[38] Bill 81 Royal Assent (PDF)
Bill 81 2006
An Act to implement
2006 Budget measures
and to enact, amend or repeal
various Acts
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 any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.
Short title
3. The short title of this Act is the Budget Measures Act, 2006.
SCHEDULE A
BUSINESS CORPORATIONS ACT
1. Subsection 95 (2) of the Business Corporations Act is repealed and the following substituted:
Same
(2) For the purpose of determining shareholders entitled to receive notice of a meeting of shareholders, the directors may fix in advance a date as the record date for such determination of shareholders, but the record date shall not precede by more than 60 days or by less than 30 days the date on which the meeting is to be held.
Commencement
2. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.
SCHEDULE B
CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF ONTARIO ACT, 1983 AND
THE CHARTERED ACCOUNTANTS ACT, 1956
1. Section 9.1 of the Certified General Accountants Association of Ontario Act, 1983, being chapter Pr6, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule B, section 2, is amended by adding the following subsection:
Interpretation
(3) For the purposes of subsection (1), a member of the Association includes a professional corporation.
2. Section 13.1 of The Chartered Accountants Act, 1956, as enacted by the Statutes of Ontario, 1998, chapter 2, section 10, is amended by adding the following subsection:
Interpretation
(2) For the purposes of subsection (1), a member of the Institute includes a professional corporation.
Commencement
3. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE C
COMMUNITY SMALL BUSINESS
INVESTMENT FUNDS ACT
1. The definition of "Minister" in subsection 1 (1) of the Community Small Business Investment Funds Act is repealed and the following substituted:
"Minister" means, unless the context indicates otherwise,
(a) the Minister of Finance in Parts II, III and III.1 and in the application of the provisions of this Part, Part IV and the regulations to or in respect of an investment corporation registered or previously registered under Part II, III or III.1, or
(b) the Minister of Research and Innovation in Part III.2 and in the application of the provisions of this Part, Part IV and the regulations to or in respect of an investment corporation registered or previously registered under Part III.2; ("ministre")
2. The definition of "qualifying debt obligation" in subsection 12 (1) of the Act is repealed and the following substituted:
"qualifying debt obligation" means a debt obligation,
(a) that, if secured, is secured,
(i) by a security interest in one or more assets of the entity and the terms of the debt obligation or any agreement relating to the debt obligation do not prevent the entity from dealing with its assets in the ordinary course of business before any default on the debt obligation,
(ii) by a guarantee, or
(iii) by both a security interest described in subclause (i) and a guarantee, and
(b) that by its terms or by the terms of any agreement relating to the debt obligation does not entitle the holder of the debt obligation to rank ahead of any other secured creditor of the issuer in realizing on the same security unless,
(i) the debt obligation is prescribed to be a small business security for the purposes of paragraph (a) of the definition of "small business property" in subsection 206 (1) of the Income Tax Act (Canada), or
(ii) the other secured creditor is a shareholder of the corporation or a person related to the shareholder; ("créance admissible")
3. (1) Section 17 of the Act is amended by adding the following subsection:
Amounts paid under a guarantee
(1.1) For the purposes of the definition of "C" in subsection (1), the amount of losses of a labour sponsored investment fund corporation that are realized on eligible investments includes any amount paid by the labour sponsored investment fund corporation under the terms of a guarantee it previously gave if an amount in respect of that guarantee was deemed to have been an eligible investment under subsection 18 (8) at the time the guarantee was given.
(2) Section 17 of the Act is amended by adding the following subsections:
Required investment levels, 2005 to 2011
(1.2) Despite subsection (1), at the end of the day on December 31 of each year after 2004 and before 2012, a labour sponsored investment fund corporation shall hold eligible investments that have a total cost of not less than the amount that would be determined under subsection (1) if, in the formula in that subsection,
"A" were 60 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the 61st day of that year, but excluding Class A shares that have been outstanding for at least 94 months, and
"D" were 60 per cent of the lesser of,
(a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of that year, and
(b) the amount of "C" for that year.
Required investment levels, 2012 and later years
(1.3) Despite subsections (1) and (1.2), at the end of the day on December 31 of each year after 2011, a labour sponsored investment fund corporation shall hold eligible investments that have a total cost of not less than the amount that would be determined under subsection (1) if, in the formula in that subsection,
"A" were 60 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the 61st day of 2011, but excluding Class A shares that have been outstanding for at least 94 months,
"B" were nil, and
"D" were 60 per cent of the lesser of,
(a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of that year, and
(b) the amount of "C" for that year.
(3) Subsection 17 (2.1) of the Act is repealed.
(4) Subsection 17 (3) of the Act is repealed and the following substituted:
Disposal of investment
(3) For the purposes of determining the total cost of eligible investments held by a labour sponsored investment fund corporation at the end of the day on December 31 in a year, the labour sponsored investment fund corporation shall be deemed to continue to hold an investment,
(a) for 24 months after it disposed of the investment or, if a longer period of time is prescribed by the regulations, that period of time, if the disposition occurred on or after January 1, 2005; or
(b) for nine months after it disposed of the investment, if the disposition occurred before January 1, 2005.
4. (1) Clause 18 (1) (b) of the Act is amended by adding "or" at the end of subclause (ii) and by repealing subclause (iii).
(2) Section 18 of the Act is amended by adding the following subsections:
Follow-on investments
(1.1) Despite subsection (1), an investment of a labour sponsored investment fund corporation is an eligible investment for the purposes of this Part if the following conditions are satisfied:
1. The investment is made after 2004 in a taxable Canadian corporation or Canadian partnership that is no longer an eligible business only because, at the time the investment is made, the corporation or partnership no longer satisfies the requirements of subclauses (d) (i) and (ii) of the definition of "eligible business" in subsection 12 (1).
2. The only reason the investment would not be an eligible investment under this section, in the absence of this subsection, is because the taxable Canadian corporation or Canadian partnership is no longer an eligible business for the reason set out in paragraph 1.
3. The labour sponsored investment fund corporation made and continues to maintain a previous investment in the taxable Canadian corporation or Canadian partnership that was, at the time the investment was made, an eligible investment under the provisions of this section other than this subsection.
Investments purchased in a wind-up
(1.2) Despite subsection (1), an investment of a labour sponsored investment fund corporation is an eligible investment for the purposes of this Part if,
(a) the investment was acquired from a labour sponsored investment fund corporation that had previously given notice to the Minister of its proposal to dissolve or wind up;
(b) the disposition of the investment was undertaken in the course of and by reason of the dissolution or wind-up; and
(c) the investment was, for the purposes of this Part, an eligible investment of the other labour sponsored investment fund corporation immediately before the disposition.
Same
(1.3) An eligible investment described in subsection (1.2) shall be deemed to have a cost to the labour sponsored investment fund corporation that acquired it equal to the fair market value of the investment at the time of the acquisition.
(3) Subsections 18 (8) and (8.1) of the Act are repealed and the following substituted:
Deemed eligible investment
(8) If a labour sponsored investment fund corporation guarantees a qualifying debt obligation issued by an eligible business, the labour sponsored investment fund corporation shall be deemed to have made an eligible investment in the eligible business having a cost equal to 25 per cent of the amount of the debt that was guaranteed by the labour sponsored investment fund corporation at the time the guarantee was given.
5. (1) Subsection 18.1 (5) of the Act is repealed and the following substituted:
Limit on investment in listed companies
(5) During 2004, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 25 per cent of the total cost of all investments made in eligible businesses by the corporation in 2004 or in 2003, whichever is greater.
(2) Subsection 18.1 (8) of the Act is amended by striking out "At the end of each calendar year" at the beginning and substituting "At the end of each calendar year before 2005".
(3) Subsection 18.1 (9.1) of the Act is repealed.
6. The definition of "eligible investor" in subsection 18.11 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:
"eligible investor" means an accredited investor, as defined in National Instrument 45-106 entitled "Prospectus and Registration Exemptions", as adopted by the Ontario Securities Commission, or a sponsor or an entity related to a sponsor, but does not include, unless otherwise prescribed,
. . . . .
7. Clause 18.12 (b) of the Act is amended by striking out "accredited investors" and substituting "investors".
8. Subsection 18.15 (1) of the Act is amended by striking out "by the Minister of Economic Development and Trade or by the Minister" in the portion before clause (a) and substituting "by the Minister".
9. The definition of "reserves" in subsection 19 (2) of the Act is amended by striking out "or" at the end of clause (a) and by adding the following clause:
(a.1) shares that are a qualified investment under paragraph (d) or (h) of the definition of "qualified investment" in section 204 of Income Tax Act (Canada), but only if the investment corporation is a labour sponsored investment fund corporation, or
10. Subsection 20 (2) of the Act is amended by striking out "$15 million" and substituting "$20 million".
11. Section 21 of the Act is amended by adding the following subsection:
Effect of material change, labour sponsored investment fund corporation
(2.1) Despite subsection (2), if there is a material change, the investment by a labour sponsored investment fund corporation shall remain an eligible investment, with respect to investments made before the material change,
(a) for a period of 24 months or, if a longer period of time is prescribed, that period of time, if the material change occurred on or after January 1, 2005; or
(b) for a period of 12 months, in any other case.
12. Subsection 27 (2.2) of the Act is repealed and the following substituted:
Exception
(2.2) Subsection (2.1) does not apply if,
(a) the request to surrender registration is related to a purchase or sale referred to in section 27.1;
(b) the labour sponsored investment fund corporation notifies the Minister in writing after August 29, 2005 and before February 1, 2007 that it proposes to dissolve or wind up after that day and,
(i) the request to surrender registration is made after the notice is given to the Minister, and
(ii) the labour sponsored investment fund corporation no longer has any outstanding Class A shares at the time it surrenders its registration; or
(c) the labour sponsored investment fund corporation notifies the Minister in writing after January 31, 2007 that it proposes to dissolve or wind up after that day and,
(i) the request to surrender registration is made after the notice is given to the Minister,
(ii) the labour sponsored investment fund corporation no longer has any outstanding Class A shares at the time it surrenders its registration, and
(iii) the rules in subsection 27.2 (5) apply to the labour sponsored investment fund corporation.
13. Subsection 27.1 (10) of the Act is repealed.
14. Section 27.2 of the Act is amended by adding the following subsections:
Public notice deemed to be notice to the Minister
(3) If a labour sponsored investment fund corporation publicly announces that it proposes to dissolve or wind up, the announcement shall be deemed to be notice given to the Minister in writing on the day the announcement is made that the corporation proposes to dissolve or wind up and the corporation shall provide to the Minister such information and documents as the Minister may request.
Rules applicable on wind-up, notice given before February 1, 2007
(4) Subject to subsection (8), the following rules apply if a labour sponsored investment fund corporation gives a notice of proposal to wind up or dissolve to the Minister in accordance with subsection (1) after August 29, 2005 and before February 1, 2007:
1. The labour sponsored investment fund corporation shall not issue any tax credit certificates on or after the day the notice is given to the Minister, except with the consent of the Minister and only for the purpose of issuing a duplicate certificate to replace a certificate issued before that day.
2. Section 14.1 does not apply if the redemption, acquisition or cancellation of the Class A share is part of the dissolution or wind-up of the labour sponsored investment fund corporation and occurs within a reasonable period of time before the labour sponsored investment fund corporation surrenders its registration.
3. Section 17 does not apply to the labour sponsored investment fund corporation,
i. for 2004 and later years if the notice is given before February 1, 2006, or
ii. for 2006 and later years if the notice is given after January 31, 2006 and before February 1, 2007.
4. Section 21 does not apply to the labour sponsored investment fund corporation if a material change occurs after the notice is given.
5. Subsection 27 (4.1) does not apply if the amount is paid by the labour sponsored investment fund corporation after the notice is given and is paid in the course of and by reason of the dissolution or wind-up.
6. Subsection 28 (3) does not apply to the labour sponsored investment fund corporation for any calendar year when sections 17 and 18.1 do not apply to the corporation.
7. The labour sponsored investment fund corporation shall not be eligible under subsection 28 (4) for a refund of any tax paid under subsection 28 (3) unless the Minister is satisfied that the corporation qualified for the refund before it gave the notice.
Rules applicable on wind-up of certain LSIFs, notice given after January 31, 2007
(5) Subject to subsection (8), the following rules apply if a labour sponsored investment fund corporation gives a notice of proposal to wind up or dissolve to the Minister in accordance with subsection (1) after January 31, 2007, but only if the labour sponsored investment fund corporation satisfies the requirements of subsection (6):
1. The rules in paragraphs 1, 2, 4, 5, 6 and 7 of subsection (4) apply.
2. Section 17 does not apply to the labour sponsored investment fund corporation,
i. for the calendar year in which the notice is given,
ii. for the calendar year immediately before the year in which the notice is given, if the notice is given in the first 31 days of the year, and
iii. for calendar years after the year in which the notice is given.
Same
(6) The rules in subsection (5) apply to a labour sponsored investment fund corporation that gives a notice of proposal to wind up or dissolve to the Minister in accordance with subsection (1) after January 31, 2007 only if, on the day the notice under subsection (1) is given, the percentage determined in respect of the labour sponsored investment fund corporation using the following formula is less than 20 per cent:
where,
"A" is the amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that were issued within the 24 months immediately before that day and are still outstanding on that day,
"B" is the total amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that are still outstanding on that day, and
"C" is the amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that, as of that day, have been outstanding for at least eight years.
Same
(7) For the purposes of subsection (6), the references to Class A shares shall exclude any Class A shares that were issued within the 24 months immediately before that day by reason of an arrangement for the purchase of substantially all of the assets of another labour sponsored investment fund corporation referred to in clause 27.1 (1) (b).
Consent to extend time for dissolution or wind-up
(8) On application by a labour sponsored investment fund corporation, the Minister may consent to an extension of time for dissolution or wind up of the corporation if,
(a) the application for the extension is received by the Minister at least 14 days before the day specified in the notice of proposal to dissolve or wind up; and
(b) the Minister is satisfied that the extension is reasonable in the circumstances.
Rules on failure to dissolve or wind up
(9) If a labour sponsored investment fund corporation fails to dissolve or wind up on or before the day specified in the notice of proposal to dissolve or wind up or in a consent to an extension given by the Minister under subsection (8),
(a) subsection (4) or (5), whichever subsection would otherwise apply, does not apply to the corporation in respect of the period after the notice of proposal to dissolve or wind up was given to the Minister;
(b) the Minister may revoke the registration of the labour sponsored investment fund corporation; and
(c) subsection 27 (2) applies to the labour sponsored investment fund corporation if the Minister revokes the corporation's registration under clause (b).
15. (1) Clause 45 (1) (k.3) of the Act is repealed and the following substituted:
(k.3) prescribing circumstances in which the period of 24 months set out in subsection 17 (3) does not apply, providing that a period of more than 24 months applies and prescribing rules for determining when a period of more than 24 months applies and the length of the period that applies in respect of a labour sponsored investment fund corporation or a class of labour sponsored investment fund corporations;
(k.4) prescribing circumstances in which the period of 24 months set out in clause 21 (2.1) (a) does not apply, providing that a period of more than 24 months applies and prescribing rules for determining when a period of more than 24 months applies and the length of the period that applies in respect of a labour sponsored investment fund corporation or a class of labour sponsored investment fund corporations;
(2) Clauses 45 (1) (p), (q) and (r) of the Act are repealed and the following substituted:
(p) prescribing entities or classes of entities that are eligible investors for the purposes of Part III.2;
(3) Clause 45 (1) (s) of the Act is amended by striking out "$15 million" wherever it appears and substituting in each case "$20 million".
(4) Subsection 45 (5) of the Act is repealed.
Commencement
16. (1) Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Sections 1 and 2, subsections 3 (1) and 4 (1) and (3) and section 8 come into force on March 24, 2006.
Same
(3) Subsections 3 (2), (3) and (4) and sections 5, 9, 10 and 11 shall be deemed to have come into force on January 1, 2005.
Same
(4) Sections 6 and 7 shall be deemed to have come into force on September 14, 2005.
Same
(5) Subsection 4 (2) and sections 12 and 14 shall be deemed to have come into force on August 29, 2005.
SCHEDULE D
CORPORATIONS TAX ACT
1. Clauses 43.10 (4) (b) and (c) of the Corporations Tax Act are repealed and the following substituted:
(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, 2007;
(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, 2007; and
2. (1) Clause 66 (1.1) (a) of the Act is repealed and the following substituted:
(a) 0.3 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year;
(a.1) 0.285 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year;
(2) Clause (a) of the definition of "G" in subsection 66 (4.1) of the Act is repealed and the following substituted:
(a) 0.6 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year,
(a.1) 0.57 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year,
(3) Clause (a) of the definition of "J" in subsection 66 (4.2) of the Act is repealed and the following substituted:
(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year,
(a.1) 0.855 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year,
(4) Clause (a) of the definition of "L" in subsection 66 (4.3) of the Act is repealed and the following substituted:
(a) 0.72 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year,
(a.1) 0.684 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year,
3. Clause (a) of the definition of "D" in clause 66.1 (3.2) (b) of the Act is repealed and the following substituted:
(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year,
(a.1) 0.855 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year,
4. The Act is amended by adding the following section:
Agreement with Minister of National Revenue
98.1 (1) The Minister of Finance, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Ontario, enter into an agreement with the Minister of National Revenue for the provision of services by the Canada Revenue Agency relating to the administration and enforcement of this Act on behalf of the Minister of Finance.
Agreement may apply to other Acts
(2) An agreement under subsection (1) may provide that the Canada Revenue Agency also supply services relating to the administration and enforcement on behalf of the Minister of Finance of the Mining Tax Act and the provisions of the Electricity Act, 1998 relating to amounts payable under section 89, 90, 93 or 94 of that Act.
Agreement applies to regulations
(3) An agreement under subsection (1) may provide for services related to the administration or enforcement of one or more regulations made under an Act to which the agreement applies.
Provisions to be prescribed
(4) An agreement under subsection (1) shall provide that the Canada Revenue Agency supply services related to the administration and enforcement of only,
(a) the provisions of an Act to which the agreement applies that are prescribed by the Minister by regulation; and
(b) the provisions of a regulation to which the agreement applies that are prescribed by the Minister by regulation.
Effect of agreement
(5) If an agreement under subsection (1) is entered into,
(a) the Commissioner of Revenue, on behalf of and as agent for the Minister, is authorized, subject to the provisions of the agreement and the regulations, to exercise all the powers and perform all the duties of the Minister under a provision of an Act or regulation to which the agreement applies that is prescribed by the Minister by regulation; and
(b) any reference to the Minister in a provision of an Act or regulation that the Commissioner of Revenue is authorized to administer under the agreement shall be read to include a reference to the Commissioner of Revenue and, similarly, a reference to the Ministry of Finance shall include a reference to the Canada Revenue Agency.
Delegation
(6) The Commissioner of Revenue may authorize any employee of the Canada Revenue Agency or any class of employees of the Canada Revenue Agency to exercise the powers and perform the duties referred to in clause (5) (a) that may be exercised or performed by the Commissioner of Revenue, subject to such conditions as may be set out in the authorization, the agreement and the regulations.
Minister deemed to have exercised power and performed duty
(7) The Minister shall be deemed to have exercised every power and performed every duty that is exercised or performed in accordance with this section, the regulations and the agreement by the Commissioner of Revenue or by an employee or class of employees authorized under subsection (6).
Agreement to amend the agreement
(8) The Minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Ontario, enter into one or more agreements to amend the provisions of an agreement entered into under this section.
Payment of fees under agreement
(9) All fees and other amounts payable to the Government of Canada under an agreement entered into under this section are a charge on and payable out of the Consolidated Revenue Fund.
Regulations
(10) The Minister may make regulations,
(a) prescribing one or more provisions of this Act or the regulations for the purposes of an agreement under subsection (1);
(b) prescribing one or more provisions of the Mining Tax Act, the Electricity Act, 1998 or the regulations made under those Acts to which an agreement under subsection (1) applies;
(c) governing the exercise of the Minister's powers and the performance of the Minister's duties relating to the administration and enforcement, by the Commissioner of Revenue or by an employee or class of employees authorized under subsection (6), of an Act or regulation to which an agreement under subsection (1) applies.
Definition
(11) In this section,
"Commissioner of Revenue" means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act (Canada).
Commencement
5. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Section 1 comes into force on April 1, 2006.
Same
(3) Sections 2 and 3 come into force on January 1, 2007.
SCHEDULE E
GASOLINE TAX ACT
1. The definition of "gasoline" in subsection 1 (1) of the Gasoline Tax Act is repealed and the following substituted:
"gasoline" means any gas or liquid, other than methanol and natural gas, that may be used for the purpose of generating power by means of internal combustion and includes,
(a) aviation fuel, but only when it is used or intended to be used to generate power by means of internal combustion in a vehicle other than an aircraft,
(b) any of the products commonly known as diesel fuel, fuel oil, coal oil or kerosene, but only when the product is mixed or combined with a gas or liquid that is gasoline,
(c) every product that is otherwise excluded from this Act by the regulations, but only when the product is mixed or combined with a gas or liquid that is gasoline,
(d) ethanol, but only when it is mixed or combined with a gas or liquid that is gasoline and only if there is a requirement under Ontario Regulation 535/05 (Ethanol in Gasoline) made under the Environmental Protection Act or another statutory requirement that ethanol be mixed or combined with a gas or liquid that is gasoline, and
(e) any other substance except methanol and natural gas that is mixed or combined with a gas or liquid that is gasoline; ("essence")
Commencement
2. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE F
INCOME TAX ACT
1. Section 49 of the Income Tax Act is amended by adding the following subsections:
Authority to enter into agreement to collect other taxes
(5.1) The Provincial Minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Ontario, enter into one or more agreements with the Government of Canada pursuant to which the Government of Canada will collect, on behalf of Ontario, taxes payable under the Corporations Tax Act or the Mining Tax Act or amounts payable under section 89, 90, 93 or 94 of the Electricity Act, 1998 and make payments to Ontario in respect of the taxes or other amounts collected in accordance with the terms and conditions of the agreement.
Same
(5.2) If an agreement described in subsection (5.1) is entered into, subsections (2), (3) and (4) apply with necessary modifications with respect to the agreement.
Commencement
2. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE G
MINISTRY OF NATURAL RESOURCES ACT
1. The Ministry of Natural Resources Act is amended by adding the following section:
Establishment of programs
13.1 (1) The Minister may establish programs to promote and stimulate the development and management of natural resources in Ontario.
Program may give grants
(2) A program established by the Minister under subsection (1) may promote and stimulate the development or management of natural resources in Ontario by providing financial assistance by way of a grant, on such conditions as the Minister may consider advisable.
Grants to be approved by Minister of Finance
(3) No grant under subsection (2) may be made to any person without the prior approval of the Minister of Finance.
Commencement
2. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE H
MUNICIPAL ELECTIONS ACT, 1996 AND
RELATED AMENDMENTS TO OTHER ACTS
1. Subsection 4 (1) of the Municipal Elections Act, 1996 is repealed and the following substituted:
Regular elections
(1) A regular election to fill offices shall be held in 2006 and in every fourth year thereafter.
2. Subsection 6 (1) of the Act is repealed and the following substituted:
Four-year term
(1) The term of all offices to which this Act applies is four years, beginning on December 1 in the year of a regular election.
3. (1) Clause 8.3 (1) (b) of the Act is amended by striking out "three" and substituting "four".
(2) Subsection 8.3 (5) of the Act is amended by striking out "three" and substituting "four".
4. Paragraph 4 of subsection 17 (3) of the Act is amended by striking out "four" and substituting "five".
5. (1) The definition of "regular election" in subsection 1 (1) of the Municipal Act, 2001 is amended by striking out "triennial".
(2) Subsection 235 (1) of the Act is amended by striking out "three years" and substituting "four years".
(3) Subsection 235 (2) of the Act is amended by striking out "third year" and substituting "fourth year".
(4) Subsection 283 (7) of the Act is amended by striking out "three-year period" and substituting "four-year period".
6. Clause 95 (1) (a) of the Education Act is amended by striking out "two years" and substituting "three years".
Commencement
7. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE I
ONTARIO INFRASTRUCTURE PROJECTS CORPORATION ACT, 2006
Definitions
1. (1) In this Act,
"Corporation" means the Ontario Infrastructure Projects Corporation as continued under subsection 2 (1) by the amalgamation of the Ontario Strategic Infrastructure Financing Authority and the Ontario Infrastructure Projects Corporation; ("Société")
"Minister" means the Minister of Public Infrastructure Renewal or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; ("ministre")
"municipality" has the same meaning as in subsection 1 (1) of the Municipal Act, 2001; ("municipalité")
"related entity" means, in relation to the Corporation, a subsidiary, trust, partnership or other entity established or acquired by the Corporation that is a Crown agent; ("entité liée")
"subsidiary" means a corporation that is a subsidiary of the Corporation. ("filiale")
Reference to Ontario Municipal Economic Infrastructure Financing Authority, etc.
(2) A reference in a regulation made under this or any other Act to the Ontario Municipal Economic Infrastructure Financing Authority or to the Ontario Strategic Infrastructure Financing Authority shall be deemed to be a reference to the Ontario Infrastructure Projects Corporation as continued under subsection 2 (1).
Corporate Matters
Corporation continued
2. (1) Ontario Strategic Infrastructure Financing Authority incorporated on August 19, 2002 under the Corporations Act and Ontario Infrastructure Projects Corporation incorporated on November 7, 2005 under the Business Corporations Act are hereby amalgamated and continued as a corporation without share capital under the name Ontario Infrastructure Projects Corporation in English and Société ontarienne de travaux d'infrastructure in French.
Composition
(2) The Corporation is composed of the members of its board of directors.
Corporation to change name
(3) The Minister may, by regulation, change the name of the Corporation.
Objects of the Corporation
3. The following are the objects of the Corporation:
1. To provide financing for municipalities and for such other public bodies as may be specified by regulation for such purposes as may be specified by regulation.
2. To obtain funding to finance its activities.
3. To exercise powers under the Corporations Tax Act and the Income Tax Act regarding any bond, debenture or other security.
4. To provide the Minister with advice in respect of infrastructure projects in Ontario.
5. To undertake project management and contract management of infrastructure projects in Ontario assigned to the Corporation by the Minister.
6. When requested to do so by the Minister, to provide the Minister with financial, strategic and other advice in respect of Crown assets or interests and to implement or assist in the implementation of transactions in respect of such assets or interests.
7. To engage in such other activities as the Lieutenant Governor in Council may specify.
Powers of the Corporation
4. (1) The Corporation has the capacity, rights, powers and privileges of a natural person, except as limited by this Act.
Funding
(2) Without limiting the generality of subsection (1), the Corporation or a subsidiary may obtain funding by borrowing money, by issuing bonds, debentures and other securities, by establishing trusts, corporations, partnerships and other entities and by other means.
Restriction on borrowing, etc.
(3) The Corporation or a subsidiary shall not borrow, invest or manage financial risks unless the activity is authorized by a by-law and the Minister of Finance has consented to the by-law.
Co-ordination of financing activities by Corporation
(4) All borrowing, financing, investment of funds and financial risk management activities of the Corporation or a subsidiary shall be co-ordinated and arranged by the Ontario Financing Authority, unless the Minister of Finance agrees otherwise.
Restrictions on borrowing, certain related entities
(5) A related entity that is not a subsidiary shall not borrow, invest or manage financial risks without the consent of the Minister of Finance.
Restrictions re subsidiaries, etc.
(6) The Corporation shall not establish or acquire a subsidiary, trust, partnership or other entity unless it is authorized to do so by order of the Lieutenant Governor in Council.
Consent of Minister
(7) The consent of the Minister of Finance referred to in subsections (3) and (5) may be general or particular and may include such terms as the Minister of Finance considers advisable.
Status as Crown agent
5. (1) Subject to subsections (2) and (3), the Corporation is a Crown agent for all purposes.
Exception
(2) The Corporation or a related entity may declare in writing in an agreement, security or instrument that it is not acting as a Crown agent for the purposes of the agreement, security or instrument.
Effect of declaration
(3) If the Corporation or a related entity makes a declaration in accordance with subsection (2), the Corporation or related entity shall be deemed not to be a Crown agent for the purposes of the agreement, security or instrument and the Crown is not liable for any liability or obligation of the Corporation or related entity under the agreement, security or instrument.
Board of directors
6. (1) The board of directors of the Corporation is composed of at least three and not more than 11 members, or such other number as is prescribed by regulation, who are appointed by order of the Lieutenant Governor in Council.
Term of office
(2) The term of office of a director is determined by order of the Lieutenant Governor in Council.
Reappointment
(3) A director is eligible to be reappointed.
Chair and vice-chairs
(4) The Lieutenant Governor in Council shall by order designate a director as the chair and may designate one or more directors as vice-chairs.
Powers and duties of the board
7. (1) The board of directors shall manage or supervise the management of the business and affairs of the Corporation.
By-laws
(2) Subject to subsection 4 (3), the board may pass by-laws and resolutions regulating its proceedings and generally for the conduct and management of the affairs of the Corporation.
Delegation
(3) Subject to its by-laws and to such conditions and restrictions as may be specified by the board, the board may delegate any of its powers or duties to a committee of the board or to one or more directors.
Same
(4) Subject to its by-laws and to such conditions and restrictions as may be specified by the board, the board may delegate powers or duties to manage the business and affairs of the Corporation to one or more officers of the Corporation.
Restriction on delegation
(5) The board cannot delegate its power to make by-laws or to approve the financial statements or annual report of the Corporation.
Policies and directives of the Minister
8. (1) The Minister may issue policies or directives in writing to the Corporation or any related entity on matters relating to the exercise of its powers or duties.
Implementation
(2) The board of directors of the Corporation or the governing body of a related entity shall ensure that the policies and directives issued to the Corporation or related entity, as the case may be, are implemented promptly and efficiently.
Chief executive officer
9. The Lieutenant Governor in Council may appoint a chief executive officer for the Corporation.
Status of employees
10. (1) Employees of the Corporation are not civil servants, public servants or Crown employees within the meaning of the Public Service Act.
Agreements to provide services
(2) Any minister of the Crown or chair of a Crown agency may enter into agreements with the Corporation for the provision by employees of the Crown or the Crown agency of any service required by the Corporation.
Annual report
11. (1) The Corporation shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of its board of directors.
Financial statements
(2) The audited financial statements of the Corporation must be included in the annual report.
Tabling
(3) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report before the Assembly if it is in session or, if not, deposit the report with the Clerk of the Assembly.
Disclosure of financial statements
(4) The Corporation may give its financial statements to other persons before the Minister complies with subsection (3).
Other reports
12. The Corporation shall give such other reports and information to the Minister as he or she may require.
Financial Matters
By-laws authorizing borrowing
13. A by-law to authorize borrowing by the Corporation or by a subsidiary must include the following information:
1. The maximum principal amount of borrowing that may be outstanding at any time under the authority of the by-law.
2. The period, not to exceed five years, during which the borrowing authority may be exercised.
3. The date after which no funds are permitted to remain outstanding under the authority of the by-law.
4. Such other terms and conditions as the Minister of Finance may approve.
Status and use of revenues
14. Despite Part I of the Financial Administration Act, the revenues received by the Corporation or a related entity do not form part of the Consolidated Revenue Fund.
Audits
15. The Auditor General may audit the accounts and financial transactions of the Corporation and its subsidiaries each year.
Financial authority of the Crown
16. (1) The Lieutenant Governor in Council may raise by way of loan in the manner provided by the Financial Administration Act such sums as the Lieutenant Governor in Council considers necessary for the purposes of the Corporation, and the Minister of Finance shall use the sums so raised to make advances to the Corporation or a subsidiary by way of loan or to purchase securities issued by the Corporation or the subsidiary in such amounts, at such times and on such terms and conditions as the Minister of Finance may determine.
Same
(2) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the Corporation or a subsidiary in such amounts, at such times and on such terms as the Minister of Finance may determine, subject to the maximum principal amount specified by the Lieutenant Governor in Council that may be purchased or advanced or that may be outstanding at any time.
Payment from C.R.F.
(3) The Minister of Finance may pay out of the Consolidated Revenue Fund any amount required for the purposes of subsection (1) or (2).
Delegation
(4) In an order under subsection (1) or (2), the Lieutenant Governor in Council may delegate to an officer or employee of the Ministry of Finance or the Ontario Financing Authority or to a solicitor engaged to act for the Minister of Finance any or all of the powers of the Minister of Finance under either of those subsections.
Payment of judgments against the Corporation, etc.
17. (1) The Minister of Finance shall pay from the Consolidated Revenue Fund the amount of any judgment against the Corporation or a related entity that remains unpaid after it has made reasonable efforts, including liquidating its assets, to pay the amount of the judgment.
Exception
(2) Subsection (1) does not apply to a judgment against the Corporation or a related entity in respect of an agreement, security or instrument in respect of which the Corporation or related entity has made a declaration described in subsection 5 (2).
Agreement re appropriated funds
18. (1) Subject to subsection (3), as security for the payment by an entity of an amount that the entity has agreed to pay to the Corporation or a subsidiary that is a related entity on account of the indebtedness of the entity to the Corporation or its subsidiary that is a related entity, the entity may agree in writing with the Corporation or its subsidiary that the Minister of Finance is entitled to deduct from money appropriated by the Assembly for payment to the entity, or from money appropriated by the Assembly for payment to the entity in respect of specified matters, amounts not exceeding the amounts that the entity fails to pay to the Corporation or its subsidiary on account of the indebtedness.
Authority to deduct
(2) If the entity fails to pay an amount to the Corporation or a subsidiary that is a related entity, the Minister of Finance shall make the deduction authorized by the agreement from the money appropriated by the Assembly and shall pay the amount deducted to the Corporation or its subsidiary that is a related entity from the Consolidated Revenue Fund.
Limitation on agreements
(3) The Corporation or a subsidiary that is a related entity may only enter into an agreement to which subsection (1) applies if the following criteria are met:
1. The agreement must be with a municipality or with a public body specified under paragraph 1 of section 3.
2. The agreement must be to provide financing for a purpose specified under paragraph 1 of section 3.
General
Investments authorized for trusts
19. For the purposes of section 26 of the Trustee Act, securities issued by the Corporation or by any subsidiary, trust, partnership or other entity established or acquired by the Corporation shall be deemed to be property in which a trustee could invest immediately before July 1, 1999.
Application of certain statutes
20. (1) Subsections 132 (1) to (8) of the Business Corporations Act apply, with necessary modifications, to the Corporation and its subsidiaries, if any, and to their officers and the members of their boards of directors.
Same
(2) For the purposes of subsection (1), the Minister may exercise the powers of the shareholders under subsection 132 (8) of the Business Corporations Act.
Business Corporations Act, indemnification and insurance
(3) Subsections 136 (1), (3) and (4) of the Business Corporations Act apply, with necessary modifications, to the Corporation and its subsidiaries, if any, and to their officers and the members of their boards of directors.
Corporations Act, Business Corporations Act, Corporations Information Act
(4) The Corporations Act, the Business Corporations Act and the Corporations Information Act do not apply to the Corporation, except as otherwise provided in this section or as otherwise specified by regulation.
Loan and Trust Corporations Act
(5) The Loan and Trust Corporations Act does not apply to the Corporation, except as otherwise specified by regulation.
Waiver of sovereign immunity
21. The Corporation or a related entity may waive any immunity to which it may be entitled outside Ontario as a Crown agent and may submit to the jurisdiction of a court outside Ontario.
Immunity of employees and others
22. (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Corporation or a director, officer, employee or agent of a related entity for any act done in good faith in the exercise or performance or intended exercise or performance of a power or duty under this Act, the regulations or the by-laws of the Corporation or the related entity or under a directive issued under subsection 8 (1) or for any neglect or default in the exercise or performance in good faith of such a power or duty.
Immunity of the Crown and Crown agencies
(2) No action or other civil proceeding shall be commenced against the Crown or a Crown agency for any act, neglect or default by a person referred to in subsection (1) or for any act, neglect or default by the Corporation or a related entity.
Exception
(3) Subsections (1) and (2) do not relieve the Corporation or a related entity of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default referred to in subsection (1).
Evidence of authority for transactions
23. (1) A recital or declaration in any resolution of the board of directors that a transaction is for the purpose of carrying out the objects of the Corporation is conclusive evidence to that effect and the Corporation may not assert the contrary against a person dealing with the Corporation or with any person who has acquired rights from the Corporation.
Evidence of authority
(2) A certificate of the chair, a vice-chair, the chief executive officer or any officer of the Corporation designated by the board of directors provided to a person dealing with the Corporation or to a person who has acquired rights from the Corporation which states that the sum of the amount specified in the certificate and the sum of all other principal amounts borrowed under a specified by-law described in section 13 does not exceed the maximum principal amount that may be borrowed under that by-law is conclusive evidence of that fact.
Winding Up Corporation
Winding up the Corporation
24. (1) The Lieutenant Governor in Council may by order require the board of directors to wind up the affairs of the Corporation.
Duty of board
(2) The board of directors shall prepare a proposed plan for winding up the Corporation and transferring its assets and liabilities and shall give the proposed plan to the Lieutenant Governor in Council.
Restriction
(3) The plan for winding up the Corporation may provide,
(a) for liquidating assets and transferring the proceeds to the Consolidated Revenue Fund or to an agency of the Crown; and
(b) for transferring assets and liabilities to Her Majesty in right of Ontario or to an agency of the Crown.
Same
(4) Upon the approval of the proposed plan by the Lieutenant Governor in Council, the board of directors shall wind up the affairs of the Corporation and transfer its assets and liabilities, including transferring the proceeds from the liquidation of assets, in accordance with the plan.
Transitional Matters
Transition, definitions
25. In sections 26 and 27,
"Authority" means Ontario Strategic Infrastructure Financing Authority incorporated on August 19, 2002 under the Corporations Act; ("Office")
"former Corporation" means Ontario Infrastructure Projects Corporation incorporated on November 7, 2005 under the Business Corporations Act. ("ancienne Société")
Transition, corporate matters
Authority and former Corporation cease to exist
26. (1) On the day subsection 2 (1) comes into force, the Authority and the former Corporation cease to exist as entities separate from the Corporation.
Former Corporation's shares cancelled
(2) On the day subsection 2 (1) comes into force, all issued and outstanding shares of the former Corporation are cancelled without repayment of capital.
Assets and liabilities
(3) On the day subsection 2 (1) comes into force,
(a) all rights, property and assets of the Authority and the former Corporation immediately before that subsection comes into force become the rights, property and assets of the Corporation; and
(b) the Corporation becomes subject to all the debts, liabilities and obligations of the Authority and the former Corporation that existed immediately before that day.
Agreements, etc.
(4) Any agreement, security or instrument in effect immediately before subsection 2 (1) comes into force to which the Authority or the former Corporation is a party has effect on and after subsection 2 (1) comes into force as if,
(a) the Corporation were substituted for the Authority or the former Corporation, as the case requires, as a party to the agreement, security or instrument; and
(b) any reference in the agreement, security or instrument to the Authority or the former Corporation were a reference to the Corporation.
Same
(5) Subsection (4) does not constitute a breach, termination or repudiation of the agreement, security or instrument or the frustration of the agreement or an event of default or force majeure.
Boards of directors
(6) The members of the boards of directors of the Authority and the former Corporation holding office immediately before subsection 2 (1) comes into force shall form the initial board of directors of the Corporation.
By-laws
(7) The by-laws of the Authority and the former Corporation in effect immediately before subsection 2 (1) comes in force become the by-laws of the Corporation on the day subsection 2 (1) comes into force except to the extent there is a conflict between the by-laws, in which case, the conflict shall be resolved by the board of directors.
Chief executive officer
(8) The person holding the position of chief executive officer of the former Corporation immediately before subsection 2 (1) comes into force shall be the first chief executive officer of the Corporation.
Outstanding proceedings
(9) On the day subsection 2 (1) comes into force, the Corporation becomes a party to each ongoing proceeding to which the Authority or the former Corporation is a party immediately before subsection 2 (1) comes into force, replacing the Authority and the former Corporation.
Transition, employment matters re Authority
27. (1) Subject to subsection (3) and subsection 22 (4) of the Public Service Act, a public servant employed at the Authority immediately before subsection 2 (1) comes into force continues to be a public servant after subsection 2 (1) comes into force.
Transfer of jobs and functions
(2) Despite subsection (1), the jobs and functions of employees at the Authority immediately before subsection 2 (1) comes into force are transferred from the Crown to the Corporation after subsection 2 (1) comes into force.
Offer of employment
(3) A public servant employed at the Authority who accepts an offer made by the former Corporation with respect to employment with the Corporation after the Budget Measures Act, 2006 receives Royal Assent and before subsection 2 (1) comes into force is an employee of the Corporation as of the date subsection 2 (1) comes into force, and ceases to be a public servant.
Regulations
Regulations
28. (1) The Lieutenant Governor in Council may make regulations,
(a) specifying public bodies for the purposes of paragraph 1 of section 3;
(b) specifying, for the purposes of paragraph 1 of section 3, the purposes for which the Corporation may provide financing;
(c) prescribing the provisions of the Corporations Act, the Business Corporations Act and the Corporations Information Act that apply with respect to the Corporation;
(d) governing such other matters as the Minister considers necessary or advisable for the purposes of this Act.
General or particular
(2) A regulation may be general or particular in its application.
Repeal, Commencement and Short Title
Repeal
29. The Ontario Strategic Infrastructure Financing Authority Act, 2002 is repealed.
Commencement
30. The Act set out in this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
31. The short title of the Act set out in this Schedule is the Ontario Infrastructure Projects Corporation Act, 2006.
SCHEDULE J
ONTARIO LOAN ACT, 2006
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 $4 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, 2008.
Same
(2) The Crown shall not borrow money after December 31, 2009 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2009,
(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, 2006 receives Royal Assent.
Short title
4. The short title of the Act set out in this Schedule is the Ontario Loan Act, 2006.
SCHEDULE K
ONTARIO MUNICIPAL EMPLOYEES RETIREMENT SYSTEM REVIEW ACT, 2006
Definitions
1. (1) In this Act,
"Administration Corporation", "OMERS", "OMERS pension plans", "primary pension plan", "Sponsors Corporation" and "supplemental plan" have the same meanings as in the Ontario Municipal Employees Retirement System Act, 2006; ("Société d'administration", "OMERS", "régimes de retraite d'OMERS", "régime de retraite principal", "Société de promotion", "régime complémentaire")
"Minister" means the Minister of Municipal Affairs and Housing or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act. ("ministre")
Interpretation, pension matters
(2) Words and expressions used in this Act that relate to pension plans and pension funds have the same meanings as under the Pension Benefits Act, unless the context requires otherwise.
Reference to governance model
(3) A reference in this Act to the governance model for OMERS is a reference to the structure established in the Ontario Municipal Employees Retirement System Act, 2006 for the governance and administration of OMERS by the Sponsors Corporation and the Administration Corporation.
Review of OMERS governance model
2. (1) The Minister shall, beginning no later than 2012, undertake a review of the governance model established for OMERS under the Ontario Municipal Employees Retirement System Act, 2006.
Review to be based on experience
(2) The review shall be based on the actual governance and administration of OMERS since the proclamation of sections 16 and 17 of the Ontario Municipal Employees Retirement System Act, 2006.
Matters to be addressed
(3) Without limiting the generality of subsection (1), the review shall address and evaluate,
(a) the effectiveness and fairness of the governance model,
(i) in representing the interests of the employers that participate in the OMERS pension plans and the members and former members of the OMERS pension plans,
(ii) in ensuring the efficient governance of OMERS, and
(iii) in ensuring the accountability of OMERS;
(b) the efficiency and effectiveness of decision-making by the Sponsors Corporation, including its use of the supplementary decision-making mechanisms set out in or permitted under the Ontario Municipal Employees Retirement System Act, 2006; and
(c) the effectiveness of the governance model in ensuring the overall fairness and financial stability of OMERS and, in particular, in ensuring that there is no subsidy of a supplemental plan by the primary pension plan.
Matters not to be addressed
(4) Despite the generality of subsection (1), the review shall not,
(a) reconsider the general principle, as established in the Ontario Municipal Employees Retirement System Act, 2006, of giving the responsibility for the governance of the OMERS pension plans to the employers that participate in the OMERS pension plans and the members and former members of the OMERS pension plans; or
(b) consider whether any supplemental plan established under the Ontario Municipal Employees Retirement System Act, 2006 should be continued.
Report to Minister
(5) Upon completion of the review, the person appointed to conduct the review shall submit a report, including any recommendations for changes to the governance model of OMERS, to the Minister.
Report to be made public
(6) The Minister shall make the report public within 30 days after receiving it.
Minister to consider report
(7) The Minister shall give serious consideration to the report and its recommendations.
Appointment of person to conduct review
3. (1) The Minister shall, on or before January 1, 2012 or as soon as possible after that date if the appointment is made under subsection (4), appoint a person to conduct the review in accordance with this section.
Approval required
(2) The Minister shall not appoint a person to conduct the review without the prior approval of every member of the Sponsors Corporation and of the Administration Corporation.
If no approval
(3) If all the members of the Sponsors Corporation and of the Administration Corporation do not approve a person to conduct the review by December 31, 2011, the Minister shall ask the Chief Justice of Ontario to recommend a person to conduct the review.
Chief Justice to recommend appointee
(4) Upon receiving a request from the Minister under subsection (3), the Chief Justice shall recommend to the Minister any person to conduct the review and the Minister shall appoint that person to conduct the review.
Qualifications
(5) The person appointed to conduct the review must,
(a) have expertise in collective bargaining and pension plan administration; and
(b) be independent of the government, the employers that participate in the OMERS pension plans, the members and former members of the OMERS pension plans and the persons and organizations that represent such employers, members and former members.
Consultations on implementation of Act
4. (1) The Minister shall initiate consultations on the implementation of the Ontario Municipal Employees Retirement System Act, 2006, including matters relating to the governance model, as soon as possible after the earlier of,
(a) the date of the first triennial valuation of the OMERS pension plans required under section 14 of Regulation 909 (General) made under the Pension Benefits Act after this Act comes into force; and
(b) December 31, 2009.
Same
(2) Consultations under subsection (1) shall be initiated with the persons or organizations that are entitled to choose a member of the Sponsors Corporation or of the Administration Corporation.
Commencement
5. The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Short title
6. The short title of the Act set out in this Schedule is the Ontario Municipal Employees Retirement System Review Act, 2006.
SCHEDULE L
PUBLIC SERVICE PENSION ACT
1. Section 11 of the Public Service Pension Act is amended by adding the following subsection:
Solvency valuation, valuation date on or after December 31, 2005
(3.1) Despite the definition of "solvency liabilities" in subsection 8 (1), a solvency valuation in a report filed with the Superintendent under the Pension Benefits Act with a valuation date on or after December 31, 2005 may exclude liabilities for adjustments for inflation under the Plan from the solvency liabilities of the Plan in determining whether the Plan has a solvency deficiency.
Commencement
2. This Schedule shall be deemed to have come into force on December 31, 2005.
SCHEDULE M
RETAIL SALES TAX ACT
1. Subsection 1 (1.1) of the Retail Sales Tax Act is amended by striking out "July 1, 2006" in the portion before paragraph 1 and substituting "July 1, 2007".
2. (1) Subsection 7 (1) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:
Exemption
(1) The purchaser of the following classes of tangible personal property, taxable services and admissions to a place of amusement is exempt from the tax imposed by section 2:
. . . . .
(2) Paragraph 67 of subsection 7 (1) of the Act is repealed and the following substituted:
67. Admissions to a place of amusement that are donated to any of the following by an owner or operator of the place of amusement:
i. A registered charity, as defined in subsection 248 (1) of the Income Tax Act (Canada).
ii. An educational institution, on such terms and conditions as the Minister may prescribe.
iii. A qualifying non-profit organization, as defined by the Minister, on such terms and conditions as the Minister may prescribe.
3. (1) Clauses 48 (3) (g), (h) and (i) of the Act are repealed and the following substituted:
(g) subject to subsection (6), providing for the rebate of the tax imposed by section 2 or 4.2 paid on the purchase of a vehicle for which a permit is required under the Highway Traffic Act, where the energy to operate the vehicle is either,
(i) exclusively electrical energy or energy derived from the internal combustion of propane, natural gas, ethanol, methanol or manufactured gas, or
(ii) energy described in subclause (i), where the vehicle can also operate exclusively on energy derived from a fuel described under the Fuel Tax Act or the Gasoline Tax Act,
but not any vehicle where the energy to operate the vehicle is a mix of a form of energy described in subclause (i) and energy derived from a fuel described under the Fuel Tax Act or the Gasoline Tax Act;
(g.1) subject to subsection (6), providing for the rebate of the tax imposed by section 2 or 4.2 paid on the purchase of a vehicle that is powered by a gasoline or diesel engine and for which a permit is required under the Highway Traffic Act, and any tangible personal property sold as a conversion kit, including the labour provided to install the conversion kit, if the vehicle is converted to permit it to operate on energy described in either subclause (g) (i) or (ii) within 180 days of the date of sale of the vehicle;
(h) subject to subsection (6), providing for the rebate of any tax paid by a purchaser under section 4, where the purchaser is entitled to a rebate referred to in clause (g.1) in connection with the conversion of the vehicle to permit it to operate on energy described in subclause (g) (i);
(h.1) subject to subsection (6), providing for the rebate of the tax imposed by section 2 paid on the purchase of tangible personal property sold as a conversion kit to be used to convert any vehicle powered by a gasoline or diesel engine into a vehicle that operates on energy described in either subclause (g) (i) or (ii), including the labour to install the kit, where the vehicle is not so converted within 180 days of the date of the sale of the vehicle;
(i) subject to subsection (7), providing for the rebate of the tax imposed by section 2 or 4.2 that has been paid on a hybrid electric vehicle, as defined by the Minister, for a vehicle purchased before April 1, 2012;
(2) Section 48 of the Act is amended by adding the following subsections:
Rebate on vehicles
(5) A regulation under clause (3) (g), (g.1), (h), (h.1) or (i) may prescribe the basis upon which the applicable rebate is calculated and the conditions under which the rebate is made.
Maximum rebate on certain types of vehicle
(6) The maximum amount of the rebate that may be given under a regulation made under clause (3) (g), (g.1), (h) or (h.1) in respect of a vehicle, other than a bus, as defined by the Minister, is,
(a) $750 for a vehicle that uses propane or is converted to use propane; and
(b) $1,000 for a vehicle other than a vehicle that uses propane or is converted to use propane.
Maximum rebate on hybrid electric vehicles
(7) The maximum amount of the rebate that may be given under a regulation made under clause (3) (i) is $1,000 for a hybrid electric vehicle delivered to the purchaser after May 9, 2001 and before March 24, 2006 and $2,000 for a hybrid electric vehicle delivered to the purchaser after March 23, 2006.
Commencement
4. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Section 1 comes into force on July 1, 2006.
Same
(3) Subsection 2 (2) comes into force on March 24, 2006.
SCHEDULE N
ST. CLAIR PARKS COMMISSION ACT, 2000 AND MINISTRY OF TOURISM AND RECREATION ACT
St. Clair Parks Commission Act, 2000
1. Subsection 2 (1) of the St. Clair Parks Commission Act, 2000 is repealed and the following substituted:
Commission
(1) The St. Clair Parkway Commission is continued as a corporation without share capital known as the St. Clair Parks Commission in English and in French as Commission des parcs de la Sainte-Claire composed of not more than five members appointed by the Lieutenant Governor in Council.
Transition
(1.1) The persons who were members of the Commission by virtue of appointment by the council of a municipality immediately before the day section 1 of Schedule N to the Budget Measures Act, 2006 comes into force cease to be members on that day.
2. Subsection 3 (2) of the Act is repealed and the following substituted:
Power
(2) Subject to section 4, the Commission has the capacity, rights, powers and privileges of a natural person in carrying out its objects and in carrying out a direction of the Minister under section 3.1.
3. The Act is amended by adding the following section:
Ministerial direction to Commission
3.1 (1) The Minister may direct the Commission to,
(a) enter into an agreement to transfer any of the Commission's assets and liabilities in accordance with this section; and
(b) do anything necessary or appropriate to wind up the Commission or otherwise prepare for its dissolution under section 15.
Directions may be general or detailed
(2) The Minister's directions under subsection (1) may be as general or detailed as the Minister considers appropriate.
Minister may act for Commission
(3) The Minister may, for and in the name of the Commission, do anything, wholly or partly, that the Minister may direct the Commission to do under clause (1) (a) or (b).
Same
(4) If the Minister does or proposes to do anything under subsection (3) that the Minister has directed the Commission to do, the Minister shall so notify the Commission and the Commission shall not do the thing.
Legal effect
(5) Anything done by the Minister under subsection (3) has the same legal effect as if the Commission had done it.
Same
(6) Nothing in subsection 3 (1) or clause 4 (1) (a) prevents a transfer of real property under this section, and despite clause 4 (1) (a), the approval of the Lieutenant Governor in Council is not required for a transfer of real property under this section.
Bulk Sales Act not applicable
(7) The Bulk Sales Act does not apply to a transfer of the Commission's assets made under this section.
4. Sections 15, 16 and 17 of the Act are repealed and the following substituted:
Dissolution
15. The Commission is dissolved on a day to be named by proclamation of the Lieutenant Governor.
Ministry of Tourism and Recreation Act
5. The Ministry of Tourism and Recreation Act is amended by adding the following section:
Transfer of St. Clair Parks Commission lands
11.1 (1) Where real property is transferred to a transferee under an agreement to transfer under clause 3.1 (1) (a) of the St. Clair Parks Commission Act, 2000, that transferee shall not subsequently transfer the property unless,
(a) the agreement to transfer allows the subsequent transfer; or
(b) the Minister approves the subsequent transfer.
Same
(2) A transfer by a transferee to which subsection (1) applies that does not meet the condition set out in clause (1) (a) or (b) is null and void.
6. Section 12 of the Act is amended by adding the following clause:
(g) addressing transitional or other issues arising as a result of the repeal of the St. Clair Parks Commission Act, 2000.
Repeal, Commencement and Short Title
Repeal
7. The St. Clair Parks Commission Act, 2000 is repealed.
Commencement
8. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Sections 1, 6 and 7 come into force on a day to be named by proclamation of the Lieutenant Governor.
SCHEDULE O
TOBACCO TAX ACT
1. Subsection 32 (6) of the Tobacco Tax Act is repealed and the following substituted:
Exception for tax enforcement in other jurisdictions
(6) The Minister may permit information or a copy of any record or thing obtained by or on behalf of the Minister for the purposes of this Act to be disclosed to any person employed by any government if,
(a) information, records or things obtained by that government for the purpose of any Act that imposes a tax or duty are disclosed on a reciprocal basis to the Minister; and
(b) the information, record or thing will not be used for any purpose other than the administration or enforcement of a law that provides for the imposition of a tax or duty.
Exception for enforcement of laws relating to or regulating tobacco
(7) A person employed by the Government of Ontario may, in the course of the person's duties in connection with the administration or enforcement of this Act, permit information or a copy of any record or thing obtained by or on behalf of the Minister for the purposes of this Act to be disclosed to any person employed by an entity listed in subsection (7.1) if,
(a) the entity administers or enforces a law, by-law or order relating to or regulating the manufacture, distribution, export, import, storage, sale or advertisement for sale of tobacco;
(b) the information, record or thing is relevant to the administration or enforcement of the law, by-law or order that the entity administers or enforces and is disclosed to the entity for the purpose of administering or enforcing that law, by-law or order;
(c) the information, record or thing will not be used or disclosed by the entity for any purpose other than the administration or enforcement of a law, by-law or order relating to or regulating the activities listed in clause (a); and
(d) information, records or things obtained by the entity for the purpose of any law, by-law or order relating to or regulating the activities listed in clause (a) are disclosed on a reciprocal basis to the Minister.
Same
(7.1) For the purposes of subsection (7), an entity is,
(a) the Government of Canada;
(b) the government of a province or territory in Canada;
(c) a municipality in Canada; or
(d) an agency, board or commission of a government or municipality described in clause (a), (b) or (c).
Commencement
2. This Schedule comes into force on the day the Budget Measures Act, 2006 receives Royal Assent.
SCHEDULE P
VITAL STATISTICS ACT
1. The Vital Statistics Act is amended by adding the following section:
Disclosure of Death Information
Disclosure of death information
48.13 (1) In this section,
"institution" means,
(a) an institution under the Freedom of Information and Protection of Privacy Act,
(b) an institution under the Municipal Freedom of Information and Protection of Privacy Act,
(c) any agency, board, commission, corporation or other body designated as an institution in the regulations.
Same
(2) Any institution may apply to have the Registrar General disclose to the applicant the particulars that would be set out in a death certificate under subsection 43 (2) for every person who died during the period of time specified in the application and whose death is registered under this Act or for every member of a class of persons whose death is registered under this Act where the class is specified in the application and the Registrar General may grant the application if,
(a) the applicant states in the application the purpose for which the applicant intends to use the information so disclosed and the Registrar General is satisfied as to the purpose;
(b) the applicant satisfies the Registrar General that it has in place adequate policies and practices for the protection of the information so disclosed;
(c) the applicant meets the requirements prescribed by the regulations;
(d) the applicant enters into an agreement described in subsection (4) with the Registrar General; and
(e) the applicant pays the required fee for the disclosure of the information, including the fee that the Registrar General requires for entering into the agreement mentioned in clause (d).
Class
(3) For the purposes of subsection (2), a class of deceased persons,
(a) may be defined with respect to any attribute, quality or characteristic of the deceased persons that the Registrar General determines or combination of them;
(b) may be defined to consist of or to include or exclude any specified member whether or not with the same attributes, qualities or characteristics; and
(c) may be different from one application to another.
Agreement
(4) An agreement mentioned in clause (2) (d) shall contain the terms and conditions that the Registrar General considers appropriate with respect to,
(a) the use that the applicant may make of the information disclosed to the applicant, subject to subsection (6) and the regulations;
(b) the protection of the information, including the retention and destruction of the information, subject to the regulations; and
(c) measures to verify that the applicant complies with the agreement.
Additional information
(5) In an application made under subsection (2), the applicant may request that the Registrar General disclose to the applicant other information that is included in the statement or information under subsection 21 (2) about the deceased persons affected by the application and that is specified in the application, in addition to the particulars that would be set out in a death certificate under subsection 43 (2) for the deceased persons and the Registrar General may grant the request if,
(a) the applicant complies with clauses (2) (b) to (e), reading those clauses as if they applied with respect to that other information; and
(b) the applicant agrees in the agreement mentioned in clause (2) (d) to use that other information only for the purpose of verifying other information that the applicant has before making the application and only to the extent necessary for that purpose.
Same, agreement
(6) If the Registrar General discloses information to an applicant under subsection (5), the applicant shall agree in the agreement mentioned in clause (2) (d) to use that other information only for the purpose of verifying other information that the applicant has before making the application and only to the extent necessary for that purpose.
Ongoing disclosure
(7) An application made under subsection (2) may be for the disclosure of information on an ongoing or periodic basis.
Disclosure of personal information
(8) Any disclosure of personal information that is authorized under this section shall be deemed to be in compliance with clause 42 (e) of the Freedom of Information and Protection of Privacy Act.
Further use
(9) An institution to whom the Registrar General discloses information under this section shall not use it for a purpose other than the purpose specified in the agreement that the institution has entered into with the Registrar General under clause (2) (d) with respect to the information or a purpose authorized by the regulations.
No further disclosure
(10) An institution to whom the Registrar General discloses information under this section shall not disclose it to any other person or body, except an agent acting on behalf of the institution who uses it for the purpose specified in the agreement that the institution has entered into with the Registrar General under clause (2) (d) with respect to the information.
Offence
(11) An institution or an individual acting on behalf of an institution that contravenes subsection (9) or (10) or a regulation made under clause 60 (1) (y), (z) or (z.1) is guilty of an offence.
2. (1) Clause 60 (1) (m.4) of the Act is amended by striking out "section 53.1" and substituting "section 48.13 or 53.1".
(2) Subsection 60 (1) of the Act is amended by adding the following clauses:
(x) prescribing requirements for the purposes of clause 48.13 (2) (c);
(y) governing the use that institutions that obtain information under section 48.13 may make of the information so obtained, subject to subsection 48.13 (6);
(z) requiring institutions that obtain information under section 48.13 to retain or destroy the information;
(z.1) specifying terms and conditions that shall be included in an agreement mentioned in clause 48.13 (2) (d) where the terms and conditions govern the use that an institution may make of information obtained under section 48.13 subject to subsection 48.13 (6) or require such an institution to retain or destroy the information.
(3) Section 60 of the Act is amended by adding the following subsections:
Classes for use of information
(4) A regulation made under clause (1) (y), (z) or (z.1) may be of general application or specific in its application to any institution or class of institutions or to any information or class of information.
Same
(5) A class described in a regulation made under clause (1) (y), (z) or (z.1) may be described according to any characteristic or combination of characteristics and may be described to include or exclude any specified member, whether or not with the same characteristics.
Commencement
3. (1) Subject to subsection (2), this Schedule comes into force the day the Budget Measures Act, 2006 receives Royal Assent.
Same
(2) Sections 1 and 2 come into force on a day to be named by proclamation of the Lieutenant Governor.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 81 and does not form part of the law. Bill 81 has been enacted as Chapter 9 of the Statutes of Ontario, 2006.
The Bill implements measures contained in the 2006 Ontario Budget and enacts, amends and repeals various Acts. The major elements of the Bill are described below.
SCHEDULE A
BUSINESS CORPORATIONS ACT
Subsection 95 (2) of the Business Corporations Act is amended to change the range of dates that must be used to fix the record date for determining the shareholders entitled to receive notice of a shareholders' meeting. The purpose of this amendment is to ensure consistency with the equivalent Ontario Securities Commission rule (section 2.1 of National Instrument 54-101).
SCHEDULE B
CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF ONTARIO ACT, 1983 AND
THE CHARTERED ACCOUNTANTS ACT, 1956
The amendments to the Certified General Accountants Association of Ontario Act, 1983 and The Chartered Accountants Act, 1956 permit a professional corporation under each of the Acts to be a member of a limited liability partnership under that Act.
SCHEDULE C
COMMUNITY SMALL BUSINESS
INVESTMENT FUNDS ACT
The definition of "Minister" for the purposes of the Community Small Business Investment Funds Act is re-enacted to reflect the transfer to the Minister of Research and Innovation of the administration of Ontario commercialization investment funds.
Under Part III of the Act, a labour sponsored investment fund corporation ("LSIF") may invest in qualifying debt obligations issued by an eligible business. The re-enactment of the definition of "qualifying debt obligation" in subsection 12 (1) of the Act removes the requirement that qualifying debt obligations be subordinate debt and clarifies the type of security an LSIF may take back as part of a qualifying debt obligation. A related amendment is made to clause 18 (1) (b) of the Act.
Section 17 of the Act currently requires a LSIF to invest and maintain 70 per cent of its equity capital in eligible investments in eligible businesses. The amendments to section 17 reduce that percentage to 60 per cent for 2005 and later years. The amendments also clarify that amounts paid by a LSIF under a guarantee will be included in the calculation of its losses if an amount in respect of the guarantee is deemed to be a qualifying debt obligation under subsection 18 (8) of the Act.
Currently, under subsection 17 (3) of the Act, a LSIF is deemed to continue holding an eligible investment for nine months after disposing of the investment. The re-enactment of subsection 17 (3) of the Act extends that time limit to 24 months for dispositions of eligible investments on or after January 1, 2005. Amendments to subsection 45 (1) of the Act permit the period of 24 months to be extended by regulation.
Under the Act, a small business ceases to be an eligible business if the total of its gross assets and the gross assets of related businesses exceeds $50 million or the number of employees of the small business and related businesses exceeds 500. The enactment of subsection 18 (1.1) of the Act provides that a new investment made after 2004 in a business that was originally an eligible business and in which the LSIF made an investment is an eligible investment if the business was an eligible business when the LSIF made its previous investment or investments and the only reason the business is no longer an eligible business is because the amount of gross assets or the number of employees exceeds the limits in the Act.
The enactment of subsection 18 (1.2) of the Act provides that an investment acquired by a LSIF from another LSIF during the course of and by reason of the winding-up or dissolution of the transferor is an eligible investment of the LSIF that acquires the investment if the investment was an eligible investment of the transferor immediately before the transfer.
The re-enactment of subsection 18 (8) of the Act and repeal of subsection 18 (8.1) of the Act clarify that a LSIF is deemed to have made an eligible investment in an eligible business if it guarantees a qualifying debt obligation issued by the eligible business. The amount of the investment is deemed to be 25 per cent of the amount of the debt that is guaranteed.
Section 18.1 of the Act currently requires a LSIF to invest part of its equity capital in small businesses having not more than 50 employees and gross assets that do not exceed $5 million. The section also limits the amount a LSIF may invest in corporations publicly listed on recognized stock exchanges. The amendments to section 18.1 of the Act provide that neither of these rules apply for 2005 and later years.
The definition of "eligible investor" in subsection 18.11 (1) of the Act is amended to refer to accredited investors under National Instrument 45-106, as adopted by the Ontario Securities Commission, and to include sponsors and entities related to a sponsor. No change is made to the list of persons who are excluded from the definition of "eligible investor". A consequential amendment is made to clause 18.12 (b) of the Act. Subsection 45 (1) of the Act is amended to permit additional eligible investors to be prescribed by regulation for the purposes of Part III.2 of the Act.
The definition of "reserves" in subsection 19 (2) of the Act is amended to permit a LSIF to hold shares that are listed on a Canadian or foreign stock exchange prescribed under the Income Tax Act (Canada).
The amendment to subsection 20 (2) of the Act increases the amount a LSIF may invest in any one business or group of related businesses from $15 million to $20 million. Clause 45 (1) (s) of the Act, which permits that amount to be increased by regulation, is amended to refer to the higher limit.
If an investment ceases to be an eligible investment, section 21 of the Act currently provides that the investment is deemed to remain an eligible investment for 12 months. The enactment of subsection 21 (2.1) provides that if a material change occurs on or after January 1, 2005 that causes an investment held by a LSIF to cease to be an eligible investment, the investment remains an eligible investment for 24 months. Clause 45 (1) (k.4) of the Act is enacted to permit this period of time to be extended by regulation.
Under section 27 of the Act, a LSIF that proposes to dissolve or wind up is required to pay an amount to the Minister of Finance, calculated under subsection 27 (2.2) of the Act. Subsection 27 (2.2) of the Act is re-enacted to provide that this requirement does not apply if the LSIF notifies the Minister after August 29, 2005 and before February 1, 2007 that it proposes to wind up or dissolve or if the LSIF notifies the Minister after January 31, 2007 of its proposal to wind up or dissolve and the rules in subsection 27.2 (5) apply to the LSIF.
Subsection 27.1 (10) of the Act, which authorizes the making of regulations to prescribe rules that apply if a LSIF winds up, is repealed by reason of the enactment of the amendments to section 27.2 of the Act.
Section 27.2 of the Act is amended to provide rules exempting a LSIF from the requirements of various sections of the Act if the LSIF winds up or dissolves and has notified the Minister of Finance after August 29, 2005 and before February 1, 2007 of its proposal to wind up or dissolve. Similar rules apply to a LSIF that notifies the Minister after January 31, 2007 of its intention to wind up or dissolve if less than 20 per cent of the amount of equity capital that it raised within the eight years before the notice is given was raised within the final 24 months. Shares issued as part of an arrangement for the purchase of substantially all of the assets of another LSIF are excluded in determining the amount of equity capital raised in the final 24 months.
SCHEDULE D
CORPORATIONS TAX ACT
Section 43.10 of the Corporations Tax Act provides a refundable Ontario production services tax credit, calculated as a percentage of a qualifying corporation's qualifying Ontario labour expenditure in respect of an eligible film or television production. The amendment to subsection 43.10 (4) of the Act provides that the current tax credit rate of 18 per cent continues in respect of expenditures incurred on or after April 1, 2006 and before April 1, 2007.
The amendments to sections 66 and 66.1 of the Act reduce the rate of capital tax for 2007 and 2008 by 5 per cent of the current capital tax rate.
The enactment of section 98.1 of the Act authorizes the Minister of Finance, with the approval of the Lieutenant Governor in Council, to enter into an agreement with the Minister of National Revenue on behalf of the Government of Ontario for the administration and enforcement by the Canada Revenue Agency of certain provisions in the Act and the regulations. The agreement may also authorize the Canada Revenue Agency to administer provisions of the Mining Tax Act and Part VI of the Electricity Act, 1998 on behalf of the Minister of Finance. The section authorizes the Minister of Finance to prescribe by regulation the provisions to be administered by the Canada Revenue Agency in each Act and regulation to which the agreement applies.
SCHEDULE E
GASOLINE TAX ACT
The re-enactment of the definition of "gasoline" in subsection 1 (1) of the Gasoline Tax Act removes a tax exemption for ethanol if there is a requirement under regulations made under the Environmental Protection Act that ethanol be added to gasoline.
SCHEDULE F
INCOME TAX ACT
Ontario personal income tax is currently collected by the federal government and paid to Ontario under the provisions of a collection agreement authorized under section 49 of the Income Tax Act. The enactment of subsections 49 (5.1) and (5.2) of the Act authorizes the Province to enter into agreements with the federal government for the collection and payment of taxes under the Corporations Tax Act or the Mining Tax Act or certain amounts under Part VI of the Electricity Act, 1998.
SCHEDULE G
MINISTRY OF NATURAL RESOURCES ACT
The amendment to the Ministry of Natural Resources Act authorizes the Minister to establish programs to promote and stimulate the development and management of natural resources in Ontario and permits the Minister to make grants for that purpose.
SCHEDULE H
MUNICIPAL ELECTIONS ACT, 1996 AND
RELATED AMENDMENTS TO OTHER ACTS
Municipal Elections Act, 1996
Sections 1 and 2. The term of office for municipal council and school boards is changed from three to four years.
Section 3. The number of years that a municipality must wait to do anything after receiving a negative answer to a binding question is increased from three to four years. (Subsection 3 (1)) Similarly the number of years that a municipality must wait before reversing or substantially changing any action it took to implement the results of a question is increased from three to four years. (Subsection 3 (2))
Section 4. The number of years that a person who was convicted of a corrupt practice described in subsection 90 (3) of the Act is prohibited from voting is increased from four to five years after the voting day in the election in respect of which he or she was convicted.
Municipal Act, 2001 and Education Act
Sections 5 and 6. The amendments to the Municipal Act, 2001 and to the Education Act are consequential to the amendments to the Municipal Elections Act, 1996.
SCHEDULE I
ONTARIO INFRASTRUCTURE PROJECTS CORPORATION ACT, 2006
A new statute, the Ontario Infrastructure Projects Corporation Act, 2006 is enacted. The text of the Act is set out in Schedule I to the Bill. The Act comes into force on proclamation.
The new Act governs the Ontario Infrastructure Projects Corporation, which is a corporation that is continued through the amalgamation of the Ontario Strategic Infrastructure Financing Authority and the Ontario Infrastructure Projects Corporation. The Corporation is a corporation without share capital, composed of the members of its board of directors. The members are appointed by the Lieutenant Governor in Council.
The objects of the Corporation are set out in section 3, and they include providing financing for municipalities and other public bodies for purposes specified in the regulations, providing advice to the Minister of Public Infrastructure Renewal in respect of infrastructure projects and undertaking project management and contract management of infrastructure projects assigned to the Corporation by that Minister.
The powers of the Corporation are set out in section 4. The Corporation and related entities cannot borrow, invest or manage financial risks without the consent of the Minister of Finance. The Corporation cannot establish or acquire a subsidiary, trust, partnership or other entity unless authorized to do so by order of the Lieutenant Governor in Council.
Section 8 authorizes the Minister of Public Infrastructure Renewal to issue policies and directives to the Corporation and any related entity. The boards of directors of the Corporation and any related entity shall ensure that the policies and directives are implemented promptly and efficiently.
Section 16 authorizes the Crown to borrow money and advance it to the Corporation and its subsidiaries. The Lieutenant Governor in Council may also authorize the purchase of securities of the Corporation and its subsidiaries. Certain other financial powers and duties of the Minister of Finance are set out in sections 17 and 18.
Section 19 specifies that securities issued by the Corporation or by subsidiaries, trusts, partnerships and other entities established or acquired by the Corporation are authorized investments for trusts.
Section 22 governs the liability of directors, officers, employees and agents of the Corporation and related entities. They are not liable for their acts and omissions in good faith in the exercise of powers and performance of duties under the Act. The Corporation and related entities remain liable for the acts and omissions of their directors, officers, employees and agents.
Section 24 authorizes the Lieutenant Governor in Council to order that the Corporation be wound up.
Transitional matters are dealt with in sections 25, 26 and 27.
The Ontario Strategic Infrastructure Financing Authority Act, 2002 is repealed in the Schedule.
SCHEDULE J
ONTARIO LOAN ACT, 2006
The Ontario Loan Act, 2006 is enacted. It authorizes the Crown to borrow a maximum of $4 billion.
SCHEDULE K
ONTARIO MUNICIPAL EMPLOYEES RETIREMENT SYSTEM REVIEW ACT, 2006
The Schedule contains a new Act entitled the Ontario Municipal Employees Retirement System Review Act, 2006. The new Act requires that, no later than 2012, the Minister of Municipal Affairs and Housing undertake a review of the governance model of the Ontario Municipal Employees Retirement System as established under the Ontario Municipal Employees Retirement System Act, 2006. The review is to address the effectiveness, fairness and efficiency of the governance model. It is not to address the general principle of assigning the governance of OMERS to the employers, members and former members of the OMERS pension plans or whether any supplemental plan established under the Ontario Municipal Employees Retirement System Act, 2006 should be continued.
The Minister is to appoint a person to conduct the review, with the approval of all the members of the Sponsors Corporation and of the Administration Corporation. Failing agreement however, the Minister shall appoint a person recommended by the Chief Justice of Ontario to conduct the review.
The person appointed to conduct the review is required to submit a report, together with any recommendations for changes to the governance model, to the Minister. The Minister must make the report public and give serious consideration to its recommendations.
The Minister is also required to initiate consultations on the implementation of the Ontario Municipal Employees Retirement System Act, 2006 with the persons and organizations entitled to choose the members of the Sponsors Corporation and the Administration Corporation. The consultations are to begin no later than December 31, 2009.
SCHEDULE L
PUBLIC SERVICE PENSION ACT
The enactment of subsection 11 (3.1) of the Public Service Pension Act removes the requirement to make adjustments for inflation in solvency valuations in reports filed with the Superintendent under the Pension Benefits Act that have a valuation date on or after December 31, 2005.
SCHEDULE M
RETAIL SALES TAX ACT
Currently, subsection 1 (1.1) of the Retail Sales Tax Act provides that a purchaser is exempt from paying tax in respect of a destination marketing fee imposed on or after May 19, 2004 and before July 1, 2006 by a provider of transient accommodation if certain conditions are satisfied. The amendment extends this exemption until June 30, 2007.
Paragraph 67 of subsection 7 (1) of the Act currently provides an exemption from tax for admissions to a place of amusement that are donated to a registered charity by the owner of the place of amusement. The amendment expands the exemption to include admissions donated to educational institutions and qualifying non-profit organizations, as defined by the Minister of Finance. The Minister may prescribe terms and conditions on which the donations must be made in order to be eligible for the exemption. A technical amendment to subsection 7 (1) is made to clarify that an exemption for admissions is available.
Currently, clause 48 (3) (i) allows the Minister to provide a rebate of tax paid on the purchase of a hybrid electric vehicle, to a maximum of $1,000. The amendment increases the amount of the rebate to $2,000 for vehicles delivered to the purchaser after March 23, 2006 and provides that vehicles purchased before April 1, 2012 are eligible for the rebate. Technical and consequential amendments are made to other regulation-making powers set out in section 48.
SCHEDULE N
ST. CLAIR PARKS COMMISSION ACT, 2000 AND MINISTRY OF TOURISM AND RECREATION ACT
The Schedule amends the St. Clair Parks Commission Act, 2000 to provide for the winding up of the Commission by either the Commission or the Minister. The Schedule adds a provision to the Ministry of Tourism and Recreation Act requiring that some future transfers of property that was held by the Commission be subject to certain conditions. The Schedule also provides for the dissolution of the Commission and the repeal of the St. Clair Parks Commission Act, 2000.
SCHEDULE O
TOBACCO TAX ACT
The amendments to section 32 of the Tobacco Tax Act clarify that information may be exchanged on a reciprocal basis with other jurisdictions for the purposes of enforcing laws that impose duties and permit a similar reciprocal exchange of information with other governments and municipalities and their agencies, boards and commissions if the information is to be used by the recipient in the enforcement of an Act, regulation or by-law relating to or regulating the manufacture, distribution, export, import, storage, sale or advertisement for sale of tobacco.
SCHEDULE P
VITAL STATISTICS ACT
The Schedule amends the Vital Statistics Act to allow an institution under the Freedom of Information and Protection of Privacy Act or the Municipal Freedom of Information and Protection of Privacy Act or any other body designated by the regulations made under the Act to obtain particulars about the registration of the death of a class of persons specified in an application that the institution or body makes to the Registrar General. The applicant can also obtain certain other information about the deceased persons. In both cases, the applicant is required to meet a number of conditions, including entering into an agreement with the Registrar General that sets out the use that the applicant can make of the information obtained. The applicant who obtains information is not allowed to use the information for any other purpose and is not allowed to disclose the information to any other person or body except its agent.
