to a fine of not more than $100,000.

Officers and directors of corporation

(3)  Every director or officer of a corporation who knowingly concurs in the commission of an offence under subsection (1) by the corporation is guilty of an offence and on conviction is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both.

Limitation

(4)  No proceeding under clause (1) (a) shall be commenced more than one year after the facts upon which the proceeding is based first came to the knowledge of the Superintendent.

Same

(5)  No proceeding under clause (1) (b) or (c) shall be commenced more than two years after the time when the subject-matter of the proceeding arose.

PART VIII
GENERAL

Publication of information

Refusals and contraventions

49.  (1)  The Superintendent shall publish particulars of,

(a) every refusal to renew a registration and every suspension or revocation of a registration once the period under subsection 19 (3) to require a hearing by the Tribunal in respect of a proposal to take such action has expired or, if such a hearing has been required, once the Tribunal has made its order;

(b) every notice of contravention issued under subsection 39 (1) once the period to apply for a review of the notice of contravention under subsection 39 (6) has expired or, if such a review has been required, once the Minister has made his or her decision; and

(c) every decision of the Minister under subsection 39 (9).

Orders

(2)  The Superintendent may publish particulars of any order made under section 46 or 47.

Program approvals

(3)  The Superintendent shall publish the name of the private career college, the name of the vocational program and the credential that may be granted on successful completion of the program for every approval given for a private career college to provide a specified vocational program.

Performance indicators, objectives

(4)  The Superintendent shall publish such information respecting performance indicators and performance objectives for every private career college as he or she considers appropriate.

Policy directives, statement of students' rights and responsibilities

(5)  The Superintendent shall publish the policy directives issued by him or her under section 53 and the statement of students' rights and responsibilities developed by him or her under section 54.

Methods of publication

(6)  The material that the Superintendent is required or authorized to publish under this section shall be posted on the Ministry of Training, Colleges and Universities website and may be published in such other manner as the Superintendent considers advisable.

Posting of information

(7)  The Superintendent may also post a copy of anything published under this section in a conspicuous place at the premises of the private career college to which it relates.

Same

(8)  No person shall remove the copy of the publication posted under subsection (7) unless they do so at the written direction, or with the written approval, of the Superintendent.

Information and disclosure

50.  (1)  For the purpose of carrying out his or her responsibilities under this Act, the Superintendent may require a private career college or an applicant for registration to provide the Superintendent with information, including personal information within the meaning of section 38 of the Freedom of Information and Protection of Privacy Act or section 2 of the Personal Information Protection and Electronic Documents Act (Canada), in respect of students, officers, directors or employees of the private career college.

Limitation

(2)  The personal information in respect of students that may be required under subsection (1) shall be limited to students' names, addresses, phone numbers and other contact information and shall be used only,

(a) for the purpose of contacting students to advise them of their rights under this Act, including the provisions respecting the protection of students' financial interests;

(b) for the purpose of collecting information on the performance indicators applicable to vocational programs provided by private career colleges; or

(c) for the purpose of determining whether the private career college has met the performance objectives applicable to its vocational programs under section 23.

Consent to release of information

(3)  Every private career college shall include in every contract for the provision of a vocational program the prescribed wording for the student to consent, or to refuse to consent, to the release of his or her personal information as described in subsection (2) to the Superintendent for any or all of the purposes set out in that subsection.

Service

51.  (1)  Any notice, order or other document that is required to be given, issued, delivered or served under this Act or the regulations shall be given, issued, delivered or served only,

(a) by personal delivery;

(b) by mail addressed to the person's last known business or residential address using a method of mail delivery that permits the delivery to be verified; or

(c) by fax of the document or by electronic mail if the person is equipped to receive such transmissions.

Same, corporations

(2)  If the person receiving a notice, order or other document is a corporation, the notice or order may be given, issued, delivered or served,

(a) on a director or officer of the corporation or on any manager, secretary or other person apparently in charge of any business premises of the corporation using any method described in subsection (1); or

(b) on the corporation at its last known business address using one of the methods described in clause (1) (b) or (c).

Deemed receipt

(3)  If a notice, order or other document is given, issued, delivered or served by mail, it shall be deemed to be received on the third day after the day of mailing unless the person to whom it is given, issued, delivered or served establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person's control, receive the notice, order or other document until a later date.

Same

(4)  A notice, order or other document that is given, issued, delivered or served by a means described in clause (1) (c) on a Saturday, Sunday or a public holiday or on any other day after 5 p.m. shall be deemed to have been received on the next day that is not a Saturday, Sunday or public holiday.

Certificate as evidence

52.  (1)  A statement of the Superintendent certifying any of the following facts is, without proof of the office or signature of the Superintendent, evidence of those facts in any action, prosecution or other proceeding:

1. The registration or non-registration of any person.

2. The filing or non-filing of any document or material required or permitted to be filed with the Superintendent under this Act.

3. The time when any facts first came to the knowledge of the Superintendent or his or her designate.

4. The approval given to a private career college to provide a specified vocational program or the revocation of such an approval.

5. Any other matter pertaining to an application for registration or renewal, an application for approval to provide a specified vocational program, a registration or non-registration, an approval or non-approval, a filing or non-filing or conditions of a registration or approval.

Same, notice of contravention

(2)  A certificate of the Superintendent or Superintendent's designate who issued a notice of contravention under subsection 39 (1) is evidence of its issuance, service of it on the person and the receipt of it by the person if,

(a) the certificate is accompanied by a copy of the notice that the Superintendent or designate certifies to be true; and

(b) the Superintendent or designate certifies that the notice was served on the person and sets out the method of service used.

Proof of Minister's signature

(3)  Any document under this Act purporting to be signed by the Minister, or any certified copy of such document, is receivable in evidence in any action, prosecution or other proceeding without proof of the office or signature of the Minister.

Policy directives

53.  (1)  The Superintendent may issue policy directives,

(a) setting out standards, performance indicators and performance objectives for vocational programs or classes of vocational programs and governing the publication of information by private career colleges respecting the performance indicators and performance objectives applicable to their vocational programs;

(b) setting out credentials that private career colleges may grant, and the classes of vocational programs for which such credentials may be granted;

(c) exempting private career colleges, or any class of them, from the requirement that they obtain approval for a specified class of vocational programs under section 23.

Binding

(2)  The policy directives are binding on private career colleges and every private career college shall comply with and be operated in accordance with the policy directives.

General or particular

(3)  A policy directive may be general or particular in its application.

Classes

(4)  A policy directive may create different classes of persons, private career colleges, vocational programs and students and may contain different provisions in respect of each class.

Regulations Act does not apply

(5)  A policy directive issued under this section is not a regulation within the meaning of the Regulations Act.

Statement of students' rights and responsibilities

54.  The Superintendent shall develop a statement of students' rights and responsibilities.

Regulations

55.  (1)  The Lieutenant Governor in Council may make regulations,

1. prescribing anything that is required or permitted to be prescribed or that is required or permitted to be done in accordance with the regulations;

2. prescribing programs or classes of programs that are and are not vocational programs;

3. prescribing powers and duties of the Superintendent;

4. governing the Training Completion Assurance Fund to be established under section 3, including its establishment, functions, form, term and administration and prescribing rules governing its investment powers, including the securities in which it may and may not invest;

5. prescribing rules for the cancellation of bonds provided by private career colleges as security under the Private Career Colleges Act before its repeal;

6. governing the advisory board to be established under section 4, including its composition, appointment, functions, powers, duties, activities and procedures;

7. prescribing forms of security or other methods of protecting the financial interest of students for the purpose of section 6, prescribing requirements relating to them, including the means of realizing the security or enforcing the other methods of protection if the requirements are not met and governing the making of claims against the security or other protection and the settlement of such claims;

8. governing applications for registration and for renewal of registration;

9. prescribing changes in a person's circumstances that constitute a material change and those that do not constitute a material change for the purpose of section 21;

10. governing advertising for the purpose of section 11 and prescribing advertising standards for the purpose of section 33;

11. governing applications for approval to provide a specified vocational program and for renewal of such approvals;

12. prescribing changes to a vocational program that constitute a substantial change and those that do not constitute a substantial change for the purpose of subsection 23 (6);

13. governing the revocation of approval to provide a specified vocational program;

14. governing the refund policy that private career colleges are required to adopt under section 29;

15. governing the student complaint procedure that private career colleges are required to establish under section 31;

16. governing the determination of costs under section 35;

17. prescribing terms required to be included in contracts entered into by students and private career colleges;

18. prescribing the accommodation and equipment required by private career colleges;

19. prescribing requirements for admission of students, including international students as defined in subsection 29 (4);

20. prescribing qualifications of instructors of vocational programs;

21. governing the type of evidence needed to demonstrate a student's successful completion of a vocational program;

22. prescribing maximum fees that may be charged by private career colleges;

23. governing the change of ownership of a registrant;

24. requiring and governing books, accounts and records to be kept by registrants;

25. governing administrative penalties for the purposes of section 39 and all matters necessary and incidental to the administration of a system of administrative penalties under this Act;

26. requiring registrants to make returns and furnish information to the Superintendent and governing such returns and information;

27. exempting any person, private career college or vocational program, or any class of them, from any provision of this Act or the regulations and prescribing conditions or circumstances for any such exemption to apply;

28. providing for any transitional matter relating to the application of this Act and the repeal of the Private Career Colleges Act.

Administrative penalties

(2)  A regulation under paragraph 25 of subsection (1) may,

(a) provide that the amount of a penalty prescribed for a contravention is increased by a prescribed amount for each subsequent contravention that occurs within a prescribed period;

(b) provide for penalties in the form of lump sum amounts and of daily amounts, prescribe the circumstances in which either or both types of amounts may be required and, in the case of a daily amount, prescribe the maximum number of days for which a daily amount may be imposed; and

(c) provide for the time and manner of payment.

General or particular

(3)  A regulation may be general or particular in its application. 

Classes

(4)  A regulation may create different classes of persons, private career colleges, vocational programs and students and may contain different provisions in respect of each class.

Conflicts re transitional regulations

(5)  If there is a conflict between a regulation made under paragraph 28 of subsection (1) and any Act or any regulation, the regulation made under paragraph 28 of subsection (1) prevails. 

Forms

56.  The Superintendent may approve forms for the purposes of this Act and provide for their use.

Review of Act

57.  The Superintendent shall undertake a review of this Act and, by the seventh anniversary of the day this section comes into force, shall recommend to the Minister any amendment he or she believes will improve the effectiveness and administration of this Act.

Transition

58.  (1)  A person that is registered under the Private Career Colleges Act immediately before this section comes into force shall be deemed to be registered under this Act and shall be deemed to have the approval under this Act to provide any vocational program that it offers or provides on that day.

Same

(2)  Any bond provided by a private career college that has been declared forfeit before this section comes into force remains in effect in accordance with the terms and for the purposes specified under Private Career Colleges Act, as it read immediately before its repeal.

Same

(3)  A contract between a private career college and a student entered into before this section comes into force remains in effect.

PART IX
AMENDMENT, REPEAL, COMMENCEMENT AND SHORT TITLE

Licence Appeal Tribunal Act, 1999

59.  Section 11 of the Licence Appeal Tribunal Act, 1999 is amended by adding "Private Career Colleges Act, 2005" to the list of Acts.

Repeal

60.  The Private Career Colleges Act is repealed.

Commencement

61.  (1)  Subject to subsection (2), this Act comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Sections 1 to 60 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

62.  The short title of the Act set out in this Schedule is the Private Career Colleges Act, 2005.

SCHEDULE M
AMENDMENTS TO THE RETAIL SALES TAX ACT

1.  Subsection 1 (1.1) of the Retail Sales Tax Act is amended by striking out "May 19, 2005" in the portion before paragraph 1 and substituting "July 1, 2006".

2.  (1)  Paragraph 26 of subsection 7 (1) of the Act is repealed and the following substituted:

26. Child seating and restraint systems that meet the specifications prescribed by the regulations made under subsection 106 (9) of the Highway Traffic Act.

(2)  Paragraph 55 of subsection 7 (1) of the Act is repealed and the following substituted:

55. Publications, as defined by the Minister, purchased or produced by a religious, charitable or benevolent organization.

Commencement

3.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act, 2005 receives Royal Assent.

Same

(2)  Section 1 comes into force on May 19, 2005.

Same

(3)  Subsection 2 (1) comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(4)  Subsection 2 (2) comes into force on May 12, 2005.

EXPLANATORY NOTE

The Bill implements measures contained in the 2005 Budget. The major elements of the Bill are described below.

SCHEDULE A
AMENDMENTS TO THE ASSESSMENT ACT

Currently, subsection 19 (5.2) of the Assessment Act specifies that the current value of conservation land and managed forests land must be based only on the current use of the land. A new subsection 19 (5.2.1) allows the Minister of Finance to make regulations providing that the current value of land in the managed forests property class shall be determined in accordance with the regulations. Consequential amendments are made to other provisions of the Act.

SCHEDULE B
AMENDMENTS TO THE BUSINESS CORPORATIONS ACT AND THE REGULATED HEALTH PROFESSIONS ACT, 1991

Currently, the Business Corporations Act authorizes a professional corporation to practise a profession in the circumstances specified in section 3.1 and requires such corporations to comply with the requirements set out in section 3.2. Amendments to section 3.2 authorize the Lieutenant Governor in Council to make regulations to exempt classes of health profession corporations from these and other requirements of the Act and to impose different requirements in their place. The regulations may also provide exemptions for their shareholders, directors and officers and may impose different requirements in their place.

Complementary amendments are made to the Regulated Health Professions Act, 1991.

SCHEDULE C
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

Amendments to the Community Small Business Investment Funds Act permit investment thresholds in the Act to be changed by regulation and authorize the making of regulations to vary the application of the Act in prescribed circumstances if there is compliance with the intent of the Act and to prescribe rules relating to business combinations of two or more labour sponsored investment fund corporations.

SCHEDULE D
AMENDMENTS TO THE CORPORATIONS TAX ACT

Clause 1 (3) (d) of the Corporations Tax Act is amended to update references to the Income Tax Act (Canada), retroactive to 1991. The clause is repealed and replaced, effective January 1, 2003, with new subsection 1 (3.1) of the Act to improve clarity. New subsection 1 (3.1) of the Act and the re-enactment of subsection 14 (5) of the Act provide that the partnership rules dealing with the resource allowance and the non-deductibility of Crown royalties do not affect the calculation of the adjusted cost base of partnership interests under the Act. New subsection 1 (3.1) of the Act and the repeal of subsection 1 (12) of the Act also result in the determination of "gross revenue" in the same way for Ontario and federal purposes. Consequential amendments are made to sections 11, 14, 17, 18 and 32 of the Act as a result of the repeal of clause 1 (3) (d) of the Act.

Subsections 2 (1) and (2) of the Act currently establish a corporation's liability for taxes under the Act, depending on whether the corporation is incorporated in or outside Canada. Effective for taxation years ending after May 11, 2005, the re-enactment of subsections 2 (1) and (2) of the Act provides that the extent of a corporation's liability for taxes depends in all cases on whether the corporation is resident in or outside Canada. Consequential amendments are made to sections 43.3 and 69 of the Act.

Section 31 of the Act is amended to provide that a corporation's share of partnership income is determined without any allowance for the deduction of Crown royalties if the corporation is a majority interest partner of the partnership.

Amendments to section 43.5 of the Act increase the Ontario film and television tax credit from 20 per cent to 30 per cent in respect of a qualifying production company's qualifying labour expenditure incurred after December 31, 2004 and before January 1, 2010. The tax credit rate will be restored to 20 per cent in respect of expenditures incurred after December 31, 2009. These amendments will maintain the additional 10 per cent credit for regional Ontario productions as well as the additional 10 per cent credit for the first $240,000 of qualifying expenditures relating to a first-time production. Section 43.5 is also amended to allow the tax credit rates to be changed by regulation.

Section 43.8 of the Act is amended to eliminate the 48 per cent restriction on qualifying costs for the Ontario computer animation and special effects tax credit, effective for the portion of the corporation's Ontario labour expenditure incurred after May 11, 2005. Technical amendments are also made to this section to provide that equity investments by Canadian government film agencies are not taken into account in the calculation of a corporation's Ontario labour expenditure after May 11, 2005. Other amendments provide for consistency with the rules for the Ontario film and television tax credit in the treatment of assistance received by the corporation.

Section 43.10 of the Act provides for the Ontario production services tax credit in respect of certain Ontario labour expenditures incurred in producing film or television productions. Amendments to the section increase the tax credit rate from 11 per cent to 18 per cent, subject to the regulations, in respect of labour expenditures incurred after December 31, 2004 and before April 1, 2006. The tax credit rate in respect of expenditures incurred after March 31, 2006 is 11 per cent, except as otherwise prescribed by the regulations. The additional 3 per cent credit for regional Ontario productions is eliminated with respect to expenditures incurred after December 31, 2004. The enactment of subsection 43.10 (15.1) of the Act authorizes the making of regulations to prescribe tax credit rates instead of 18 per cent and 11 per cent.

SCHEDULE E
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

Currently, section 15.1 of the Financial Administration Act authorizes interim payments for goods or services to be made from the Consolidated Revenue Fund to a ministry in specified circumstances for fiscal years commencing on or after April 1, 2003. Section 15 authorized interim payments to be made for earlier fiscal years.

An amendment replaces those sections with a new section 15 that authorizes interim payments to be made from the Consolidated Revenue Fund to a ministry. The new section authorizes interim payments to be made to pay the costs that the ministry incurs during a fiscal year in engaging in an activity described in that section. All interim payments must be approved by the Treasury Board on the recommendation of the Minister of Finance. Provision is made for the amount of the interim payments to be recovered into the Consolidated Revenue Fund or to be charged against an appropriation before the books of the Government for the fiscal year are closed. Any unrecovered amount is to be deducted from the applicable ministry's appropriations for the following year.

This amendment is made retroactive to April 1, 2005.

SCHEDULE F
AMENDMENTS TO THE FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT

The Freedom of Information and Protection of Privacy Act is amended in order to accommodate the inclusion of universities as institutions under the Act. A definition of "educational institution" is added to subsection 2 (1) of the Act. Amendments relating to educational institutions are made to several sections of the Act. Sections 41 and 42 of the Act are amended with respect to the use and disclosure personal information in the alumni records of an educational institution for the purposes of fundraising.

Currently, section 49 of the Act provides that, in the circumstances described in that section, a head may refuse to disclose to an individual specified personal information relating to him or her. An amendment to that section adds an exemption from disclosure for evaluations of research and teaching materials, evaluations relating to admission to an educational institution, and evaluations relating to honours and awards, if the evaluations were supplied in confidence. A technical amendment is also made.

Currently, subsection 65 (1) of the Act provides that the Act does not apply to records placed in the Archives of Ontario by a person or organization other than an institution or a health information custodian as defined in the Personal Health Information Protection Act, 2004. The subsection is re-enacted to provide that the Act does not apply to records placed in the archives of an educational institution or the Archives of Ontario by or on behalf of a person or organization other than an institution as defined in the Act or in the Municipal Freedom of Information and Protection of Privacy Act or a health information custodian as defined in the Personal Health Information Protection Act, 2004.

Section 65 is also amended to provide that the Act does not apply to certain records relating to research at an educational institution or to certain teaching materials prepared or maintained for use at an educational institution.

SCHEDULE G
HIGHER EDUCATION QUALITY COUNCIL OF ONTARIO ACT, 2005

The Higher Education Quality Council of Ontario Act, 2005 is enacted. It establishes the Higher Education Quality Council of Ontario, provides for its functions and reporting, and provides a framework to make regulations concerning the organization and work of that Council.

SCHEDULE H
AMENDMENTS TO THE MINISTRY OF REVENUE ACT

Currently, subsection 11 (2) of the Ministry of Revenue Act authorizes the Lieutenant Governor in Council to remit any tax, fee or penalty on the recommendation of the Minister. An amendment clarifies that the remission may be made if the Lieutenant Governor in Council considers it to be in the public interest. A new subsection 11 (2.1) authorizes the Minister to make the remission if the tax, fee or penalty is $10,000 or less and if the Minister considers it to be in the public interest to do so.

SCHEDULE I
AMENDMENT TO THE MINISTRY OF TRAINING, COLLEGES AND UNIVERSITIES ACT

The new section 5.1 of the Ministry of Training, Colleges and Universities Act authorizes educational institutions, as defined in the Freedom of Information and Protection of Privacy Act, to collect information about identifiable individuals from published or public sources for the purposes of their own fundraising activities, if the information is reasonably necessary for the fundraising activities.

SCHEDULE J
AMENDMENT TO THE MUNICIPAL FREEDOM OF INFORMATION
AND PROTECTION OF PRIVACY ACT

Section 38 of the Municipal Freedom of Information and Protection of Privacy Act provides that, in the circumstances described in that section, a head may refuse to disclose to an individual specified personal information relating to him or her. An amendment to that section adds an exemption from disclosure for evaluations relating to honours and awards, if the evaluations were supplied in confidence. A technical amendment is also made.

SCHEDULE K
ONTARIO LOAN ACT, 2005

The Ontario Loan Act, 2005 is enacted. It authorizes the Crown to borrow a maximum of $7.1 billion.

SCHEDULE L
PRIVATE CAREER COLLEGES ACT, 2005

The Private Career Colleges Act, 2005 is enacted and the current Private Career Colleges Act is repealed. The new Act contains a more extensive regulatory scheme governing private career colleges. The major changes fall under four headings: quality control of private career colleges and vocational programs; protection of students' interests; enforcement; accountability.

Quality control of private career colleges and vocational programs

Under the new Act, the Superintendent of private career colleges is authorized to issue policy directives that are binding on private career colleges setting out standards, performance indicators and performance objectives for vocational programs, as well as the credentials that may be granted for different classes of programs.

In order to be registered to operate a private career college, or to renew a registration, the Superintendent of private career colleges must be satisfied that the applicant will operate the college in accordance with the law, that the vocational programs provided at the college will meet the requirements of the Act and the regulations and that the applicant is financially viable. In addition, the Superintendent must be satisfied that the registration is in the public interest.

A private career college cannot provide a vocational program without the Superintendent's approval of the program and his or her approval of the credential to be earned on successful completion of the program. The Superintendent may attach standards, performance indicators and performance objectives to the approval of a vocational program, in addition to those required by the policy directives.

Private career colleges are required to report publicly on their performance indicators and performance objectives.

Protection of students' interests

Private career colleges are required to institute policies to protect students' interests: every contract with a student must be in writing and the colleges must give each student a copy of the contract; they must have a fee refund policy and include that policy in the contract; they must ensure students have access to their transcripts for 25 years after completing their studies; they must have a procedure for resolving student complaints and include that policy in the contract; they must include a statement of students' rights and responsibilities as developed by the Superintendent in each contract.

The new Act establishes the Training Completion Assurance Fund, the purpose of which is to ensure that, in the event that a private career college ceases to provide a vocational program, students in the program are allowed to complete the program elsewhere or are reimbursed their fees. Private career colleges are required to pay premiums and levies to the Fund, in amounts to be determined in accordance with the regulations. Private career colleges may be required by regulation to provide additional financial security besides the premiums and levies paid in respect of the Fund.

An advisory board will be established to advise the administrators of the Training Completion Assurance Fund and to perform other prescribed functions.

The Superintendent or his or her designate is authorized to meet with students and prospective students of a private career college to discuss issues relating to the college and their rights under the Act.

Enforcement

The Superintendent or his or her designate is given the power to enter a place without a warrant and conduct detailed inquiries and investigations to determine whether the Act and regulations and the conditions of a registration are being complied with. The power to enter and make inquiries and investigations is extended to apply to persons who are not registered but who the Superintendent or his or her designate thinks should be registered.

The Superintendent or his or her designate is authorized to impose administrative penalties for prescribed contraventions of the Act or regulations.

The Superintendent is given the power to make compliance orders and to seek restraining orders from the Superior Court of Justice.

Under the current Act, the maximum penalty for offences is a fine of $1,000 for individuals or one year imprisonment, or both. The new Act increases the maximum fine to $25,000 for individuals and enacts a maximum $100,000 fine for corporations.

Accountability

The Superintendent is required to publish the following: his or her policy directives; information relating to registrations and vocational program approvals; information relating to refusals to renew registrations and revocations and suspensions of registrations; information relating to enforcement measures taken; information on the performance indicators and performance objectives for individual private career colleges.

The Superintendent is required to review the Act and to make recommendations to the Minister to improve its effectiveness and administration within seven years after it comes into force.

SCHEDULE M
AMENDMENTS TO THE RETAIL SALES TAX ACT

Currently, subsection 1 (1.1) of the Retail Sales Tax Act exempts a purchaser from tax in respect of a fee imposed by a provider of transient accommodation on or after May 19, 2004 and before May 19, 2005, subject to certain conditions. The exemption is extended to transient accommodation purchased before July 1, 2006.

The re-enactment of paragraph 26 of subsection 7 (1) of the Act extends the current exemption from tax for child car seats to "booster seats" for children.

Currently, paragraph 55 of subsection 7 (1) of the Act provides an exemption from tax for prescribed publications "of" a religious, charitable or benevolent organization. The paragraph is re-enacted to clarify that the exemption applies to publications purchased or produced by the organization.