Bill 162 2009

An Act respecting the budget measures and other matters

Note:  This Act amends or repeals more than one Act.  For the legislative history of these Acts, see the Table of Consolidated Public Statutes – Detailed Legislative History at 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, 2009.

 

Schedule 1
Assessment Act

   1.  Subsection 2 (2) of the Assessment Act is amended by adding the following clauses:

   (c)  defining "machinery and equipment" for the purposes of paragraph 18 of subsection 3 (1);

(c.1) prescribing machinery and equipment for the purposes of paragraph 18.1 of subsection 3 (1);

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

Machinery for energy conservation

18.1 Machinery and equipment used for the purposes of energy conservation or efficiency and prescribed by the Minister for the purposes of this paragraph. 

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 2
Bailiffs Act

   1.  The Bailiffs Act is amended by adding the following section:

Financial security

   3.0.1  Every bailiff shall provide financial security in accordance with the regulations for acts or omissions in the course of acting as a bailiff.

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

Financial security

   3.1.1  Every assistant bailiff shall provide financial security in accordance with the regulations for acts or omissions in the course of acting as an assistant bailiff.

   3.  Sections 14, 15 and 16 of the Act are repealed.

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

Regulations re financial security

   18.2  The Minister may make regulations,

  (a)  governing the type, amount, form and terms of financial security, and the manner of providing it, for the purpose of sections 3.0.1 and 3.1.1;

  (b)  prescribing additional obligations relating to the financial security, including a requirement to compensate Ontario for costs incurred by Ontario relating to the financial security;

   (c)  providing for cancellation of the financial security;

  (d)  providing for the financial security to continue in force following cancellation of the financial security or termination of an appointment, registration or authorization under this Act;

  (e)  governing forfeiture of the financial security and disposition of the proceeds;

    (f)  requiring and governing termination of bonds provided under this Act as it read immediately before the day Schedule 2 to the Budget Measures Act, 2009 came into force.

   5.  Clause 19 (c) of the Act is repealed.

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

Transition

Existing bonds

   20.  (1)  Subject to any regulation made under clause 18.2 (f), this Act, as it read immediately before the day Schedule 2 to the Budget Measures Act, 2009 came into force, continues to apply to a bailiff or assistant bailiff in respect of a bond that was provided before that day.

New financial security

   (2)  The amendments to this Act made by Schedule 2 to the Budget Measures Act, 2009 apply to a bailiff or assistant bailiff in respect of financial security that is provided on or after the day on which that Schedule comes into force.

Commencement

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

 

Schedule 3
Capital Investment Plan Act, 1993

   1.  Subsection 5 (1) of the Capital Investment Plan Act, 1993 is repealed and the following substituted:

Board of directors

   (1)  The board of directors of a corporation shall manage or supervise the management of the business and affairs of the corporation.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 4
city of Toronto Act, 2006

   1.  Subsections 228 (3) to (6) of the City of Toronto Act, 2006 are repealed and the following substituted:

Detail and form

   (3)  The budget shall set out the following amounts:

    1.  The estimated revenues, including the amount the City intends to raise on all the rateable property in the City by its general local municipality levy and the amount it intends to raise on less than all the rateable property in the City by a special local municipality levy under section 277.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the City's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 241 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the City's reserve, sinking and retirement funds.

Reserve fund adjustment

   (4)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (3), added to the amount described in paragraph 4 of subsection (3).

    2.  The amount described in paragraph 2 of subsection (3), added to the amount described in paragraph 3 of subsection (3).

Allowance

   (5)  In preparing the budget for a year, the City,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (3) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (3) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (3) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (3) from the amount described in paragraph 1 of subsection (3), or

          (ii)  expenses were incurred by the City that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for the cost of the collection of taxes and any abatement or discount of taxes;

  (e)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

    (f)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

  (g)  may provide for such reserve funds as the City considers necessary.

Exception, 2009

   (6)  In preparing the budget for 2009, the City,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (3); and

  (b)  despite clause (5) (c), shall provide for any operating deficit of any previous year.

Yearly budget from boards, etc.

   (7)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the City may by by-law require that the year's budget of every board, commission or other body, other than a school board, for which the City is required by law to levy a tax or provide money, be submitted to the City on or before a date specified by the City and that the budget shall be in such detail and form as the by-law provides.

Definitions

   (8)  In this section,

"reserve fund" includes a reserve; ("fonds de réserve")

"taxes" means taxes imposed under any Part of this Act. ("impôts")

   2.  Clause 229 (4) (b) of the Act is amended by striking out "except clause 228 (4) (a)" and substituting "except clause 228 (5) (b)".

   3.  Subsection 234 (2) of the Act is repealed and the following substituted:

Joint boards

   (2)  If a local board is a local board of more than one municipality, only the auditor of the municipality that is responsible for the largest share of the expenses of the local board in the year is required to audit the local board in that year.

   4.  Section 241 of the Act is repealed and the following substituted:

Regulations re changes in financial reporting requirements

   241.  (1)  If changes in the financial reporting requirements of the City or a local board of the City affect the surplus or deficit of the City or local board, the Minister of Municipal Affairs and Housing may make regulations,

  (a)  phasing in or authorizing the City or local board to phase in the changes to its budgets over a period of years;

  (b)  governing the phase-in.

Regulations re budgets

   (2)  The Minister of Municipal Affairs and Housing may make regulations,

  (a)  prescribing types of expenses that the City or local board may exclude from the estimated expenses described in paragraph 3 of subsection 228 (3);

  (b)  prescribing conditions that must be met before the City or local board may exclude from the estimated expenses the types of expenses prescribed under clause (a);

   (c)  prescribing a date for the purposes of subsection (4).

Retroactive

   (3)  A regulation made under this section may be retroactive to January 1 of the year in which the regulation is made.

Review

   (4)  The Minister of Municipal Affairs and Housing shall, on or before a prescribed date, initiate a review of any regulation made under clause (2) (a) or (b).

   5.  Section 247.1 of the Act is amended by striking out "undertaking" and substituting "capital work".

   6.  Subsection 248 (1) of the Act is repealed and the following substituted:

Use of money received

   (1)  Money received by the City from the sale of debentures or as proceeds of other long-term borrowing, including any premium, and any earnings derived from the investment of that money, shall be applied only,

  (a)  for the purposes for which the debentures were issued or the other long-term borrowing was undertaken; or

  (b)  to repay outstanding temporary borrowing with respect to the debentures or the other long-term borrowing.

   7.  (1)  Subsection 249 (1) of the Act is repealed and the following substituted:

Use of sinking and retirement funds

   (1)  Except as provided in this section, the City shall apply an amount raised for a sinking or retirement fund of the City, including earnings or proceeds derived from the investment of those funds, only towards repayment of the principal of the fund at maturity.

   (2)  Subsection 249 (3) of the Act is repealed and the following substituted:

Same

   (3)  If there is any amount that remains in the fund after the City makes payments in accordance with subsection (2), the City may use the amount for any of its purposes.

   8.  Subsection 255 (1) of the Act is amended by striking out "to pay current or other expenditures" in the portion before clause (a).

Commencement

   9.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on January 1, 2009.

 

Schedule 5
collection Agencies Act

   1.  The Collection Agencies Act is amended by adding the following section:

Regulations re financial security

   29.2  The Minister may make regulations,

  (a)  requiring, as a term and condition of registration, that,

           (i)  a collection agency provide financial security in respect of acts or omissions of the collection agency,

          (ii)  a collector provide financial security in respect of acts or omissions of the collector;

  (b)  governing the type, amount, form and terms of the financial security, and the manner of providing it;

   (c)  prescribing additional obligations relating to the financial security, including a requirement to compensate Ontario for costs incurred by Ontario relating to the financial security;

  (d)  providing for cancellation of the financial security;

  (e)  providing for the financial security to continue in force following cancellation of the financial security or termination of a registration under this Act;

    (f)  governing forfeiture of the financial security and disposition of the proceeds;

  (g)  requiring and governing termination of bonds provided under this Act as it read immediately before the day Schedule 5 to the Budget Measures Act, 2009 came into force.

   2.  Clause 30 (g) of the Act is repealed.

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

Transition

Existing bonds

   31.  (1)  Subject to any regulation made under clause 29.2 (g), this Act, as it read immediately before the day Schedule 5 to the Budget Measures Act, 2009 came into force, continues to apply to a collection agency in respect of a bond that was provided before that day.

New financial security

   (2)  The amendments to this Act made by Schedule 5 to the Budget Measures Act, 2009 apply to a collection agency or collector in respect of financial security that is provided on or after the day on which that Schedule comes into force.

Commencement

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

 

Schedule 6
Commodity Futures Act

   1.  Part I.1 of the Commodity Futures Act is amended by adding the following section:

Authority in extraordinary circumstances

Notice to Minister

   2.2  (1)  The Commission shall notify the Minister if, in its opinion, there are extraordinary circumstances that may require immediate action to be taken under this section in the public interest.

Criteria

   (2)  For the purposes of this section, each of the following events constitutes extraordinary circumstances:

    1.  A major market disturbance characterized by or constituting sudden fluctuations of commodity prices or contract prices that threaten fair and orderly commodity futures markets.

    2.  A major market disturbance characterized by or constituting a substantial disruption in the system for clearance and settlement of transactions.

    3.  A major disruption in the functioning of commodity futures markets or of a significant segment of the markets.

    4.  A major disruption in the transmission, execution or processing of transactions in contracts or commodities.

    5.  A substantial threat of such a major market disturbance or disruption.

Order to revoke, suspend

   (3)  The Commission may, without notice or a hearing, make an order under this section that the acceptance of a form of contract be revoked or that all trading on any registered commodity futures exchange or otherwise be suspended,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the order is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Terms and conditions

   (4)  The order may be subject to such terms and conditions as the Commission may impose.

Duration of order

   (5)  The order takes effect immediately and expires no later than 10 days after the day on which it is made.

Notice and publication of order

   (6)  The Commission shall promptly issue a news release describing the details of the order and shall publish the order in its Bulletin.

Opportunity to be heard

   (7)  The Commission shall give an opportunity to be heard to persons and companies who are directly affected by the order and who consider themselves aggrieved by it, and the opportunity to be heard may be oral or in writing in the discretion of the Commission.

Revocation or variation of order

   (8)  The Commission may make an order revoking or varying the order under subsection (3), but cannot vary it to provide for an expiry later than the date specified in subsection (5).

Commission regulation

   (9)  Subject to the approval of the Minister, the Commission may make a regulation relating to any matter governed by Ontario commodity futures law, despite any other provision of this Act,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the regulation is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Same

   (10)  The Commission is not precluded from making a regulation under subsection (9) that has substantially the same effect as an order previously made under subsection (3) in respect of the same extraordinary circumstances.

Duration of regulation

   (11)  Upon being approved by the Minister, the regulation comes into force immediately, despite section 22 of the Legislation Act, 2006, and it is revoked no later than 30 days after the day on which it comes into force.

Extension of duration of regulation

   (12)  Despite subsection (11), an amendment to the regulation may provide that it remains in effect for a further period of up to 30 days, and the regulation may be so amended more than once.

Notice and publication of regulation

   (13)  When the regulation comes into force, the Commission shall promptly issue a news release describing the details of the regulation and shall publish the regulation in its Bulletin together with a statement setting out the substance and purpose of the regulation and the nature of the extraordinary circumstances.

Same, amendment of regulation

   (14)  Subsection (13) applies, with necessary modifications, with respect to any amendment to the regulation.

Additional information

   (15)  As soon as practicable after the regulation comes into force, the Commission shall publish in its Bulletin a description of the particular circumstances upon which the Commission based its decision to make the regulation.

Regulation of the L.G. in C.

   (16)  The Lieutenant Governor in Council may make a regulation relating to any matter governed by Ontario commodity futures law, despite any other provision of this Act,

  (a)  if, in the opinion of the Lieutenant Governor in Council, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Lieutenant Governor in Council, the regulation is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Regulation of L.G. in C. prevails

   (17)  A regulation made under subsection (16) prevails over a regulation made under subsection (9), and a regulation made under subsection (16) may revoke a regulation made under subsection (9).

Interpretation

   (18)  This section does not limit the authority of the Commission under any other section of this Act.

   2.  Paragraph 7 of subsection 65 (1) of the Act is repealed and the following substituted:

    7.  Prescribing requirements in respect of the disclosure or furnishing of information to the public or the Commission by persons and companies registered under this Act, by their directors, partners or officers or by persons or companies that beneficially own, directly or indirectly, or exercise direct or indirect control or direction over at least 10 per cent of the voting securities of persons and companies registered under this Act or providing for exemptions from or varying the requirements under this Act in respect of the disclosure or furnishing of information to the public or the Commission by any of them.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 7
Community Small Business Investment Funds Act

   1.  (1)  The definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act is amended by striking out "or" at the end of clause (b) and by adding the following clause:

(b.1) an individual who is a holder, as defined in subsection 146.2 (1) of the Income Tax Act (Canada), of a trust governed by a tax-free savings account that subscribes for the share, if the trust is a qualifying trust under subsection 127.4 (1) of that Act, or

   (2)  Clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Act is amended by striking out "clause (b)" at the end and substituting "clause (b) or (b.1)".

   2.  Section 25 of the Act is amended by adding the following subsection:

Time limit

   (2.2)  Despite subsections (1), (2) and (2.1),

  (a)  an employee ownership labour sponsored venture capital corporation shall not apply under subsection (1) for a tax credit certificate in respect of an investment corporation tax credit unless the eligible investor paid on or before February 28, 2009 for the Class A shares in respect of which the application is made;

  (b)  the amount of the tax credit referred to in subsection (1) for a taxation year ending after December 31, 2008 is zero; and

   (c)  no amount referred to in subsection (2.1) shall be applied in any taxation year ending after December 31, 2008.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 8
corporations Act

   1.  Section 161 of the Corporations Act is repealed and the following substituted:

Notice of meetings

Annual general meeting

   161.  (1)  Notice of every annual general meeting of the corporation must be,

  (a)  sent by mail to every shareholder or member of the corporation at least 21 days before the day of the meeting; or

  (b)  published at least 21 days before the day of the meeting in a newspaper published at or near the place where the head office of the corporation is located.

Making annual statement available to shareholders or members

   (2)  The directors shall make available to shareholders or members the annual statement for the year ending on the previous December 31 by doing one or more of the following at least 21 days before the day of the annual general meeting at which the annual statement will be considered:

    1.  Sending a copy of the annual statement to the shareholders or members by mail.

    2.  Publishing the annual statement in a newspaper published at or near the place where the corporation's head office is located.

    3.  Publishing the annual statement on the corporation's website.

Same

   (3)  If the corporation publishes its annual statement on its website, the notice of the annual general meeting must state that the annual statement is available on the corporation's website and that a shareholder or member may obtain a copy by sending a written request to the corporation's head office at least 14 days before the meeting.

Same

   (4)  The corporation shall mail a copy of the annual statement to a shareholder or member who makes a written request under subsection (3).

Requirements of annual statement

   (5)  The annual statement must be certified by the corporation's auditors and prepared in accordance with the Insurance Act and the regulations made under that Act.

Power of directors to call special general meetings

   (6)  The directors may call a special general meeting of the corporation at any time.

Notice of special general meeting

   (7)  Notice of every special general meeting of the corporation must be,

  (a)  sent by mail to every shareholder or member of the corporation at least seven days before the day of the meeting; or

  (b)  published at least seven days before the day of the meeting in a newspaper published at or near the place where the corporation's head office is located.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 9
Corporations Tax Act

   1.  The definition of "A" in subsection 41 (2) of the Corporations Tax Act is amended by striking out "clauses (3.2) (a) to (e)" and substituting "clauses (3.2) (a) to (f)".

   2.  (1)  The definition of "B" in clause 41.1 (1) (b) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" at the end and substituting "clauses 41 (3.2) (a) to (f)".

   (2)  The definition of "D" in clause 41.1 (1) (b) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" at the end and substituting "clauses 41 (3.2) (a) to (f)".

   3.  (1)  Sub-subclause 78 (2) (b) (i) (B) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

   (2)  Subsection 78 (3) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

   (3)  Paragraph 2 of subsection 78 (3.1) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

Commencement

   4.  This Schedule is deemed to have come into force on January 1, 2007.

 

Schedule 10
Education Act

   1.  (1)  Subsection 257.11.1 (1) of the Education Act is amended by striking out "the levying board" at the end and substituting "the board on behalf of which the amount was levied".

   (2)  Subsection 257.11.1 (2) of the Act is amended by striking out "a levying board" and substituting "a board on behalf of which an amount was levied".

Commencement

   2.  This Schedule is deemed to have come into force on January 1, 2009.

 

Schedule 11
Employer Health Tax Act

   1.  (1)  The following definitions in subsection 1 (1) of the Employer Health Tax Act are repealed:

    1.  "fiscal year".

    2.  "net self-employment income".

    3.  "self-employed individual".

    4.  "self-employment income" and "self-employment loss".

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

"taxpayer" means a person who is an employer, whether or not that person is liable to pay tax under this Act; ("contribuable")

   (3)  Subsections 1 (3), (4) and (5) of the Act are repealed. 

   2.  The following provisions of the Act are repealed:

    1.  Subsections 2 (1.1), (2.1), (2.2) and (2.3).

    2.  Paragraph 3 of subsection 3 (1), and subsections 3 (3), (5), (6), (7) and (8).

    3.  Section 4.1.

    4.  Section 4.2.

    5.  Subsections 5 (1.2), (8), (9) and (10).

    6.  Subsections 7 (2.1), (2.2) and (5).

   3.  Subsection 12 (1) of the Act is amended by striking out "or a self-employed individual subject to tax under subsection 2 (1.1)".

   4.  Subsection 15 (3) of the Act is repealed.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 12
Financial Administration Act

   1.  (1)  The definition of "appropriation" in section 1 of the Financial Administration Act is amended by striking out  "to incur a non-cash expense" at the end and substituting "to recognize a non-cash expense or a non-cash investment".

   (2)  The definition of "expenditure" in section 1 of the Act is amended by striking out "the incurring by the Crown of a non-cash expense" at the end and substituting "the recognition by the Crown of a non-cash expense or a non-cash investment".

   (3)  The definition of "non-cash expense" in section 1 of the Act is repealed and the following substituted:

"non-cash expense" means an amount recognized as an expense in a fiscal year on account of,

  (a)  the reduction of a prepaid expense,

  (b)  the amortization of a capital asset,

   (c)  a loss realized on the disposition of a capital asset,

  (d)  the unexpected loss or destruction of a capital asset,

  (e)  a bad debt,

    (f)  an imputed interest subsidy arising when a loan that has been made bears interest at a rate below the prevailing market rate,

  (g)  an adjustment in the amount of an expense for an employee or pensioner benefit that is required as a result of an actuarial valuation of the amount of the liability for that benefit,

   (h)  any other expense not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations made under this Act; ("frais hors trésorerie")

   (4)  Section 1 of the Act is amended by adding the following definition:

"non-cash investment" means an amount recognized as a capital investment in a fiscal year on account of,

  (a)  imputed interest costs incurred during the construction of a capital asset, or

  (b)  any other capital investment not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations made under this Act; ("élément d'investissement hors trésorerie")

   (5)  The definition of "statutory appropriation" in section 1 of the Act is repealed and the following substituted:

"statutory appropriation" means an amount that is authorized, under a provision of this or another Act of the Legislature that describes the amount as payable or capable of being recognized without any legislative authority other than the provision of the Act,

  (a)  to be paid out of the Consolidated Revenue Fund, or

  (b)  to be recognized by the Crown as a non-cash expense or a non-cash investment. ("crédit législatif")

   2.  Subsection 5 (3.1) of the Act is repealed and the following substituted:

Effect of determination and deletion

   (3.1)  A determination made under clause (1) (b) or (c) with respect to an obligation, debt or claim and its subsequent deletion from the accounts under subsection (2),

  (a)  does not affect the liability of any person that is subject to the obligation, debt or claim; and

  (b)  does not preclude the Minister of Finance from doing anything that the Minister of Finance is authorized to do under subsection 43 (2).

   3.  Section 11 of the Act is amended by adding the following subsection:

Exception

   (1.4)  Subsection (1.1) does not apply to any written arrangements described in subsection (1.3).

   4.  Section 11.1 of the Act is repealed and the following substituted:

Appropriation required

   11.1  (1)  Money shall not be paid out of the Consolidated Revenue Fund and neither a non-cash expense nor a non-cash investment shall be recognized by the Crown unless the payment or the recognition is authorized by this or another Act of the Legislature.

Interim supply

   (2)  Nothing in this Act prohibits the payment of money out of the Consolidated Revenue Fund or the recognition by the Crown of a non-cash expense or a non-cash investment if the payment or the recognition is authorized by a resolution passed by the Legislative Assembly granting interim supply.

Authority to recognize certain non-cash expenses

   (3)  The Crown may recognize a non-cash expense,

  (a)  that is described in clause (b), (d), (e) or (g) of the definition of "non-cash expense" in section 1; or

  (b)  that is prescribed by the regulations made under this Act or that belongs to a class of non-cash expenses prescribed by the regulations made under this Act.

Authority to recognize certain non-cash investments

   (4)  The Crown may recognize a non-cash investment that is prescribed by the regulations made under this Act or that belongs to a class of non-cash investments prescribed by the regulations made under this Act.

No authority to pay money out of CRF on charging a non-cash expense, etc., to an appropriation

   (5)  The charging of a non-cash expense or a non-cash investment to an appropriation does not constitute authority for the payment of any money out of the Consolidated Revenue Fund.

   5.  Section 11.9 of the Act is amended by striking out "to incur non-cash expenses" and substituting "to recognize non-cash expenses".

   6.  Section 16.0.2 of the Act is amended by adding the following paragraph:

  1.1  Whether a debt owing to the Crown has become uncollectible and is a bad debt.

   7.  (1)  Section 38 of the Act is amended by adding the following clauses:

(a.1) prescribing types of expenses not requiring an outlay of money or the incurring of a liability that are non-cash expenses for the purposes of the definition of "non-cash expense" in section 1;

(a.2) prescribing types of capital investments not requiring an outlay of money or the incurring of a liability that are non-cash investments for the purposes of the definition of "non-cash investment" in section 1;

   (2)  Clause 38 (c.2) of the Act is repealed and the following substituted:

(c.2) prescribing non-cash expenses or classes of non-cash expenses for the purposes of subsection 11.1 (3) or non-cash investments or classes of non-cash investments for the purposes of subsection 11.1 (4);

   (3)  The French version of clause 38 (c.2.1) of the Act is amended by striking out "prescrire" at the beginning and substituting "pour prescrire".

   (4)  Clause 38 (c.4) of the Act is repealed and the following substituted:

(c.4) prescribing as a currency for the purpose of section 25 any monetary unit or composite monetary unit generally recognized in international commerce;

   (5)  Section 38 of the Act is amended by adding the following subsection:

Effective date

   (2)  A regulation made under clause (1) (a.1), (a.2) or (c.2) is, if it so provides, effective for a period commencing no earlier than April 1, 2009.

Commencement

   8.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 4, 5, 6 and 7 are deemed to have come into force on April 1, 2009.

 

Schedule 13
Income Tax Act

   1.  (1)  The definition of "qualified dependant" in subsection 8.5 (1) of the Income Tax Act is amended by striking out "before July 1, 2011" and substituting "before July 1, 2009".

   (2)  Subclause (b) (i) of the definition of "D" in subsection 8.5 (5) of the Act is repealed and the following substituted:

           (i)  the amount to which the individual is entitled for the month under section 8.6.2 of this Act or under section 104 of the Taxation Act, 2007, as the case may be, divided by the number of qualified dependants in respect of whom the individual is an eligible individual at the beginning of the month, and

   2.  (1)  Subsection 8.6.2 (5) of the Act is amended by striking out "after June 30, 2008" in the portion before paragraph 1 and substituting "after June 30, 2007 and ending before January 1, 2009".

   (2)  Subsection 8.6.2 (7) of the Act is repealed and the following substituted:

Amount of a monthly payment after June 2008 and before January 2009

   (7)  The amount of an Ontario child benefit to which an eligible individual is entitled for a month commencing after June 30, 2008 and ending before January 1, 2009 is the amount calculated using the formula,

in which,

  "C"  is the number of qualified dependants in respect of whom the individual is an eligible individual on the first day of the month, and

  "D"  is the amount equal to 8 per cent of the amount, if any, by which the individual's adjusted income for the base taxation year in respect of the month exceeds $20,000.

   (3)  Subsection 8.6.2 (13) of the Act is repealed and the following substituted:

Exception after June 2008

   (13)  Subsection (11) does not apply if the total amount that is repayable by an individual under this section or under section 104 of the Taxation Act, 2007 on account of an Ontario child benefit for the 12-month period commencing July 1, 2008 and ending June 30, 2009 is not more than $2.

Commencement

   3.  This Schedule is deemed to have come into force on January 1, 2009.

 

Schedule 14
Interim Appropriation for 2009-2010 Act, 2008

   1.  Section 2 of the Interim Appropriation for 2009-2010 Act, 2008 is repealed and the following substituted:

Expenses of the public service

   2.  (1)  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $55,000,000,000,

  (a)  may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the public service that are not otherwise provided for; or

  (b)  may be recognized as non-cash expenses of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

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

Investments of the public service

   3.  (1)  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,500,000,000,

  (a)  may paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for; or

  (b)  may be recognized as non-cash investments of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

   3.  Section 5 of the Act is amended by striking out "incurred" and substituting "incurred or recognized".

Commencement

   4.  This Schedule is deemed to have come into force on April 1, 2009.

 

Schedule 15
Legislative Assembly Act

   1.  (1)  Subsection 61 (1.2) of the Legislative Assembly Act is repealed and the following substituted:

Same, 2009-10

   (1.2)  Despite subsections (1) and (1.1), the annual salary of every member of the Assembly for the fiscal year that begins on April 1, 2009 is an amount equal to the annual salary in effect on March 26, 2009.

   (2)  Subsection 61 (1.3) of the Act is repealed.

   2.  Section 61.1 of the Act is repealed.

   3.  Subsection 69 (6) of the Act is repealed.

Commencement

   4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Subsection 1 (1) is deemed to have come into force on March 26, 2009.

 

Schedule 16
Local Roads Boards Act

   1.  Subsection 29.1 (1.2) of the Local Roads Boards Act is repealed and the following substituted:

Transition

   (1.2)  Despite subsection (1.1), an agreement for a delegation that applies to the 2009 taxation year may be entered into at any time during the 2009 taxation year that the Minister of Finance considers appropriate.

   2.  The English version of subsections 33.1 (1) and (3) of the Act is amended by striking out "local board" wherever it appears and substituting in each case "board".

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 17
Ministry of Revenue Act

   1.  Clause 11 (3) (c) of the Ministry of Revenue Act is amended by striking out "in the case of a tax or fee" at the beginning and substituting "in the case of a tax, fee or other debt".

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 18
Municipal Act, 2001

   1.  Subsections 289 (2) to (6) of the Municipal Act, 2001 are repealed and the following substituted:

Detail and form

   (2)  The budget shall, in such detail and form as the Minister may require, set out the following amounts:

    1.  The estimated revenues, including the amount the municipality intends to raise on all the rateable property in the municipality by its general upper-tier levy and the amount it intends to raise on less than all the rateable property in the municipality by a special upper-tier levy under section 311.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the municipality's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 292 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the municipality's reserve, sinking and retirement funds.

Reserve fund adjustment

   (3)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (2), added to the amount described in paragraph 4 of subsection (2).

    2.  The amount described in paragraph 2 of subsection (2), added to the amount described in paragraph 3 of subsection (2).

Allowance

   (4)  In preparing the budget for a year, the upper-tier municipality,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (2) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (2) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (2) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (2) from the amount described in paragraph 1 of subsection (2), or

          (ii)  expenses were incurred by the municipality that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

  (e)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

    (f)  may provide for such reserve funds as the municipality considers necessary.

Exception, 2009

   (5)  In preparing the budget for 2009, the upper-tier municipality,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (2); and

  (b)  despite clause (4) (c), shall provide for any operating deficit of any previous year.

Application of provisions

   (6)  Section 34 of the Assessment Act and section 353 of this Act apply with necessary modifications to the upper-tier municipality.

Yearly budget from boards, etc.

   (7)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the upper-tier municipality may by by-law require that the year's budget of every board, commission or other body, for which the municipality is required by law to provide money, be submitted to the municipality on or before a date specified by the municipality and that the budget shall be in such detail and form as the by-law provides.

Legislation Act, 2006

   (8)  Part III (Regulations) of the Legislation Act, 2006 does not apply to a requirement of the Minister under subsection (2).

Definition

   (9)  In this section,

"reserve fund" includes a reserve.

   2.  Subsections 290 (2) to (5) of the Act are repealed and the following substituted:

Detail and form

   (2)  The budget shall, in such detail and form as the Minister may require, set out the following amounts:

    1.  The estimated revenues, including the amount the municipality intends to raise on all the rateable property in the municipality by its general local municipality levy and the amount it intends to raise on less than all the rateable property in the municipality by a special local municipality levy under section 312.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the municipality's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 292 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the municipality's reserve, sinking and retirement funds.

Reserve fund adjustment

   (3)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (2), added to the amount described in paragraph 4 of subsection (2).

    2.  The amount described in paragraph 2 of subsection (2), added to the amount described in paragraph 3 of subsection (2).

Allowance

   (4)  In preparing the budget for a year, the local municipality,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (2) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (2) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (2) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (2) from the amount described in paragraph 1 of subsection (2), or

          (ii)  expenses were incurred by the municipality that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for the cost of the collection of taxes and any abatement or discount of taxes;

  (e)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

    (f)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

  (g)  may provide for such reserve funds as the municipality considers necessary.

Exception, 2009

   (5)  In preparing the budget for 2009, the local municipality,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (2); and

  (b)  despite clause (4) (c), shall provide for any operating deficit of any previous year.

Yearly budget from boards, etc.

   (6)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the local municipality may by by-law require that the year's budget of every board, commission or other body, other than an upper-tier municipality or school board, for which the municipality is required by law to levy a tax or provide money, be submitted to the municipality on or before a date specified by the local municipality, and that the budget shall be in such detail and form as the by-law provides.

Legislation Act, 2006

   (7)  Part III (Regulations) of the Legislation Act, 2006 does not apply to a requirement of the Minister under subsection (2).

Definition

   (8)  In this section,

"reserve fund" includes a reserve.

   3.  Clause 291 (4) (b) of the Act is repealed and the following substituted:

  (b)  make such changes as are required for the purpose of making the provisions of the budget for that year comply with the requirements of section 289, except clause 289 (4) (b), or section 290, except clause 290 (4) (b), as the case may be; and

   4.  Section 292 of the Act is repealed and the following substituted:

Regulations, changes in financial reporting requirements

   292.  (1)  If changes in the financial reporting requirements of a municipality or local board affect the surplus or deficit of the municipality or local board, the Minister may make regulations,

  (a)  phasing in or authorizing the municipality or local board to phase in the changes to its budgets over a period of years;

  (b)  governing the phase-in.

Regulations, budgets

   (2)  The Minister may make regulations,

  (a)  prescribing types of expenses that a municipality or local board may exclude from the estimated expenses described in paragraph 3 of subsection 289 (2) and in paragraph 3 of subsection 290 (2);

  (b)  prescribing conditions that must be met before a municipality or local board may exclude from the estimated expenses the types of expenses prescribed under clause (a);

   (c)  prescribing a date for the purposes of subsection (4).

Retroactive

   (3)  A regulation made under this section may be retroactive to January 1 of the year in which the regulation is made.

Review

   (4)  The Ministry of Municipal Affairs and Housing shall, on or before a prescribed date, initiate a review of any regulation made under clause (2) (a) or (b).

   5.  Subsection 296 (10) of the Act is repealed and the following substituted:

Joint boards

   (10)  If a local board is a local board of more than one municipality, only the auditor of the municipality that is responsible for the largest share of the expenses of the local board in the year is required to audit the local board in that year.

   6.  (1)  Subsection 407 (1) of the Act is amended by striking out the portion before clause (a) and clause (a) and substituting the following:

Borrowing for expenses

   (1)  At any time during a fiscal year, a municipality may authorize temporary borrowing, until the taxes are collected and other revenues are received, of the amounts that the municipality considers necessary to meet the expenses of the municipality for the year and of the amounts, whether or not they are expenses for the year, that the municipality requires in the year for,

  (a)  reserve, sinking and retirement funds;

.     .     .     .     .

   (2)  Subsection 407 (4) of the Act is repealed and the following substituted:

Exclusion

   (4)  In subsections (2) and (3), estimated revenues do not include revenues derivable or derived from,

  (a)  arrears of taxes, fees or charges; or

  (b)  a payment from a reserve fund of the municipality, whether or not the payment is for a capital purpose.

   (3)  Section 407 of the Act is amended by adding the following subsection:

Definition

   (6)  In this section,

"reserve fund" includes a reserve.

   7.  (1)  Section 408 of the Act is amended by adding the following subsection:

Restriction

   (2.1)  A municipality may issue a debenture or other financial instrument for long-term borrowing only to provide financing for a capital work.

   (2)  Subsection 408 (3) of the Act is amended by striking out "undertaking" and substituting "capital work".

   8.  (1)  Subsection 409 (5) of the Act is repealed and the following substituted:

Limitation

   (5)  Except as provided in this section, a municipality shall apply an amount raised for a sinking or retirement fund, including earnings or proceeds derived from the investments of those funds, only towards repayment of the principal of the fund at maturity.

   (2)  Subsection 409 (12) of the Act is repealed and the following substituted:

Further amounts

   (12)  If there is any amount remaining after applying the funds in accordance with subsection (11), the municipality may use the amount for any purpose of the municipality.

   9.  Subsection 413 (1) of the Act is repealed and the following substituted:

Use of money received

   (1)  Except as provided in section 409 and this section, money received by a municipality from the sale of debentures, including any premium, and any earnings derived from the investment of that money, shall be applied only for the purposes for which the debentures were issued or for repayment of outstanding temporary borrowing under section 405 or 406 with respect to those debentures.

   10.  Subsection 424 (1) of the Act is amended by striking out "to pay current or other expenditures" in the portion before clause (a).

Commencement

   11.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1 and 2 are deemed to have come into force on January 1, 2009.

 

schedule 19
Ontario Child Benefit Equivalent Act, 2009

Definitions

   1.  In this Act,

"agency" means,

  (a)  a corporation, or

  (b)  another entity that is prescribed; ("organisme")

"child" means a person under the age of 18 years; ("enfant")

"child benefit equivalent" means an amount, paid in accordance with this Act, that is equivalent to the Ontario child benefit; ("subvention équivalant à la prestation pour enfants")

"Minister" means the Minister of Children and Youth Services or any other member of the Executive Council to whom the administration of this Act is assigned under the Executive Council Act; ("ministre")

"prescribed" means prescribed by the regulations; ("prescrit")

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

Child benefit equivalent

   2.  (1)  A child benefit equivalent shall be paid at intervals determined by the Minister with respect to every qualified child, in accordance with this Act.

Qualified child

   (2)  A child is qualified for the purpose of subsection (1) if,

  (a)  the child is in the care of a prescribed agency or of an agency that is a member of a prescribed class of agencies and a special allowance is payable with respect to the child under the Children's Special Allowances Act (Canada); or

  (b)  the prescribed circumstances apply.

Amount linked to Ontario child benefit

   (3)  The amount of the child benefit equivalent for a month is the same as the maximum Ontario child benefit that would be payable for that month in respect of a qualified dependant,

  (a)  until December 31, 2008, under subsection 8.6.2 (7) of the Income Tax Act; and

  (b)  on and after January 1, 2009, under subsection 104 (5) of the Taxation Act, 2007.

Rules

   3.  The following rules apply with respect to the child benefit equivalent:

    1.  The child benefit equivalent is payable in respect of a qualified child in accordance with guidelines made by the Minister.

    2.  The child benefit equivalent in respect of a qualified child may be paid to one agency or divided among two or more agencies, as the Minister directs.  The Minister has discretion to direct, at any time,

            i.  payment to a different agency or agencies, or

           ii.  a different division of the payment.

    3.  The child benefit equivalent shall be used in accordance with guidelines made by the Minister.

    4.  An agency that receives the child benefit equivalent shall,

            i.  keep the money in a separate account or accounts and not mingle it with the agency's general funds, and

           ii.  manage the money and keep records with respect to it, in accordance with guidelines made by the Minister.

    5.  Payment of a child benefit equivalent ceases,

            i.  when the child in respect of whom it is paid ceases to be a qualified child, or

           ii.  in the prescribed circumstances.

Administration memoranda of understanding or agreements

   4.  (1)  The Minister may enter into one or more memoranda of understanding with the Minister of Revenue or another member of the Executive Council or into an agreement with a prescribed entity to administer the payment of the child benefit equivalent.

Authority to enter into memoranda

   (2)  Any member of the Executive Council has authority to enter into a memorandum of understanding with the Minister under subsection (1).

Agreements for information sharing

   5.  (1)  The Minister may enter into an agreement with the Government of Canada or a department, ministry or agency of it for the purpose of obtaining information in connection with the administration of this Act or the regulations.

Same

   (2)  A member of the Executive Council who has entered into a memorandum of understanding with the Minister under subsection 4 (1), or a prescribed entity that has entered into an agreement under subsection 4 (1) may enter into an agreement with the Government of Canada or a department, ministry or agency of it for the purpose of obtaining information in connection with the administration of the payment of the child benefit equivalent.

Personal information

   6.  (1)  The Minister has authority to collect, use and disclose personal information as required to administer this Act and the regulations.

Same

   (2)  When a memorandum of understanding or an agreement entered into under subsection 4 (1) is in force, the Minister of Revenue, the other member of the Executive Council or the prescribed entity, as the case may be, has authority to collect, use and disclose personal information as required to administer the payment of the child benefit equivalent.

Same

   (3)  Subsection 39 (2) (notice re collection) of the Freedom of Information and Protection of Privacy Act does not apply to the collection of information under subsection 5 (1) or (2) if the collection is done by data matching. 

Reports

   7.  An agency that receives the child benefit equivalent shall make a report to the Minister whenever the Minister requests it, in the form and containing the information specified by the Minister.

Duty of compliance

   8.  (1)  An agency that receives the child benefit equivalent shall comply with this Act, the regulations and any guidelines made by the Minister for the purposes of paragraphs 1, 3 and 4 of section 3.

Minister's authority

   (2)  If, in the Minister's opinion, an agency that receives the child benefit equivalent is not complying with subsection (1), the Minister has discretion to direct the suspension or reduction of the payment of the child benefit equivalent to the agency or to direct the payment of all or part of the child benefit equivalent to another agency.

Inspection, etc.

   9.  (1)  For the purpose of ensuring compliance with this Act, the regulations and any guidelines made by the Minister for the purposes of paragraphs 1, 3 and 4 of section 3, a person authorized by the Minister may, at all reasonable times, upon producing proper identification,

  (a)  enter the premises of an agency that receives the child benefit equivalent;

  (b)  inspect the facilities and the records relating to the child benefit equivalent;

   (c)  make copies of the records or remove them from the premises to copy them as may be reasonably required; and

  (d)  use any data storage, processing or retrieval device or system in order to produce a document or record in readable form.

Regulations re exercise of power of entry 

   (2)  The authorized person shall exercise the power of entry set out in subsection (1) in accordance with the regulations.

Appropriation

   10.  Money required for the purposes of this Act shall be paid out of the money appropriated for those purposes by the Legislature.

Guidelines

   11.  Section 82 (general or particular) of the Legislation Act, 2006 applies with necessary modifications to guidelines made for the purposes of paragraphs 1, 3 and 4 of section 3.

Regulations

   12.  The Minister may make regulations,

  (a)  prescribing entities for the purpose of the definition of "agency" in section 1;

  (b)  prescribing agencies or classes of agencies for the purpose of clause 2 (2) (a);

   (c)  prescribing circumstances for the purpose of clause 2 (2) (b);

  (d)  prescribing circumstances for the purpose of subparagraph 5 ii of section 3;

  (e)  prescribing entities for the purpose of section 4;

    (f)  respecting the child benefit equivalent, including, without limitation, the calculation, payment, adjustment, reconciliation, repayment and recovery of the child benefit equivalent;

  (g)  respecting the exercise of the power of entry set out in subsection 9 (1);

   (h)  respecting the payment of amounts to agencies in respect of children in respect of whom special allowances were payable to those agencies for July, 2007 under the Children's Special Allowances Act (Canada), including, without limitation, prescribing the amount to be paid in respect of each child.

Commencement

   13.  (1)  Subject to subsections (2) and (3), the Act set out in this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 2, 3, 8 and 11 are deemed to have come into force on November 14, 2008. 

Same

   (3)  Sections 4, 5, 6, 7, 9, 10 and 12 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   14.  The short title of the Act set out in this Schedule is the Ontario Child Benefit Equivalent Act, 2009.

 

Schedule 20
Ontario Home Ownership Savings Plan Act

   1.  The Ontario Home Ownership Savings Plan Act is repealed.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 21
Ontario Loan Act, 2009

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 $23.5 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.

Short term borrowing

   (2)  The Lieutenant Governor in Council may raise by way of loan, in addition to the total aggregate amount under subsection (1), such sums not exceeding a total of $10 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, and an order of the Lieutenant Governor in Council under this subsection,

  (a)  shall be made in accordance with section 20 of the Financial Administration Act; and

  (b)  shall authorize the Minister under subsection 20 (7) of that Act to raise by way of loan the amount authorized by the order by the issue and sale of short term securities during a specified period not exceeding 25 years.

Other Acts

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

Expiry

   2.  (1)  No order in council authorizing borrowing authorized under this Act shall be made after December 31, 2011.

Same

   (2)  The Crown shall not borrow money after December 31, 2012 under the authority of an order in council authorizing borrowing under subsection 1 (1) unless, on or before December 31, 2012,

  (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, 2009 receives Royal Assent.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2009.

 

schedule 22
ontario municipal employees retirement system act, 2006

   1.  Section 29 of the Ontario Municipal Employees Retirement System Act, 2006 is repealed.

   2.  Paragraph 3 of section 34 of the Act is repealed and the following substituted:

    3.  To exercise such other powers and perform such other duties as may be provided under sections 35.1 and 35.2.

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

Authorized subsidiaries of the Administration Corporation

   35.1  (1)  The Administration Corporation may incorporate or cause to be incorporated and may make and maintain an investment in one or more corporations that, after the investment is made, are authorized subsidiaries of the Administration Corporation. 

Other subsidiaries

   (2)  Subsection (1) does not limit the authority of the Administration Corporation under subsection 35 (1) to otherwise establish and invest in subsidiaries.

Authorized subsidiary

   (3)  For the purposes of this section, a corporation is an authorized subsidiary of the Administration Corporation if,

  (a)  the corporation carries on business with a view to profit;

  (b)  the business of the corporation is limited to providing one or more eligible services to one or more persons and entities described in subsection (6); and

   (c)  the Administration Corporation has beneficial ownership of shares of the corporation representing more than 50 per cent of the shareholders' equity of the corporation.

Authority re investment entity

   (4)  An authorized subsidiary of the Administration Corporation may, for the purpose of providing eligible services, incorporate, establish, manage or operate one or more corporations, trusts, partnerships or other entities as investment entities.

Eligible services

   (5)  For the purposes of this section, each of the following is an eligible service if it is carried out in compliance with all applicable laws:

    1.  Providing advice to an administrator of a pension plan regarding the administration of the pension plan or the investment policies for the pension fund maintained to provide benefits in respect of that pension plan.

    2.  Providing advice to a client on investing in, holding, buying or selling securities or other assets.

    3.  Buying, selling, holding and managing investments for a client, with or without discretionary authority granted by the client to manage the client's investment portfolio.

    4.  Activities and services ancillary to the services listed in paragraphs 1 to 3, including,

            i.  activities relating to the distribution or sale to clients of securities issued by an investment entity referred to in subsection (4), and

           ii.  entering into derivative contracts in which the return is based in whole or in part on the performance of all or part of the pension fund maintained to provide benefits in respect of any of the OMERS pension plans or of any of the pension fund's investments.

    5.  Providing administrative services to an administrator of a pension plan.

Clients

   (6)  An authorized subsidiary may provide services described in subsection (5) only to one or more of the following and only under an agreement authorized under section 35.2:

    1.  The Administration Corporation. 

    2.  The administrator of a pension plan other than the OMERS pension plans, whether the pension plan is in or outside Canada.

    3.  The Government of Canada or the government of a province or territory of Canada or,

            i.  a Crown corporation, Crown agency or wholly-owned entity of the Government of Canada or of the government of a province or territory of Canada, or

           ii.  a corporation established by federal or provincial statute.

    4.  A municipal corporation or a municipal or public body performing a function of government in Canada.

    5.  A board, within the meaning of the Education Act, or a school board or similar authority that operates under comparable legislation in another province of Canada.

    6.  A college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from Ontario for purposes of post-secondary education or an educational institution in another province in Canada that receives regular and ongoing operating funding from the province.

    7.  An educational institution outside Canada.

    8.  An endowment fund for a university, college or educational institution referred to in paragraph 6 or 7.

    9.  A registered charity within the meaning of the Income Tax Act (Canada).

  10.  A national, federal, state, provincial, territorial or municipal government of or in any jurisdiction outside Canada or any entity owned or controlled by that government.

  11.  An investment entity referred to in subsection (4).

  12.  A client or class of clients prescribed by the regulations or that satisfies conditions prescribed by the regulations.

Investing in or through investment entity of authorized subsidiary

   (7)  With the approval of the Administration Corporation, assets of a pension fund maintained to provide benefits in respect of any of the OMERS pension plans may be invested, directly or indirectly,

  (a)  in an investment entity referred to in subsection (4); or

  (b)  in an investment in which assets of an investment entity referred to in subsection (4) are also invested.

Regulations

   (8)  The Minister of Finance may make regulations,

  (a)  prescribing clients or classes of clients for the purposes of paragraph 12 of subsection (6);

  (b)  prescribing conditions that must be satisfied by a client or class of clients for the purposes of paragraph 12 of subsection (6).

Authorization to provide eligible services

Interpretation

   35.2  (1)  Expressions used in this section have the same meaning as in section 35.1.

Agreements

   (2)  If authorized by the Sponsors Corporation, the Administration Corporation may enter into agreements under which authorized subsidiaries of the Administration Corporation provide eligible services to clients.

Transitional matters

   (3)  The Administration Corporation itself may continue to provide eligible services to clients under agreements that were authorized by Orders in Council 808/80, 2211/95 and 368/2003, as those agreements read on the day this section comes into force and, for that purpose, the Administration Corporation has the powers of an authorized subsidiary under subsections 35.1 (4), (5) and (7).

Commencement

   4.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 23
ONTARIO PROVINCIAL POLICE COLLECTIVE BARGAINING ACT, 2006 And POLICE SERVICES ACT

Ontario Provincial Police Collective Bargaining Act, 2006

   1.  (1)  Section 1 of the Ontario Provincial Police Collective Bargaining Act, 2006 is amended by striking out "In this Part" at the beginning and substituting "In this Act".

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

"Association" means the Ontario Provincial Police Association; ("association")

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

"public servant" has the same meaning as in the Public Service of Ontario Act, 2006; ("fonctionnaire")

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

Affiliation with trade union prohibited

   1.1  (1)  The Association shall not affiliate directly or indirectly with a trade union or with any organization that is affiliated directly or indirectly with a trade union.

Definition

   (2)  In this section,

"trade union" has the same meaning as in the Labour Relations Act, 1995.

   3.  Subsection 2 (1) of the Act is repealed and the following substituted:

Application, bargaining units

   (1)  This Act applies to persons who are part of the following bargaining units:

    1.  The police officers' bargaining unit consisting of members of the Ontario Provincial Police Force who are cadets, recruit constables, probationary constables, constables, sergeants, staff sergeants, and sergeants major.

    2.  The civilian employees' bargaining unit consisting of public servants who are employed at an Ontario Provincial Police headquarters, at the Ontario Police College or at the Ontario Provincial Police Academy or who work under the supervision of the Commissioner of the Ontario Provincial Police or of the Chief Firearms Officer for Ontario and who,

            i.  are not in the officers' bargaining unit described in paragraph 1,

           ii.  are not a deputy commissioner of the Ontario Provincial Police, a commissioned officer or any other employee exercising managerial functions or employed in a confidential capacity in relation to labour relations,

          iii.  do not provide advice to Cabinet, a board or committee composed of ministers of the Crown, a minister or a deputy minister about employment related legislation that directly affects the terms and conditions of employment of employees in the public sector as it is defined in subsection 1 (1) of the Pay Equity Act,

          iv.  do not provide advice to Cabinet, a board or committee composed of ministers of the Crown, the Minister of Finance, the Chair of Management Board of Cabinet, a deputy minister in the Ministry of Finance or the Secretary of the Management Board of Cabinet on any matter within the powers or duties of the Treasury Board under section 6, 7, 8 or 9 of the Treasury Board Act, 1991, and

           v.  do not have duties or responsibilities that, in the opinion of the Ontario Labour Relations Board, constitute a conflict of interest with their being members of this bargaining unit.

   4.  Clause 4 (1) (a) of the Act is amended by striking out "or" at the end of subclause (ii) and by adding the following subclause:

      (ii.1)  a grievance that relates to supplemental pension benefits prescribed under clause 11 (b) for employees referred to in subclause (ii), or

   5.  Section 7 of the Act is repealed and the following substituted:

Pensions

   7.  (1)  Subject to subsection (2), no matter relating to pensions for employees who are part of a bargaining unit described in section 2 shall be referred to arbitration and no arbitration board shall decide any matter relating to pensions for those employees.

Same

   (2)  Matters relating to supplemental pension benefits for employees who are part of a bargaining unit described in section 2 that are prescribed under section 11 may be referred to arbitration and, in that case, an arbitration board shall decide any matter relating to supplemental pension benefits for those employees.

   6.  Section 8 of the Act is repealed.

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

Probationary period, recruit constables

   10.1  (1)  Despite subsection 37 (1) of the Public Service of Ontario Act, 2006, where a person is appointed a public servant to employment as a Recruit Constable for a term that is not fixed, the person shall be on probation during the period beginning on the date of his or her appointment as a Recruit Constable and ending on the first anniversary of the date of his or her promotion to Probationary Constable.

Same

   (2)  The Public Service of Ontario Act, 2006 applies to a person on probation under subsection (1) as if he or she were on probation under subsection 37 (1) of that Act.

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

Regulations

   11.  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing the rules of procedure governing proceedings of the Negotiating Committee;

  (b)  prescribing as supplemental pension benefits for the purposes of subsection 7 (2) benefits that are available to employees in the police and fire sectors under the supplemental plan established under section 11 of the Ontario Municipal Employees Retirement System Act, 2006.

   9.  Part II (sections 12 to 19) of the Act is repealed.

   10.  The heading immediately before section 20 of the Act is repealed and the following substituted:

Part II
Application of Labour Relations Act, 1995

   11.  Section 20 of the Act is repealed.

   12.  (1)  Subsection 21 (1) of the Act is repealed and the following substituted:

Rules of Board

   (1)  The rules of practice made by the chair of the Ontario Labour Relations Board under subsection 110 (17) of the Labour Relations Act, 1995 apply to a proceeding before the Board relating to a question referred to in subsection 2 (4) or a complaint made under section 9.

   (2)  Subsection 21 (4) of the Act is repealed and the following substituted:

Same

   (4)  Sections 116 and 118 of the Labour Relations Act, 1995 apply with necessary modifications to a decision or order of the Board made with respect to a complaint made under section 9.

   (3)  Subsection 21 (5) of the Act is repealed and the following substituted:

Deemed reference to Association

   (5)  Any reference to a trade union in any of the provisions of the Labour Relations Act, 1995 referred to in subsections (1) to (4) is deemed to include a reference to the Association for the purposes of the application of those provisions to a proceeding referred to in subsection (1).

   13.  Sections 22 and 23 of the Act are repealed.

Police Services Act

   14.  The definition of "member of a police force" in section 2 of the Police Services Act is repealed and the following substituted:

"member of a police force" means an employee of the police force; ("membre d'un corps de police")

   15.  Subsections 18 (1) and (2) of the Act are repealed and the following substituted:

Composition of O.P.P.

   (1)  The Ontario Provincial Police shall consist of,

  (a)  the Commissioner;

  (b)  other police officers appointed under Part III of the Public Service of Ontario Act, 2006; and

   (c)  other employees of the Ontario Provincial Police appointed under Part III of the Public Service of Ontario Act, 2006.

Ranks

   (2)  The Commissioner shall establish the ranks of police officers within the Ontario Provincial Police and shall determine the rank of each police officer.

Commencement

Commencement

   16.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 24
Pension Benefits Act

   1.  (1)  Section 82 of the Pension Benefits Act is amended by adding the following subsections:

Funding of the Guarantee Fund

   (3.1)  The Guarantee Fund is to be funded by all employers required to make contributions under pension plans that provide defined benefits that are not exempt from the application of the Guarantee Fund by this Act or the regulations.

Same

   (3.2)  The amounts to be paid under subsection (3.1) by employers to the Guarantee Fund shall be determined in accordance with the prescribed rules.

   (2)  Section 82 of the Act is amended by adding the following subsection:

Matters to be considered in determining amount of funding

   (3.3)  In making regulations to prescribe rules for determining the amount to be paid by employers to the Guarantee Fund, the Lieutenant Governor in Council shall take into account the following:

    1.  The risk of claims against the Guarantee Fund and the estimated amount of potential claims to be paid by the Guarantee Fund.

    2.  That the amount standing to the credit of the Guarantee Fund should be sufficient for the purpose of paying claims without any additional amount provided by a loan or grant under subsection (4) or (5).

    3.  That the level of funding required from employers should be reasonably stable over the long term.

   (3)  Section 82 of the Act is amended by adding the following subsections:

Grant to Guarantee Fund

   (5)  If at any time the amount standing to the credit of the Guarantee Fund is insufficient for the purpose of paying claims, the Lieutenant Governor in Council may authorize the Minister of Finance to make a grant to the Guarantee Fund out of money appropriated for that purpose by the Legislature.

Loans and grants discretionary

   (6)  Nothing in this Act or the regulations requires the Lieutenant Governor in Council to authorize the Minister of Finance to make either a loan or a grant to the Guarantee Fund. 

Liability of Guarantee Fund limited

   (7)  The total liability of the Guarantee Fund to guarantee pension benefits at any particular time is limited to the assets of the Guarantee Fund at that time, calculated after including any loan or grant that may have been made to the Guarantee Fund under subsection (4) or (5).

   2.  (1)  Clause 115 (1) (e) of the Act is repealed and the following substituted:

  (e)  governing the payment of amounts by employers to the Guarantee Fund under subsection 82 (3.2), including rules,

           (i)  relating to assessments of amounts required to be paid,

          (ii)  determining due dates for required payments,

         (iii)  imposing interest or penalties on late payment or non-payment of amounts required to be paid and describing the method for determining the rate of interest or the amount of a penalty,

         (iv)  determining the amount of any overpayment made by an employer and the circumstances in which the overpayment is to be refunded or applied in whole or in part against the amount of a future assessment;

   (2)  Subsection 115 (6) of the Act is repealed and the following substituted:

Transitional authority to make retroactive regulations re funding defined benefit plans

   (6)  A regulation relating to the funding of a pension plan that provides defined benefits, including any regulation prescribing anything referred to in section 55 as being prescribed and any regulation prescribing matters referred to in clause 115 (1) (c) or (i), may come into force on a day earlier than the day the regulation is filed and apply to a period that commences on or after September 30, 2008. 

Repeal of transitional authority

   (7)  Subsection (6) is repealed on June 30, 2010.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

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

 

Schedule 25
Provincial Land Tax Act, 2006

   1.  Section 15 of the Provincial Land Tax Act, 2006 is amended by adding the following subsections:

Lien

   (4.1)  If the total amount owing under this Act in respect of land for which the Minister has issued a notice under subsection (3) is paid by a person entitled to receive notice under paragraph 2 of subsection (3), other than a spouse of the owner of the land, the person has a lien on the land for the amount paid.

Priority of a lien

   (4.2)  A lien under subsection (4.1) has priority over the interest in the land of any person whom notice was sent to under paragraph 2 of subsection (3).

   2.  Section 19 of the Act is amended by adding the following subsection:

Fee for statement

   (3)  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement under subsection (1).

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

Statement of account

   19.1  (1)  The Minister may, at the request of an owner of land, give to that owner a statement of account that sets out all amounts owing for taxes in respect of the owner's land as of the day the statement is issued.

Effect

   (2)  A statement given under subsection (1) is not binding on the Minister.

Fee for statement

   (3)  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement under subsection (1).

   4.  Section 24.1 of the Act is amended by adding the following subsection:

Payment of property tax

   (2)  For greater certainty, an agreement may authorize the municipality to receive payments of property tax in the municipality's name.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 26
Securities act

   1.  (1)  Subsection 1 (1) of the Securities Act is amended by adding the following definition:

"chief compliance officer" means, in respect of a registrant that is a registered dealer, registered adviser or registered investment fund manager, an individual designated by the registrant,

  (a)  to establish and maintain policies and procedures to assess, monitor and report on the registrant's compliance with Ontario securities law, and

  (b)  to fulfill such other compliance functions as may be prescribed by the regulations; ("chef de la conformité")

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

"dealer" means, except for the purposes described in subsection (1.2), a person or company engaging in or holding himself, herself or itself out as engaging in the business of trading in securities as principal or agent; ("courtier")

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

"debt security" means a bond, debenture, note or similar instrument representing indebtedness, whether secured or unsecured; ("titre de créance")

   (4)  The definition of "portfolio manager" in subsection 1 (1) of the Act is repealed.

   (5)  The definition of "salesperson" in subsection 1 (1) of the Act is repealed and the following substituted:

"representative" means,

  (a)  in respect of a registered dealer, an individual who trades securities on behalf of the dealer, whether or not the individual is employed by the dealer, or

  (b)  in respect of a registered adviser, an individual who provides advice on behalf of the adviser with respect to investing in, buying or selling securities, whether or not the individual is employed by the adviser; ("représentant")

   (6)  Clause (e) of the definition of "security" in subsection 1 (1) of the Act is repealed and the following substituted:

  (e)  a bond, debenture, note or other evidence of indebtedness or a share, stock, unit, unit certificate, participation certificate, certificate of share or interest, preorganization certificate or subscription other than,

           (i)  a contract of insurance issued by an insurance company licensed under the Insurance Act, and

          (ii)  evidence of a deposit issued by a bank listed in Schedule I, II or III to the Bank Act (Canada), by a credit union or league to which the Credit Unions and Caisses Populaires Act, 1994 applies, by a loan corporation or trust corporation registered under the Loan and Trust Corporations Act or by an association to which the Cooperative Credit Associations Act (Canada) applies,

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

"ultimate designated person" means, in respect of a registrant that is a registered dealer, registered adviser or registered investment fund manager, an individual designated by the registrant,

  (a)  to supervise the registrant's activities that are directed towards ensuring compliance with Ontario securities law by the registrant and by each individual acting on the registrant's behalf, and

  (b)  to fulfill such other functions as may be prescribed by the regulations in order to otherwise promote compliance with Ontario securities law; ("personne désignée responsable")

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

Meaning of "dealer" for purposes of Parts XV and XVI and s. 133

   (1.2)  For the purposes of Parts XV and XVI and section 133,

"dealer" means a person or company that trades in securities in the capacity of principal or agent.

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

Authority in extraordinary circumstances

Notice to Minister

   2.2  (1)  The Commission shall notify the Minister if, in its opinion, there are extraordinary circumstances that may require immediate action to be taken under this section in the public interest.

Criteria

   (2)  For the purposes of this section, each of the following events constitutes extraordinary circumstances:

    1.  A major market disturbance characterized by or constituting sudden fluctuations of securities prices that threaten fair and orderly capital markets.

    2.  A major market disturbance characterized by or constituting a substantial disruption in the system for clearance and settlement of transactions.

    3.  A major disruption in the functioning of capital markets or of a significant segment of the markets, including a major disruption in the availability of capital to market participants.

    4.  A major disruption in the transmission, execution or processing of securities transactions.

    5.  A substantial threat of such a major market disturbance or major disruption.

Order to suspend trading

   (3)  The Commission may, without notice or a hearing, make an order under this subsection to suspend trading in any security or to suspend all trading on any recognized stock exchange or otherwise,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the order is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Terms and conditions

   (4)  The order may be subject to such terms and conditions as the Commission may impose.

Duration of order

   (5)  The order takes effect immediately and expires no later than 10 days after the day on which it is made.

Notice and publication of order

   (6)  The Commission shall promptly issue a news release describing the details of the order and shall publish the order in its Bulletin.

Opportunity to be heard

   (7)  The Commission shall give an opportunity to be heard to persons and companies who are directly affected by the order and who consider themselves aggrieved by it, and the opportunity to be heard may be oral or in writing in the discretion of the Commission.

Revocation or variation of order

   (8)  The Commission may make an order revoking or varying the order under subsection (3) but cannot vary it to provide for an expiry later than the date specified in subsection (5).

Commission regulation

   (9)  Subject to the approval of the Minister, the Commission may make a regulation relating to any matter governed by Ontario securities law, despite any other provision of this Act,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the regulation is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Same

   (10)  The Commission is not precluded from making a regulation under subsection (9) that has substantially the same effect as an order previously made under subsection (3) in respect of the same extraordinary circumstances.

Duration of regulation

   (11)  Upon being approved by the Minister, the regulation comes into force immediately, despite section 22 of the Legislation Act, 2006, and it is revoked no later than 30 days after the day on which it comes into force.

Extension of duration of regulation

   (12)  Despite subsection (11), an amendment to the regulation may provide that it remains in effect for a further period of up to 30 days, and the regulation may be so amended more than once.

Notice and publication of regulation

   (13)  When the regulation comes into force, the Commission shall promptly issue a news release describing the details of the regulation and shall publish the regulation in its Bulletin together with a statement setting out the substance and purpose of the regulation and the nature of the extraordinary circumstances.

Same, amendment of regulation

   (14)  Subsection (13) applies, with necessary modifications, with respect to any amendment to the regulation.

Additional information

   (15)  As soon as practicable after the regulation comes into force, the Commission shall publish in its Bulletin a description of the particular circumstances upon which the Commission based its decision to make the regulation.

Regulation of the L.G. in C.

   (16)  The Lieutenant Governor in Council may make a regulation relating to any matter governed by Ontario securities law, despite any other provision of this Act,

  (a)  if, in the opinion of the Lieutenant Governor in Council, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Lieutenant Governor in Council, the regulation is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Regulation of L.G. in C. prevails

   (17)  A regulation made under subsection (16) prevails over a regulation made under subsection (9), and a regulation made under subsection (16) may revoke a regulation made under subsection (9).

Interpretation

   (18)  This section does not limit the authority of the Commission under any other section of this Act.

   3.  Section 3.4 of the Act is amended by adding the following subsection:

Fees

   (0.1)  The Commission may collect and enforce the payment of such fees as may be prescribed by the regulations.

   4.  Part XI of the Act is repealed and the following substituted:

PART XI
REGISTRATION

Registration

Dealers

   25.  (1)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not engage in or hold himself, herself or itself out as engaging in the business of trading in securities unless the person or company,

  (a)  is registered in accordance with Ontario securities law as a dealer; or

  (b)  is a representative registered in accordance with Ontario securities law as a dealing representative of a registered dealer and is acting on behalf of the registered dealer.

Same, underwriters

   (2)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not act as an underwriter unless the person or company,

  (a)  is registered in accordance with Ontario securities law as a dealer and is authorized under section 26 or 27 to act as an underwriter in the circumstances; or

  (b)  is a representative registered in accordance with Ontario securities law as a dealing representative of a registered dealer described in clause (a) and is acting on behalf of the registered dealer.

Same, advisers

   (3)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not engage in the business of, or hold himself, herself or itself out as engaging in the business of, advising anyone with respect to investing in, buying or selling securities unless the person or company,

  (a)  is registered in accordance with Ontario securities law as an adviser;

  (b)  is a representative registered in accordance with Ontario securities law as an advising representative of a registered adviser and is acting on behalf of the registered adviser; or

   (c)  is a representative registered in accordance with Ontario securities law as an associate advising representative of a registered adviser and is acting on behalf of the registered adviser under the supervision of a registered advising representative of the registered adviser.

Same, investment fund managers

   (4)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not act as an investment fund manager unless the person or company is registered in accordance with Ontario securities law as an investment fund manager.

Same, ultimate designated person

   (5)  If a registrant that is a registered dealer, registered adviser or registered investment fund manager is required under the regulations to designate an individual as his, her or its ultimate designated person, the individual must be registered in accordance with Ontario securities law as the ultimate designated person of the registrant.

Same, chief compliance officer

   (6)  If a registrant that is a registered dealer, registered adviser or registered investment fund manager is required under the regulations to designate an individual as his, her or its chief compliance officer, the individual must be registered in accordance with Ontario securities law as the chief compliance officer of the registrant.

Commission guidelines re engaged in a business

   (7)  The Commission may, by the adoption of a policy under section 143.8, establish guidelines setting out criteria to be considered in determining whether a person or company is engaged in a business when trading securities or providing advice with respect to investing in, buying or selling securities.

Application for registration, etc.

   26.  (1)  An application for registration, reinstatement of registration or an amendment to an existing registration must contain such information in such form as the Director may reasonably require and must be accompanied by such fee as may be required by the regulations.

Dealer registration categories

   (2)  A person or company making an application under subsection (1) with respect to registration as a dealer under this Act shall do the following:

    1.  Apply to be registered in one or more of the following categories:

            i.  investment dealer,

           ii.  mutual fund dealer,

          iii.  scholarship plan dealer,

          iv.  exempt market dealer,

           v.  restricted dealer, limited to the trading and underwriting activities authorized under section 27 for the person's or company's registration,

          vi.  such other category of dealer as may be prescribed by the regulations.

    2.  Provide such information as the Director may require to verify that the activities of the person or company will be within the permitted activities prescribed by the regulations for the particular category or categories of dealer registration for which the person or company has applied.

Permitted underwriting, investment dealer

   (3)  A person or company registered under this Act as an investment dealer may act as an underwriter in respect of any distribution of securities unless the regulations provide otherwise.

Permitted underwriting, exempt market dealer

   (4)  A person or company registered under this Act as an exempt market dealer may act as an underwriter with respect to a distribution of securities made under an exemption from the prospectus requirements under this Act or the regulations unless the regulations provide otherwise.

Permitted underwriting, other

   (5)  A person or company registered under this Act in a category referred to in subparagraph 1 vi of subsection (2) may act as an underwriter in respect of any distribution of securities if the regulations so provide.

Adviser registration categories

   (6)  A person or company making an application under subsection (1) with respect to registration as an adviser shall indicate for which of the following categories of adviser registration he, she or it is applying and shall provide such information as the Director may require to verify that the activities of the person or company will be within the permitted activities for that category of adviser registration:

    1.  Portfolio manager, authorized to provide advice to a client with respect to investing in, buying or selling any type of security, with or without discretionary authority granted by the client to manage the client's portfolio.

    2.  Restricted portfolio manager, limited to the advising activities authorized under section 27 for the person's or company's registration.

    3.  Such other category of adviser as may be prescribed by the regulations.

Prescribed category

   (7)  If one or more categories of registration are prescribed by the regulations, a person or company applying for registration in a category prescribed by the regulations shall so indicate and provide such information as the Director may require to verify that the category is appropriate for the applicant.

Registration, etc.

   27.  (1)  On receipt of an application by a person or company and all information, material and fees required by the Director and the regulations, the Director shall register the person or company, reinstate the registration of the person or company or amend the registration of the person or company, unless it appears to the Director,

  (a)  that, in the case of a person or company applying for registration, reinstatement of registration or an amendment to a registration, the person or company is not suitable for registration under this Act; or

  (b)  that the proposed registration, reinstatement of registration or amendment to registration is otherwise objectionable.

Matters to be considered

   (2)  In considering for the purposes of subsection (1) whether a person or company is not suitable for registration, the Director shall consider,

  (a)  whether the person or company has satisfied,

           (i)  the requirements prescribed in the regulations relating to proficiency, solvency and integrity, and

          (ii)  such other requirements for registration, reinstatement of registration or an amendment to a registration, as the case may be, as may be prescribed by the regulations; and

  (b)  such other factors as the Director considers relevant.

Terms and conditions

   (3)  The Director may, in his or her discretion, impose terms and conditions on the registration, reinstatement of registration or amendment of registration of any person or company and, without limiting the generality of the foregoing,

  (a)  may restrict the duration of the registration; and

  (b)  may restrict the person or company to,

           (i)  trading only specified securities or specified classes of securities or securities of specified classes of issuers,

          (ii)  underwriting only specified securities or specified classes of securities or securities of specified classes of issuers, or

         (iii)  providing advice with respect to investing in, buying or selling only specified securities or specified classes of securities or securities of specified classes of issuers.

Right to require audit or review

   (4)  The Commission or the Director may, at any time, require a registrant that is a registered dealer, registered adviser or registered investment fund manager to direct its auditor, at the registrant's expense, to conduct any audit or financial review required by the Commission or the Director and deliver to the Commission as soon as practicable a report of the findings of the audit or review.

Revocation or suspension of registration or imposition of terms and conditions

   28.  The Director may revoke or suspend the registration of a person or company or impose terms or conditions of registration at any time during the period of registration of the person or company if it appears to the Director,

  (a)  that the person or company is not suitable for registration or has failed to comply with Ontario securities law; or

  (b)  that the registration is otherwise objectionable.

Automatic suspension, person or company

   29.  (1)  The registration of a person or company in a particular category of registration is suspended if any of the following events occurs:

    1.  A fee imposed on the person or company under this Act or the regulations relating to a particular category of registration of the person or company remains unpaid more than 30 days after the day it is due.

    2.  The membership of the person or company in a self-regulatory organization is suspended or terminated if,

            i.  the membership of the person or company relates to the particular category of registration, and

           ii.  the membership of the person or company is a condition of registration under Ontario securities law.

    3.  The approval by a self-regulatory organization of the person as a representative of a registered dealer is revoked or suspended by the self-regulatory organization if,

            i.  the approval of the representative relates to the particular category of registration in which the representative is registered under Ontario securities law, and

           ii.  the membership of the dealer in the self-regulatory organization is a condition of the dealer's registration under Ontario securities law.

Automatic suspension, representatives of suspended dealer or adviser

   (2)  A registered representative's registration in a particular category with respect to a particular registered dealer or registered adviser is suspended when the corresponding category of registration of that dealer or adviser is suspended.

Automatic suspension, representative ceasing to represent registrant

   (3)  If a registered representative ceases to have an employment, partnership or agency relationship with a registrant that is a registered dealer or registered adviser, the representative's registration with respect to that registrant is suspended on the day the relationship between the registered representative and the registrant ceases.

Automatic suspension, chief compliance officer or ultimate designated person

   (4)  The registration of an individual as a chief compliance officer or ultimate designated person is suspended at the time the individual ceases to be the chief compliance officer or ultimate designated person of the registered dealer, registered adviser or registered investment fund manager that designated the individual.

Revocation after automatic suspension

   (5)  The registration of a person or company that is suspended under subsection (1), (2), (3) or (4) and not reinstated is revoked on the second anniversary of the suspension.

Exception

   (6)  Despite subsection (5), if a proceeding is commenced under section 122 or 128 or a hearing is commenced under section 127 in respect of the activities of a registrant, the registrant's registration continues to remain suspended until an order has been made by the court or a decision is made by the Commission in the proceeding or hearing.

Surrender of registration

   30.  (1)  On application by a person or company for the surrender of his, her or its registration, the Director may accept the application and revoke the registration if the Director is satisfied,

  (a)  that all financial obligations of the person or company to his, her or its clients have been discharged;

  (b)  that all requirements, if any, prescribed by the regulations for the surrender of registration have been fulfilled or the Director is satisfied that they will be fulfilled in an appropriate manner; and

   (c)  that the surrender of the registration is not prejudicial to the public interest.

Conditions

   (2)  The Director may impose such terms and conditions on the surrender of a registration as the Director considers appropriate in the circumstances.

Right to be heard

   31.  The Director shall not do any of the following without giving a person or company an opportunity to be heard:

    1.  Refuse to register the person or company.

    2.  Amend the registration of the person or company.

    3.  Refuse to reinstate the registration of the person or company after suspending the registration.

    4.  Refuse a request from the person or company to amend his, her or its registration.

    5.  Impose terms and conditions on the registration under subsection 27 (3) or section 28, either as a condition of registration or at any time during the period in which the person or company is registered.

    6.  Suspend or revoke the registration of the person or company under section 28.

    7.  Impose terms and conditions under subsection 30 (2) on the surrender of registration of the person or company.

Duty to comply with Ontario securities law

   32.  (1)  Every person and company registered under this Act shall comply at all times with Ontario securities law, including such regulations that apply to them as may be made relating to,

  (a)  proficiency standards;

  (b)  business conduct;

   (c)  in the case of a registrant that is a registered dealer, registered adviser or registered investment fund manager, submission of information respecting ownership, management, directors, officers and any other persons or companies exercising control of the registrant;

  (d)  opening accounts and reporting trades;

  (e)  record-keeping;

    (f)  custody of clients' assets;

  (g)  conflicts of interest;

   (h)  tied selling and referral arrangements;

    (i)  client complaints;

    (j)  appointment of auditors and preparation and filing of financial information;

   (k)  procedures to be followed when a relationship is terminated between a representative and a registered dealer or registered adviser or when the representative commences a new association with a different registered dealer or registered adviser; and

    (l)  reinstatement of registration.

Duty to establish controls, etc.

   (2)  Every registrant that is a registered dealer, registered adviser or registered investment fund manager shall establish and maintain systems of control and supervision in accordance with the regulations for controlling his, her or its activities and supervising his, her or its representatives.

Address for service

   33.  Except as otherwise permitted or required by the regulations, all notices under this Act or the regulations are sufficiently served for all purposes on a registrant or applicant if they are sent by ordinary letter mail or delivered to the last address for service provided to the Commission.

Further information

   33.1  The Director may require further information or material to be submitted by an applicant or registrant within a specified time and,

  (a)  may require verification by affidavit or otherwise of any information or material submitted; or

  (b)  may require,

           (i)  the applicant or registrant,

          (ii)  any partner of the applicant or registrant,

         (iii)  any officer, director, governor or trustee of the applicant or registrant or any person performing a similar function, or

         (iv)  any employee of the applicant or registrant,

to submit to examination under oath by a person designated by the Director.

   5.  Part XII of the Act is repealed and the following substituted:

PART XII
EXEMPTIONS FROM REGISTRATION REQUIREMENTS

Exemption from registration requirements, advisers

   34.  (1)  Each of the following persons and companies is exempt from the requirement to be registered as an adviser under this Act while engaging in the business of providing advice with respect to investing in or buying or selling securities:

    1.  A person or company that engages in or holds himself, herself or itself out as engaging in the business of providing advice, either directly or through publications or other media, with respect to investing in or buying or selling securities, including any class of securities and the securities of a class of issuers, that are not purported to be tailored to the needs of anyone receiving the advice.

    2.  Such persons or companies as may be prescribed by the regulations or whose activities are prescribed by the regulations.

Conditions and restrictions

   (2)  The regulations may prescribe conditions and restrictions that apply to an exemption under paragraph 2 of subsection (1).

Requirement to disclose interest

   (3)  If an adviser described in paragraph 1 of subsection (1) recommends investing in, buying, selling or holding a specified security or class of securities or the securities of a specified class of issuers in which any of the following has a financial or other interest, either directly or indirectly, the adviser must disclose the interest concurrently with providing the advice:

    1.  The adviser.

    2.  A partner, director or officer of the adviser.

    3.  A person or company that would be an insider of the adviser if the adviser were a reporting issuer.

Same

   (4)  If the adviser's financial or other interest includes an interest in an option described in clause (b) of the definition of "financial or other interest" in subsection (5), the disclosure required by subsection (3) must include a description of the terms of the option.

Interpretation

   (5)  For the purpose of subsection (3),

"financial or other interest" in a security includes,

  (a)  ownership, beneficial or otherwise, in the security or in another security issued by the same issuer,

  (b)  an option in respect of the security or in respect of another security issued by the same issuer,

   (c)  a commission or other compensation received or expected to be received from any person or company in connection with a trade in the security,

  (d)  a financial arrangement with any person or company regarding the security, and

  (e)  a financial arrangement with any underwriter or other person or company who has an interest in the security.

Exemption from registration requirements, dealers

   35.  (1)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in the following types of securities or acting as an underwriter in respect of their distribution:

    1.  Debt securities issued by or guaranteed by the Government of Canada or the government of a province or territory of Canada.

    2.  Debt securities that are,

            i.  issued by a municipal corporation in Canada for elementary, secondary or vocational school purposes,

           ii.  issued or guaranteed by a municipal corporation in Canada, or

          iii.  secured by or payable out of rates or taxes levied under the law of a province or territory of Canada on property in the province or territory and collectible by or through the municipality in which the property is situated.

    3.  Debt securities that are issued by a corporation established under regulations made under subsection 248 (1) of the Education Act.

Same

   (2)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in or acting as an underwriter in respect of the distribution of a security evidencing indebtedness that is secured by or under a security agreement, as defined in subsection 1 (1) of the Personal Property Security Act, or that is secured in a similar manner in accordance with comparable legislation of another province or territory of Canada that provides for the granting of security in personal property.

Exception to exemption

   (3)  The exemption described in subsection (2) does not apply with respect to a trade to an individual or with respect to underwriting such a trade.

Exemption if other legislation applies

   (4)  The following persons and companies are exempt, in the circumstances indicated, from the requirement to be registered under this Act to act as a dealer when trading in securities that evidence indebtedness secured by a mortgage or charge on real property in Canada or when acting as an underwriter in respect of their distribution:

    1.  A person or company that is licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 or that is exempt from the requirement to be licensed under that Act, if the real property is in Ontario.

    2.  A person or company that is licensed or registered under comparable legislation in the province or territory of Canada, other than Ontario, in which the real property is located or that is exempt from any legislative requirement to be licensed or registered.

Prescribed securities

   (5)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in such types of securities as may be prescribed in the regulations that are traded in accordance with the regulations or when acting as an underwriter in respect of their distribution.

Conditions and restrictions

   (6)  The regulations may prescribe conditions and restrictions that apply to an exemption under subsection (5).

Exemption from registration requirement, financial institutions

   35.1  (1)  Each of the following financial institutions is exempt from the requirement to be registered under this Act to act as a dealer, underwriter, adviser or investment fund manager if the financial institution, in so acting, limits its activities to only those activities not prohibited by its governing legislation:

    1.  A bank listed in Schedule I, II or III to the Bank Act (Canada).

    2.  An association to which the Cooperative Credit Associations Act (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473 (1) of that Act.

    3.  A loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be.

    4.  Business Development Bank of Canada.

Conditions and restrictions

   (2)  An exemption under subsection (1) is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Additional exemptions

   (3)  Such other financial institutions as may be prescribed by regulation are exempt from the requirement to be registered under this Act to act as a dealer, underwriter, adviser or investment fund manager.

Conditions and restrictions

   (4)  An exemption under subsection (3) is subject to such conditions and restrictions as may be prescribed by regulation.

Exemption from registration requirements, international adviser or dealer

   35.2  (1)  The regulations shall provide that a person or company is exempt from the requirement to be registered under this Act to act as a dealer or adviser, as the case may be, if the person or company acts as a dealer or adviser in a jurisdiction outside Canada.

Conditions and restrictions

   (2)  The regulations may prescribe conditions and restrictions that apply to an exemption under subsection (1).

Additional exemptions by regulation

   35.3  The regulations may prescribe exemptions from the requirement to be registered under this Act in addition to the exemptions provided under sections 34 to 35.2.

   6.  Section 36 of the Act is repealed and the following substituted:

Confirmation of trade

   36.  (1)  Subject to the regulations, every registered dealer who has acted as principal or agent in connection with a purchase or sale of a security shall promptly send by ordinary letter mail or deliver to the customer a written confirmation of the transaction containing the information required by the regulations.

Disclosure of trade information to Commission

   (2)  Every person or company that has acted as an agent in connection with a purchase or sale of a security shall promptly disclose to the Commission, on receipt of a written request from the Commission, the name of every person or company from, to or through whom the security was bought or sold.

   7.  Subsection 37 (4) of the Act is amended by striking out "or salesperson" and substituting "employee or agent".

   8.  Sections 39, 40 and 41 of the Act are repealed. 

   9.  Section 44 of the Act is repealed and the following substituted:

Representation of registration

   44.  (1)  No person or company shall represent that he, she or it is registered under this Act unless the representation is true and, when making the representation, the person or company specifies his, her or its category of registration.

Representation prohibited

   (2)  No person or company shall make a statement about any matter that a reasonable investor would consider relevant in deciding whether to enter into or maintain a trading or advising relationship with the person or company if the statement is untrue or omits information necessary to prevent the statement from being false or misleading in the circumstances in which it is made.

   10.  Section 45 of the Act is repealed.

   11.  The heading immediately before section 72 of the Act and section 72 of the Act are repealed and the following substituted:

Part XVII
Exemptions from the Prospectus requirement

Definition

   72.  In this Part,

"prospectus requirement" means sections 53 and 62.

   12.  (1)  Section 73 of the Act is repealed and the following substituted:

Exemption

   73.  (1)  The prospectus requirement does not apply to a distribution of securities,

  (a)  that are referred to in subsections 35 (1) to (4) in the circumstances described in those subsections;

  (b)  that are debt securities issued or guaranteed by a financial institution referred to in paragraph 1, 2 or 3 of subsection 35.1 (1); or

   (c)  that are prescribed by the regulations and traded in accordance with the regulations.

Exception, subordinated debt securities

   (2)  The exemption under clause (1) (b) from the prospectus requirement does not apply to debt securities issued or guaranteed by a financial institution described in that clause that are subordinate in right of payment to deposits held by the issuer or guarantor of those debt securities.

Conditions and restrictions

   (3)  An exemption under clause (1) (b) is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Same

   (4)  An exemption under clause (1) (c) is subject to such conditions and restrictions as may be prescribed by the regulations.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with an exemption under clause (1) (c).

   (2)  Section 73 of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

Exemption, debt securities of governments in Canada

   73.  The prospectus requirement does not apply to a distribution of any of the following debt securities:

    1.  Debt securities issued or guaranteed by the Government of Canada or the government of a province or territory of Canada.

    2.  Debt securities that are,

            i.  issued by a municipal corporation in Canada for elementary, secondary or vocational school purposes,

           ii.  issued or guaranteed by a municipal corporation in Canada, or

          iii.  secured by or payable out of rates or taxes levied under the law of a province or territory of Canada on property in the province or territory and collectible by or through the municipality in which the property is situated.

    3.  Debt securities that are issued by a corporation established under regulations made under subsection 248 (1) of the Education Act.

Exemption, securities of financial institutions

Debt securities

   73.1  (1)  The prospectus requirement does not apply to a distribution of a debt security that is issued or guaranteed by any of the following financial institutions:

    1.  A bank listed in Schedule I, II or III to the Bank Act (Canada).

    2.  An association to which the Cooperative Credit Associations Act (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473 (1) of that Act.

    3.  A loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be.

    4.  Such other financial institutions as may be prescribed by the regulations.

Exception, subordinated debt securities

   (2)  The exemption under paragraph 1, 2 or 3 of subsection (1) from the prospectus requirement does not apply to debt securities issued or guaranteed by a financial institution described in the paragraph that are subordinate in right of payment to deposits held by the issuer or guarantor of those debt securities.

Conditions and restrictions

   (3)  The exemption under subsection (1) with respect to a financial institution described in paragraph 1, 2 or 3 of that subsection is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Same

   (4)  The exemption under subsection (1) with respect to a financial institution referred to in paragraph 4 of that subsection is subject to such conditions and restrictions as may be prescribed by the regulations.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with the exemption under subsection (1) with respect to a financial institution referred to in paragraph 4 of that subsection.

Other securities

   (6)  The prospectus requirement does not apply to a distribution of any of the following securities:

    1.  Securities issued by a corporation to which the Co-operative Corporations Act applies.

    2.  Membership shares and patronage shares, within the meaning of the Credit Unions and Caisses Populaires Act, 1994, of a credit union.

    3.  Securities issued to its members by a credit union to which the Credit Unions and Caisses Populaires Act, 1994 applies.

    4.  Securities issued to its members or to the members of its member credit unions by a league to which the Credit Unions and Caisses Populaires Act, 1994 applies.

Exemption, where other legislation applies

Secured by or under a security agreement

   73.2  (1)  Subject to subsection (2), the prospectus requirement does not apply to a distribution of a security evidencing indebtedness that is secured by or under a security agreement, as defined in subsection 1 (1) of the Personal Property Security Act, or that is secured in a similar manner in accordance with comparable legislation of another province or territory of Canada that provides for the granting of security in personal property.

Exception to exemption

   (2)  The exemption under subsection (1) from the prospectus requirement does not apply to a distribution to an individual.

Distribution by licensed mortgage brokerage, etc.

   (3)  The prospectus requirement does not apply to a distribution of a security evidencing indebtedness secured by a mortgage or charge on real property in Canada if the distribution is made by a person or company,

  (a)  that is licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 or is exempt from the requirement to be licensed under that Act, if the real property is in Ontario; or

  (b)  that is licensed or registered under comparable legislation in the province or territory of Canada, other than Ontario, in which the real property is located, or is exempt from any legislative requirement to be licensed or registered in the province or territory.

Exemption, accredited investor

Definition

   73.3  (1)  For the purposes of this section,

"accredited investor" means,

  (a)  a financial institution described in paragraph 1, 2 or 3 of subsection 73.1 (1),

  (b)  the Business Development Bank of Canada,

   (c)  a subsidiary of any person or company referred to in clause (a) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,

  (d)  a person or company registered under the securities legislation of a province or territory of Canada as an adviser or dealer, except as otherwise prescribed by the regulations,

  (e)  the Government of Canada, the government of a province or territory of Canada, or any Crown corporation, agency or wholly owned entity of the Government of Canada or of the government of a province or territory of Canada,

    (f)  a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'Île de Montréal or an intermunicipal management board in Quebec,

  (g)  any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,

   (h)  a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a province or territory of Canada,

    (i)  a person or company that is recognized or designated by the Commission as an accredited investor,

    (j)  such other persons or companies as may be prescribed by the regulations.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a security if the purchaser purchases the security as principal and is an accredited investor.

Status as principal

   (3)  The regulations may prescribe circumstances in which a person or company is deemed to be purchasing a security as principal for the purposes of an exemption under this section.

Conditions and restrictions

   (4)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with an exemption under this section.

Interpretation

   (6)  For the purposes of the definition of "accredited investor" in subsection (1), the regulations may define "foreign jurisdiction" and "subsidiary".

Exemption, private issuer

Definition

   73.4  (1)  For the purposes of this section,

"private issuer" has the meaning prescribed by the regulations.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a security of a private issuer to a person or company who purchases the security as principal and who satisfies the criteria prescribed by regulation.

Conditions and restrictions

   (3)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Exemption, government incentive securities

Definition

   73.5  (1)  For the purposes of this section,

"government incentive security" means a security that enables the holder to receive a grant or other monetary or tax benefit pursuant to a provision of an Act or regulation of Canada, Ontario or another province or territory of Canada, and that is prescribed by the regulations as a government incentive security.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a government incentive security.

Conditions and restrictions

   (3)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Report

   (4)  Without limiting the generality of subsection (3), the regulations may prescribe reporting requirements that apply in connection with an exemption under this section.

Additional exemptions by regulation

   73.6  (1)  The regulations may prescribe exemptions from the prospectus requirement in addition to the exemptions provided under sections 73 to 73.5.

Report

   (2)  Without limiting the generality of subsection (1), the regulations may prescribe reporting requirements that apply in connection with an exemption authorized by that subsection.

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

Resale of securities, deemed distribution

   73.7  (1)  The regulations may provide that the first trade in a security previously distributed under an exemption from the prospectus requirement is deemed to be a distribution unless it is carried out in accordance with the regulations.

Distribution by a control person

   (2)  Without limiting the generality of subsection (1), the regulations shall prescribe the circumstances in which a distribution by a control person is exempted from the prospectus requirement.

   14.  Subsection 74 (1) of the Act is repealed and the following substituted:

Exemption order

   (1)  Upon the application of an interested person or company, the Commission may make the following rulings if the Commission is satisfied that to do so would not be prejudicial to the public interest:

    1.  A ruling that any person or company is not subject to section 25.

    2.  A ruling that any trade, intended trade, security, person or company is not subject to section 53.

Terms and conditions

   (1.1)  In a ruling under subsection (1), the Commission may impose such terms and conditions as are considered necessary.

   15.  Section 118 of the Act is repealed.

   16.  Section 119 of the Act is repealed and the following substituted:

Trades by mutual fund insiders

   119.  No person or company that has access to information concerning the investment program of a mutual fund or the investment portfolio managed for a client by a registered adviser or registered dealer through discretionary authority provided by the client shall purchase or sell securities of an issuer for his, her or its own account if,

  (a)  the portfolio securities of the mutual fund or the investment portfolio managed for the client by the registered adviser or registered dealer include securities of that issuer; and

  (b)  the person or company has used the information for his, her or its direct benefit or advantage.

   17.  Subsection 134 (3) of the Act is repealed and the following substituted:

Liability for improper use of information, mutual funds

   (3)  A person or company is accountable to a mutual fund in Ontario for any benefit or advantage received or receivable as a result of a purchase or sale of securities of an issuer if,

  (a)  the portfolio securities of the mutual fund include securities of that issuer; and

  (b)  the person or company,

           (i)  has access to information concerning the investment program of the mutual fund, and

          (ii)  uses that information for his, her or its direct benefit or advantage to purchase or sell securities of that issuer for his, her or its own account.

Same, discretionary investment portfolios

   (3.1)  A person or company is accountable to a client of a registrant for any benefit or advantage received or receivable as a result of a purchase or sale of securities of an issuer if, 

  (a)  an investment portfolio is managed for the client by the registrant through discretionary authority provided by the client;

  (b)  the portfolio securities of the investment portfolio include securities of that issuer;

   (c)  the registrant is a registered adviser or registered dealer; and

  (d)  the person or company has,

           (i)  access to information concerning the investment portfolio, and

          (ii)  uses that information for his, her or its direct benefit or advantage to purchase or sell securities of that issuer.

   18.  (1)  Subsection 135 (3) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   (2)  Subsection 135 (4) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   (3)  Subsection 135 (5) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   19.  Section 136 of the Act is repealed and the following substituted:

Disclosure of intended status as principal

   136.  (1)  If, contrary to Ontario securities law, a registered dealer fails to disclose to a person or company with whom it effects a purchase or sale of a security that it intended to act as principal in respect of the purchase or sale, the person or company may rescind the contract effecting the purchase or sale by mailing or delivering written notice of the rescission to the registered dealer within 60 days after the date of delivery of the security to or by the person or company, as the case may be.

Disclosure of actual status as principal

   (2)  If, contrary to Ontario securities law, a registered dealer fails to disclose to a person or company that it has acted as principal in respect of a purchase or sale of a security, the person or company may rescind the contract effecting the purchase or sale by mailing or delivering written notice of the rescission to the registered dealer within seven days after the date of the delivery to the person or company of the written confirmation of the contract.

Service

   (3)  For the purposes of subsection (2), a confirmation sent by ordinary letter mail is deemed to be delivered to the person or company to whom it was addressed in the ordinary course of mail.

Exception

   (4)  Subsections (1) and (2) do not allow the rescission of a contract effecting the purchase of a security by a person or company if the person or company no longer owns the security.

Onus

   (5)  In an action respecting a rescission to which subsection (1) or (2) applies, the onus of proving that a registered dealer disclosed that he, she or it acted or intended to act as principal is on the registered dealer.

Limitation period

   (6)  No action respecting a rescission shall be commenced under this section after the expiration of a period of 90 days from the date of delivery of the notice under subsection (1) or (2).

   20.  (1)  Paragraph 1 of subsection 143 (1) of the Act is amended by striking out "cancellation" and substituting "revocation".

   (2)  Subsection 143 (1) of the Act is amended by adding the following paragraphs:

  1.1  Requiring registered dealers, registered advisers or registered investment fund managers to designate an ultimate designated person and prescribing classes of individuals or the qualifications required of individuals who are eligible to be designated as ultimate designated persons.

  1.2  Prescribing additional functions required to be performed by an ultimate designated person in respect of the registrant by whom he or she is designated, including requiring the ultimate designated person,

            i.  to supervise the activities of the registrant that are directed towards ensuring compliance with Ontario securities law by the registrant and individuals acting on the registrant's behalf, 

           ii.  to otherwise promote compliance by the registrant and by individuals acting on the registrant's behalf with Ontario securities law.

  1.3  Requiring registered dealers, registered advisers or registered investment fund managers to designate a chief compliance officer and prescribing classes of individuals or the qualifications required of individuals who are eligible to be designated as chief compliance officers.

  1.4  Prescribing additional functions required to be performed by a chief compliance officer in respect of the registrant by whom he or she is designated, including requiring the chief compliance officer,

            i.  to establish and maintain policies and procedures for assessing compliance with Ontario securities law by the registrant and individuals acting on the registrant's behalf,

           ii.  to monitor and assess compliance by the registrant and by individuals acting on the registrant's behalf with Ontario securities law,

          iii.  to report to the registrant's ultimate designated person or to its board of directors or partners with respect to compliance matters,

          iv.  to submit an annual report to the board of directors of the registrant or to the registrant's partners setting out the chief compliance officer's assessment of the level of compliance by the registrant and the individuals acting on its behalf with Ontario securities law.

  1.5  Prescribing circumstances in which a suspended registration is or may be reinstated.

  1.6  Prescribing activities in which a person or company whose registration is suspended or restricted may engage or activities in which he, she or it is prohibited from engaging.

   (3)  Paragraph 2 of subsection 143 (1) of the Act is amended by striking out the portion before subparagraph i and substituting the following:

    2.  Prescribing categories or subcategories of registration, classifying registrants into categories or sub-categories, prescribing the criteria a person or company must satisfy to qualify for registration in a particular category or sub-category of registration, prescribing requirements for registrants or prescribing terms and conditions on registration, reinstatement of registration, amendment of registration or registration in a particular category or sub-category of registration, including,

.     .     .     .     .

   (4)  Paragraph 2 of subsection 143 (1) of the Act is amended by striking out "and" at the end of subparagraph ii, by adding "and" at the end of subparagraph iii and by adding the following subparagraph:

          iv.  requirements that persons and companies registered under this Act be bonded or insured on terms acceptable to the Director.

   (5)  The English version of paragraph 3 of subsection 143 (1) of the Act is amended by striking out "salespersons" and substituting "representatives".

   (6)  Paragraph 5 of subsection 143 (1) of the Act is repealed and the following substituted:

    5.  Governing the provision of notice to the Director of,

            i.  a proposed change in beneficial ownership of, or direct or indirect control or direction over, securities of a person or company registered under this Act,

           ii.  a proposed change in beneficial ownership of, or direct or indirect control or direction over, securities of a person or company of which a person or company registered under this Act is a subsidiary, or

          iii.  a proposed change in ownership of a substantial portion of the assets of a person or company registered under this Act.

  5.1  Authorizing the Director to make an order that a proposed change described in subparagraph 5 i or iii must not be effected until the change has been approved by the Director.

   (7)  Paragraph 7 of subsection 143 (1) of the Act is repealed and the following substituted:

    7.  Prescribing requirements in respect of the disclosure or furnishing of information to the public or the Commission by persons and companies registered under this Act, by their directors, partners or officers or by persons or companies that beneficially own, directly or indirectly, or exercise direct or indirect control or direction over at least 10 per cent of the voting securities of persons and companies registered under this Act or providing for exemptions from or varying the requirements under this Act in respect of the disclosure or furnishing of information to the public or the Commission by any of them.

   (8)  Paragraph 8 of subsection 143 (1) of the Act is repealed and the following substituted:

    8.  Prescribing any matter referred to in Part XII (Exemptions from Registration Requirements) as required by the regulations or prescribed by or in the regulations, other than the matters referred to in subsection 35.1 (2).

   (9)  Subsection 143 (1) of the Act is amended by adding the following paragraph:

  8.1  Respecting the exemption of any person or company from any requirement under this Act or the regulations that is comparable to a requirement established by a self-regulatory organization and prescribing conditions that must be satisfied for the exemption to apply.

   (10)  Subsection 143 (1) of the Act is amended by adding the following paragraph:

  8.2  Exempting registered dealers from the requirement under section 36 to send a customer a written confirmation of a purchase or sale of a security.

   (11)  Paragraph 9 of subsection 143 (1) of the Act is repealed.

   (12)  Paragraph 20 of subsection 143 (1) of the Act is repealed and the following substituted:

  20.  Prescribing any matter referred to in Part XVII (Exemptions from Prospectus Requirements) as required by the regulations or prescribed by or in the regulations, other than the matters referred to in subsection 73.1 (3).

   (13)  Paragraph 51 of subsection 143 (1) of the Act is repealed.

   (14)  Paragraph 54 of subsection 143 (1) of the Act is repealed and the following substituted:

  54.  Prescribing the matters described in section 73.7 (resale of securities, deemed distribution).

   (15)  Paragraph 54 of subsection 143 (1) of the Act, as re-enacted by subsection (14), is repealed.

   (16)  Subsection 143 (2) of the Act is amended by adding the following clause:

(a.0.1) the matters described in subsections 35.1 (2) and 73 (3);

   (17)  Clause 143 (2) (a.0.1) of the Act, as enacted by subsection (16), is amended by striking out "73 (3)" at the end and substituting "73.1 (3)".

   (18)  Subsection 143 (9) of the Act is amended by adding at the beginning "Without limiting the authority of the Commission under section 147".

Commencement

   21.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Subsections 1 (1), (2), (4), (5), (7) and (8) and sections 4 to 20 come into force on a day to be named by proclamation of the Lieutenant Governor.

 

Schedule 27
Supplementary Interim Appropriation for 2009-2010 Act, 2009

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2009-2010 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 as tabled in the Assembly on or before March 31, 2010.

Additional amounts to be paid out of CRF

   2.  All amounts authorized under sections 3, 4 and 5 to be paid out of the Consolidated Revenue Fund are in addition to the amounts authorized to be paid out of the Consolidated Revenue Fund under sections 2, 3 and 4 of the Interim Appropriation for 2009-2010 Act, 2008.

Expenses of the public service

   3.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $46,062,829,400 may be paid out of the Consolidated Revenue Fund or recognized as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Investments of the public service

   4.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,594,276,900 may be paid out of the Consolidated Revenue Fund or recognized as non-cash investments to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Expenses of the Legislative Offices

   5.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $43,324,800 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Expenditures of the public service

   6.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2009-2010 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2010, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   7.  The Act set out in this Schedule is deemed to have come into force on April 1, 2009.

Short title

   8.  The short title of the Act set out in this Schedule is the Supplementary Interim Appropriation for 2009-2010 Act, 2009.

 

Schedule 28
Taxation Act, 2007

   1.  Section 4 of the Taxation Act, 2007 is amended by adding the following subsection:

If individual is a bankrupt

   (4)  Subsection 128 (2) of the Federal Act applies for the purposes of this Act. 

   2.  Paragraphs 1, 2 and 3 of subsection 6 (1) of the Act are repealed and the following substituted:

    1.  If the individual's tax base for the year does not exceed $36,848, the amount of tax payable by the individual is calculated by multiplying the individual's tax base for the year by the lowest tax rate for the year.

    2.  If the individual's tax base for the year exceeds $36,848, but does not exceed $73,698, the amount of tax payable by the individual is calculated using the formula,

A + B

in which,

         "A"  is the amount calculated by multiplying $36,848 by the lowest tax rate for the year, and

         "B"  is the amount calculated by multiplying the amount by which the individual's tax base for the year exceeds $36,848 by the middle tax rate for the year.

    3.  If the individual's tax base for the year exceeds $73,698, the amount of tax payable by the individual is calculated using the formula,

A + C + D

in which,

         "A"  is the amount calculated by multiplying $36,848 by the lowest tax rate for the year,

         "C"  is the amount calculated by multiplying $36,850 by the middle tax rate for the year, and

         "D"  is the amount calculated by multiplying the amount by which the individual's tax base for the year exceeds $73,698 by the highest tax rate for the year.

   3.  Section 8 of the Act is amended by adding the following paragraph:

10.1 An individual who is not resident in Canada at any time in a taxation year is entitled to deduct only the amounts described in subsections 9 (9), (12), (14), (15), (21) and (22) in computing his or her tax payable under this Division for the year, unless all or substantially all of the individual's income for the year is included in computing his or her taxable income earned in Canada for the year.

   4.  (1)  Subsection 9 (2) of the Act is amended by striking out "$8,377" at the end and substituting "$8,881".

   (2)  Subsections 9 (3), (4), (5) and (6) of the Act are repealed and the following substituted:

Tax credit for spouse or common-law partner

   (3)  If an individual is entitled to a deduction under paragraph 118 (1) (a) of the Federal Act for a taxation year, the individual is entitled to a tax credit for the year for a spouse or common-law partner calculated using the formula,

A × [$7,541 – (B – $754)]

in which,

  "A"  is the lowest tax rate for the year, and

  "B"  is the greater of $754 and the income for the year of the individual's spouse or common-law partner or, if the individual and the individual's spouse or common-law partner are living separate and apart at the end of that year by reason of a breakdown of their marriage or common-law partnership, the income of the spouse or common-law partner while married or in the common-law partnership and not separated during the year.

Tax credit for wholly dependent person

   (4)  If an individual is entitled to a deduction under paragraph 118 (1) (b) of the Federal Act for a taxation year in respect of a wholly dependent person, the individual is entitled to a tax credit for the year in respect of the person calculated using the formula,

A × [$7,541 – (C – $754)]

in which,

  "A"  is the lowest tax rate for the year, and

  "C"  is the greater of $754 and the income for the year of the person referred to in paragraph 118 (1) (b) of the Federal Act whom the individual supported.

Tax credit for in-home care of a relative

   (5)  If an individual is entitled to a deduction under paragraph 118 (1) (c.1) of the Federal Act for a taxation year in respect of a relative, the individual is entitled to a tax credit for the year for in-home care of the relative calculated using the formula,

A × ($18,507 – D)

in which,

  "A"  is the lowest tax rate for the year, and

  "D"  is the greater of the relative's income for the year and $14,321.

Tax credit for infirm dependant

   (6)  If an individual is entitled to a deduction under paragraph 118 (1) (d) of the Federal Act for a taxation year in respect of a dependant, the individual is entitled to a tax credit for the year in respect of the dependant calculated using the formula,

A × ($10,136 – E)

in which,

  "A"  is the lowest tax rate for the year, and

  "E"  is the greater of the dependant's income for the year and $5,950.

   (3)  Subsection 9 (8) of the Act is repealed and the following substituted:

Age tax credit

   (8)  If an individual is entitled to a deduction under subsection 118 (2) of the Federal Act for a taxation year, the individual is entitled to an age tax credit for the year calculated using the formula,

A × ($4,336 – H)

in which,

  "A"  is the lowest tax rate for the year, and

  "H"  is 15 per cent of the amount, if any, by which the individual's income for the year would exceed $32,280 if no amount were included in his or her income in respect of a gain from a disposition of property to which section 79 of the Federal Act applies.

   (4)  The definition of "I" in subsection 9 (10) of the Act is amended by striking out "$1,158" in the portion before clause (a) and substituting "$1,228".

   (5)  Clause (a) of the definition of "J" in subsection 9 (11) of the Act is amended by striking out "$10,220" at the beginning and substituting "$10,835".

   (6)  Subsection 9 (12) of the Act is repealed and the following substituted:

Mental or physical impairment tax credit

   (12)  If an individual is entitled to a deduction under subsection 118.3 (1) of the Federal Act for a taxation year, the individual is entitled to a tax credit for the year in respect of a mental or physical impairment calculated using the formula,

A × ($7,175 + M)

in which,

  "A"  is the lowest tax rate for the year, and

"M"  is,

         (a)  if the individual has not reached 18 years of age by the end of the taxation year, the amount, if any, by which $4,185 exceeds the amount, if any, by which the sum of all amounts each of which is an amount paid in the year for the care or supervision of the individual that is included in computing a deduction for a taxation year under section 63, 64 or 118.2 of the Federal Act exceeds $2,451, or

         (b)  in any other case, nil.

   (7)  The definitions of "V" and "W" in subsection 9 (16) of the Act are repealed and the following substituted:

  "V"  is the amount calculated by multiplying $478 by the number of months in the taxation year during which the individual is enrolled as a full-time student in a qualifying educational program at a designated educational institution for the purposes of section 118.6 of the Federal Act, and

"W"  is the amount calculated by multiplying $143 by the number of months in the taxation year, other than months described in the definition of "V", in which the individual is enrolled at a designated educational institution in a specified educational program, for the purposes of section 118.6 of the Federal Act, that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

   (8)  Clause (a) of the definition of "CC" in subsection 9 (19) of the Act is amended by striking out "$5,792" at the beginning and substituting "$6,141".

   (9)  The definition of "FF" in subsection 9 (20) of the Act is amended by striking out "$1,896" and substituting "$2,010".

   (10)  Clause (b) of the definition of "GG" in subsection 9 (20) of the Act is amended by striking out "$10,220" and substituting "$10,835".

   5.  Clauses 16 (1) (a) and (b) of the Act are repealed and the following substituted:

  (a)  20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $4,257; and

  (b)  36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $5,370.

   6.  (1)  Subsection 20 (4) of the Act is amended by striking out "$194" at the end and substituting "$205".

   (2)  Subsection 20 (5) of the Act is amended by striking out "$357" at the end and substituting "$379".

   7.  Subsection 23 (1) of the Act is amended by striking out "December 31, 2006" at the end of the portion before paragraph 1 and substituting "December 31, 2009".

   8.  Division B of Part III of the Act is amended by adding the following subdivision:

Subdivision f - Political Contributions Tax Credit

Definitions

   53.1  (1)  In this subdivision,

"Chief Electoral Officer" means the Chief Electoral Officer appointed under the Election Act; ("directeur général des élections")

"contribution" means a contribution for the purposes of the Election Finances Act to a registered candidate, registered constituency association or registered party; ("contribution")

"registered candidate" means a candidate within the meaning of the Election Finances Act who is registered under that Act; ("candidat inscrit")

"registered constituency association" means a constituency association within the meaning of the Election Finances Act that is registered under that Act; ("association de circonscription inscrite")

"registered party" means a political party registered under the Election Finances Act. ("parti inscrit")

Eligible contribution

   (2)  A contribution made by a corporation during a taxation year to a registered candidate, registered constituency association or registered party is an eligible contribution for the purposes of this subdivision if the receipt required by the Chief Electoral Officer under the Election Finances Act to be issued to the corporation for the contribution is filed with the Ontario Minister with the return required to be filed under this Act for the taxation year.

Eligible contribution balance

   (3)  The eligible contribution balance of a corporation for a taxation year for the purposes of this subdivision is the amount, if any, calculated using the formula,

A – (B + C)

in which,

  "A"  is the sum of all eligible contributions each of which was made by the corporation in the taxation year or in any of the previous 20 taxation years of the corporation,

  "B"  is the sum of all eligible contributions each of which,

         (a)  is included in "A", and

         (b)  was deducted in computing the corporation's taxable income for the purposes of Part II of the Corporations Tax Act for a previous taxation year, and

  "C"  is the amount determined in respect of the corporation for the year under subsection (4).

Same

   (4)  For the purposes of subsection (3), the amount of "C" in respect of a corporation for a taxation year is the sum of all amounts each of which is the amount, if any, determined using the formula,

D/E

in which,

  "D"  is the amount of any tax credit deducted under this section for one of the corporation's previous 20 taxation years in respect of an eligible contribution included in determining the amount of "A" in subsection (3) for the year, and

  "E"  is the corporation's basic rate of tax for the previous taxation year.

Tax credit calculation

   53.2  There may be deducted from the tax otherwise payable by a corporation under this Division for a taxation year the least of,

  (a)  the product determined by multiplying the corporation's basic rate of tax for the year by the corporation's eligible contribution balance for the year;

  (b)  the amount determined by,

           (i)  multiplying $15,000 by the indexation factor determined under section 40.1 of the Election Finances Act in respect of the calendar year in which the taxation year ends, and rounding the result to the nearest dollar, and

          (ii)  multiplying the amount determined under subclause (i) by the corporation's basic rate of tax for the year; and

   (c)  the corporation's tax payable under this Division for the year, determined without reference to this section and sections 39 and 53.

   9.  (1)  Clause 88 (2) (a) of the Act is repealed and the following substituted:

  (a)  all amounts each of which is in respect of a qualifying work placement that ends in the year, equal to the lesser of,

           (i)  the taxpayer's eligible amount for the year in respect of the qualifying work placement as determined under subsection (8), and

          (ii)  the maximum amount for the qualifying work placement for the year determined under subsection (2.1); and

   (2)  Section 88 of the Act is amended by adding the following subsection:

Maximum amount for qualifying work placement

   (2.1)  The maximum amount for a qualifying work placement for a taxation year is the amount calculated using the formula,

($1,000 × X/Y) + [$3,000 × (Y – X)/Y]

in which,

  "X"  is the number of consecutive weeks of the qualifying work placement completed by the student before March 27, 2009, and

  "Y"  is the total number of consecutive weeks of the student's qualifying work placement.

   (3)  Subsection 88 (8) of the Act is repealed and the following substituted:

Eligible amount

   (8)  A taxpayer's eligible amount for a taxation year in respect of a qualifying work placement is determined as follows:

    1.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is equal to or greater than $600,000, the eligible amount is the sum of,

            i.  10 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009, and

           ii.  25 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009.

    2.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is not greater than $400,000, the eligible amount is the sum of,

            i.  15 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009, and

           ii.  30 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009.

    3.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000, the eligible amount is calculated using the formula,

(10% × E) + (25% × F) +
[(5% × G) × (1 – H/$200,000)]

in which,

         "E"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009,

         "F"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009,

         "G"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement, and

         "H"  is the amount by which the total of all salaries or wages paid by the taxpayer in the previous taxation year exceeds $400,000.

   10.  (1)  Subsection 91 (3) of the Act is amended by striking out "subsections (4), (4.1) and (5)" and substituting "subsections (4) and (5)".

   (2)  Subsection 91 (4.1) of the Act is repealed.

   (3)  Subsection 91 (5) of the Act is repealed and the following substituted:

Post-2007 expenditures

   (5)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (3) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2007:

    1.  40 per cent of the lesser of,

            i.  the amount, if any, by which $240,000 exceeds the sum of,

                  A.  the sum of the company's qualifying labour expenditures for the production for previous taxation years, and

                  B.  the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4) in respect of the production for the taxation year, and

           ii.  the company's qualifying labour expenditure for the taxation year for the production.

    2.  35 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii.

    3.  If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production.

   (4)  Subsection 91 (6) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection (4.1) or".

   (5)  Subsection 91 (9) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  35 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2007 that are included in the Ontario labour expenditure for the year in respect of the production.

   (6)  Subsection 91 (10) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  45 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2007 that are included in the Ontario labour expenditure for the year in respect of the production.

   (7)  The definition of "eligible television series production" in subsection 91 (19) of the Act is repealed.

   11.  (1)  Subsection 92 (3) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  25 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the year that relates to expenditures incurred after December 31, 2007.

   (2)  Subsection 92 (4) of the Act is amended by striking out "clause (3) (a.1) or (b)" and substituting "clause (3) (b)".

   12.  (1)  Clause (a) of the definition of "municipal tax" in subsection 98 (1) of the Act is repealed and the following substituted:

  (a)  taxes for municipal and school purposes levied in respect of real property in Ontario but, in the case of real property in the City of Toronto, excluding any tax imposed under Part X of the City of Toronto Act, 2006,

   (2)  The definition of "principal residence" in subsection 98 (1) of the Act is repealed and the following substituted:

"principal residence" means, in respect of an individual, premises, including a non-seasonal mobile home, that are occupied by the individual as the individual's primary place of residence; ("résidence principale")

   (3)  Subsection 98 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Occupancy cost, single individual

   (2)  For the purposes of this Division and subject to subsections (2.1), (2.2) and (5), the occupancy cost for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the taxation year is the amount determined as follows:

.     .     .     .     .

   (4)  Paragraphs 1, 2 and 3 of subsection 98 (2) of the Act are amended by striking out "paid in and for the year" wherever it appears and substituting in each case "paid for the year".

   (5)  Section 98 of the Act is amended by adding the following subsections:

Occupancy cost re non-seasonal mobile home owned by individual

   (2.1)  For the purposes of this Division and subject to subsection (5), if a designated principal residence for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the year is a non-seasonal mobile home owned by the individual, the individual's occupancy cost for the year in respect of the non-seasonal mobile home is determined as follows:

    1.  Determine the sum of all amounts, if any, each of which is the amount paid for the year by the individual to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year.

    2.  Determine the sum of all amounts, if any, each of which is an amount of municipal tax paid for the year by the individual in respect of the non-seasonal mobile home.

    3.  Add the amounts, if any, determined under paragraphs 1 and 2.

Occupancy cost, single individual re life lease interest, etc.

   (2.2)  For the purposes of this Division and subject to subsection (5), if a designated principal residence for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the year is occupied by the individual pursuant to a life lease or a lease having a term of 10 years or more, and the individual has paid in full for the lease, the individual's occupancy cost for the year in respect of the designated principal residence is the amount of municipal tax that is reasonably applicable to the residence for the taxation year.

   (6)  Subsection 98 (3) of the Act is amended by striking out "subsections (4) and (5)" in the portion before paragraph 1 and substituting "subsections (3.1), (3.2), (4) and (5)".

   (7)  Paragraphs 1, 2 and 3 of subsection 98 (3) of the Act are amended by striking out "paid in and for the year" wherever it appears and substituting in each case "paid for the year".

   (8)  Section 98 of the Act is amended by adding the following subsections:

Occupancy cost re non-seasonal mobile home owned by qualifying spouse or qualifying common law partner

   (3.1)  For the purposes of this Division and subject to subsections (4) and (5), if a designated principal residence for a taxation year of an individual who is a qualifying spouse or qualifying common-law partner at any time in the year is a non-seasonal mobile home owned by the individual or his or her qualifying spouse or qualifying common-law partner, or by both of them, the individual's occupancy cost in respect of the non-seasonal mobile home for the year is the amount determined as follows:

    1.  Determine the sum of all amounts, if any, each of which is the amount paid for the year by the individual or the individual's qualifying spouse or qualifying common-law partner to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year.

    2.  Determine the sum of all amounts, if any, each of which is an amount of municipal tax paid for the year by the individual or the individual's qualifying spouse or qualifying common-law partner in respect of the non-seasonal mobile home.

    3.  Add the amounts, if any, determined under paragraphs 1 and 2.

Occupancy cost, qualifying spouse or qualifying common law partner re life lease interest, etc.

   (3.2)  For the purposes of this Division and subject to subsections (4) and (5), if a designated principal residence for a taxation year of an individual who is a qualifying spouse or qualifying common-law partner at any time in the year is occupied by the individual pursuant to a life lease or a lease having a term of 10 years or more in respect of which the individual or the individual's qualifying spouse or qualifying common-law partner has paid in full for the lease, the individual's occupancy cost for the year in respect of the designated principal residence is the amount of municipal tax that is reasonably applicable to the residence for the year.

   (9)  Subsection 98 (4) of the Act is repealed and the following substituted:

Occupancy cost, if not spouse or partner for entire year

   (4)  If an individual was a qualifying spouse or qualifying common-law partner for one or more periods during a taxation year but not throughout the year, the individual's occupancy cost for the year is the sum of the following amounts:

    1.  The individual's occupancy cost, as determined under subsection (2), (2.1) or (2.2), as applicable, for the period or periods in the year when the individual was not a qualifying spouse or qualifying common-law partner.

    2.  The individual's occupancy cost, as determined under subsection (3), (3.1) or (3.2), as applicable, for the period or periods in the year throughout which the individual was a qualifying spouse or qualifying common-law partner.

   (10)  Paragraph 1 of subsection 98 (5) of the Act is repealed and the following substituted:

    1.  If the individual did not have a qualifying spouse or qualifying common-law partner at any time in the taxation year and occupied a designated principal residence for only part of the year, the individual's occupancy cost in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the individual that relate to a period when the residence was not the individual's designated principal residence, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the individual's designated principal residence.

  1.1  If the individual had a qualifying spouse or qualifying common-law partner at any time in the taxation year but neither of them occupied a particular designated principal residence throughout the year, the occupancy cost in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the individual or his or her qualifying spouse or qualifying common-law partner that relate to a period when the residence was not the designated principal residence of either of them, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the designated principal residence of either of them.

   13.  Paragraph 4 of section 101 of the Act is repealed and the following substituted:

    4.  If two or more individuals inhabit the same principal residence in a taxation year and each of them is entitled to claim a property tax credit for the year in respect of the residence, the total occupancy cost relating to the residence is allocated to each of them according to the following:

            i.  The beneficial ownership of each of them in the principal residence, if the principal residence is not a non-seasonal mobile home and is not a residence occupied pursuant to a life lease or a lease having a term of 10 years or more.

           ii.  The portion of the rent for the principal residence that each of them paid in respect of the occupation of the residence in the year.

          iii.  In the case of a principal residence that is a non-seasonal mobile home owned and occupied by one or both of them, the amount paid for the year by each of them to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year and the amount of municipal tax that was paid by each of them for the year in respect of the mobile home.

          iv.  In the case of a principal residence occupied pursuant to a life lease or a lease having a term of 10 years or more where the lease has been paid in full, the same percentage of the amount of municipal tax that is reasonably applicable to the residence for the taxation year as the percentage interest of each of them in the lease.

   14.  The definition of "A" in subsection 104 (5) of the Act is repealed and the following substituted:

  "A"  is,

         (a)  $600 if the month ends before July 1, 2009, or

         (b)  $1,100 if the month commences after June 30, 2009.

   15.  (1)  The definition of "municipal tax" in subsection 104.1 (1) of the Act is repealed and the following substituted:

"municipal tax" means an amount that is municipal tax for the purposes of determining occupancy cost under section 98; ("impôts municipaux")

   (2)  The definition of "property tax" in subsection 104.1 (1) of the Act is repealed.

   (3)  Section 104.1 of the Act is amended by adding the following subsections:

Property tax

   (1.1)  Subject to subsection (1.3), each of the following amounts paid by an eligible senior or his or her cohabiting spouse or common-law partner for a taxation year in respect of a designated principal residence of either or both of them is property tax for the purposes of this section:

    1.  Municipal tax, if the designated principal residence is beneficially owned by one or both of them or is held in trust for the use or occupation of one or both of them.

    2.  If the designated principal residence is a non-seasonal mobile home owned and occupied by one or both of them,

            i.  municipal tax paid for the year in respect of the mobile home, and

           ii.  any amount that can reasonably be considered to have been paid to the owner of the land on which the mobile home is located to compensate the owner for municipal tax assessed against the land for the year.

    3.  If the designated principal residence is occupied by one or both of them pursuant to a life lease or a lease having a term of 10 years or more in respect of which one or both of them have paid in full for the lease, the amount of municipal tax that is reasonably applicable to the residence for the year.

Deemed municipal tax payment re life lease, etc.

   (1.2)  If paragraph 3 of subsection (1.1) applies in respect of an eligible senior or his or her cohabiting spouse or common-law partner for a taxation year, the amount of municipal tax that is reasonably applicable to the residence for the year is deemed to be paid by one or both of them for the purposes of this section.

Property tax, exceptions

   (1.3)  The following rules apply in determining the property tax paid for a taxation year by an eligible senior:

    1.  If the eligible senior did not have a cohabiting spouse or common-law partner at any time in the taxation year and occupied a designated principal residence for only part of the year, the property tax paid in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the eligible senior that relate to a period when the residence was not the eligible senior's designated principal residence, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the eligible senior's designated principal residence.

    2.  If the eligible senior had a cohabiting spouse or common-law partner at any time in the taxation year but neither of them occupied a particular designated principal residence throughout the year, the property tax paid in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the eligible senior or his or her cohabiting spouse or common-law partner that relate to a period when the residence was not the designated principal residence of either of them, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the designated principal residence of either of them.

   (4)  Paragraphs 4 and 5 of subsection 104.1 (2) of the Act are repealed and the following substituted:

    4.  The individual or his or her cohabiting spouse or common law partner paid property tax for the previous taxation year in respect of one or more principal residences that are designated principal residences for that year.

    5.  On December 31 of the previous taxation year, the individual or his or her cohabiting spouse or common-law partner,

            i.  beneficially owned and occupied a designated principal residence or occupied a designated principal residence held in trust for the use or occupation of one or both of them,

           ii.  owned and occupied a designated principal residence that was a non-seasonal mobile home, or

          iii.  occupied a designated principal residence pursuant to a life lease or a lease having a term of 10 years or more in respect of which one or both of them have paid in full for the lease.

   (5)  Clause (a) of the definition of "A" in subsection 104.1 (3) of the Act is repealed and the following substituted:

  (a)  the total amount of property tax paid by the eligible senior or his or her cohabitating spouse or common-law partner for the previous taxation year in respect of their designated principal residence for that year, and

   16.  (1)  The French version of clause 105 (3) (a) of the Act is amended by striking out "l'impôt supplémentaire" at the beginning and substituting "la surtaxe".

   (2)  The French version of clause 105 (3) (b) of the Act is amended by striking out "l'impôt supplémentaire" and substituting "la surtaxe".

   (3)  Section 105 of the Act is amended by adding the following subsections:

Additional refund for basic tax and surtax paid in prior years

   (3.1)  If a mutual fund trust's refund for a taxation year under section 132 of the Federal Act is equal to the amount of its federal refundable capital gains tax on hand at the end of that year, the trust is entitled to receive an additional refund for the taxation year in the amount equal to the sum of,

  (a)  the trust's additional refund of basic tax for the year, if any, calculated using the formula,

K – (L + M)

in which,

         "K"  is the trust's Ontario refundable capital gains tax on hand at the end of the year,

         "L"  is the sum of all amounts each of which is determined under subsection (3.2) for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act, and

        "M"  is the amount that the trust is entitled to receive as an Ontario capital gains refund for the year under subsection (1); and

  (b)  the trust's additional refund of surtax for the year, if any, calculated using the formula,

N – (O + P)

in which,

         "N"  is the sum of all amounts, each of which is,

                 (a)  the amount that would be the trust's surcharge or surtax, as the case may be, under section 3 of the Income Tax Act for a taxation year ending after 1995 and before 2009 if the amount determined to be "A" or "B", whichever applies, for the purposes of the formula in subsection 4 (9.1) of that Act for the year were its gross tax amount determined under subsection 3 (2) of that Act for the year, or

                 (b)  the amount that would be the trust's surtax under section 16 for a taxation year ending after 2008 if the trust's gross tax amount determined under subsection 16 (2) for the year were the amount added to the trust's Ontario refundable capital gains tax on hand at the end of the year,

         "O"  is the sum of all amounts, each of which is,

                 (a)  an amount determined under subsection (3.3) for a taxation year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act, or

                 (b)  an amount previously refunded to the trust as an additional refund of surtax for a year, as calculated under this clause, and

         "P"  is the sum of all amounts refunded to the trust under subsection 4 (9) of the Income Tax Act or subsection (3) of this section in respect of taxation years ending after 1995.

Amounts determined in respect of an additional refund of basic tax

   (3.2)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, calculated using the formula,

Q – R

in which,

  "Q"  is the amount that the trust was entitled to receive for the year under subsection 4 (9.1) of the Income Tax Act, and

  "R"  is the amount determined to be "C" for the year for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

         (a)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

         (b)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust under subsection 4 (9) of the Income Tax Act in respect of a taxation year ending after 1995.

Amounts previously refunded as additional refunds of surtax

   (3.3)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of surcharge or surtax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, calculated using the formula,

Q – S

in which,

  "Q"  has the meaning assigned by subsection (3.2), and

  "S"  is the amount determined as "A" or "B" for the year, whichever applies, for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

         (a)  the sum of all amounts of basic tax that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

         (b)  the sum of all amounts of basic tax that were refunded as part of an amount refunded to the trust under subsection 4 (8) of the Income Tax Act in respect of a taxation year ending after 1995.

   (4)  Subsection 105 (4) of the Act is repealed and the following substituted:

Ontario refundable capital gains tax on hand

   (4)  The amount of a mutual fund trust's Ontario refundable capital gains tax on hand at the end of a particular taxation year is the amount calculated using the formula,

(D – E) + (F – G)

in which,

  "D"  is the amount of the mutual fund trust's refundable capital gains tax on hand at the end of its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (1.1) of the Income Tax Act,

  "E"  is the amount of the mutual fund trust's capital gains refund for its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (8) of the Income Tax Act,

  "F"  is the sum of all amounts, each of which is an amount in respect of a taxation year (in this subsection referred to as a "relevant year") that is the particular taxation year or a previous taxation year ending after December 31, 2008 throughout which the trust was a mutual fund trust, equal to the lesser of,

         (a)  the amount of tax that would be payable under Division B of Part II of this Act by the trust for the relevant year, calculated without reference to sections 16 and 21 of this Act, and

         (b)  the amount calculated using the formula,

H × T × U

in which,

                 "H"  is the lesser of the trust's taxable income for the relevant year and the amount of its taxed capital gains for the relevant year for the purposes of section 132 of the Federal Act,

                 "T"  is the highest tax rate for the relevant year for the purposes of Division B of Part II of this Act, and

                 "U"  is the trust's Ontario allocation factor for the relevant year for the purposes of Division B of Part II of this Act, and

  "G"  is the sum of,

         (a)  the sum of all refunds, each of which the trust was entitled to claim under subsection (1) for a previous taxation year ending after December 31, 2008, and

         (b)  the sum of all amounts, each of which is an amount determined under clause (3.1) (a) for a previous taxation year ending after December 31, 2008.

   17.  (1)  Clause 172 (1) (a) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection 91 (4.1) or".

   (2)  Clause 172 (1) (b) of the Act is repealed.

   (3)  Clause 172 (1) (c) of the Act is amended by striking out "December 31, 2009" and substituting "December 31, 2007".

   (4)  Clause 172 (1) (d) of the Act is repealed.

   (5)  Clause 172 (1) (e) of the Act is amended by striking out "December 31, 2009" and substituting "December 31, 2007".

   (6)  Subsection 172 (2) of the Act is amended by striking out "clause (1) (a), (b), (c), (d) or (e)" and substituting "clause (1) (a), (c) or (e)".

Commencement

   18.  This Schedule is deemed to have come into force on January 1, 2009.

 

Schedule 29
Teachers' Pension Act

   1.  (1)  The definition of "pension fund" in subsection 1 (1) of the Teachers' Pension Act is repealed and the following substituted:

"pension fund" means, unless the context requires otherwise, the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan; ("caisse de retraite")

   (2)  The definition of "pension plan" in subsection 1 (1) of the Act is repealed and the following substituted:

"pension plan" means, unless otherwise provided, the Ontario Teachers' Pension Plan; ("régime de retraite")

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

Objects of the Board

   3.  The objects of the Board are to administer the pension plan and manage the pension fund in accordance with this Act, the Pension Benefits Act and the Income Tax Act (Canada).

Authorized subsidiaries

Definition

   3.1  (1)  In this section,

"pension plan" means the Ontario Teachers' Pension Plan or any other pension plan.

Authorized by agreement

   (2)  If authorized by an agreement between the Minister of Education and the executive of The Ontario Teachers' Federation under section 12.1, the Board may incorporate or cause to be incorporated and may make and maintain an investment in one or more corporations that, after the investment is made, are authorized subsidiaries of the Board.

Authorized subsidiary

   (3)  For the purposes of this section, a corporation is an authorized subsidiary of the Board if,

  (a)  the corporation carries on business with a view to profit;

  (b)  the business of the corporation is limited to providing one or more eligible services to one or more persons and entities described in subsection (6); and

   (c)  the Board has beneficial ownership of shares of the corporation representing more than 50 per cent of the shareholders' equity of the corporation.

Authority re investment entity

   (4)  An authorized subsidiary of the Board may, for the purpose of providing eligible services, incorporate, establish, manage or operate one or more corporations, trusts, partnerships or other entities as investment entities.

Eligible services

   (5)  For the purposes of this section, each of the following is an eligible service if it is carried out in compliance with all applicable laws:

    1.  Providing advice to an administrator of a pension plan regarding the administration of the pension plan or the investment policies for the pension fund maintained to provide benefits in respect of that pension plan.

    2.  Providing advice to a client on investing in, holding, buying or selling securities or other assets.

    3.  Buying, selling, holding and managing investments for a client, with or without discretionary authority granted by the client to manage the client's investment portfolio.

    4.  Activities and services ancillary to the services listed in paragraphs 1 to 3, including,

            i.  activities relating to the distribution or sale to clients of securities issued by an investment entity referred to in subsection (4), and

           ii.  entering into derivative contracts in which the return is based in whole or in part on the performance of all or part of the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan or of any of the pension fund's investments.

    5.  Providing administrative services to an administrator of a pension plan.

Clients

   (6)  An authorized subsidiary may provide services described in subsection (5) only to one or more of the following:

    1.  The Board.

    2.  The administrator of another pension plan, whether the pension plan is in or outside Canada.

    3.  The Government of Canada or the government of a province or territory of Canada, or

            i.  a Crown corporation, Crown agency or wholly-owned entity of the Government of Canada or of the government of a province or territory of Canada, or

           ii.  a corporation established by federal or provincial statute.

    4.  A municipal corporation or a municipal or public body performing a function of government in Canada.

    5.  A board, within the meaning of the Education Act, or a school board or similar authority that operates under comparable legislation in another province of Canada.

    6.  A college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from Ontario for purposes of post-secondary education or an educational institution in another province in Canada that receives regular and ongoing operating funding from the province.

    7.  An educational institution outside Canada.

    8.  An endowment fund for a university, college or educational institution referred to in paragraph 6 or 7.

    9.  A registered charity within the meaning of the Income Tax Act (Canada).

  10.  A national, federal, state, provincial, territorial or municipal government of or in any jurisdiction outside Canada or any entity owned or controlled by that government.

  11.  An investment entity referred to in subsection (4).

  12.  A client or class of clients prescribed by the regulations or that satisfies conditions prescribed by the regulations.

Investing in or through investment entity of authorized subsidiary

   (7)  With the approval of the Board, assets of the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan may be invested, directly or indirectly,

  (a)  in an investment entity referred to in subsection (4); or

  (b)  in an investment in which assets of an investment entity referred to in subsection (4) are also invested.

Regulations

   (8)  The Minister of Finance may make regulations,

  (a)  prescribing clients or classes of clients for the purposes of paragraph 12 of subsection (6);

  (b)  prescribing conditions that must be satisfied by a client or class of clients for the purposes of paragraph 12 of subsection (6).

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

Powers, etc., of the Board

   (1)  The powers and duties of the Board shall be as set out in this Act, the pension plan and any agreements under sections 10 and 12.1, except that in the event of any conflict between the pension plan and an agreement under section 10, the agreement under section 10 prevails.

   (2)  Section 8 of the Act is amended by adding the following subsection:

Exception re protection from liability

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

  (a)  a member of the Board or to a member of a committee of the Board for any act done in relation to the activities of an authorized subsidiary or investment entity referred to in section 3.1; and

  (b)  an authorized subsidiary and an investment entity referred to in section 3.1.

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

Agreement respecting authorized subsidiaries

   12.1  The Minister of Education and the executive of The Ontario Teachers' Federation may enter into an agreement granting to the Board the power to incorporate or cause to be incorporated and to make and maintain investments in one or more corporations if, after the investments are made in each such corporation, the corporation is an authorized subsidiary under section 3.1.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 30
tobacco Tax Act

   1.  Subsection 23.1 (1) of the Tobacco Tax Act is amended by striking out "clause 29 (1) (b)" and substituting "subsection 29 (1)".

   2.  (1)  Subsections 24 (2), (2.1), (2.2), (2.3) and (2.4) of the Act are repealed and the following substituted:

Application for retention of documents or things

   (2)  If any document or thing is seized under subsection (1), the Minister shall, within 14 days, apply to a justice under the Provincial Offences Act for an order to permit the retention of the document or thing.

Application to include information under oath

   (2.1)  An application under subsection (2) must be supported by information under oath from a person who has reasonable and probable grounds for believing that the document or thing may afford evidence of a contravention of this Act or the regulations.

Order of justice re seized documents

   (2.2)  If the justice who considers an application under subsection (2) is satisfied on reasonable grounds that the document or thing that was seized may afford evidence of a contravention of this Act or the regulations, the justice may, without notice, order that the document or thing be retained by a person named in the order for no longer than three months from the date of the seizure, and may include in the order any provisions that, in the opinion of the justice, are necessary for the preservation of the document or thing.

Same

   (2.3)  If the justice who considers an application under subsection (2) is not satisfied on reasonable grounds that the document or thing that was seized may afford evidence of a contravention of this Act or the regulations, he or she may direct that the document or thing be returned to the person from whom it was seized.

Time limit for retention

   (2.4)  No document or thing shall be retained under an order made under subsection (2.2) for a period of more than three months from the date of the seizure unless, before the expiry of that period,

  (a)  an application to the justice is made for retention of the document or thing for an additional period and the justice is satisfied that, having regard to the nature of the inspection, the further retention of the document or thing for a specified period is warranted and makes an order for the continuing retention of the document or thing for the specified period;

  (b)  a proceeding is instituted in which the retained document or thing may be required; or

   (c)  the owner of the document or thing consents to the continued retention of it.

   (2)  Paragraph 1 of subsection 24 (3) of the Act is amended by striking out "More than 200 unmarked cigarettes" at the beginning and substituting "Any number of unmarked cigarettes".

   (3)  Paragraph 2 of subsection 24 (3) of the Act is amended by striking out "More than 200 unmarked cigarettes" at the beginning and substituting "Any number of unmarked cigarettes".

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

Exemptions from Act for investigation purposes, etc.

   24.0.1  The Minister may, for the purpose of investigations and enforcement activities under this Act, exempt a person who is authorized by the Minister to do anything under subsection 23 (1) or 24 (1) from the application of any provision of this Act or the regulations when carrying out his or her duties under this Act, subject to such conditions as the Minister considers necessary.

   4.  (1)  Subsection 29 (1) of the Act is repealed and the following substituted:

Prohibition re unmarked cigarettes

   (1)  No person shall, unless permitted under this Act or the regulations to do so, have in the person's possession, purchase or receive any number of unmarked cigarettes for any purpose.

   (2)  Subsection 29 (1.1) of the Act is repealed and the following substituted:

Seizure of unmarked cigarettes

   (1.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of any number of unmarked cigarettes contrary to subsection (1), the person authorized by the Minister may, without a warrant,

  (a)  stop and detain the person;

  (b)  inspect the person's personal belongings for unmarked cigarettes;

   (c)  require the person, if any number of unmarked cigarettes are found, to provide identification for the purpose of,

           (i)  assessing a penalty against the person under this section, or

          (ii)  charging the person with an offence under this section; and

  (d)  subject to subsection (1.2), seize, impound, hold and dispose of the unmarked cigarettes.

Individual to provide identification

   (1.1.1)  A person who is required under subsection (1.1) to provide identification shall identify himself or herself by giving his or her correct name and address and displaying supporting documentation sufficient for identification purposes.

   (3)  Clause 29 (1.3) (a) of the Act is repealed and the following substituted:

  (a)  the applicant is an individual who brought the cigarettes into Ontario or received delivery of the cigarettes in Ontario in circumstances in which section 13 applies and has paid the tax required under that section; or

   (4)  Subsections 29 (2) and (2.0.1) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who contravenes subsection (1) is guilty of an offence and is liable on conviction,

  (a)  to a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act; and

  (b)  to a term of imprisonment of not more than two years, in addition to the fine and additional fine under clause (a), if,

           (i)  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

          (ii)  it is not the person's first conviction under this subsection.

   (5)  Subsection 29 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Penalty

   (4)  Every person who, except as permitted under this Act or the regulations, has in the person's possession or has purchased or received any number of unmarked cigarettes for any purpose shall pay a penalty, when assessed for it, equal to the sum of,

.     .     .     .     .

   5.  Subsections 29.1 (3) and (4) of the Act are repealed and the following substituted:

Offence

   (3)  Every person who contravenes subsection (2) is guilty of an offence and is liable on conviction,

  (a)  to a fine of not less than $1,000 and not more than $50,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act; and

  (b)  to a term of imprisonment of not more than two years, in addition to the fine under clause (a), if,

           (i)  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

          (ii)  it is not the person's first conviction under this subsection.

   6.  Subsections 31 (2) and (2.1) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who sells or delivers tobacco in Ontario for resale without holding a wholesaler's permit issued under this Act is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

   7.  Subsections 35 (2), (2.0.1), (2.0.2) and (2.0.3) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who purchases or receives tobacco for resale from a person who does not hold a wholesaler's permit under section 3 is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

Same

   (2.0.1)  Every person who delivers, stores, transports or possesses tobacco in bulk in Ontario that was acquired from or that is owned by a person who does not hold a registration certificate issued under subsection 5 (1) or 7 (1) or a permit issued under subsection 3 (1), 8 (2) or 9 (1) is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

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

Suspension of driver's licence on conviction of offence

Definitions

   35.1  (1)  In this section,

"driver's licence" has the same meaning as in subsection 1 (1) of the Highway Traffic Act; ("permis de conduire")

"motor vehicle" means a motor vehicle to which a number plate is attached as required by the Highway Traffic Act and includes anything attached to the motor vehicle; (véhicule automobile")

"Registrar of Motor Vehicles" means the Registrar of Motor Vehicles appointed under the Highway Traffic Act. ("registrateur des véhicules automobiles")

Court may order suspension of driver's licence

   (2)  If a person uses a motor vehicle for the unauthorized delivery, distribution or transportation of tobacco or tear tape and is convicted of an offence for doing so under subsection 9.1 (4), 31 (2), 34.1 (4) or 35 (2.0.1), the court may, on sentencing the person, in addition to any other penalty that may be imposed, order the Registrar of Motor Vehicles to suspend the person's driver's licence for a period of,

  (a)  on a first conviction, not more than six months; and

  (b)  on a subsequent conviction, not less than six months.

Registrar shall suspend licence

   (3)  If an order is made under subsection (2), the Registrar of Motor Vehicles shall suspend the person's licence in accordance with the order.

Commencement

   9.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

Schedule 31
Treasury Board Act, 1991

   1.  The French version of clause 6 (1) (d) of the Treasury Board Act, 1991 is amended by striking out "fixer le prix de prestation de services par les ministères" at the beginning and substituting "fixer les droits ou frais des services des ministères".

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

Board may require right to consent to fees, etc.

   6.1  (1)  The Board may require a minister of the Crown to obtain the consent of the Board before the minister exercises his or her discretion to,

  (a)  establish, set, charge, require the payment of, collect or otherwise impose a new fee;

  (b)  make a regulation prescribing the amount of a fee, make an order setting out the amount of a fee or otherwise determine the amount of a fee;

   (c)  waive the payment of a fee or refund a fee that is otherwise required to be paid;

  (d)  change the amount of a fee; or

  (e)  approve or authorize the exercise of discretion by another person or entity to do anything described in clause (a), (b), (c) or (d) with respect to a fee payable into the Consolidated Revenue Fund.

Definition

   (2)  In this section,

"fee" means a fee or other charge the amount of which,

  (a)  is not specified in an Act or in a regulation made by the Lieutenant Governor in Council, and

  (b)  is not determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 162 and does not form part of the law.  Bill 162 has been enacted as Chapter 18 of the Statutes of Ontario, 2009.

 

Schedule 1
assessment Act

The Assessment Act is amended by adding clauses (c) and (c.1) to subsection 2 (2) of the Act.  The new clauses allow the Minister to define "machinery and equipment" for the purposes of paragraph 18 of subsection 3 (1) of the Act and to prescribe machinery and equipment for the purposes of paragraph 18.1 of subsection 3 (1) of the Act.

Subsection 3 (1) of the Act is amended by adding paragraph 18.1.  The new paragraph exempts from taxation machinery and equipment used for the purposes of energy conservation or efficiency and that has been prescribed by the Minister.

Schedule 2
Bailiffs Act

Sections 14, 15 and 16 of the Bailiffs Act are repealed.  The sections currently require bailiffs and assistant bailiffs to be bonded.  The sections also provide for circumstances in which the bond may be forfeited, and for disposition of the proceeds of forfeited bonds and any collateral security.

New sections 3.0.1 and 3.1.1 of the Act set out a requirement for bailiffs and assistant bailiffs to provide financial security in accordance with the regulations made under the Act.  New section 18.2 of the Act gives authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

schedule 3
Capital Investment Plan Act, 1993

Subsection 5 (1) of the Capital Investment Plan Act, 1993 currently provides that, in the case of the Ontario Financing Authority, the Ontario Transportation Capital Corporation, the Ontario Clean Water Agency and the Ontario Realty Corporation, the corporation is managed by its board of directors.  The subsection is re-enacted to provide that the board of directors shall manage or supervise the management of the business and affairs of the corporation.

Schedule 4
City of Toronto act, 2006

Section 228 of the City of Toronto Act, 2006 is amended to require revenues in the City's budgets to be at least equal to expenses, once a reserve fund adjustment is made.  The section is also amended to require the City's budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year's budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year's budget.  The section is further amended to require the City's budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 241 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of the City.  Authority is provided to make regulations permitting the City to exclude certain expenses from its budget.

The amendments to the Act are made in connection with the implementation for the City of the requirement to report on tangible capital assets in its financial statements.

Schedule 5
Collection Agencies Act

The amendments to the Collection Agencies Act give authority to make regulations requiring that collection agencies and collectors provide financial security as a term and condition of registration under the Act.  The amendments also provide authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

Schedule 6
Commodity Futures Act

A new section 2.2 is added to the Commodity Futures Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest.  Criteria are set out for determining whether extraordinary circumstances exist.  In such circumstances, the Commission is authorized to make specified orders that expire in 10 days or less.  With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods.  The Lieutenant Governor in Council is also authorized to make regulations.

A technical amendment is made to subsection 65 (1) of the Act, which governs the authority of the Ontario Securities Commission to make rules.  Paragraph 7 of that subsection is re-enacted to replace references to "market participants" with a more detailed description of persons and companies that are subject to the rules made under the paragraph.

Schedule 7
Community Small Business Investment Funds Act

The amendments to the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act permit the holder of a tax-free savings account to be an eligible investor in a labour sponsored investment fund corporation.

The tax credit under the Income Tax Act for eligible investors in employee ownership labour sponsored venture capital corporations is not available after the 2008 taxation year.  New subsection 25 (2.2) of the Community Small Business Investment Funds Act incorporates this time limit into the Act.

Schedule 8
Corporations Act

Section 161 of the Corporations Act currently provides that the annual statements of a mutual insurance corporation must be mailed to its shareholders or members or published in a newspaper published near the corporation's head office.  The re-enactment of section 161 of the Act also permits the corporation to publish its annual statement on its website.  If a mutual insurance corporation publishes its annual statement on its website, the notice of its annual general meeting at which the statement will be considered must advise the shareholders or members that the annual statement is available on the corporation's website and that the shareholders or members may make a written request to receive a copy by mail.  The re-enactment of section 161 of the Act also changes the deadline for giving notice of an annual general meeting and for making the annual statement available to shareholders or members from seven days before the meeting to 21 days before the meeting.  The deadline for giving notice of a special general meeting continues to be seven days before the meeting.

schedule 9
Corporations Tax Act

The amendments to the Corporations Tax Act are consequential amendments to add a reference to clause 41 (3.2) (f) of the Act in various sections of the Act.  Clause 41 (3.2) (f) of the Act was enacted in 2008 to increase the small business limit from $400,000 to $500,000, effective January 1, 2007, for the purposes of the small business deduction.

Schedule 10
education Act

Technical amendments are made to subsections 257.11.1 (1) and (2) of the Education Act.

Schedule 11
employer health tax Act

Various provisions of the Employer Health Tax Act relate specifically to self-employed individuals, who were subject to tax under the Act for years before 1999.  These provisions are repealed and certain consequential amendments are made.

Schedule 12
Financial Administration Act

The definition of  "non-cash expense" in section 1 of the Financial Administration Act is re-enacted to include the classes of non-cash expenses currently prescribed in Ontario Regulation 26/03 (Non-Cash Expenses) made under the Act and to add a new non-cash expense class for any adjustments in expenses for employee or pensioner benefits required as a result of actuarial valuations of the amount of the liabilities for those benefits.

Section 1 of the Act is amended to add the definition of "non-cash investment", which includes imputed interest incurred during construction of a capital asset and any other investment not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations under the Act.

Under subsection 5 (3.1) of the Act, the liability of a person who owes money to the Crown is not affected if the amount of the debt is deleted from the government accounts as an uncollectible debt.  The subsection is re-enacted to also expressly state that the deletion of the debt from the government accounts does not preclude the Minister of Finance from subsequently setting off the amount of the debt under subsection 43 (2) of the Act against any amount that becomes payable by the Crown to the debtor.

Section 11.1 of the Act is re-enacted to reflect the re-enactment of the definition of "non-cash expense" in section 1 of the Act, to provide a statutory appropriation for certain non-cash expenses and for non-cash investments prescribed by the regulations and to expressly state that the charging of a non-cash expense or a non-cash investment to an appropriation does not authorize the making of a payment from the Consolidated Revenue Fund. 

Section 16.0.2 of the Act requires that certain matters, including whether a ministry has incurred a liability during a fiscal year, must be determined for the purposes of Part II of the Act in accordance with the accounting principles set out in the Public Accounts for the relevant fiscal year.  The amendment to the section provides that whether a debt owed to the Crown has become uncollectible during a fiscal year and is a bad debt is also to be determined in accordance with the accounting principles set out in the Public Accounts for the year for the purposes of Part II of the Act.

Section 38 of the Act is amended to reflect the re-enactment of the definition of "non-cash expense" in section 1 of the Act, the new definition of "non-cash investment" and the statutory appropriation for certain non-cash investments under subsection 11.1 (4) of the Act.  New subsection 38 (2) of the Act permits regulations relating to non-cash expenses and non-cash investments to be made effective April 1, 2009, the effective date of the amendments to section 1 of the Act relating to non-cash expenses and non-cash investments.

Technical changes are made to sections 11 and 11.9 and to the French version of clause 38 (c.2.1) of the Act.

Schedule 13
Income Tax Act

Section 8.5 of the Income Tax Act implements the Ontario child care supplement for working families.  The amendments to the section provide that the supplement is available in respect of qualified dependants born before July 1, 2009 and add a reference to the Ontario child benefit which, after 2008, is available under the Taxation Act, 2007 and not the Income Tax Act.

Section 8.6.2 of the Act is amended to provide that Ontario child benefit payments are not payable under the Act for months after 2008.  For 2009 and later years, monthly Ontario child benefit payments are made to eligible individuals under the Taxation Act, 2007.

Schedule 14
Interim Appropriation for 2009-2010 Act, 2008

Sections 2 and 3 of the Interim Appropriation for 2009-2010 Act, 2008 are re-enacted to update accounting terminology and to permit the Crown to recognize non-cash investments.

Schedule 15
Legislative Assembly Act

The re-enactment of subsection 61 (1.2) of the Legislative Assembly Act maintains the amount of the annual salary of members of the Assembly for the 2009-2010 fiscal year at the salary level in effect on March 26, 2009.

Subsection 61 (1.3), section 61.1 and subsection 69 (6) of the Act are spent and are repealed in this Schedule.

Schedule 16
local roads boards Act

Currently, subsection 29.1 (1.2) of the Local Roads Boards Act allows a board to enter into an agreement with the Minister of Finance on or before March 1, 2009 providing for the delegation to the Minister of Finance of the board's power under the Act to collect tax for the 2009 taxation year.  Subsection 29.1 (1.2) of the Act is re-enacted to allow an agreement for a delegation that applies to the 2009 taxation year to be entered into at any time during the 2009 taxation year that the Minister of Finance considers appropriate.

A technical amendment is made to the English version of section 33.1 of the Act.

Schedule 17
Ministry of Revenue Act

Section 11 of the Ministry of Revenue Act authorizes the Lieutenant Governor in Council to remit any tax, fee, penalty or other debt if the Lieutenant Governor in Council considers the remission to be in the public interest.  The remission of a tax or fee may be made before liability for the tax or fee arises.  The amendment permits remissions of certain other debts owed to the Crown to also be made before liability for the debt arises.

Schedule 18
Municipal Act, 2001

Sections 289 and 290 of the Municipal Act, 2001 are amended to require revenues in municipal budgets to be at least equal to expenses, once a reserve fund adjustment is made.  Those sections are also amended to require a municipal budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year's budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year's budget.  Those sections are further amended to require a municipal budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 292 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of municipalities.  Authority is provided to make regulations permitting municipalities to exclude certain expenses from their budgets.

The amendments to the Act are made in connection with the implementation for municipalities of the requirement to report on tangible capital assets in their financial statements.

Schedule 19
Ontario Child Benefit Equivalent Act, 2009

The Ontario Child Benefit Equivalent Act, 2009 establishes a program for the payment of an amount equivalent to the Ontario child benefit in respect of qualified children.

Schedule 20
ontario home ownership savings plan Act

The repeal of the Ontario Home Ownership Savings Plan Act completes the wind-up of the Ontario Home Ownership Savings Plan (OHOSP) program that was commenced in 2004.  The OHOSP program provided tax credits to individuals resident in Ontario in respect of contributions made to an OHOSP before May 19, 2004.  Amendments to the Act in 2004 provided that no new OHOSP could be registered and no new contributions to existing plans would be allowed after May 18, 2004.

schedule 21
ONTARIO LOAN ACT, 2009

The Ontario Loan Act, 2009 is enacted.  Subsection 1 (1) of the Act authorizes the Crown to borrow a maximum of $23.5 billion.  Subsection 1 (2) of the Act authorizes the Crown to borrow additional amounts up to a maximum of $10 billion through the issue and sale of short term securities over a specified period not exceeding 25 years.

Schedule 22
Ontario Municipal Employees Retirement System Act, 2006

New section 35.1 of the Ontario Municipal Employees Retirement System Act, 2006 is enacted and permits the Administration Corporation to establish authorized subsidiaries to provide services described in subsection 35.1 (5) of the Act to the Administration Corporation, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in subsection 35.1 (6) of the Act.   A corporation is an authorized subsidiary if the criteria set out in subsection 35.1 (3) of the Act are satisfied.

The Administration Corporation is permitted by subsection 35.1 (7) of the Act to invest the assets of the OMERS pension funds in an authorized subsidiary.

The services of an authorized subsidiary may be provided as described in new section 35.1 of the Act only under an agreement authorized under new section 35.2 of the Act which provides that, if authorized by the Sponsors Corporation, the Administration Corporation may enter into agreements under which its authorized subsidiaries will provide the services.  Subsection 35.2 (3) of the Act permits the Administration Corporation itself to continue to provide services under certain agreements.

Section 29 of the Act is repealed with the enactment of new section 35.1 of the Act.  It currently authorizes the Sponsors Corporation to enter into agreements under which the Administration Corporation provides certain services to the administrators of other pension plans.

Schedule 23
Ontario Provincial Police Collective Bargaining Act, 2006 AND Police services Act

This Schedule amends the Ontario Provincial Police Collective Bargaining Act, 2006 and makes related amendments to the Police Services Act.

Sections 1 to 13 amend the Ontario Provincial Police Collective Bargaining Act, 2006. 

Section 3 amends the descriptions of the two bargaining units represented by the Ontario Provincial Police Association:  subsection 2 (1) of the Act.  Terminology used in describing the officers' bargaining unit is updated.  The civilian employees' bargaining unit is described more specifically, in that it no longer refers to results of potential certification applications, and includes some employees not currently included in the unit.

Sections 4, 5 and 8 amend sections 4, 7 and 11 of the Act.  New subsection 7 (2) of the Act provides that matters relating to prescribed supplemental pension benefits for employees in the bargaining units may be referred to an arbitration board.  The amendment to section 4 of the Act provides that the Negotiating Committee shall not arbitrate a grievance relating to these matters. Section 11 of the Act is amended to authorize the Lieutenant Governor in Council to make regulations prescribing supplemental pension benefits.

Section 7 provides that the probationary period for a person appointed as a Recruit Constable begins on the date of the appointment and ends on the first anniversary date of his or her appointment to the rank of Probationary Constable.

Sections 6, 9, 11 and 13 repeal spent provisions of the Act.

Related amendments to the Police Services Act are made by sections 14 and 15.  Section 14 amends the definition of "member of a police force" in section 2 of the Police Services Act.  Section 15 amends section 18 of that Act, respecting the composition of the Ontario Provincial Police.  These amendments provide that employees of the Ontario Provincial Police who are not police officers are members of the Ontario Provincial Police.  This is already the case for employees of a municipal police force.

Schedule 24
Pension Benefits Act

Section 82 of the Pension Benefits Act is amended to incorporate into the section the provision currently in the regulations requiring employers who make contributions to pension plans that provide defined benefits to fund the Pension Benefits Guarantee Fund.  The amount of the funding is determined under rules prescribed by the regulations.  Subsection 82 (3.3) sets out matters to be taken into consideration when making new regulations to determine the amount of the funding.  Clause 115 (1) (e) of the Act is re-enacted to set out matters to be prescribed by the regulations relating to the collection of amounts payable to the Guarantee Fund.

Section 82 of the Act currently permits the Lieutenant Governor in Council to authorize the Minister of Finance to make loans out of the Consolidated Revenue Fund to the Pension Benefits Guarantee Fund if the amount in the fund is insufficient for the purpose of paying claims.  Amendments to section 82 of the Act permit the Lieutenant Governor in Council to authorize the Minister of Finance to make grants to the fund from any money appropriated for that purpose by the Legislature.  New subsection 82 (6) of the Act provides that neither the Act nor the regulations require the Lieutenant Governor in Council to authorize the Minister of Finance to make either a loan or a grant to the Pension Benefits Guarantee Fund.  Under new subsection 82 (7) of the Act, the maximum liability of the Pension Benefits Guarantee Fund is limited to the assets of the fund.

The re-enactment of subsection 115 (6) of the Act and the enactment of subsection 115 (7) of the Act permit the Lieutenant Governor in Council to make regulations before June 30, 2010 relating to the funding of pension plans that provide defined benefits.  The regulations may be retroactive, but cannot apply earlier than September 30, 2008.

Schedule 25
provincial land tax Act, 2006

Section 15 of the Provincial Land Tax Act, 2006 is amended by adding subsections (4.1) and (4.2).  If a person other than the owner of the land or a spouse of the owner of the land pays an amount owing under the Act in respect of land for which the Minister has issued a notice of possible forfeiture, that person has a lien on the land for the amount paid, and the lien has priority over the interest in the land of any person to whom the notice was sent.

Section 19 of the Act is amended by adding subsection (3).  The new subsection allows the Minister to charge such fee as he or she considers appropriate for the issuance of a statement of amounts owing for taxes.

Section 19.1 is added to the Act.  It allows the Minister, at the request of an owner of land, to give to that owner a statement of account that sets out all amounts owing for taxes in respect of the owner's land as of the day the statement is issued.  A statement of account is not binding on the Minister.  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement of account.

Section 24.1 of the Act is amended by adding subsection (2).  The new subsection provides that, for greater certainty, agreements entered into under that section may authorize a municipality to receive payments of property tax in the municipality's name.

Schedule 26
Securities Act

Proposed amendments to the Securities Act specify the authority of the Province and the Ontario Securities Commission in extraordinary circumstances; revise the registration requirements for dealers, advisers and others; revise the exemptions from the registration requirements; revise the prospectus exemptions under the Act; and make technical and other changes to the Act.

Authority in extraordinary circumstances 

A new section 2.2 is added to the Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest.  Criteria are set out for determining whether extraordinary circumstances exist.  In such circumstances, the Commission is authorized to make cease trade orders that expire in 10 days or less.  With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods.  The Lieutenant Governor in Council is also authorized to make regulations.

Registration requirements 

Part XI of the Act, which governs registration under the Act of dealers, advisers and certain other persons and companies, is re-enacted.  Some of the highlights of the amendments to the registration requirements are:

    1.   The registration requirements no longer apply to every person or company that trades a security.  Under section 25 of the Act, registration is required only for those who engage in or hold themselves out as engaging in the business of trading in securities.  Investment fund managers must be registered.

    2.   Individuals appointed as chief compliance officers or ultimate designated persons by registered dealers, registered advisers or registered investment fund managers must be registered. 

    3.   The registration requirement is extended to every representative who is authorized to trade securities on behalf of a registered dealer or who is authorized to provide advice on behalf of a registered adviser with respect to investing in, buying or selling securities, whether or not the representative is employed by the registered dealer or registered adviser.

    4.   Categories of registration are set out in section 26 of the Act, and additional categories and subcategories may be prescribed by the regulations.  Subsection 26 (2) of the Act creates two new dealer registration categories of restricted dealer and exempt market dealer.  The permitted activities for each registration category may be prescribed by the regulations.

    5.   The registration process is governed by sections 27 to 31 of the Act.  Provision is made for the revocation, suspension or surrender of a registration.  Certain duties of registrants are set out in section 32 of the Act.

Registration exemptions

Part XII of the Act, which governs exemptions from the requirement to be registered under the Act, is re-enacted.  Some of the highlights of the amendments to the registration exemptions are:

    1.  Section 34 of the Act exempts an adviser from the registration requirements under the Act if the adviser provides only general investment advice in the form of publications or other media without any representation that the advice is tailored to the needs of anyone who receives it.

    2.  A number of dealer registration exemptions are repealed that relate to trades that are not conducted in the course of engaging in the business of trading in securities.

    3.  Section 35 of the Act provides a dealer registration exemption for trades in debt securities issued or guaranteed by governments in Canada.  Exemptions are provided for transactions that are governed by other statutory schemes.

    4.  Section 35.1 of the Act provides a registration exemption for federal and Ontario financial institutions in specified circumstances.

    5.  Other registration exemptions may be established by regulation.

Amendments that relate to the re-enactment of Parts XI and XII of the Act are made to sections 36, 37, 44, 74, 119, 134, 135, 136 and 143 of the Act.  Sections 39, 40, 41, 45 and 118 of the Act are repealed.

Prospectus exemptions 

Part XVII of the Act, which governs exemptions from prospectus requirements, is amended.  The amendments are related, in part, to the changes to the registration requirements.  Some of the highlights of the amendments to the prospectus exemptions are:

    1.   A transitional amendment provides for the re-enactment of section 73 of the Act.  It is consequential to the changes to the registration requirements.  This transitional version of the section maintains certain current prospectus exemptions, including exemptions for distributions of debt securities issued or guaranteed by governments in Canada, and for distributions of debt securities issued or guaranteed by federal and Ontario financial institutions in specified circumstances.  Exceptions are specified.

    2.   This transitional version of section 73 of the Act is repealed on a date to be named by proclamation and is replaced by sections 73 to 73.6 of the Act, governing prospectus exemptions.

    3.   Sections 73 to 73.5 of the Act continue the prospectus exemptions for distributions of debt securities issued or guaranteed by governments in Canada, and for distributions of debt securities issued or guaranteed by federal and Ontario financial institutions in specified circumstances.  Provision is also made for prospectus exemptions for certain distributions to accredited investors, for distributions by private issuers in specified circumstances and for distributions of government incentive securities.

    4.   Other prospectus exemptions may be established by regulation.

    5.   Section 73.7 of the Act governs the circumstances in which the first trade in a security previously distributed under a prospectus exemption will not be treated as a distribution that is subject to the prospectus requirements.  It also governs the circumstances in which a distribution of securities by a control person will not be treated as a distribution that is subject to the prospectus requirements.

Related amendments are made to section 143 of the Act concerning regulation-making authority.

Other amendments

The regulation-making authority in paragraph 5 of subsection 143 (1) of the Act currently provides for a rule that requires notice to be given to the Commission in specified circumstances when there is a proposed change in the beneficial ownership of, or control or direction over, the securities of a registrant and authorizes the Commission to make an order.  The provision is re-enacted and notice must be given, in addition, when the change relates to the securities of a person or company of which the registrant is a subsidiary.

New regulation-making authority is set out in paragraph 8.1 of subsection 143 (1) of the Act enabling the Commission to make a rule exempting a person or company from any requirement under the Act or regulations that is comparable to a requirement imposed on the person or company by a self-regulatory organization.

Schedule 27
Supplementary Interim Appropriation for 2009-2010 Act, 2009

The Supplementary Interim Appropriation for 2009-2010 Act, 2009 is enacted.  It authorizes additional expenditures for the fiscal year ending March 31, 2010 up to specified maximum amounts.  The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation for 2009-2010 Act, 2008.  The expenditures authorized under both the Interim Appropriation for 2009-2010 Act, 2008 and the Supplementary Interim Appropriation for 2009-2010 Act, 2009 are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending March 31, 2010 tabled in the Legislative Assembly.

Schedule 28
Taxation Act, 2007

New subsection 4 (4) of the Taxation Act, 2007 provides that the rules in subsection 128 (2) of the Income Tax Act (Canada), applicable in respect of an individual who becomes a bankrupt, apply for the purposes of the Act.  These rules include provisions stating that the estate of the bankrupt is not a trust or estate separate from the individual for tax purposes and that the trustee is to be treated for tax purposes as if the trustee were the agent of the individual for the purposes of determining the individual's income and taxable income while in bankruptcy.

When the Taxation Act, 2007 was enacted in 2007, sections 6, 9, 16 and 20 of the Act reflected the specific dollar amounts that would apply for the 2007 taxation year in determining the amount of personal income tax, Ontario surtax, personal income tax credits and the Ontario tax reduction, and provided that those amounts would be adjusted annually under section 23 of the Act.  The dollar amounts applicable for the 2009 taxation year, the first taxation year to which the Act applies, could not be calculated in 2007 because the annual adjustments are determined under a formula based on the Consumer Price Index.  The amendments to those sections and to section 23 of the Act in this Schedule substitute the applicable dollar amounts for the 2009 taxation year and provide for the annual adjustment of those amounts for taxation years ending after 2009 using the formula based on the Consumer Price Index set out in section 23 of the Act.

New paragraph 10.1 of section 8 of the Act provides that only certain non-refundable tax credits may be claimed by individuals not resident in Canada at any time in a taxation year, unless all or substantially all of their income for the year is included in calculating their taxable income earned in Canada for the year.  This provision is consistent with a comparable provision in the Ontario Income Tax Act applicable to taxation years ending before 2009.

New sections 53.1 and 53.2 of the Act provide that, for taxation years ending after 2008, a non-refundable tax credit is available to corporations that make eligible political contributions to registered candidates, registered constituency associations or registered parties.  A corporation may carry forward unused eligible contributions, including contributions made before 2009, for up to 20 years. The new tax credit replaces the deduction for political donations available under section 36 of the Corporations Tax Act for taxation years ending before 2009.

The co-operative education tax credit in section 88 of the Act currently provides corporate and unincorporated employers with a refundable tax credit in respect of amounts paid to co-operative education students employed in qualifying work placements.  The rate of the tax credit is 15 per cent for employers paying salaries or wages up to $400,000 and 10 per cent for employers paying salaries or wages equal to or greater than $600,000.  For employers paying salaries or wages between $400,000 and $600,000, the higher rate of 15 per cent is gradually phased out.  The amount of the tax credit is also capped at $1,000 for each qualifying work placement.  The amendments to section 88 of the Act increase the 15 per cent rate for smaller employers to 30 per cent and increase the 10 per cent rate for larger employers to 25 per cent, effective for eligible expenditures incurred after March 26, 2009.  In addition, the $1,000 limit for each qualifying work placement is increased as of March 26, 2009 to $3000, prorated for qualifying work placements straddling March 26, 2009.

The amendments to sections 91 and 92 of the Act repeal the scheduled reduction in tax credit rates for the Ontario film and television tax credit and the Ontario production services tax credit for qualifying labour expenditures incurred after 2009.  The tax credit rates for qualifying labour expenditures incurred after 2009 will remain the same as the tax credit rates that apply to qualifying labour expenditures incurred in 2008 and 2009.  Complementary amendments are made to section 172 of the Act relating to the authority to prescribe regulations.

The amendments to sections 98, 101 and 104.1 of the Act set out requirements if a senior is claiming a property tax credit or a senior homeowners' property tax grant in respect of a principal residence that is a non-seasonal mobile home or a residence occupied pursuant to a prepaid life lease or a prepaid lease having a term of at least 10 years.  The definition of "municipal tax" is amended to exclude land transfer tax levied by the City of Toronto for the purposes of determining the amount of the property tax credit and senior homeowners' property tax grant.

Section 104 of the Act provides for the payment of a monthly Ontario child benefit to eligible individuals with qualified dependants.  Under the current legislation, the full monthly Ontario child benefit payment (based on an annual amount of $1,100 per qualified dependant) is to be phased in and paid for months commencing after June 30, 2011.  Subsection 104 (5) of the Act is amended to accelerate the payment of the full monthly Ontario child benefit to July 2009 and subsequent months.

The Ontario Income Tax Act provides that for taxation years ending before 2009 there is an additional capital gains refund for a mutual fund trust in the event that the full amount of basic income tax and surtax paid by the trust on capital gains was not refunded in previous years.  Section 105 of the Taxation Act, 2007 is amended to provide for a comparable additional capital gains refund for taxation years ending after 2008.  A technical change to the French terminology is made in subsection 105 (3) of the Act.

Schedule 29
Teachers' Pension Act

New section 12.1 of the Teachers' Pension Act permits the Minister of Education and the executive of The Ontario Teachers' Federation to enter into an agreement granting the Ontario Teachers' Pension Plan Board the power to incorporate one or more corporations and invest assets of the pension fund in such a corporation.

The Board must control a corporation it incorporates by holding shares representing more than 50 per cent of the shareholders' equity of the corporation.  The business of the corporation must be limited to providing services described in new subsection 3.1 (5) of the Act to the Board, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in new subsection 3.1 (6) of the Act.

Subsection 8 (2) of the Act currently provides a statutory protection from liability for members of the Board for acts done in good faith relating to the pension plan.  New subsection 8 (3) of the Act states that subsection 8 (2) of the Act does not apply to protect a corporation incorporated by the Board or to protect members of the Board with respect to acts done in relation to a corporation incorporated by the Board.

Schedule 30
Tobacco Tax Act

Under the current Tobacco Tax Act, the Minister may apply to the court for an order to permit the retention of documents seized under subsection 24 (1) of the Act that may afford evidence of a contravention of the Act.  Amendments to that section permit an application for an order to permit the retention of things that are seized that may afford evidence of a contravention of the Act.

Under the current Act, a person may have in his or her possession up to 200 unmarked cigarettes without contravening the Act, as long as the person does not possess the cigarettes for the purpose of sale.  Sections 23.1, 24 and 29 of the Act are amended to prohibit the possession of any number of unmarked cigarettes for any purpose, unless authorized under the Act.

New section 24.0.1 of the Act protects persons who are engaged in the enforcement of the Act on behalf of the Minister from being in technical violation of the Act by, for example, being in possession of unmarked tobacco, when carrying out their duties under the Act.

Currently, under subsection 29 (1.1) of the Act, if a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of unmarked cigarettes, the authorized person may stop and detain the person and seize the unmarked cigarettes. The re-enactment of the subsection also allows the authorized person to search the person's personal belongings for unmarked cigarettes and, if unmarked cigarettes are found, require the person to provide identification.

Under new section 35.1 of the Act, when a person is convicted of an offence for the unauthorized delivery, distribution or transportation of tobacco or tear tape, the court may order the Registrar of Motor Vehicles to suspend the person's driver's licence for not more than six months on a first conviction and not less than six months on each subsequent conviction.

Other amendments to the Act standardize the penalties imposed on convictions for offences under the Act.

Schedule 31
Treasury Board Act, 1991

New section 6.1 of the Treasury Board Act, 1991 permits the Treasury Board to require a minister of the Crown to obtain the consent of the Board before charging a new fee, determining or prescribing the amount of a fee, waiving or refunding a fee or changing the amount of a fee.  The Board may also require a minister to obtain the consent of the Board before approving or otherwise authorizing the exercise by another person or entity of a similar power in connection with fees payable into the Consolidated Revenue Fund.  The section does not apply if the amount of the fee is set out in an Act or in a regulation made by the Lieutenant Governor in Council or is determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

A terminology change is made to the French version of clause 6 (1) (d) of the Act.

Bill 162 2009

An Act respecting the budget measures and other matters

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

CONTENTS
1. 2. 3. Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Schedule 8 Schedule 9 Schedule 10 Schedule 11 Schedule 12 Schedule 13 Schedule 14 Schedule 15 Schedule 16 Schedule 17 Schedule 18 Schedule 19 Schedule 20 Schedule 21 Schedule 22 Schedule 22.1 Schedule 23 Schedule 24 Schedule 25 Schedule 26 Schedule 27 Schedule 28 Schedule 29 Schedule 30 Schedule 31	Contents of this Act Commencement Short title Assessment Act Bailiffs Act Capital Investment Plan Act, 1993 City of Toronto Act, 2006 Collection Agencies Act Commodity Futures Act Community Small Business Investment Funds Act Corporations Act Corporations Tax Act Education Act Employer Health Tax Act Financial Administration Act Government Advertising Act, 2004 Income Tax Act Interim Appropriation for 2009-2010 Act, 2008 Legislative Assembly Act Local Roads Boards Act Ministry of Revenue Act Municipal Act, 2001 Ontario Child Benefit Equivalent Act, 2009 Ontario Home Ownership Savings Plan Act Ontario Loan Act, 2009 Ontario Municipal Employees Retirement System Act, 2006 Ontario Provincial Police Collective Bargaining Act, 2006 and Police Services Act Pension Benefits Act Provincial Land Tax Act, 2006 Securities Act Supplementary Interim Appropriation for 2009-2010 Act, 2009 Taxation Act, 2007 Teachers' Pension Act Tobacco Tax Act Treasury Board Act, 1991
______________

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, 2009.

Schedule 1
Assessment Act

   1.  Subsection 2 (2) of the Assessment Act is amended by adding the following clauses:

   (c)  defining "machinery and equipment" for the purposes of paragraph 18 of subsection 3 (1);

(c.1) prescribing machinery and equipment for the purposes of paragraph 18.1 of subsection 3 (1);

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

Machinery for energy conservation

18.1 Machinery and equipment used for the purposes of energy conservation or efficiency and prescribed by the Minister for the purposes of this paragraph. 

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 2
Bailiffs Act

   1.  The Bailiffs Act is amended by adding the following section:

Financial security

   3.0.1  Every bailiff shall provide financial security in accordance with the regulations for acts or omissions in the course of acting as a bailiff.

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

Financial security

   3.1.1  Every assistant bailiff shall provide financial security in accordance with the regulations for acts or omissions in the course of acting as an assistant bailiff.

   3.  Sections 14, 15 and 16 of the Act are repealed.

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

Regulations re financial security

   18.2  The Minister may make regulations,

  (a)  governing the type, amount, form and terms of financial security, and the manner of providing it, for the purpose of sections 3.0.1 and 3.1.1;

  (b)  prescribing additional obligations relating to the financial security, including a requirement to compensate Ontario for costs incurred by Ontario relating to the financial security;

   (c)  providing for cancellation of the financial security;

  (d)  providing for the financial security to continue in force following cancellation of the financial security or termination of an appointment, registration or authorization under this Act;

  (e)  governing forfeiture of the financial security and disposition of the proceeds;

    (f)  requiring and governing termination of bonds provided under this Act as it read immediately before the day Schedule 2 to the Budget Measures Act, 2009 came into force.

   5.  Clause 19 (c) of the Act is repealed.

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

Transition

Existing bonds

   20.  (1)  Subject to any regulation made under clause 18.2 (f), this Act, as it read immediately before the day Schedule 2 to the Budget Measures Act, 2009 came into force, continues to apply to a bailiff or assistant bailiff in respect of a bond that was provided before that day.

New financial security

   (2)  The amendments to this Act made by Schedule 2 to the Budget Measures Act, 2009 apply to a bailiff or assistant bailiff in respect of financial security that is provided on or after the day on which that Schedule comes into force.

Commencement

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

Schedule 3
Capital Investment Plan Act, 1993

   1.  Subsection 5 (1) of the Capital Investment Plan Act, 1993 is repealed and the following substituted:

Board of directors

   (1)  The board of directors of a corporation shall manage or supervise the management of the business and affairs of the corporation.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 4
city of Toronto Act, 2006

   1.  Subsections 228 (3) to (6) of the City of Toronto Act, 2006 are repealed and the following substituted:

Detail and form

   (3)  The budget shall set out the following amounts:

    1.  The estimated revenues, including the amount the City intends to raise on all the rateable property in the City by its general local municipality levy and the amount it intends to raise on less than all the rateable property in the City by a special local municipality levy under section 277.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the City's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 241 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the City's reserve, sinking and retirement funds.

Reserve fund adjustment

   (4)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (3), added to the amount described in paragraph 4 of subsection (3).

    2.  The amount described in paragraph 2 of subsection (3), added to the amount described in paragraph 3 of subsection (3).

Allowance

   (5)  In preparing the budget for a year, the City,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (3) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (3) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (3) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (3) from the amount described in paragraph 1 of subsection (3), or

          (ii)  expenses were incurred by the City that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for the cost of the collection of taxes and any abatement or discount of taxes;

  (e)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

    (f)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

  (g)  may provide for such reserve funds as the City considers necessary.

Exception, 2009

   (6)  In preparing the budget for 2009, the City,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (3); and

  (b)  despite clause (5) (c), shall provide for any operating deficit of any previous year.

Yearly budget from boards, etc.

   (7)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the City may by by-law require that the year's budget of every board, commission or other body, other than a school board, for which the City is required by law to levy a tax or provide money, be submitted to the City on or before a date specified by the City and that the budget shall be in such detail and form as the by-law provides.

Definitions

   (8)  In this section,

"reserve fund" includes a reserve; ("fonds de réserve")

"taxes" means taxes imposed under any Part of this Act. ("impôts")

   2.  Clause 229 (4) (b) of the Act is amended by striking out "except clause 228 (4) (a)" and substituting "except clause 228 (5) (b)".

   3.  Subsection 234 (2) of the Act is repealed and the following substituted:

Joint boards

   (2)  If a local board is a local board of more than one municipality, only the auditor of the municipality that is responsible for the largest share of the expenses of the local board in the year is required to audit the local board in that year.

   4.  Section 241 of the Act is repealed and the following substituted:

Regulations re changes in financial reporting requirements

   241.  (1)  If changes in the financial reporting requirements of the City or a local board of the City affect the surplus or deficit of the City or local board, the Minister of Municipal Affairs and Housing may make regulations,

  (a)  phasing in or authorizing the City or local board to phase in the changes to its budgets over a period of years;

  (b)  governing the phase-in.

Regulations re budgets

   (2)  The Minister of Municipal Affairs and Housing may make regulations,

  (a)  prescribing types of expenses that the City or local board may exclude from the estimated expenses described in paragraph 3 of subsection 228 (3);

  (b)  prescribing conditions that must be met before the City or local board may exclude from the estimated expenses the types of expenses prescribed under clause (a);

   (c)  prescribing a date for the purposes of subsection (4).

Retroactive

   (3)  A regulation made under this section may be retroactive to January 1 of the year in which the regulation is made.

Review

   (4)  The Minister of Municipal Affairs and Housing shall, on or before a prescribed date, initiate a review of any regulation made under clause (2) (a) or (b).

   5.  Section 247.1 of the Act is amended by striking out "undertaking" and substituting "capital work".

   6.  Subsection 248 (1) of the Act is repealed and the following substituted:

Use of money received

   (1)  Money received by the City from the sale of debentures or as proceeds of other long-term borrowing, including any premium, and any earnings derived from the investment of that money, shall be applied only,

  (a)  for the purposes for which the debentures were issued or the other long-term borrowing was undertaken; or

  (b)  to repay outstanding temporary borrowing with respect to the debentures or the other long-term borrowing.

   7.  (1)  Subsection 249 (1) of the Act is repealed and the following substituted:

Use of sinking and retirement funds

   (1)  Except as provided in this section, the City shall apply an amount raised for a sinking or retirement fund of the City, including earnings or proceeds derived from the investment of those funds, only towards repayment of the principal of the fund at maturity.

   (2)  Subsection 249 (3) of the Act is repealed and the following substituted:

Same

   (3)  If there is any amount that remains in the fund after the City makes payments in accordance with subsection (2), the City may use the amount for any of its purposes.

   8.  Subsection 255 (1) of the Act is amended by striking out "to pay current or other expenditures" in the portion before clause (a).

Commencement

   9.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on January 1, 2009.

Schedule 5
collection Agencies Act

   1.  The Collection Agencies Act is amended by adding the following section:

Regulations re financial security

   29.2  The Minister may make regulations,

  (a)  requiring, as a term and condition of registration, that,

           (i)  a collection agency provide financial security in respect of acts or omissions of the collection agency,

          (ii)  a collector provide financial security in respect of acts or omissions of the collector;

  (b)  governing the type, amount, form and terms of the financial security, and the manner of providing it;

   (c)  prescribing additional obligations relating to the financial security, including a requirement to compensate Ontario for costs incurred by Ontario relating to the financial security;

  (d)  providing for cancellation of the financial security;

  (e)  providing for the financial security to continue in force following cancellation of the financial security or termination of a registration under this Act;

    (f)  governing forfeiture of the financial security and disposition of the proceeds;

  (g)  requiring and governing termination of bonds provided under this Act as it read immediately before the day Schedule 5 to the Budget Measures Act, 2009 came into force.

   2.  Clause 30 (g) of the Act is repealed.

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

Transition

Existing bonds

   31.  (1)  Subject to any regulation made under clause 29.2 (g), this Act, as it read immediately before the day Schedule 5 to the Budget Measures Act, 2009 came into force, continues to apply to a collection agency in respect of a bond that was provided before that day.

New financial security

   (2)  The amendments to this Act made by Schedule 5 to the Budget Measures Act, 2009 apply to a collection agency or collector in respect of financial security that is provided on or after the day on which that Schedule comes into force.

Commencement

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

Schedule 6
Commodity Futures Act

   1.  Part I.1 of the Commodity Futures Act is amended by adding the following section:

Authority in extraordinary circumstances

Notice to Minister

   2.2  (1)  The Commission shall notify the Minister if, in its opinion, there are extraordinary circumstances that may require immediate action to be taken under this section in the public interest.

Criteria

   (2)  For the purposes of this section, each of the following events constitutes extraordinary circumstances:

    1.  A major market disturbance characterized by or constituting sudden fluctuations of commodity prices or contract prices that threaten fair and orderly commodity futures markets.

    2.  A major market disturbance characterized by or constituting a substantial disruption in the system for clearance and settlement of transactions.

    3.  A major disruption in the functioning of commodity futures markets or of a significant segment of the markets.

    4.  A major disruption in the transmission, execution or processing of transactions in contracts or commodities.

    5.  A substantial threat of such a major market disturbance or disruption.

Order to revoke, suspend

   (3)  The Commission may, without notice or a hearing, make an order under this section that the acceptance of a form of contract be revoked or that all trading on any registered commodity futures exchange or otherwise be suspended,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the order is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Terms and conditions

   (4)  The order may be subject to such terms and conditions as the Commission may impose.

Duration of order

   (5)  The order takes effect immediately and expires no later than 10 days after the day on which it is made.

Notice and publication of order

   (6)  The Commission shall promptly issue a news release describing the details of the order and shall publish the order in its Bulletin.

Opportunity to be heard

   (7)  The Commission shall give an opportunity to be heard to persons and companies who are directly affected by the order and who consider themselves aggrieved by it, and the opportunity to be heard may be oral or in writing in the discretion of the Commission.

Revocation or variation of order

   (8)  The Commission may make an order revoking or varying the order under subsection (3), but cannot vary it to provide for an expiry later than the date specified in subsection (5).

Commission regulation

   (9)  Subject to the approval of the Minister, the Commission may make a regulation relating to any matter governed by Ontario commodity futures law, despite any other provision of this Act,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the regulation is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Same

   (10)  The Commission is not precluded from making a regulation under subsection (9) that has substantially the same effect as an order previously made under subsection (3) in respect of the same extraordinary circumstances.

Duration of regulation

   (11)  Upon being approved by the Minister, the regulation comes into force immediately, despite section 22 of the Legislation Act, 2006, and it is revoked no later than 30 days after the day on which it comes into force.

Extension of duration of regulation

   (12)  Despite subsection (11), an amendment to the regulation may provide that it remains in effect for a further period of up to 30 days, and the regulation may be so amended more than once.

Notice and publication of regulation

   (13)  When the regulation comes into force, the Commission shall promptly issue a news release describing the details of the regulation and shall publish the regulation in its Bulletin together with a statement setting out the substance and purpose of the regulation and the nature of the extraordinary circumstances.

Same, amendment of regulation

   (14)  Subsection (13) applies, with necessary modifications, with respect to any amendment to the regulation.

Additional information

   (15)  As soon as practicable after the regulation comes into force, the Commission shall publish in its Bulletin a description of the particular circumstances upon which the Commission based its decision to make the regulation.

Regulation of the L.G. in C.

   (16)  The Lieutenant Governor in Council may make a regulation relating to any matter governed by Ontario commodity futures law, despite any other provision of this Act,

  (a)  if, in the opinion of the Lieutenant Governor in Council, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Lieutenant Governor in Council, the regulation is necessary to maintain or restore fair and orderly commodity futures markets, to ensure prompt, accurate and safe clearance and settlement of transactions in contracts or commodities or to assist in doing so in another jurisdiction.

Regulation of L.G. in C. prevails

   (17)  A regulation made under subsection (16) prevails over a regulation made under subsection (9), and a regulation made under subsection (16) may revoke a regulation made under subsection (9).

Interpretation

   (18)  This section does not limit the authority of the Commission under any other section of this Act.

   2.  Paragraph 7 of subsection 65 (1) of the Act is repealed and the following substituted:

    7.  Prescribing requirements in respect of the disclosure or furnishing of information to the public or the Commission by persons and companies registered under this Act, by their directors, partners or officers or by persons or companies that beneficially own, directly or indirectly, or exercise direct or indirect control or direction over at least 10 per cent of the voting securities of persons and companies registered under this Act or providing for exemptions from or varying the requirements under this Act in respect of the disclosure or furnishing of information to the public or the Commission by any of them.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 7
Community Small Business Investment Funds Act

   1.  (1)  The definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act is amended by striking out "or" at the end of clause (b) and by adding the following clause:

(b.1) an individual who is a holder, as defined in subsection 146.2 (1) of the Income Tax Act (Canada), of a trust governed by a tax-free savings account that subscribes for the share, if the trust is a qualifying trust under subsection 127.4 (1) of that Act, or

   (2)  Clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Act is amended by striking out "clause (b)" at the end and substituting "clause (b) or (b.1)".

   2.  Section 25 of the Act is amended by adding the following subsection:

Time limit

   (2.2)  Despite subsections (1), (2) and (2.1),

  (a)  an employee ownership labour sponsored venture capital corporation shall not apply under subsection (1) for a tax credit certificate in respect of an investment corporation tax credit unless the eligible investor paid on or before February 28, 2009 for the Class A shares in respect of which the application is made;

  (b)  the amount of the tax credit referred to in subsection (1) for a taxation year ending after December 31, 2008 is zero; and

   (c)  no amount referred to in subsection (2.1) shall be applied in any taxation year ending after December 31, 2008.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 8
corporations Act

   1.  Section 161 of the Corporations Act is repealed and the following substituted:

Notice of meetings

Annual general meeting

   161.  (1)  Notice of every annual general meeting of the corporation must be,

  (a)  sent by mail to every shareholder or member of the corporation at least 21 days before the day of the meeting; or

  (b)  published at least 21 days before the day of the meeting in a newspaper published at or near the place where the head office of the corporation is located.

Making annual statement available to shareholders or members

   (2)  The directors shall make available to shareholders or members the annual statement for the year ending on the previous December 31 by doing one or more of the following at least 21 days before the day of the annual general meeting at which the annual statement will be considered:

    1.  Sending a copy of the annual statement to the shareholders or members by mail.

    2.  Publishing the annual statement in a newspaper published at or near the place where the corporation's head office is located.

    3.  Publishing the annual statement on the corporation's website.

Same

   (3)  If the corporation publishes its annual statement on its website, the notice of the annual general meeting must state that the annual statement is available on the corporation's website and that a shareholder or member may obtain a copy by sending a written request to the corporation's head office at least 14 days before the meeting.

Same

   (4)  The corporation shall mail a copy of the annual statement to a shareholder or member who makes a written request under subsection (3).

Requirements of annual statement

   (5)  The annual statement must be certified by the corporation's auditors and prepared in accordance with the Insurance Act and the regulations made under that Act.

Power of directors to call special general meetings

   (6)  The directors may call a special general meeting of the corporation at any time.

Notice of special general meeting

   (7)  Notice of every special general meeting of the corporation must be,

  (a)  sent by mail to every shareholder or member of the corporation at least seven days before the day of the meeting; or

  (b)  published at least seven days before the day of the meeting in a newspaper published at or near the place where the corporation's head office is located.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 9
Corporations Tax Act

   1.  The definition of "A" in subsection 41 (2) of the Corporations Tax Act is amended by striking out "clauses (3.2) (a) to (e)" and substituting "clauses (3.2) (a) to (f)".

   2.  (1)  The definition of "B" in clause 41.1 (1) (b) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" at the end and substituting "clauses 41 (3.2) (a) to (f)".

   (2)  The definition of "D" in clause 41.1 (1) (b) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" at the end and substituting "clauses 41 (3.2) (a) to (f)".

   3.  (1)  Sub-subclause 78 (2) (b) (i) (B) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

   (2)  Subsection 78 (3) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

   (3)  Paragraph 2 of subsection 78 (3.1) of the Act is amended by striking out "clauses 41 (3.2) (a) to (e)" and substituting "clauses 41 (3.2) (a) to (f)".

Commencement

   4.  This Schedule is deemed to have come into force on January 1, 2007.

Schedule 10
Education Act

   1.  (1)  Subsection 257.11.1 (1) of the Education Act is amended by striking out "the levying board" at the end and substituting "the board on behalf of which the amount was levied".

   (2)  Subsection 257.11.1 (2) of the Act is amended by striking out "a levying board" and substituting "a board on behalf of which an amount was levied".

Commencement

   2.  This Schedule is deemed to have come into force on January 1, 2009.

Schedule 11
Employer Health Tax Act

   1.  (1)  The following definitions in subsection 1 (1) of the Employer Health Tax Act are repealed:

    1.  "fiscal year".

    2.  "net self-employment income".

    3.  "self-employed individual".

    4.  "self-employment income" and "self-employ­ment loss".

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

"taxpayer" means a person who is an employer, whether or not that person is liable to pay tax under this Act; ("contribuable")

   (3)  Subsections 1 (3), (4) and (5) of the Act are repealed. 

   2.  The following provisions of the Act are repealed:

    1.  Subsections 2 (1.1), (2.1), (2.2) and (2.3).

    2.  Paragraph 3 of subsection 3 (1), and subsections 3 (3), (5), (6), (7) and (8).

    3.  Section 4.1.

    4.  Section 4.2.

    5.  Subsections 5 (1.2), (8), (9) and (10).

    6.  Subsections 7 (2.1), (2.2) and (5).

   3.  Subsection 12 (1) of the Act is amended by striking out "or a self-employed individual subject to tax under subsection 2 (1.1)".

   4.  Subsection 15 (3) of the Act is repealed.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 12
Financial Administration Act

   1.  (1)  The definition of "appropriation" in section 1 of the Financial Administration Act is amended by striking out  "to incur a non-cash expense" at the end and substituting "to recognize a non-cash expense or a non-cash investment".

   (2)  The definition of "expenditure" in section 1 of the Act is amended by striking out "the incurring by the Crown of a non-cash expense" at the end and substituting "the recognition by the Crown of a non-cash expense or a non-cash investment".

   (3)  The definition of "non-cash expense" in section 1 of the Act is repealed and the following substituted:

"non-cash expense" means an amount recognized as an expense in a fiscal year on account of,

  (a)  the reduction of a prepaid expense,

  (b)  the amortization of a capital asset,

   (c)  a loss realized on the disposition of a capital asset,

  (d)  the unexpected loss or destruction of a capital asset,

  (e)  a bad debt,

    (f)  an imputed interest subsidy arising when a loan that has been made bears interest at a rate below the prevailing market rate,

  (g)  an adjustment in the amount of an expense for an employee or pensioner benefit that is required as a result of an actuarial valuation of the amount of the liability for that benefit,

   (h)  any other expense not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations made under this Act; ("frais hors trésorerie")

   (4)  Section 1 of the Act is amended by adding the following definition:

"non-cash investment" means an amount recognized as a capital investment in a fiscal year on account of,

  (a)  imputed interest costs incurred during the construction of a capital asset, or

  (b)  any other capital investment not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations made under this Act; ("élément d'investissement hors trésorerie")

   (5)  The definition of "statutory appropriation" in section 1 of the Act is repealed and the following substituted:

"statutory appropriation" means an amount that is authorized, under a provision of this or another Act of the Legislature that describes the amount as payable or capable of being recognized without any legislative authority other than the provision of the Act,

  (a)  to be paid out of the Consolidated Revenue Fund, or

  (b)  to be recognized by the Crown as a non-cash expense or a non-cash investment. ("crédit législatif")

   2.  Subsection 5 (3.1) of the Act is repealed and the following substituted:

Effect of determination and deletion

   (3.1)  A determination made under clause (1) (b) or (c) with respect to an obligation, debt or claim and its subsequent deletion from the accounts under subsection (2),

  (a)  does not affect the liability of any person that is subject to the obligation, debt or claim; and

  (b)  does not preclude the Minister of Finance from doing anything that the Minister of Finance is authorized to do under subsection 43 (2).

   3.  Section 11 of the Act is amended by adding the following subsection:

Exception

   (1.4)  Subsection (1.1) does not apply to any written arrangements described in subsection (1.3).

   4.  Section 11.1 of the Act is repealed and the following substituted:

Appropriation required

   11.1  (1)  Money shall not be paid out of the Consolidated Revenue Fund and neither a non-cash expense nor a non-cash investment shall be recognized by the Crown unless the payment or the recognition is authorized by this or another Act of the Legislature.

Interim supply

   (2)  Nothing in this Act prohibits the payment of money out of the Consolidated Revenue Fund or the recognition by the Crown of a non-cash expense or a non-cash investment if the payment or the recognition is authorized by a resolution passed by the Legislative Assembly granting interim supply.

Authority to recognize certain non-cash expenses

   (3)  The Crown may recognize a non-cash expense,

  (a)  that is described in clause (b), (d), (e) or (g) of the definition of "non-cash expense" in section 1; or

  (b)  that is prescribed by the regulations made under this Act or that belongs to a class of non-cash expenses prescribed by the regulations made under this Act.

Authority to recognize certain non-cash investments

   (4)  The Crown may recognize a non-cash investment that is prescribed by the regulations made under this Act or that belongs to a class of non-cash investments prescribed by the regulations made under this Act.

No authority to pay money out of CRF on charging a non-cash expense, etc., to an appropriation

   (5)  The charging of a non-cash expense or a non-cash investment to an appropriation does not constitute authority for the payment of any money out of the Consolidated Revenue Fund.

   5.  Section 11.9 of the Act is amended by striking out "to incur non-cash expenses" and substituting "to recognize non-cash expenses".

   6.  Section 16.0.2 of the Act is amended by adding the following paragraph:

  1.1  Whether a debt owing to the Crown has become uncollectible and is a bad debt.

   7.  (1)  Section 38 of the Act is amended by adding the following clauses:

(a.1) prescribing types of expenses not requiring an outlay of money or the incurring of a liability that are non-cash expenses for the purposes of the definition of "non-cash expense" in section 1;

(a.2) prescribing types of capital investments not requiring an outlay of money or the incurring of a liability that are non-cash investments for the purposes of the definition of "non-cash investment" in section 1;

   (2)  Clause 38 (c.2) of the Act is repealed and the following substituted:

(c.2) prescribing non-cash expenses or classes of non-cash expenses for the purposes of subsection 11.1 (3) or non-cash investments or classes of non-cash investments for the purposes of subsection 11.1 (4);

   (3)  The French version of clause 38 (c.2.1) of the Act is amended by striking out "prescrire" at the beginning and substituting "pour prescrire".

   (4)  Clause 38 (c.4) of the Act is repealed and the following substituted:

(c.4) prescribing as a currency for the purpose of section 25 any monetary unit or composite monetary unit generally recognized in international commerce;

   (5)  Section 38 of the Act is amended by adding the following subsection:

Effective date

   (2)  A regulation made under clause (1) (a.1), (a.2) or (c.2) is, if it so provides, effective for a period commencing no earlier than April 1, 2009.

Commencement

   8.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 4, 5, 6 and 7 are deemed to have come into force on April 1, 2009.

Schedule 13
Government Advertising Act, 2004

   1.  (1)  Subsection 2 (1) of the Government Advertising Act, 2004 is repealed and the following substituted:

Requirements re advertisements

Application

   (1)  This section applies with respect to any advertisement that a government office proposes to pay to have published in a newspaper or magazine, broadcast on radio or on television, screened at a cinema or displayed on a billboard or as a public transit advertisement.

   (2)  Subsections 2 (3) and (4) of the Act are amended by striking out "display or broadcast" wherever it appears and substituting in each case "broadcast, screen or display".

   2.  Section 6 of the Act is repealed and the following substituted:

Required standards

   6.  (1)  The following are the standards that an item is required to meet:

    1.  It must include a statement that the item is paid for by the Government of Ontario.

    2.  It must not be partisan as determined under subsection (2).

    3.  Any numerical data in it must be supportable.

    4.  It must meet such additional standards as may be prescribed.

Partisan advertising

   (2)  An item is partisan,

  (a)  if it includes the name, voice or image of a member of the Executive Council or a member of the Assembly; or

  (b)  if it includes the name or logo of a recognized party in the Assembly.

Exception, advertising outside Ontario

   (3)  Clause (2) (a) does not apply with respect to an item for which the primary target audience is located outside Ontario.

Reference to title

   (4)  Clause (2) (a) does not prevent the use of the title of a member of the Executive Council or of a member of the Assembly in an item.

   3.  Subsection 11 (1) of the Act is amended by striking out "displays or broadcasts" and substituting "broadcasts, screens or displays".

   4.  (1)  Clause 12 (c) of the Act is amended by striking out "paragraph 6 of subsection 6 (1)" and substituting "paragraph 4 of subsection 6 (1)".

   (2)  Clause 12 (d) of the Act is repealed.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 14
Income Tax Act

   1.  (1)  The definition of "qualified dependant" in subsection 8.5 (1) of the Income Tax Act is amended by striking out "before July 1, 2011" and substituting "before July 1, 2009".

   (2)  Subclause (b) (i) of the definition of "D" in subsection 8.5 (5) of the Act is repealed and the following substituted:

           (i)  the amount to which the individual is entitled for the month under section 8.6.2 of this Act or under section 104 of the Taxation Act, 2007, as the case may be, divided by the number of qualified dependants in respect of whom the individual is an eligible individual at the beginning of the month, and

   2.  (1)  Subsection 8.6.2 (5) of the Act is amended by striking out "after June 30, 2008" in the portion before paragraph 1 and substituting "after June 30, 2007 and ending before January 1, 2009".

   (2)  Subsection 8.6.2 (7) of the Act is repealed and the following substituted:

Amount of a monthly payment after June 2008 and before January 2009

   (7)  The amount of an Ontario child benefit to which an eligible individual is entitled for a month commencing after June 30, 2008 and ending before January 1, 2009 is the amount calculated using the formula,

in which,

  "C"  is the number of qualified dependants in respect of whom the individual is an eligible individual on the first day of the month, and

  "D"  is the amount equal to 8 per cent of the amount, if any, by which the individual's adjusted income for the base taxation year in respect of the month exceeds $20,000.

   (3)  Subsection 8.6.2 (13) of the Act is repealed and the following substituted:

Exception after June 2008

   (13)  Subsection (11) does not apply if the total amount that is repayable by an individual under this section or under section 104 of the Taxation Act, 2007 on account of an Ontario child benefit for the 12-month period commencing July 1, 2008 and ending June 30, 2009 is not more than $2.

Commencement

   3.  This Schedule is deemed to have come into force on January 1, 2009.

Schedule 15
Interim Appropriation for 2009-2010 Act, 2008

   1.  Section 2 of the Interim Appropriation for 2009-2010 Act, 2008 is repealed and the following substituted:

Expenses of the public service

   2.  (1)  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $55,000,000,000,

  (a)  may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the public service that are not otherwise provided for; or

  (b)  may be recognized as non-cash expenses of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

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

Investments of the public service

   3.  (1)  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,500,000,000,

  (a)  may paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for; or

  (b)  may be recognized as non-cash investments of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

   3.  Section 5 of the Act is amended by striking out "incurred" and substituting "incurred or recognized".

Commencement

   4.  This Schedule is deemed to have come into force on April 1, 2009.

Schedule 16
Legislative Assembly Act

   1.  (1)  Subsection 61 (1.2) of the Legislative Assembly Act is repealed and the following substituted:

Same, 2009-10

   (1.2)  Despite subsections (1) and (1.1), the annual salary of every member of the Assembly for the fiscal year that begins on April 1, 2009 is an amount equal to the annual salary in effect on March 26, 2009.

   (2)  Subsection 61 (1.3) of the Act is repealed.

   2.  Section 61.1 of the Act is repealed.

   3.  Subsection 69 (6) of the Act is repealed.

Commencement

   4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Subsection 1 (1) is deemed to have come into force on March 26, 2009.

Schedule 17
Local Roads Boards Act

   1.  Subsection 29.1 (1.2) of the Local Roads Boards Act is repealed and the following substituted:

Transition

   (1.2)  Despite subsection (1.1), an agreement for a delegation that applies to the 2009 taxation year may be entered into at any time during the 2009 taxation year that the Minister of Finance considers appropriate.

   2.  The English version of subsections 33.1 (1) and (3) of the Act is amended by striking out "local board" wherever it appears and substituting in each case "board".

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 18
Ministry of Revenue Act

   1.  Clause 11 (3) (c) of the Ministry of Revenue Act is amended by striking out "in the case of a tax or fee" at the beginning and substituting "in the case of a tax, fee or other debt".

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 19
Municipal Act, 2001

   1.  Subsections 289 (2) to (6) of the Municipal Act, 2001 are repealed and the following substituted:

Detail and form

   (2)  The budget shall, in such detail and form as the Minister may require, set out the following amounts:

    1.  The estimated revenues, including the amount the municipality intends to raise on all the rateable property in the municipality by its general upper-tier levy and the amount it intends to raise on less than all the rateable property in the municipality by a special upper-tier levy under section 311.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the municipality's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 292 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the municipality's reserve, sinking and retirement funds.

Reserve fund adjustment

   (3)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (2), added to the amount described in paragraph 4 of subsection (2).

    2.  The amount described in paragraph 2 of subsection (2), added to the amount described in paragraph 3 of subsection (2).

Allowance

   (4)  In preparing the budget for a year, the upper-tier municipality,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (2) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (2) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (2) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (2) from the amount described in paragraph 1 of subsection (2), or

          (ii)  expenses were incurred by the municipality that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

  (e)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

    (f)  may provide for such reserve funds as the municipality considers necessary.

Exception, 2009

   (5)  In preparing the budget for 2009, the upper-tier municipality,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (2); and

  (b)  despite clause (4) (c), shall provide for any operating deficit of any previous year.

Application of provisions

   (6)  Section 34 of the Assessment Act and section 353 of this Act apply with necessary modifications to the upper-tier municipality.

Yearly budget from boards, etc.

   (7)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the upper-tier municipality may by by-law require that the year's budget of every board, commission or other body, for which the municipality is required by law to provide money, be submitted to the municipality on or before a date specified by the municipality and that the budget shall be in such detail and form as the by-law provides.

Legislation Act, 2006

   (8)  Part III (Regulations) of the Legislation Act, 2006 does not apply to a requirement of the Minister under subsection (2).

Definition

   (9)  In this section,

"reserve fund" includes a reserve.

   2.  Subsections 290 (2) to (5) of the Act are repealed and the following substituted:

Detail and form

   (2)  The budget shall, in such detail and form as the Minister may require, set out the following amounts:

    1.  The estimated revenues, including the amount the municipality intends to raise on all the rateable property in the municipality by its general local municipality levy and the amount it intends to raise on less than all the rateable property in the municipality by a special local municipality levy under section 312.

    2.  The estimated portion of the estimated revenues described in paragraph 1, if any, to be paid into the municipality's reserve, sinking and retirement funds.

    3.  The estimated expenses, subject to any regulation made under clause 292 (2) (a).

    4.  The estimated portion of the estimated expenses described in paragraph 3, if any, to be paid out of the municipality's reserve, sinking and retirement funds.

Reserve fund adjustment

   (3)  The total calculated under paragraph 1 shall be at least equal to the total calculated under paragraph 2:

    1.  The amount described in paragraph 1 of subsection (2), added to the amount described in paragraph 4 of subsection (2).

    2.  The amount described in paragraph 2 of subsection (2), added to the amount described in paragraph 3 of subsection (2).

Allowance

   (4)  In preparing the budget for a year, the local municipality,

  (a)  shall not include in the estimated revenues described in paragraph 1 of subsection (2) the estimated proceeds of any borrowing during the year;

  (b)  shall treat as estimated revenues any surplus of any previous year that resulted because,

           (i)  revenues for that year were greater than the amount described in paragraph 1 of subsection (2) for that year, or

          (ii)  expenses for that year were less than the amount described in paragraph 3 of subsection (2) for that year;

   (c)  shall provide for any deficit of any previous year that resulted because,

           (i)  revenues for that year were less than the amount calculated by deducting for that year the amount described in paragraph 2 of subsection (2) from the amount described in paragraph 1 of subsection (2), or

          (ii)  expenses were incurred by the municipality that were not in the budget for that year and were not paid for that year from a reserve, sinking or retirement fund;

  (d)  shall provide for the cost of the collection of taxes and any abatement or discount of taxes;

  (e)  shall provide for taxes and other revenues that in the opinion of the treasurer are uncollectible and for which provision has not been previously made;

    (f)  may provide for taxes and other revenues that it is estimated will not be collected during the year; and

  (g)  may provide for such reserve funds as the municipality considers necessary.

Exception, 2009

   (5)  In preparing the budget for 2009, the local municipality,

  (a)  shall treat any operating surplus of any previous year as estimated revenues for the purpose of paragraph 1 of subsection (2); and

  (b)  despite clause (4) (c), shall provide for any operating deficit of any previous year.

Yearly budget from boards, etc.

   (6)  Despite any other Act, for the purpose of preparing and adopting its budget for a year, the local municipality may by by-law require that the year's budget of every board, commission or other body, other than an upper-tier municipality or school board, for which the municipality is required by law to levy a tax or provide money, be submitted to the municipality on or before a date specified by the local municipality, and that the budget shall be in such detail and form as the by-law provides.

Legislation Act, 2006

   (7)  Part III (Regulations) of the Legislation Act, 2006 does not apply to a requirement of the Minister under subsection (2).

Definition

   (8)  In this section,

"reserve fund" includes a reserve.

   3.  Clause 291 (4) (b) of the Act is repealed and the following substituted:

  (b)  make such changes as are required for the purpose of making the provisions of the budget for that year comply with the requirements of section 289, except clause 289 (4) (b), or section 290, except clause 290 (4) (b), as the case may be; and

   4.  Section 292 of the Act is repealed and the following substituted:

Regulations, changes in financial reporting requirements

   292.  (1)  If changes in the financial reporting requirements of a municipality or local board affect the surplus or deficit of the municipality or local board, the Minister may make regulations,

  (a)  phasing in or authorizing the municipality or local board to phase in the changes to its budgets over a period of years;

  (b)  governing the phase-in.

Regulations, budgets

   (2)  The Minister may make regulations,

  (a)  prescribing types of expenses that a municipality or local board may exclude from the estimated expenses described in paragraph 3 of subsection 289 (2) and in paragraph 3 of subsection 290 (2);

  (b)  prescribing conditions that must be met before a municipality or local board may exclude from the estimated expenses the types of expenses prescribed under clause (a);

   (c)  prescribing a date for the purposes of subsection (4).

Retroactive

   (3)  A regulation made under this section may be retroactive to January 1 of the year in which the regulation is made.

Review

   (4)  The Ministry of Municipal Affairs and Housing shall, on or before a prescribed date, initiate a review of any regulation made under clause (2) (a) or (b).

   5.  Subsection 296 (10) of the Act is repealed and the following substituted:

Joint boards

   (10)  If a local board is a local board of more than one municipality, only the auditor of the municipality that is responsible for the largest share of the expenses of the local board in the year is required to audit the local board in that year.

   6.  (1)  Subsection 407 (1) of the Act is amended by striking out the portion before clause (a) and clause (a) and substituting the following:

Borrowing for expenses

   (1)  At any time during a fiscal year, a municipality may authorize temporary borrowing, until the taxes are collected and other revenues are received, of the amounts that the municipality considers necessary to meet the expenses of the municipality for the year and of the amounts, whether or not they are expenses for the year, that the municipality requires in the year for,

  (a)  reserve, sinking and retirement funds;

.     .     .     .     .

   (2)  Subsection 407 (4) of the Act is repealed and the following substituted:

Exclusion

   (4)  In subsections (2) and (3), estimated revenues do not include revenues derivable or derived from,

  (a)  arrears of taxes, fees or charges; or

  (b)  a payment from a reserve fund of the municipality, whether or not the payment is for a capital purpose.

   (3)  Section 407 of the Act is amended by adding the following subsection:

Definition

   (6)  In this section,

"reserve fund" includes a reserve.

   7.  (1)  Section 408 of the Act is amended by adding the following subsection:

Restriction

   (2.1)  A municipality may issue a debenture or other financial instrument for long-term borrowing only to provide financing for a capital work.

   (2)  Subsection 408 (3) of the Act is amended by striking out "undertaking" and substituting "capital work".

   8.  (1)  Subsection 409 (5) of the Act is repealed and the following substituted:

Limitation

   (5)  Except as provided in this section, a municipality shall apply an amount raised for a sinking or retirement fund, including earnings or proceeds derived from the investments of those funds, only towards repayment of the principal of the fund at maturity.

   (2)  Subsection 409 (12) of the Act is repealed and the following substituted:

Further amounts

   (12)  If there is any amount remaining after applying the funds in accordance with subsection (11), the municipality may use the amount for any purpose of the municipality.

   9.  Subsection 413 (1) of the Act is repealed and the following substituted:

Use of money received

   (1)  Except as provided in section 409 and this section, money received by a municipality from the sale of debentures, including any premium, and any earnings derived from the investment of that money, shall be applied only for the purposes for which the debentures were issued or for repayment of outstanding temporary borrowing under section 405 or 406 with respect to those debentures.

   10.  Subsection 424 (1) of the Act is amended by striking out "to pay current or other expenditures" in the portion before clause (a).

Commencement

   11.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1 and 2 are deemed to have come into force on January 1, 2009.

schedule 20
Ontario Child Benefit Equivalent Act, 2009

Definitions

   1.  In this Act,

"agency" means,

  (a)  a corporation, or

  (b)  another entity that is prescribed; ("organisme")

"child" means a person under the age of 18 years; ("enfant")

"child benefit equivalent" means an amount, paid in accordance with this Act, that is equivalent to the Ontario child benefit; ("subvention équivalant à la prestation pour enfants")

"Minister" means the Minister of Children and Youth Services or any other member of the Executive Council to whom the administration of this Act is assigned under the Executive Council Act; ("ministre")

"prescribed" means prescribed by the regulations; ("prescrit")

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

Child benefit equivalent

   2.  (1)  A child benefit equivalent shall be paid at intervals determined by the Minister with respect to every qualified child, in accordance with this Act.

Qualified child

   (2)  A child is qualified for the purpose of subsection (1) if,

  (a)  the child is in the care of a prescribed agency or of an agency that is a member of a prescribed class of agencies and a special allowance is payable with respect to the child under the Children's Special Allowances Act (Canada); or

  (b)  the prescribed circumstances apply.

Amount linked to Ontario child benefit

   (3)  The amount of the child benefit equivalent for a month is the same as the maximum Ontario child benefit that would be payable for that month in respect of a qualified dependant,

  (a)  until December 31, 2008, under subsection 8.6.2 (7) of the Income Tax Act; and

  (b)  on and after January 1, 2009, under subsection 104 (5) of the Taxation Act, 2007.

Rules

   3.  The following rules apply with respect to the child benefit equivalent:

    1.  The child benefit equivalent is payable in respect of a qualified child in accordance with guidelines made by the Minister.

    2.  The child benefit equivalent in respect of a qualified child may be paid to one agency or divided among two or more agencies, as the Minister directs.  The Minister has discretion to direct, at any time,

            i.  payment to a different agency or agencies, or

           ii.  a different division of the payment.

    3.  The child benefit equivalent shall be used in accordance with guidelines made by the Minister.

    4.  An agency that receives the child benefit equivalent shall,

            i.  keep the money in a separate account or accounts and not mingle it with the agency's general funds, and

           ii.  manage the money and keep records with respect to it, in accordance with guidelines made by the Minister.

    5.  Payment of a child benefit equivalent ceases,

            i.  when the child in respect of whom it is paid ceases to be a qualified child, or

           ii.  in the prescribed circumstances.

Administration memoranda of understanding or agreements

   4.  (1)  The Minister may enter into one or more memoranda of understanding with the Minister of Revenue or another member of the Executive Council or into an agreement with a prescribed entity to administer the payment of the child benefit equivalent.

Authority to enter into memoranda

   (2)  Any member of the Executive Council has authority to enter into a memorandum of understanding with the Minister under subsection (1).

Agreements for information sharing

   5.  (1)  The Minister may enter into an agreement with the Government of Canada or a department, ministry or agency of it for the purpose of obtaining information in connection with the administration of this Act or the regulations.

Same

   (2)  A member of the Executive Council who has entered into a memorandum of understanding with the Minister under subsection 4 (1), or a prescribed entity that has entered into an agreement under subsection 4 (1) may enter into an agreement with the Government of Canada or a department, ministry or agency of it for the purpose of obtaining information in connection with the administration of the payment of the child benefit equivalent.

Personal information

   6.  (1)  The Minister has authority to collect, use and disclose personal information as required to administer this Act and the regulations.

Same

   (2)  When a memorandum of understanding or an agreement entered into under subsection 4 (1) is in force, the Minister of Revenue, the other member of the Executive Council or the prescribed entity, as the case may be, has authority to collect, use and disclose personal information as required to administer the payment of the child benefit equivalent.

Same

   (3)  Subsection 39 (2) (notice re collection) of the Freedom of Information and Protection of Privacy Act does not apply to the collection of information under subsection 5 (1) or (2) if the collection is done by data matching. 

Reports

   7.  An agency that receives the child benefit equivalent shall make a report to the Minister whenever the Minister requests it, in the form and containing the information specified by the Minister.

Duty of compliance

   8.  (1)  An agency that receives the child benefit equivalent shall comply with this Act, the regulations and any guidelines made by the Minister for the purposes of paragraphs 1, 3 and 4 of section 3.

Minister's authority

   (2)  If, in the Minister's opinion, an agency that receives the child benefit equivalent is not complying with subsection (1), the Minister has discretion to direct the suspension or reduction of the payment of the child benefit equivalent to the agency or to direct the payment of all or part of the child benefit equivalent to another agency.

Inspection, etc.

   9.  (1)  For the purpose of ensuring compliance with this Act, the regulations and any guidelines made by the Minister for the purposes of paragraphs 1, 3 and 4 of section 3, a person authorized by the Minister may, at all reasonable times, upon producing proper identification,

  (a)  enter the premises of an agency that receives the child benefit equivalent;

  (b)  inspect the facilities and the records relating to the child benefit equivalent;

   (c)  make copies of the records or remove them from the premises to copy them as may be reasonably required; and

  (d)  use any data storage, processing or retrieval device or system in order to produce a document or record in readable form.

Regulations re exercise of power of entry 

   (2)  The authorized person shall exercise the power of entry set out in subsection (1) in accordance with the regulations.

Appropriation

   10.  Money required for the purposes of this Act shall be paid out of the money appropriated for those purposes by the Legislature.

Guidelines

   11.  Section 82 (general or particular) of the Legislation Act, 2006 applies with necessary modifications to guidelines made for the purposes of paragraphs 1, 3 and 4 of section 3.

Regulations

   12.  The Minister may make regulations,

  (a)  prescribing entities for the purpose of the definition of "agency" in section 1;

  (b)  prescribing agencies or classes of agencies for the purpose of clause 2 (2) (a);

   (c)  prescribing circumstances for the purpose of clause 2 (2) (b);

  (d)  prescribing circumstances for the purpose of subparagraph 5 ii of section 3;

  (e)  prescribing entities for the purpose of section 4;

    (f)  respecting the child benefit equivalent, including, without limitation, the calculation, payment, adjustment, reconciliation, repayment and recovery of the child benefit equivalent;

  (g)  respecting the exercise of the power of entry set out in subsection 9 (1);

   (h)  respecting the payment of amounts to agencies in respect of children in respect of whom special allowances were payable to those agencies for July, 2007 under the Children's Special Allowances Act (Canada), including, without limitation, prescribing the amount to be paid in respect of each child.

Commencement

   13.  (1)  Subject to subsections (2) and (3), the Act set out in this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 2, 3, 8 and 11 are deemed to have come into force on November 14, 2008. 

Same

   (3)  Sections 4, 5, 6, 7, 9, 10 and 12 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   14.  The short title of the Act set out in this Schedule is the Ontario Child Benefit Equivalent Act, 2009.

Schedule 21
Ontario Home Ownership Savings Plan Act

   1.  The Ontario Home Ownership Savings Plan Act is repealed.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 22
Ontario Loan Act, 2009

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 $23.5 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.

Short term borrowing

   (2)  The Lieutenant Governor in Council may raise by way of loan, in addition to the total aggregate amount under subsection (1), such sums not exceeding a total of $10 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, and an order of the Lieutenant Governor in Council under this subsection,

  (a)  shall be made in accordance with section 20 of the Financial Administration Act; and

  (b)  shall authorize the Minister under subsection 20 (7) of that Act to raise by way of loan the amount authorized by the order by the issue and sale of short term securities during a specified period not exceeding 25 years.

Other Acts

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

Expiry

   2.  (1)  No order in council authorizing borrowing authorized under this Act shall be made after December 31, 2011.

Same

   (2)  The Crown shall not borrow money after December 31, 2012 under the authority of an order in council authorizing borrowing under subsection 1 (1) unless, on or before December 31, 2012,

  (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, 2009 receives Royal Assent.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2009.

 

schedule 22.1
ontario municipal employees retirement system act, 2006

   1.  Section 29 of the Ontario Municipal Employees Retirement System Act, 2006 is repealed.

   2.  Paragraph 3 of section 34 of the Act is repealed and the following substituted:

    3.  To exercise such other powers and perform such other duties as may be provided under sections 35.1 and 35.2.

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

Authorized subsidiaries of the Administration Corporation

   35.1  (1)  The Administration Corporation may incorporate or cause to be incorporated and may make and maintain an investment in one or more corporations that, after the investment is made, are authorized subsidiaries of the Administration Corporation. 

Other subsidiaries

   (2)  Subsection (1) does not limit the authority of the Administration Corporation under subsection 35 (1) to otherwise establish and invest in subsidiaries.

Authorized subsidiary

   (3)  For the purposes of this section, a corporation is an authorized subsidiary of the Administration Corporation if,

  (a)  the corporation carries on business with a view to profit;

  (b)  the business of the corporation is limited to providing one or more eligible services to one or more persons and entities described in subsection (6); and

   (c)  the Administration Corporation has beneficial ownership of shares of the corporation representing more than 50 per cent of the shareholders' equity of the corporation.

Authority re investment entity

   (4)  An authorized subsidiary of the Administration Corporation may, for the purpose of providing eligible services, incorporate, establish, manage or operate one or more corporations, trusts, partnerships or other entities as investment entities.

Eligible services

   (5)  For the purposes of this section, each of the following is an eligible service if it is carried out in compliance with all applicable laws:

    1.  Providing advice to an administrator of a pension plan regarding the administration of the pension plan or the investment policies for the pension fund maintained to provide benefits in respect of that pension plan.

    2.  Providing advice to a client on investing in, holding, buying or selling securities or other assets.

    3.  Buying, selling, holding and managing investments for a client, with or without discretionary authority granted by the client to manage the client's investment portfolio.

    4.  Activities and services ancillary to the services listed in paragraphs 1 to 3, including,

            i.  activities relating to the distribution or sale to clients of securities issued by an investment entity referred to in subsection (4), and

           ii.  entering into derivative contracts in which the return is based in whole or in part on the performance of all or part of the pension fund maintained to provide benefits in respect of any of the OMERS pension plans or of any of the pension fund's investments.

    5.  Providing administrative services to an administrator of a pension plan.

Clients

   (6)  An authorized subsidiary may provide services described in subsection (5) only to one or more of the following and only under an agreement authorized under section 35.2:

    1.  The Administration Corporation. 

    2.  The administrator of a pension plan other than the OMERS pension plans, whether the pension plan is in or outside Canada.

    3.  The Government of Canada or the government of a province or territory of Canada or,

            i.  a Crown corporation, Crown agency or wholly-owned entity of the Government of Canada or of the government of a province or territory of Canada, or

           ii.  a corporation established by federal or provincial statute.

    4.  A municipal corporation or a municipal or public body performing a function of government in Canada.

    5.  A board, within the meaning of the Education Act, or a school board or similar authority that operates under comparable legislation in another province of Canada.

    6.  A college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from Ontario for purposes of post-secondary education or an educational institution in another province in Canada that receives regular and ongoing operating funding from the province.

    7.  An educational institution outside Canada.

    8.  An endowment fund for a university, college or educational institution referred to in paragraph 6 or 7.

    9.  A registered charity within the meaning of the Income Tax Act (Canada).

  10.  A national, federal, state, provincial, territorial or municipal government of or in any jurisdiction outside Canada or any entity owned or controlled by that government.

  11.  An investment entity referred to in subsection (4).

  12.  A client or class of clients prescribed by the regulations or that satisfies conditions prescribed by the regulations.

Investing in or through investment entity of authorized subsidiary

   (7)  With the approval of the Administration Corporation, assets of a pension fund maintained to provide benefits in respect of any of the OMERS pension plans may be invested, directly or indirectly,

  (a)  in an investment entity referred to in subsection (4); or

  (b)  in an investment in which assets of an investment entity referred to in subsection (4) are also invested.

Regulations

   (8)  The Minister of Finance may make regulations,

  (a)  prescribing clients or classes of clients for the purposes of paragraph 12 of subsection (6);

  (b)  prescribing conditions that must be satisfied by a client or class of clients for the purposes of paragraph 12 of subsection (6).

Authorization to provide eligible services

Interpretation

   35.2  (1)  Expressions used in this section have the same meaning as in section 35.1.

Agreements

   (2)  If authorized by the Sponsors Corporation, the Administration Corporation may enter into agreements under which authorized subsidiaries of the Administration Corporation provide eligible services to clients.

Transitional matters

   (3)  The Administration Corporation itself may continue to provide eligible services to clients under agreements that were authorized by Orders in Council 808/80, 2211/95 and 368/2003, as those agreements read on the day this section comes into force and, for that purpose, the Administration Corporation has the powers of an authorized subsidiary under subsections 35.1 (4), (5) and (7).

Commencement

   4.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 23
ONTARIO PROVINCIAL POLICE COLLECTIVE BARGAINING ACT, 2006 And POLICE SERVICES ACT

Ontario Provincial Police Collective Bargaining Act, 2006

   1.  (1)  Section 1 of the Ontario Provincial Police Collective Bargaining Act, 2006 is amended by striking out "In this Part" at the beginning and substituting "In this Act".

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

"Association" means the Ontario Provincial Police Association; ("association")

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

"public servant" has the same meaning as in the Public Service of Ontario Act, 2006; ("fonctionnaire")

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

Affiliation with trade union prohibited

   1.1  (1)  The Association shall not affiliate directly or indirectly with a trade union or with any organization that is affiliated directly or indirectly with a trade union.

Definition

   (2)  In this section,

"trade union" has the same meaning as in the Labour Relations Act, 1995.

   3.  Subsection 2 (1) of the Act is repealed and the following substituted:

Application, bargaining units

   (1)  This Act applies to persons who are part of the following bargaining units:

    1.  The police officers' bargaining unit consisting of members of the Ontario Provincial Police Force who are cadets, recruit constables, probationary constables, constables, sergeants, staff sergeants, and sergeants major.

    2.  The civilian employees' bargaining unit consisting of public servants who are employed at an Ontario Provincial Police headquarters, at the Ontario Police College or at the Ontario Provincial Police Academy or who work under the supervision of the Commissioner of the Ontario Provincial Police or of the Chief Firearms Officer for Ontario and who,

            i.  are not in the officers' bargaining unit described in paragraph 1,

           ii.  are not a deputy commissioner of the Ontario Provincial Police, a commissioned officer or any other employee exercising managerial functions or employed in a confidential capacity in relation to labour relations,

          iii.  do not provide advice to Cabinet, a board or committee composed of ministers of the Crown, a minister or a deputy minister about employment related legislation that directly affects the terms and conditions of employment of employees in the public sector as it is defined in subsection 1 (1) of the Pay Equity Act,

          iv.  do not provide advice to Cabinet, a board or committee composed of ministers of the Crown, the Minister of Finance, the Chair of Management Board of Cabinet, a deputy minister in the Ministry of Finance or the Secretary of the Management Board of Cabinet on any matter within the powers or duties of the Treasury Board under section 6, 7, 8 or 9 of the Treasury Board Act, 1991, and

           v.  do not have duties or responsibilities that, in the opinion of the Ontario Labour Relations Board, constitute a conflict of interest with their being members of this bargaining unit.

   4.  Clause 4 (1) (a) of the Act is amended by striking out "or" at the end of subclause (ii) and by adding the following subclause:

      (ii.1)  a grievance that relates to supplemental pension benefits prescribed under clause 11 (b) for employees referred to in subclause (ii), or

   5.  Section 7 of the Act is repealed and the following substituted:

Pensions

   7.  (1)  Subject to subsection (2), no matter relating to pensions for employees who are part of a bargaining unit described in section 2 shall be referred to arbitration and no arbitration board shall decide any matter relating to pensions for those employees.

Same

   (2)  Matters relating to supplemental pension benefits for employees who are part of a bargaining unit described in section 2 that are prescribed under section 11 may be referred to arbitration and, in that case, an arbitration board shall decide any matter relating to supplemental pension benefits for those employees.

   6.  Section 8 of the Act is repealed.

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

Probationary period, recruit constables

   10.1  (1)  Despite subsection 37 (1) of the Public Service of Ontario Act, 2006, where a person is appointed a public servant to employment as a Recruit Constable for a term that is not fixed, the person shall be on probation during the period beginning on the date of his or her appointment as a Recruit Constable and ending on the first anniversary of the date of his or her promotion to Probationary Constable.

Same

   (2)  The Public Service of Ontario Act, 2006 applies to a person on probation under subsection (1) as if he or she were on probation under subsection 37 (1) of that Act.

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

Regulations

   11.  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing the rules of procedure governing proceedings of the Negotiating Committee;

  (b)  prescribing as supplemental pension benefits for the purposes of subsection 7 (2) benefits that are available to employees in the police and fire sectors under the supplemental plan established under section 11 of the Ontario Municipal Employees Retirement System Act, 2006.

   9.  Part II (sections 12 to 19) of the Act is repealed.

   10.  The heading immediately before section 20 of the Act is repealed and the following substituted:

Part II
Application of Labour Relations Act, 1995

   11.  Section 20 of the Act is repealed.

   12.  (1)  Subsection 21 (1) of the Act is repealed and the following substituted:

Rules of Board

   (1)  The rules of practice made by the chair of the Ontario Labour Relations Board under subsection 110 (17) of the Labour Relations Act, 1995 apply to a proceeding before the Board relating to a question referred to in subsection 2 (4) or a complaint made under section 9.

   (2)  Subsection 21 (4) of the Act is repealed and the following substituted:

Same

   (4)  Sections 116 and 118 of the Labour Relations Act, 1995 apply with necessary modifications to a decision or order of the Board made with respect to a complaint made under section 9.

   (3)  Subsection 21 (5) of the Act is repealed and the following substituted:

Deemed reference to Association

   (5)  Any reference to a trade union in any of the provisions of the Labour Relations Act, 1995 referred to in subsections (1) to (4) is deemed to include a reference to the Association for the purposes of the application of those provisions to a proceeding referred to in subsection (1).

   13.  Sections 22 and 23 of the Act are repealed.

Police Services Act

   14.  The definition of "member of a police force" in section 2 of the Police Services Act is repealed and the following substituted:

"member of a police force" means an employee of the police force; ("membre d'un corps de police")

   15.  Subsections 18 (1) and (2) of the Act are repealed and the following substituted:

Composition of O.P.P.

   (1)  The Ontario Provincial Police shall consist of,

  (a)  the Commissioner;

  (b)  other police officers appointed under Part III of the Public Service of Ontario Act, 2006; and

   (c)  other employees of the Ontario Provincial Police appointed under Part III of the Public Service of Ontario Act, 2006.

Ranks

   (2)  The Commissioner shall establish the ranks of police officers within the Ontario Provincial Police and shall determine the rank of each police officer.

Commencement

Commencement

   16.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 24
Pension Benefits Act

   1.  (1)  Section 82 of the Pension Benefits Act is amended by adding the following subsections:

Funding of the Guarantee Fund

   (3.1)  The Guarantee Fund is to be funded by all employers required to make contributions under pension plans that provide defined benefits that are not exempt from the application of the Guarantee Fund by this Act or the regulations.

Same

   (3.2)  The amounts to be paid under subsection (3.1) by employers to the Guarantee Fund shall be determined in accordance with the prescribed rules.

   (2)  Section 82 of the Act is amended by adding the following subsection:

Matters to be considered in determining amount of funding

   (3.3)  In making regulations to prescribe rules for determining the amount to be paid by employers to the Guarantee Fund, the Lieutenant Governor in Council shall take into account the following:

    1.  The risk of claims against the Guarantee Fund and the estimated amount of potential claims to be paid by the Guarantee Fund.

    2.  That the amount standing to the credit of the Guarantee Fund should be sufficient for the purpose of paying claims without any additional amount provided by a loan or grant under subsection (4) or (5).

    3.  That the level of funding required from employers should be reasonably stable over the long term.

   (3)  Section 82 of the Act is amended by adding the following subsections:

Grant to Guarantee Fund

   (5)  If at any time the amount standing to the credit of the Guarantee Fund is insufficient for the purpose of paying claims, the Lieutenant Governor in Council may authorize the Minister of Finance to make a grant to the Guarantee Fund out of money appropriated for that purpose by the Legislature.

Loans and grants discretionary

   (6)  Nothing in this Act or the regulations requires the Lieutenant Governor in Council to authorize the Minister of Finance to make either a loan or a grant to the Guarantee Fund. 

Liability of Guarantee Fund limited

   (7)  The total liability of the Guarantee Fund to guarantee pension benefits at any particular time is limited to the assets of the Guarantee Fund at that time, calculated after including any loan or grant that may have been made to the Guarantee Fund under subsection (4) or (5).

   2.  (1)  Clause 115 (1) (e) of the Act is repealed and the following substituted:

  (e)  governing the payment of amounts by employers to the Guarantee Fund under subsection 82 (3.2), including rules,

           (i)  relating to assessments of amounts required to be paid,

          (ii)  determining due dates for required payments,

         (iii)  imposing interest or penalties on late payment or non-payment of amounts required to be paid and describing the method for determining the rate of interest or the amount of a penalty,

         (iv)  determining the amount of any overpayment made by an employer and the circumstances in which the overpayment is to be refunded or applied in whole or in part against the amount of a future assessment;

   (2)  Subsection 115 (6) of the Act is repealed and the following substituted:

Transitional authority to make retroactive regulations re funding defined benefit plans

   (6)  A regulation relating to the funding of a pension plan that provides defined benefits, including any regulation prescribing anything referred to in section 55 as being prescribed and any regulation prescribing matters referred to in clause 115 (1) (c) or (i), may come into force on a day earlier than the day the regulation is filed and apply to a period that commences on or after September 30, 2008. 

Repeal of transitional authority

   (7)  Subsection (6) is repealed on June 30, 2010.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

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

Schedule 25
Provincial Land Tax Act, 2006

   1.  Section 15 of the Provincial Land Tax Act, 2006 is amended by adding the following subsections:

Lien

   (4.1)  If the total amount owing under this Act in respect of land for which the Minister has issued a notice under subsection (3) is paid by a person entitled to receive notice under paragraph 2 of subsection (3), other than a spouse of the owner of the land, the person has a lien on the land for the amount paid.

Priority of a lien

   (4.2)  A lien under subsection (4.1) has priority over the interest in the land of any person whom notice was sent to under paragraph 2 of subsection (3).

   2.  Section 19 of the Act is amended by adding the following subsection:

Fee for statement

   (3)  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement under subsection (1).

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

Statement of account

   19.1  (1)  The Minister may, at the request of an owner of land, give to that owner a statement of account that sets out all amounts owing for taxes in respect of the owner's land as of the day the statement is issued.

Effect

   (2)  A statement given under subsection (1) is not binding on the Minister.

Fee for statement

   (3)  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement under subsection (1).

   4.  Section 24.1 of the Act is amended by adding the following subsection:

Payment of property tax

   (2)  For greater certainty, an agreement may authorize the municipality to receive payments of property tax in the municipality's name.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 26
Securities act

   1.  (1)  Subsection 1 (1) of the Securities Act is amended by adding the following definition:

"chief compliance officer" means, in respect of a registrant that is a registered dealer, registered adviser or registered investment fund manager, an individual designated by the registrant,

  (a)  to establish and maintain policies and procedures to assess, monitor and report on the registrant's compliance with Ontario securities law, and

  (b)  to fulfill such other compliance functions as may be prescribed by the regulations; ("chef de la conformité")

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

"dealer" means, except for the purposes described in subsection (1.2), a person or company engaging in or holding himself, herself or itself out as engaging in the business of trading in securities as principal or agent; ("courtier")

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

"debt security" means a bond, debenture, note or similar instrument representing indebtedness, whether secured or unsecured; ("titre de créance")

   (4)  The definition of "portfolio manager" in subsection 1 (1) of the Act is repealed.

   (5)  The definition of "salesperson" in subsection 1 (1) of the Act is repealed and the following substituted:

"representative" means,

  (a)  in respect of a registered dealer, an individual who trades securities on behalf of the dealer, whether or not the individual is employed by the dealer, or

  (b)  in respect of a registered adviser, an individual who provides advice on behalf of the adviser with respect to investing in, buying or selling securities, whether or not the individual is employed by the adviser; ("représentant")

   (6)  Clause (e) of the definition of "security" in subsection 1 (1) of the Act is repealed and the following substituted:

  (e)  a bond, debenture, note or other evidence of indebtedness or a share, stock, unit, unit certificate, participation certificate, certificate of share or interest, preorganization certificate or subscription other than,

           (i)  a contract of insurance issued by an insurance company licensed under the Insurance Act, and

          (ii)  evidence of a deposit issued by a bank listed in Schedule I, II or III to the Bank Act (Canada), by a credit union or league to which the Credit Unions and Caisses Populaires Act, 1994 applies, by a loan corporation or trust corporation registered under the Loan and Trust Corporations Act or by an association to which the Cooperative Credit Associations Act (Canada) applies,

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

"ultimate designated person" means, in respect of a registrant that is a registered dealer, registered adviser or registered investment fund manager, an individual designated by the registrant,

  (a)  to supervise the registrant's activities that are directed towards ensuring compliance with Ontario securities law by the registrant and by each individual acting on the registrant's behalf, and

  (b)  to fulfill such other functions as may be prescribed by the regulations in order to otherwise promote compliance with Ontario securities law; ("personne désignée responsable")

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

Meaning of "dealer" for purposes of Parts XV and XVI and s. 133

   (1.2)  For the purposes of Parts XV and XVI and section 133,

"dealer" means a person or company that trades in securities in the capacity of principal or agent.

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

Authority in extraordinary circumstances

Notice to Minister

   2.2  (1)  The Commission shall notify the Minister if, in its opinion, there are extraordinary circumstances that may require immediate action to be taken under this section in the public interest.

Criteria

   (2)  For the purposes of this section, each of the following events constitutes extraordinary circumstances:

    1.  A major market disturbance characterized by or constituting sudden fluctuations of securities prices that threaten fair and orderly capital markets.

    2.  A major market disturbance characterized by or constituting a substantial disruption in the system for clearance and settlement of transactions.

    3.  A major disruption in the functioning of capital markets or of a significant segment of the markets, including a major disruption in the availability of capital to market participants.

    4.  A major disruption in the transmission, execution or processing of securities transactions.

    5.  A substantial threat of such a major market disturbance or major disruption.

Order to suspend trading

   (3)  The Commission may, without notice or a hearing, make an order under this subsection to suspend trading in any security or to suspend all trading on any recognized stock exchange or otherwise,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the order is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Terms and conditions

   (4)  The order may be subject to such terms and conditions as the Commission may impose.

Duration of order

   (5)  The order takes effect immediately and expires no later than 10 days after the day on which it is made.

Notice and publication of order

   (6)  The Commission shall promptly issue a news release describing the details of the order and shall publish the order in its Bulletin.

Opportunity to be heard

   (7)  The Commission shall give an opportunity to be heard to persons and companies who are directly affected by the order and who consider themselves aggrieved by it, and the opportunity to be heard may be oral or in writing in the discretion of the Commission.

Revocation or variation of order

   (8)  The Commission may make an order revoking or varying the order under subsection (3) but cannot vary it to provide for an expiry later than the date specified in subsection (5).

Commission regulation

   (9)  Subject to the approval of the Minister, the Commission may make a regulation relating to any matter governed by Ontario securities law, despite any other provision of this Act,

  (a)  if, in the opinion of the Commission, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Commission, the regulation is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Same

   (10)  The Commission is not precluded from making a regulation under subsection (9) that has substantially the same effect as an order previously made under subsection (3) in respect of the same extraordinary circumstances.

Duration of regulation

   (11)  Upon being approved by the Minister, the regulation comes into force immediately, despite section 22 of the Legislation Act, 2006, and it is revoked no later than 30 days after the day on which it comes into force.

Extension of duration of regulation

   (12)  Despite subsection (11), an amendment to the regulation may provide that it remains in effect for a further period of up to 30 days, and the regulation may be so amended more than once.

Notice and publication of regulation

   (13)  When the regulation comes into force, the Commission shall promptly issue a news release describing the details of the regulation and shall publish the regulation in its Bulletin together with a statement setting out the substance and purpose of the regulation and the nature of the extraordinary circumstances.

Same, amendment of regulation

   (14)  Subsection (13) applies, with necessary modifications, with respect to any amendment to the regulation.

Additional information

   (15)  As soon as practicable after the regulation comes into force, the Commission shall publish in its Bulletin a description of the particular circumstances upon which the Commission based its decision to make the regulation.

Regulation of the L.G. in C.

   (16)  The Lieutenant Governor in Council may make a regulation relating to any matter governed by Ontario securities law, despite any other provision of this Act,

  (a)  if, in the opinion of the Lieutenant Governor in Council, there are extraordinary circumstances requiring immediate action to be taken in the public interest; and

  (b)  if, in the opinion of the Lieutenant Governor in Council, the regulation is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

Regulation of L.G. in C. prevails

   (17)  A regulation made under subsection (16) prevails over a regulation made under subsection (9), and a regulation made under subsection (16) may revoke a regulation made under subsection (9).

Interpretation

   (18)  This section does not limit the authority of the Commission under any other section of this Act.

   3.  Section 3.4 of the Act is amended by adding the following subsection:

Fees

   (0.1)  The Commission may collect and enforce the payment of such fees as may be prescribed by the regulations.

   4.  Part XI of the Act is repealed and the following substituted:

PART XI
REGISTRATION

Registration

Dealers

   25.  (1)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not engage in or hold himself, herself or itself out as engaging in the business of trading in securities unless the person or company,

  (a)  is registered in accordance with Ontario securities law as a dealer; or

  (b)  is a representative registered in accordance with Ontario securities law as a dealing representative of a registered dealer and is acting on behalf of the registered dealer.

Same, underwriters

   (2)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not act as an underwriter unless the person or company,

  (a)  is registered in accordance with Ontario securities law as a dealer and is authorized under section 26 or 27 to act as an underwriter in the circumstances; or

  (b)  is a representative registered in accordance with Ontario securities law as a dealing representative of a registered dealer described in clause (a) and is acting on behalf of the registered dealer.

Same, advisers

   (3)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not engage in the business of, or hold himself, herself or itself out as engaging in the business of, advising anyone with respect to investing in, buying or selling securities unless the person or company,

  (a)  is registered in accordance with Ontario securities law as an adviser;

  (b)  is a representative registered in accordance with Ontario securities law as an advising representative of a registered adviser and is acting on behalf of the registered adviser; or

   (c)  is a representative registered in accordance with Ontario securities law as an associate advising representative of a registered adviser and is acting on behalf of the registered adviser under the supervision of a registered advising representative of the registered adviser.

Same, investment fund managers

   (4)  Unless a person or company is exempt under Ontario securities law from the requirement to comply with this subsection, the person or company shall not act as an investment fund manager unless the person or company is registered in accordance with Ontario securities law as an investment fund manager.

Same, ultimate designated person

   (5)  If a registrant that is a registered dealer, registered adviser or registered investment fund manager is required under the regulations to designate an individual as his, her or its ultimate designated person, the individual must be registered in accordance with Ontario securities law as the ultimate designated person of the registrant.

Same, chief compliance officer

   (6)  If a registrant that is a registered dealer, registered adviser or registered investment fund manager is required under the regulations to designate an individual as his, her or its chief compliance officer, the individual must be registered in accordance with Ontario securities law as the chief compliance officer of the registrant.

Commission guidelines re engaged in a business

   (7)  The Commission may, by the adoption of a policy under section 143.8, establish guidelines setting out criteria to be considered in determining whether a person or company is engaged in a business when trading securities or providing advice with respect to investing in, buying or selling securities.

Application for registration, etc.

   26.  (1)  An application for registration, reinstatement of registration or an amendment to an existing registration must contain such information in such form as the Director may reasonably require and must be accompanied by such fee as may be required by the regulations.

Dealer registration categories

   (2)  A person or company making an application under subsection (1) with respect to registration as a dealer under this Act shall do the following:

    1.  Apply to be registered in one or more of the following categories:

            i.  investment dealer,

           ii.  mutual fund dealer,

          iii.  scholarship plan dealer,

          iv.  exempt market dealer,

           v.  restricted dealer, limited to the trading and underwriting activities authorized under section 27 for the person's or company's registration,

          vi.  such other category of dealer as may be prescribed by the regulations.

    2.  Provide such information as the Director may require to verify that the activities of the person or company will be within the permitted activities prescribed by the regulations for the particular category or categories of dealer registration for which the person or company has applied.

Permitted underwriting, investment dealer

   (3)  A person or company registered under this Act as an investment dealer may act as an underwriter in respect of any distribution of securities unless the regulations provide otherwise.

Permitted underwriting, exempt market dealer

   (4)  A person or company registered under this Act as an exempt market dealer may act as an underwriter with respect to a distribution of securities made under an exemption from the prospectus requirements under this Act or the regulations unless the regulations provide otherwise.

Permitted underwriting, other

   (5)  A person or company registered under this Act in a category referred to in subparagraph 1 vi of subsection (2) may act as an underwriter in respect of any distribution of securities if the regulations so provide.

Adviser registration categories

   (6)  A person or company making an application under subsection (1) with respect to registration as an adviser shall indicate for which of the following categories of adviser registration he, she or it is applying and shall provide such information as the Director may require to verify that the activities of the person or company will be within the permitted activities for that category of adviser registration:

    1.  Portfolio manager, authorized to provide advice to a client with respect to investing in, buying or selling any type of security, with or without discretionary authority granted by the client to manage the client's portfolio.

    2.  Restricted portfolio manager, limited to the advising activities authorized under section 27 for the person's or company's registration.

    3.  Such other category of adviser as may be prescribed by the regulations.

Prescribed category

   (7)  If one or more categories of registration are prescribed by the regulations, a person or company applying for registration in a category prescribed by the regulations shall so indicate and provide such information as the Director may require to verify that the category is appropriate for the applicant.

Registration, etc.

   27.  (1)  On receipt of an application by a person or company and all information, material and fees required by the Director and the regulations, the Director shall register the person or company, reinstate the registration of the person or company or amend the registration of the person or company, unless it appears to the Director,

  (a)  that, in the case of a person or company applying for registration, reinstatement of registration or an amendment to a registration, the person or company is not suitable for registration under this Act; or

  (b)  that the proposed registration, reinstatement of registration or amendment to registration is otherwise objectionable.

Matters to be considered

   (2)  In considering for the purposes of subsection (1) whether a person or company is not suitable for registration, the Director shall consider,

  (a)  whether the person or company has satisfied,

           (i)  the requirements prescribed in the regulations relating to proficiency, solvency and integrity, and

          (ii)  such other requirements for registration, reinstatement of registration or an amendment to a registration, as the case may be, as may be prescribed by the regulations; and

  (b)  such other factors as the Director considers relevant.

Terms and conditions

   (3)  The Director may, in his or her discretion, impose terms and conditions on the registration, reinstatement of registration or amendment of registration of any person or company and, without limiting the generality of the foregoing,

  (a)  may restrict the duration of the registration; and

  (b)  may restrict the person or company to,

           (i)  trading only specified securities or specified classes of securities or securities of specified classes of issuers,

          (ii)  underwriting only specified securities or specified classes of securities or securities of specified classes of issuers, or

         (iii)  providing advice with respect to investing in, buying or selling only specified securities or specified classes of securities or securities of specified classes of issuers.

Right to require audit or review

   (4)  The Commission or the Director may, at any time, require a registrant that is a registered dealer, registered adviser or registered investment fund manager to direct its auditor, at the registrant's expense, to conduct any audit or financial review required by the Commission or the Director and deliver to the Commission as soon as practicable a report of the findings of the audit or review.

Revocation or suspension of registration or imposition of terms and conditions

   28.  The Director may revoke or suspend the registration of a person or company or impose terms or conditions of registration at any time during the period of registration of the person or company if it appears to the Director,

  (a)  that the person or company is not suitable for registration or has failed to comply with Ontario securities law; or

  (b)  that the registration is otherwise objectionable.

Automatic suspension, person or company

   29.  (1)  The registration of a person or company in a particular category of registration is suspended if any of the following events occurs:

    1.  A fee imposed on the person or company under this Act or the regulations relating to a particular category of registration of the person or company remains unpaid more than 30 days after the day it is due.

    2.  The membership of the person or company in a self-regulatory organization is suspended or terminated if,

            i.  the membership of the person or company relates to the particular category of registration, and

           ii.  the membership of the person or company is a condition of registration under Ontario securities law.

    3.  The approval by a self-regulatory organization of the person as a representative of a registered dealer is revoked or suspended by the self-regulatory organization if,

            i.  the approval of the representative relates to the particular category of registration in which the representative is registered under Ontario securities law, and

           ii.  the membership of the dealer in the self-regulatory organization is a condition of the dealer's registration under Ontario securities law.

Automatic suspension, representatives of suspended dealer or adviser

   (2)  A registered representative's registration in a particular category with respect to a particular registered dealer or registered adviser is suspended when the corresponding category of registration of that dealer or adviser is suspended.

Automatic suspension, representative ceasing to represent registrant

   (3)  If a registered representative ceases to have an employment, partnership or agency relationship with a registrant that is a registered dealer or registered adviser, the representative's registration with respect to that registrant is suspended on the day the relationship between the registered representative and the registrant ceases.

Automatic suspension, chief compliance officer or ultimate designated person

   (4)  The registration of an individual as a chief compliance officer or ultimate designated person is suspended at the time the individual ceases to be the chief compliance officer or ultimate designated person of the registered dealer, registered adviser or registered investment fund manager that designated the individual.

Revocation after automatic suspension

   (5)  The registration of a person or company that is suspended under subsection (1), (2), (3) or (4) and not reinstated is revoked on the second anniversary of the suspension.

Exception

   (6)  Despite subsection (5), if a proceeding is commenced under section 122 or 128 or a hearing is commenced under section 127 in respect of the activities of a registrant, the registrant's registration continues to remain suspended until an order has been made by the court or a decision is made by the Commission in the proceeding or hearing.

Surrender of registration

   30.  (1)  On application by a person or company for the surrender of his, her or its registration, the Director may accept the application and revoke the registration if the Director is satisfied,

  (a)  that all financial obligations of the person or company to his, her or its clients have been discharged;

  (b)  that all requirements, if any, prescribed by the regulations for the surrender of registration have been fulfilled or the Director is satisfied that they will be fulfilled in an appropriate manner; and

   (c)  that the surrender of the registration is not prejudicial to the public interest.

Conditions

   (2)  The Director may impose such terms and conditions on the surrender of a registration as the Director considers appropriate in the circumstances.

Right to be heard

   31.  The Director shall not do any of the following without giving a person or company an opportunity to be heard:

    1.  Refuse to register the person or company.

    2.  Amend the registration of the person or company.

    3.  Refuse to reinstate the registration of the person or company after suspending the registration.

    4.  Refuse a request from the person or company to amend his, her or its registration.

    5.  Impose terms and conditions on the registration under subsection 27 (3) or section 28, either as a condition of registration or at any time during the period in which the person or company is registered.

    6.  Suspend or revoke the registration of the person or company under section 28.

    7.  Impose terms and conditions under subsection 30 (2) on the surrender of registration of the person or company.

Duty to comply with Ontario securities law

   32.  (1)  Every person and company registered under this Act shall comply at all times with Ontario securities law, including such regulations that apply to them as may be made relating to,

  (a)  proficiency standards;

  (b)  business conduct;

   (c)  in the case of a registrant that is a registered dealer, registered adviser or registered investment fund manager, submission of information respecting ownership, management, directors, officers and any other persons or companies exercising control of the registrant;

  (d)  opening accounts and reporting trades;

  (e)  record-keeping;

    (f)  custody of clients' assets;

  (g)  conflicts of interest;

   (h)  tied selling and referral arrangements;

    (i)  client complaints;

    (j)  appointment of auditors and preparation and filing of financial information;

   (k)  procedures to be followed when a relationship is terminated between a representative and a registered dealer or registered adviser or when the representative commences a new association with a different registered dealer or registered adviser; and

    (l)  reinstatement of registration.

Duty to establish controls, etc.

   (2)  Every registrant that is a registered dealer, registered adviser or registered investment fund manager shall establish and maintain systems of control and supervision in accordance with the regulations for controlling his, her or its activities and supervising his, her or its representatives.

Address for service

   33.  Except as otherwise permitted or required by the regulations, all notices under this Act or the regulations are sufficiently served for all purposes on a registrant or applicant if they are sent by ordinary letter mail or delivered to the last address for service provided to the Commission.

Further information

   33.1  The Director may require further information or material to be submitted by an applicant or registrant within a specified time and,

  (a)  may require verification by affidavit or otherwise of any information or material submitted; or

  (b)  may require,

           (i)  the applicant or registrant,

          (ii)  any partner of the applicant or registrant,

         (iii)  any officer, director, governor or trustee of the applicant or registrant or any person performing a similar function, or

         (iv)  any employee of the applicant or registrant,

to submit to examination under oath by a person designated by the Director.

   5.  Part XII of the Act is repealed and the following substituted:

PART XII
EXEMPTIONS FROM REGISTRATION REQUIREMENTS

Exemption from registration requirements, advisers

   34.  (1)  Each of the following persons and companies is exempt from the requirement to be registered as an adviser under this Act while engaging in the business of providing advice with respect to investing in or buying or selling securities:

    1.  A person or company that engages in or holds himself, herself or itself out as engaging in the business of providing advice, either directly or through publications or other media, with respect to investing in or buying or selling securities, including any class of securities and the securities of a class of issuers, that are not purported to be tailored to the needs of anyone receiving the advice.

    2.  Such persons or companies as may be prescribed by the regulations or whose activities are prescribed by the regulations.

Conditions and restrictions

   (2)  The regulations may prescribe conditions and restrictions that apply to an exemption under paragraph 2 of subsection (1).

Requirement to disclose interest

   (3)  If an adviser described in paragraph 1 of subsection (1) recommends investing in, buying, selling or holding a specified security or class of securities or the securities of a specified class of issuers in which any of the following has a financial or other interest, either directly or indirectly, the adviser must disclose the interest concurrently with providing the advice:

    1.  The adviser.

    2.  A partner, director or officer of the adviser.

    3.  A person or company that would be an insider of the adviser if the adviser were a reporting issuer.

Same

   (4)  If the adviser's financial or other interest includes an interest in an option described in clause (b) of the definition of "financial or other interest" in subsection (5), the disclosure required by subsection (3) must include a description of the terms of the option.

Interpretation

   (5)  For the purpose of subsection (3),

"financial or other interest" in a security includes,

  (a)  ownership, beneficial or otherwise, in the security or in another security issued by the same issuer,

  (b)  an option in respect of the security or in respect of another security issued by the same issuer,

   (c)  a commission or other compensation received or expected to be received from any person or company in connection with a trade in the security,

  (d)  a financial arrangement with any person or company regarding the security, and

  (e)  a financial arrangement with any underwriter or other person or company who has an interest in the security.

Exemption from registration requirements, dealers

   35.  (1)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in the following types of securities or acting as an underwriter in respect of their distribution:

    1.  Debt securities issued by or guaranteed by the Government of Canada or the government of a province or territory of Canada.

    2.  Debt securities that are,

            i.  issued by a municipal corporation in Canada for elementary, secondary or vocational school purposes,

           ii.  issued or guaranteed by a municipal corporation in Canada, or

          iii.  secured by or payable out of rates or taxes levied under the law of a province or territory of Canada on property in the province or territory and collectible by or through the municipality in which the property is situated.

    3.  Debt securities that are issued by a corporation established under regulations made under subsection 248 (1) of the Education Act.

Same

   (2)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in or acting as an underwriter in respect of the distribution of a security evidencing indebtedness that is secured by or under a security agreement, as defined in subsection 1 (1) of the Personal Property Security Act, or that is secured in a similar manner in accordance with comparable legislation of another province or territory of Canada that provides for the granting of security in personal property.

Exception to exemption

   (3)  The exemption described in subsection (2) does not apply with respect to a trade to an individual or with respect to underwriting such a trade.

Exemption if other legislation applies

   (4)  The following persons and companies are exempt, in the circumstances indicated, from the requirement to be registered under this Act to act as a dealer when trading in securities that evidence indebtedness secured by a mortgage or charge on real property in Canada or when acting as an underwriter in respect of their distribution:

    1.  A person or company that is licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 or that is exempt from the requirement to be licensed under that Act, if the real property is in Ontario.

    2.  A person or company that is licensed or registered under comparable legislation in the province or territory of Canada, other than Ontario, in which the real property is located or that is exempt from any legislative requirement to be licensed or registered.

Prescribed securities

   (5)  A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in such types of securities as may be prescribed in the regulations that are traded in accordance with the regulations or when acting as an underwriter in respect of their distribution.

Conditions and restrictions

   (6)  The regulations may prescribe conditions and restrictions that apply to an exemption under subsection (5).

Exemption from registration requirement, financial institutions

   35.1  (1)  Each of the following financial institutions is exempt from the requirement to be registered under this Act to act as a dealer, underwriter, adviser or investment fund manager if the financial institution, in so acting, limits its activities to only those activities not prohibited by its governing legislation:

    1.  A bank listed in Schedule I, II or III to the Bank Act (Canada).

    2.  An association to which the Cooperative Credit Associations Act (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473 (1) of that Act.

    3.  A loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be.

    4.  Business Development Bank of Canada.

Conditions and restrictions

   (2)  An exemption under subsection (1) is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Additional exemptions

   (3)  Such other financial institutions as may be prescribed by regulation are exempt from the requirement to be registered under this Act to act as a dealer, underwriter, adviser or investment fund manager.

Conditions and restrictions

   (4)  An exemption under subsection (3) is subject to such conditions and restrictions as may be prescribed by regulation.

Exemption from registration requirements, international adviser or dealer

   35.2  (1)  The regulations shall provide that a person or company is exempt from the requirement to be registered under this Act to act as a dealer or adviser, as the case may be, if the person or company acts as a dealer or adviser in a jurisdiction outside Canada.

Conditions and restrictions

   (2)  The regulations may prescribe conditions and restrictions that apply to an exemption under subsection (1).

Additional exemptions by regulation

   35.3  The regulations may prescribe exemptions from the requirement to be registered under this Act in addition to the exemptions provided under sections 34 to 35.2.

   6.  Section 36 of the Act is repealed and the following substituted:

Confirmation of trade

   36.  (1)  Subject to the regulations, every registered dealer who has acted as principal or agent in connection with a purchase or sale of a security shall promptly send by ordinary letter mail or deliver to the customer a written confirmation of the transaction containing the information required by the regulations.

Disclosure of trade information to Commission

   (2)  Every person or company that has acted as an agent in connection with a purchase or sale of a security shall promptly disclose to the Commission, on receipt of a written request from the Commission, the name of every person or company from, to or through whom the security was bought or sold.

   7.  Subsection 37 (4) of the Act is amended by striking out "or salesperson" and substituting "employee or agent".

   8.  Sections 39, 40 and 41 of the Act are repealed. 

   9.  Section 44 of the Act is repealed and the following substituted:

Representation of registration

   44.  (1)  No person or company shall represent that he, she or it is registered under this Act unless the representation is true and, when making the representation, the person or company specifies his, her or its category of registration.

Representation prohibited

   (2)  No person or company shall make a statement about any matter that a reasonable investor would consider relevant in deciding whether to enter into or maintain a trading or advising relationship with the person or company if the statement is untrue or omits information necessary to prevent the statement from being false or misleading in the circumstances in which it is made.

   10.  Section 45 of the Act is repealed.

   11.  The heading immediately before section 72 of the Act and section 72 of the Act are repealed and the following substituted:

Part XVII
Exemptions from the Prospectus requirement

Definition

   72.  In this Part,

"prospectus requirement" means sections 53 and 62.

   12.  (1)  Section 73 of the Act is repealed and the following substituted:

Exemption

   73.  (1)  The prospectus requirement does not apply to a distribution of securities,

  (a)  that are referred to in subsections 35 (1) to (4) in the circumstances described in those subsections;

  (b)  that are debt securities issued or guaranteed by a financial institution referred to in paragraph 1, 2 or 3 of subsection 35.1 (1); or

   (c)  that are prescribed by the regulations and traded in accordance with the regulations.

Exception, subordinated debt securities

   (2)  The exemption under clause (1) (b) from the prospectus requirement does not apply to debt securities issued or guaranteed by a financial institution described in that clause that are subordinate in right of payment to deposits held by the issuer or guarantor of those debt securities.

Conditions and restrictions

   (3)  An exemption under clause (1) (b) is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Same

   (4)  An exemption under clause (1) (c) is subject to such conditions and restrictions as may be prescribed by the regulations.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with an exemption under clause (1) (c).

   (2)  Section 73 of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

Exemption, debt securities of governments in Canada

   73.  The prospectus requirement does not apply to a distribution of any of the following debt securities:

    1.  Debt securities issued or guaranteed by the Government of Canada or the government of a province or territory of Canada.

    2.  Debt securities that are,

            i.  issued by a municipal corporation in Canada for elementary, secondary or vocational school purposes,

           ii.  issued or guaranteed by a municipal corporation in Canada, or

          iii.  secured by or payable out of rates or taxes levied under the law of a province or territory of Canada on property in the province or territory and collectible by or through the municipality in which the property is situated.

    3.  Debt securities that are issued by a corporation established under regulations made under subsection 248 (1) of the Education Act.

Exemption, securities of financial institutions

Debt securities

   73.1  (1)  The prospectus requirement does not apply to a distribution of a debt security that is issued or guaranteed by any of the following financial institutions:

    1.  A bank listed in Schedule I, II or III to the Bank Act (Canada).

    2.  An association to which the Cooperative Credit Associations Act (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473 (1) of that Act.

    3.  A loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be.

    4.  Such other financial institutions as may be prescribed by the regulations.

Exception, subordinated debt securities

   (2)  The exemption under paragraph 1, 2 or 3 of subsection (1) from the prospectus requirement does not apply to debt securities issued or guaranteed by a financial institution described in the paragraph that are subordinate in right of payment to deposits held by the issuer or guarantor of those debt securities.

Conditions and restrictions

   (3)  The exemption under subsection (1) with respect to a financial institution described in paragraph 1, 2 or 3 of that subsection is subject to such conditions and restrictions as may be prescribed by a regulation made by the Lieutenant Governor in Council.

Same

   (4)  The exemption under subsection (1) with respect to a financial institution referred to in paragraph 4 of that subsection is subject to such conditions and restrictions as may be prescribed by the regulations.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with the exemption under subsection (1) with respect to a financial institution referred to in paragraph 4 of that subsection.

Other securities

   (6)  The prospectus requirement does not apply to a distribution of any of the following securities:

    1.  Securities issued by a corporation to which the Co-operative Corporations Act applies.

    2.  Membership shares and patronage shares, within the meaning of the Credit Unions and Caisses Populaires Act, 1994, of a credit union.

    3.  Securities issued to its members by a credit union to which the Credit Unions and Caisses Populaires Act, 1994 applies.

    4.  Securities issued to its members or to the members of its member credit unions by a league to which the Credit Unions and Caisses Populaires Act, 1994 applies.

Exemption, where other legislation applies

Secured by or under a security agreement

   73.2  (1)  Subject to subsection (2), the prospectus requirement does not apply to a distribution of a security evidencing indebtedness that is secured by or under a security agreement, as defined in subsection 1 (1) of the Personal Property Security Act, or that is secured in a similar manner in accordance with comparable legislation of another province or territory of Canada that provides for the granting of security in personal property.

Exception to exemption

   (2)  The exemption under subsection (1) from the prospectus requirement does not apply to a distribution to an individual.

Distribution by licensed mortgage brokerage, etc.

   (3)  The prospectus requirement does not apply to a distribution of a security evidencing indebtedness secured by a mortgage or charge on real property in Canada if the distribution is made by a person or company,

  (a)  that is licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 or is exempt from the requirement to be licensed under that Act, if the real property is in Ontario; or

  (b)  that is licensed or registered under comparable legislation in the province or territory of Canada, other than Ontario, in which the real property is located, or is exempt from any legislative requirement to be licensed or registered in the province or territory.

Exemption, accredited investor

Definition

   73.3  (1)  For the purposes of this section,

"accredited investor" means,

  (a)  a financial institution described in paragraph 1, 2 or 3 of subsection 73.1 (1),

  (b)  the Business Development Bank of Canada,

   (c)  a subsidiary of any person or company referred to in clause (a) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,

  (d)  a person or company registered under the securities legislation of a province or territory of Canada as an adviser or dealer, except as otherwise prescribed by the regulations,

  (e)  the Government of Canada, the government of a province or territory of Canada, or any Crown corporation, agency or wholly owned entity of the Government of Canada or of the government of a province or territory of Canada,

    (f)  a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'Île de Montréal or an intermunicipal management board in Quebec,

  (g)  any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,

   (h)  a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a province or territory of Canada,

    (i)  a person or company that is recognized or designated by the Commission as an accredited investor,

    (j)  such other persons or companies as may be prescribed by the regulations.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a security if the purchaser purchases the security as principal and is an accredited investor.

Status as principal

   (3)  The regulations may prescribe circumstances in which a person or company is deemed to be purchasing a security as principal for the purposes of an exemption under this section.

Conditions and restrictions

   (4)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Report

   (5)  Without limiting the generality of subsection (4), the regulations may prescribe reporting requirements that apply in connection with an exemption under this section.

Interpretation

   (6)  For the purposes of the definition of "accredited investor" in subsection (1), the regulations may define "foreign jurisdiction" and "subsidiary".

Exemption, private issuer

Definition

   73.4  (1)  For the purposes of this section,

"private issuer" has the meaning prescribed by the regulations.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a security of a private issuer to a person or company who purchases the security as principal and who satisfies the criteria prescribed by regulation.

Conditions and restrictions

   (3)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Exemption, government incentive securities

Definition

   73.5  (1)  For the purposes of this section,

"government incentive security" means a security that enables the holder to receive a grant or other monetary or tax benefit pursuant to a provision of an Act or regulation of Canada, Ontario or another province or territory of Canada, and that is prescribed by the regulations as a government incentive security.

Exemption

   (2)  The prospectus requirement does not apply to a distribution of a government incentive security.

Conditions and restrictions

   (3)  The regulations may prescribe conditions and restrictions that apply to an exemption under this section.

Report

   (4)  Without limiting the generality of subsection (3), the regulations may prescribe reporting requirements that apply in connection with an exemption under this section.

Additional exemptions by regulation

   73.6  (1)  The regulations may prescribe exemptions from the prospectus requirement in addition to the exemptions provided under sections 73 to 73.5.

Report

   (2)  Without limiting the generality of subsection (1), the regulations may prescribe reporting requirements that apply in connection with an exemption authorized by that subsection.

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

Resale of securities, deemed distribution

   73.7  (1)  The regulations may provide that the first trade in a security previously distributed under an exemption from the prospectus requirement is deemed to be a distribution unless it is carried out in accordance with the regulations.

Distribution by a control person

   (2)  Without limiting the generality of subsection (1), the regulations shall prescribe the circumstances in which a distribution by a control person is exempted from the prospectus requirement.

   14.  Subsection 74 (1) of the Act is repealed and the following substituted:

Exemption order

   (1)  Upon the application of an interested person or company, the Commission may make the following rulings if the Commission is satisfied that to do so would not be prejudicial to the public interest:

    1.  A ruling that any person or company is not subject to section 25.

    2.  A ruling that any trade, intended trade, security, person or company is not subject to section 53.

Terms and conditions

   (1.1)  In a ruling under subsection (1), the Commission may impose such terms and conditions as are considered necessary.

   15.  Section 118 of the Act is repealed.

   16.  Section 119 of the Act is repealed and the following substituted:

Trades by mutual fund insiders

   119.  No person or company that has access to information concerning the investment program of a mutual fund or the investment portfolio managed for a client by a registered adviser or registered dealer through discretionary authority provided by the client shall purchase or sell securities of an issuer for his, her or its own account if,

  (a)  the portfolio securities of the mutual fund or the investment portfolio managed for the client by the registered adviser or registered dealer include securities of that issuer; and

  (b)  the person or company has used the information for his, her or its direct benefit or advantage.

   17.  Subsection 134 (3) of the Act is repealed and the following substituted:

Liability for improper use of information, mutual funds

   (3)  A person or company is accountable to a mutual fund in Ontario for any benefit or advantage received or receivable as a result of a purchase or sale of securities of an issuer if,

  (a)  the portfolio securities of the mutual fund include securities of that issuer; and

  (b)  the person or company,

           (i)  has access to information concerning the investment program of the mutual fund, and

          (ii)  uses that information for his, her or its direct benefit or advantage to purchase or sell securities of that issuer for his, her or its own account.

Same, discretionary investment portfolios

   (3.1)  A person or company is accountable to a client of a registrant for any benefit or advantage received or receivable as a result of a purchase or sale of securities of an issuer if, 

  (a)  an investment portfolio is managed for the client by the registrant through discretionary authority provided by the client;

  (b)  the portfolio securities of the investment portfolio include securities of that issuer;

   (c)  the registrant is a registered adviser or registered dealer; and

  (d)  the person or company has,

           (i)  access to information concerning the investment portfolio, and

          (ii)  uses that information for his, her or its direct benefit or advantage to purchase or sell securities of that issuer.

   18.  (1)  Subsection 135 (3) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   (2)  Subsection 135 (4) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   (3)  Subsection 135 (5) of the Act is amended by striking out "subsection 134 (3) or (4)" in the portion before clause (a) and substituting "subsection 134 (3), (3.1) or (4)".

   19.  Section 136 of the Act is repealed and the following substituted:

Disclosure of intended status as principal

   136.  (1)  If, contrary to Ontario securities law, a registered dealer fails to disclose to a person or company with whom it effects a purchase or sale of a security that it intended to act as principal in respect of the purchase or sale, the person or company may rescind the contract effecting the purchase or sale by mailing or delivering written notice of the rescission to the registered dealer within 60 days after the date of delivery of the security to or by the person or company, as the case may be.

Disclosure of actual status as principal

   (2)  If, contrary to Ontario securities law, a registered dealer fails to disclose to a person or company that it has acted as principal in respect of a purchase or sale of a security, the person or company may rescind the contract effecting the purchase or sale by mailing or delivering written notice of the rescission to the registered dealer within seven days after the date of the delivery to the person or company of the written confirmation of the contract.

Service

   (3)  For the purposes of subsection (2), a confirmation sent by ordinary letter mail is deemed to be delivered to the person or company to whom it was addressed in the ordinary course of mail.

Exception

   (4)  Subsections (1) and (2) do not allow the rescission of a contract effecting the purchase of a security by a person or company if the person or company no longer owns the security.

Onus

   (5)  In an action respecting a rescission to which subsection (1) or (2) applies, the onus of proving that a registered dealer disclosed that he, she or it acted or intended to act as principal is on the registered dealer.

Limitation period

   (6)  No action respecting a rescission shall be commenced under this section after the expiration of a period of 90 days from the date of delivery of the notice under subsection (1) or (2).

   20.  (1)  Paragraph 1 of subsection 143 (1) of the Act is amended by striking out "cancellation" and substituting "revocation".

   (2)  Subsection 143 (1) of the Act is amended by adding the following paragraphs:

  1.1  Requiring registered dealers, registered advisers or registered investment fund managers to designate an ultimate designated person and prescribing classes of individuals or the qualifications required of individuals who are eligible to be designated as ultimate designated persons.

  1.2  Prescribing additional functions required to be performed by an ultimate designated person in respect of the registrant by whom he or she is designated, including requiring the ultimate designated person,

            i.  to supervise the activities of the registrant that are directed towards ensuring compliance with Ontario securities law by the registrant and individuals acting on the registrant's behalf, 

           ii.  to otherwise promote compliance by the registrant and by individuals acting on the registrant's behalf with Ontario securities law.

  1.3  Requiring registered dealers, registered advisers or registered investment fund managers to designate a chief compliance officer and prescribing classes of individuals or the qualifications required of individuals who are eligible to be designated as chief compliance officers.

  1.4  Prescribing additional functions required to be performed by a chief compliance officer in respect of the registrant by whom he or she is designated, including requiring the chief compliance officer,

            i.  to establish and maintain policies and procedures for assessing compliance with Ontario securities law by the registrant and individuals acting on the registrant's behalf,

           ii.  to monitor and assess compliance by the registrant and by individuals acting on the registrant's behalf with Ontario securities law,

          iii.  to report to the registrant's ultimate designated person or to its board of directors or partners with respect to compliance matters,

          iv.  to submit an annual report to the board of directors of the registrant or to the registrant's partners setting out the chief compliance officer's assessment of the level of compliance by the registrant and the individuals acting on its behalf with Ontario securities law.

  1.5  Prescribing circumstances in which a suspended registration is or may be reinstated.

  1.6  Prescribing activities in which a person or company whose registration is suspended or restricted may engage or activities in which he, she or it is prohibited from engaging.

   (3)  Paragraph 2 of subsection 143 (1) of the Act is amended by striking out the portion before subparagraph i and substituting the following:

    2.  Prescribing categories or subcategories of registration, classifying registrants into categories or sub-categories, prescribing the criteria a person or company must satisfy to qualify for registration in a particular category or sub-category of registration, prescribing requirements for registrants or prescribing terms and conditions on registration, reinstatement of registration, amendment of registration or registration in a particular category or sub-category of registration, including,

.     .     .     .     .

   (4)  Paragraph 2 of subsection 143 (1) of the Act is amended by striking out "and" at the end of subparagraph ii, by adding "and" at the end of subparagraph iii and by adding the following subparagraph:

          iv.  requirements that persons and companies registered under this Act be bonded or insured on terms acceptable to the Director.

   (5)  The English version of paragraph 3 of subsection 143 (1) of the Act is amended by striking out "salespersons" and substituting "representatives".

   (6)  Paragraph 5 of subsection 143 (1) of the Act is repealed and the following substituted:

    5.  Governing the provision of notice to the Director of,

            i.  a proposed change in beneficial ownership of, or direct or indirect control or direction over, securities of a person or company registered under this Act,

           ii.  a proposed change in beneficial ownership of, or direct or indirect control or direction over, securities of a person or company of which a person or company registered under this Act is a subsidiary, or

          iii.  a proposed change in ownership of a substantial portion of the assets of a person or company registered under this Act.

  5.1  Authorizing the Director to make an order that a proposed change described in subparagraph 5 i or iii must not be effected until the change has been approved by the Director.

   (7)  Paragraph 7 of subsection 143 (1) of the Act is repealed and the following substituted:

    7.  Prescribing requirements in respect of the disclosure or furnishing of information to the public or the Commission by persons and companies registered under this Act, by their directors, partners or officers or by persons or companies that beneficially own, directly or indirectly, or exercise direct or indirect control or direction over at least 10 per cent of the voting securities of persons and companies registered under this Act or providing for exemptions from or varying the requirements under this Act in respect of the disclosure or furnishing of information to the public or the Commission by any of them.

   (8)  Paragraph 8 of subsection 143 (1) of the Act is repealed and the following substituted:

    8.  Prescribing any matter referred to in Part XII (Exemptions from Registration Requirements) as required by the regulations or prescribed by or in the regulations, other than the matters referred to in subsection 35.1 (2).

   (9)  Subsection 143 (1) of the Act is amended by adding the following paragraph:

  8.1  Respecting the exemption of any person or company from any requirement under this Act or the regulations that is comparable to a requirement established by a self-regulatory organization and prescribing conditions that must be satisfied for the exemption to apply.

   (10)  Subsection 143 (1) of the Act is amended by adding the following paragraph:

  8.2  Exempting registered dealers from the requirement under section 36 to send a customer a written confirmation of a purchase or sale of a security.

   (11)  Paragraph 9 of subsection 143 (1) of the Act is repealed.

   (12)  Paragraph 20 of subsection 143 (1) of the Act is repealed and the following substituted:

  20.  Prescribing any matter referred to in Part XVII (Exemptions from Prospectus Requirements) as required by the regulations or prescribed by or in the regulations, other than the matters referred to in subsection 73.1 (3).

   (13)  Paragraph 51 of subsection 143 (1) of the Act is repealed.

   (14)  Paragraph 54 of subsection 143 (1) of the Act is repealed and the following substituted:

  54.  Prescribing the matters described in section 73.7 (resale of securities, deemed distribution).

   (15)  Paragraph 54 of subsection 143 (1) of the Act, as re-enacted by subsection (14), is repealed.

   (16)  Subsection 143 (2) of the Act is amended by adding the following clause:

(a.0.1) the matters described in subsections 35.1 (2) and 73 (3);

   (17)  Clause 143 (2) (a.0.1) of the Act, as enacted by subsection (16), is amended by striking out "73 (3)" at the end and substituting "73.1 (3)".

   (18)  Subsection 143 (9) of the Act is amended by adding at the beginning "Without limiting the authority of the Commission under section 147".

Commencement

   21.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Same

   (2)  Subsections 1 (1), (2), (4), (5), (7) and (8) and sections 4 to 20 come into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule 27
Supplementary Interim Appropriation for 2009-2010 Act, 2009

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2009-2010 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 as tabled in the Assembly on or before March 31, 2010.

Additional amounts to be paid out of CRF

   2.  All amounts authorized under sections 3, 4 and 5 to be paid out of the Consolidated Revenue Fund are in addition to the amounts authorized to be paid out of the Consolidated Revenue Fund under sections 2, 3 and 4 of the Interim Appropriation for 2009-2010 Act, 2008.

Expenses of the public service

   3.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $46,062,829,400 may be paid out of the Consolidated Revenue Fund or recognized as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Investments of the public service

   4.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,594,276,900 may be paid out of the Consolidated Revenue Fund or recognized as non-cash investments to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Expenses of the Legislative Offices

   5.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $43,324,800 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-2010.

Expenditures of the public service

   6.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2009-2010 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2010, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   7.  The Act set out in this Schedule is deemed to have come into force on April 1, 2009.

Short title

   8.  The short title of the Act set out in this Schedule is the Supplementary Interim Appropriation for 2009-2010 Act, 2009.

Schedule 28
Taxation Act, 2007

   1.  Section 4 of the Taxation Act, 2007 is amended by adding the following subsection:

If individual is a bankrupt

   (4)  Subsection 128 (2) of the Federal Act applies for the purposes of this Act. 

   2.  Paragraphs 1, 2 and 3 of subsection 6 (1) of the Act are repealed and the following substituted:

    1.  If the individual's tax base for the year does not exceed $36,848, the amount of tax payable by the individual is calculated by multiplying the individual's tax base for the year by the lowest tax rate for the year.

    2.  If the individual's tax base for the year exceeds $36,848, but does not exceed $73,698, the amount of tax payable by the individual is calculated using the formula,

A + B

in which,

         "A"  is the amount calculated by multiplying $36,848 by the lowest tax rate for the year, and

         "B"  is the amount calculated by multiplying the amount by which the individual's tax base for the year exceeds $36,848 by the middle tax rate for the year.

    3.  If the individual's tax base for the year exceeds $73,698, the amount of tax payable by the individual is calculated using the formula,

A + C + D

in which,

         "A"  is the amount calculated by multiplying $36,848 by the lowest tax rate for the year,

         "C"  is the amount calculated by multiplying $36,850 by the middle tax rate for the year, and

         "D"  is the amount calculated by multiplying the amount by which the individual's tax base for the year exceeds $73,698 by the highest tax rate for the year.

   3.  Section 8 of the Act is amended by adding the following paragraph:

10.1 An individual who is not resident in Canada at any time in a taxation year is entitled to deduct only the amounts described in subsections 9 (9), (12), (14), (15), (21) and (22) in computing his or her tax payable under this Division for the year, unless all or substantially all of the individual's income for the year is included in computing his or her taxable income earned in Canada for the year.

   4.  (1)  Subsection 9 (2) of the Act is amended by striking out "$8,377" at the end and substituting "$8,881".

   (2)  Subsections 9 (3), (4), (5) and (6) of the Act are repealed and the following substituted:

Tax credit for spouse or common-law partner

   (3)  If an individual is entitled to a deduction under paragraph 118 (1) (a) of the Federal Act for a taxation year, the individual is entitled to a tax credit for the year for a spouse or common-law partner calculated using the formula,

A × [$7,541 – (B – $754)]

in which,

  "A"  is the lowest tax rate for the year, and

  "B"  is the greater of $754 and the income for the year of the individual's spouse or common-law partner or, if the individual and the individual's spouse or common-law partner are living separate and apart at the end of that year by reason of a breakdown of their marriage or common-law partnership, the income of the spouse or common-law partner while married or in the common-law partnership and not separated during the year.

Tax credit for wholly dependent person

   (4)  If an individual is entitled to a deduction under paragraph 118 (1) (b) of the Federal Act for a taxation year in respect of a wholly dependent person, the individual is entitled to a tax credit for the year in respect of the person calculated using the formula,

A × [$7,541 – (C – $754)]

in which,

  "A"  is the lowest tax rate for the year, and

  "C"  is the greater of $754 and the income for the year of the person referred to in paragraph 118 (1) (b) of the Federal Act whom the individual supported.

Tax credit for in-home care of a relative

   (5)  If an individual is entitled to a deduction under paragraph 118 (1) (c.1) of the Federal Act for a taxation year in respect of a relative, the individual is entitled to a tax credit for the year for in-home care of the relative calculated using the formula,

A × ($18,507 – D)

in which,

  "A"  is the lowest tax rate for the year, and

  "D"  is the greater of the relative's income for the year and $14,321.

Tax credit for infirm dependant

   (6)  If an individual is entitled to a deduction under paragraph 118 (1) (d) of the Federal Act for a taxation year in respect of a dependant, the individual is entitled to a tax credit for the year in respect of the dependant calculated using the formula,

A × ($10,136 – E)

in which,

  "A"  is the lowest tax rate for the year, and

  "E"  is the greater of the dependant's income for the year and $5,950.

   (3)  Subsection 9 (8) of the Act is repealed and the following substituted:

Age tax credit

   (8)  If an individual is entitled to a deduction under subsection 118 (2) of the Federal Act for a taxation year, the individual is entitled to an age tax credit for the year calculated using the formula,

A × ($4,336 – H)

in which,

  "A"  is the lowest tax rate for the year, and

  "H"  is 15 per cent of the amount, if any, by which the individual's income for the year would exceed $32,280 if no amount were included in his or her income in respect of a gain from a disposition of property to which section 79 of the Federal Act applies.

   (4)  The definition of "I" in subsection 9 (10) of the Act is amended by striking out "$1,158" in the portion before clause (a) and substituting "$1,228".

   (5)  Clause (a) of the definition of "J" in subsection 9 (11) of the Act is amended by striking out "$10,220" at the beginning and substituting "$10,835".

   (6)  Subsection 9 (12) of the Act is repealed and the following substituted:

Mental or physical impairment tax credit

   (12)  If an individual is entitled to a deduction under subsection 118.3 (1) of the Federal Act for a taxation year, the individual is entitled to a tax credit for the year in respect of a mental or physical impairment calculated using the formula,

A × ($7,175 + M)

in which,

  "A"  is the lowest tax rate for the year, and

"M"  is,

         (a)  if the individual has not reached 18 years of age by the end of the taxation year, the amount, if any, by which $4,185 exceeds the amount, if any, by which the sum of all amounts each of which is an amount paid in the year for the care or supervision of the individual that is included in computing a deduction for a taxation year under section 63, 64 or 118.2 of the Federal Act exceeds $2,451, or

         (b)  in any other case, nil.

   (7)  The definitions of "V" and "W" in subsection 9 (16) of the Act are repealed and the following substituted:

  "V"  is the amount calculated by multiplying $478 by the number of months in the taxation year during which the individual is enrolled as a full-time student in a qualifying educational program at a designated educational institution for the purposes of section 118.6 of the Federal Act, and

"W"  is the amount calculated by multiplying $143 by the number of months in the taxation year, other than months described in the definition of "V", in which the individual is enrolled at a designated educational institution in a specified educational program, for the purposes of section 118.6 of the Federal Act, that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

   (8)  Clause (a) of the definition of "CC" in subsection 9 (19) of the Act is amended by striking out "$5,792" at the beginning and substituting "$6,141".

   (9)  The definition of "FF" in subsection 9 (20) of the Act is amended by striking out "$1,896" and substituting "$2,010".

   (10)  Clause (b) of the definition of "GG" in subsection 9 (20) of the Act is amended by striking out "$10,220" and substituting "$10,835".

   5.  Clauses 16 (1) (a) and (b) of the Act are repealed and the following substituted:

  (a)  20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $4,257; and

  (b)  36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $5,370.

   6.  (1)  Subsection 20 (4) of the Act is amended by striking out "$194" at the end and substituting "$205".

   (2)  Subsection 20 (5) of the Act is amended by striking out "$357" at the end and substituting "$379".

   7.  Subsection 23 (1) of the Act is amended by striking out "December 31, 2006" at the end of the portion before paragraph 1 and substituting "December 31, 2009".

   8.  Division B of Part III of the Act is amended by adding the following subdivision:

Subdivision f - Political Contributions Tax Credit

Definitions

   53.1  (1)  In this subdivision,

"Chief Electoral Officer" means the Chief Electoral Officer appointed under the Election Act; ("directeur général des élections")

"contribution" means a contribution for the purposes of the Election Finances Act to a registered candidate, registered constituency association or registered party; ("contribution")

"registered candidate" means a candidate within the meaning of the Election Finances Act who is registered under that Act; ("candidat inscrit")

"registered constituency association" means a constituency association within the meaning of the Election Finances Act that is registered under that Act; ("association de circonscription inscrite")

"registered party" means a political party registered under the Election Finances Act. ("parti inscrit")

Eligible contribution

   (2)  A contribution made by a corporation during a taxation year to a registered candidate, registered constituency association or registered party is an eligible contribution for the purposes of this subdivision if the receipt required by the Chief Electoral Officer under the Election Finances Act to be issued to the corporation for the contribution is filed with the Ontario Minister with the return required to be filed under this Act for the taxation year.

Eligible contribution balance

   (3)  The eligible contribution balance of a corporation for a taxation year for the purposes of this subdivision is the amount, if any, calculated using the formula,

A – (B + C)

in which,

  "A"  is the sum of all eligible contributions each of which was made by the corporation in the taxation year or in any of the previous 20 taxation years of the corporation,

  "B"  is the sum of all eligible contributions each of which,

         (a)  is included in "A", and

         (b)  was deducted in computing the corporation's taxable income for the purposes of Part II of the Corporations Tax Act for a previous taxation year, and

  "C"  is the amount determined in respect of the corporation for the year under subsection (4).

Same

   (4)  For the purposes of subsection (3), the amount of "C" in respect of a corporation for a taxation year is the sum of all amounts each of which is the amount, if any, determined using the formula,

D/E

in which,

  "D"  is the amount of any tax credit deducted under this section for one of the corporation's previous 20 taxation years in respect of an eligible contribution included in determining the amount of "A" in subsection (3) for the year, and

  "E"  is the corporation's basic rate of tax for the previous taxation year.

Tax credit calculation

   53.2  There may be deducted from the tax otherwise payable by a corporation under this Division for a taxation year the least of,

  (a)  the product determined by multiplying the corporation's basic rate of tax for the year by the corporation's eligible contribution balance for the year;

  (b)  the amount determined by,

           (i)  multiplying $15,000 by the indexation factor determined under section 40.1 of the Election Finances Act in respect of the calendar year in which the taxation year ends, and rounding the result to the nearest dollar, and

          (ii)  multiplying the amount determined under subclause (i) by the corporation's basic rate of tax for the year; and

   (c)  the corporation's tax payable under this Division for the year, determined without reference to this section and sections 39 and 53.

   9.  (1)  Clause 88 (2) (a) of the Act is repealed and the following substituted:

  (a)  all amounts each of which is in respect of a qualifying work placement that ends in the year, equal to the lesser of,

           (i)  the taxpayer's eligible amount for the year in respect of the qualifying work placement as determined under subsection (8), and

          (ii)  the maximum amount for the qualifying work placement for the year determined under subsection (2.1); and

   (2)  Section 88 of the Act is amended by adding the following subsection:

Maximum amount for qualifying work placement

   (2.1)  The maximum amount for a qualifying work placement for a taxation year is the amount calculated using the formula,

($1,000 × X/Y) + [$3,000 × (Y – X)/Y]

in which,

  "X"  is the number of consecutive weeks of the qualifying work placement completed by the student before March 27, 2009, and

  "Y"  is the total number of consecutive weeks of the student's qualifying work placement.

   (3)  Subsection 88 (8) of the Act is repealed and the following substituted:

Eligible amount

   (8)  A taxpayer's eligible amount for a taxation year in respect of a qualifying work placement is determined as follows:

    1.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is equal to or greater than $600,000, the eligible amount is the sum of,

            i.  10 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009, and

           ii.  25 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009.

    2.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is not greater than $400,000, the eligible amount is the sum of,

            i.  15 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009, and

           ii.  30 per cent of the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009.

    3.  If the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000, the eligible amount is calculated using the formula,

(10% × E) + (25% × F) +
[(5% × G) × (1 – H/$200,000)]

in which,

         "E"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement before March 27, 2009,

         "F"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement after March 26, 2009,

         "G"  is the sum of all eligible expenditures incurred by the taxpayer in respect of the qualifying work placement, and

         "H"  is the amount by which the total of all salaries or wages paid by the taxpayer in the previous taxation year exceeds $400,000.

   10.  (1)  Subsection 91 (3) of the Act is amended by striking out "subsections (4), (4.1) and (5)" and substituting "subsections (4) and (5)".

   (2)  Subsection 91 (4.1) of the Act is repealed.

   (3)  Subsection 91 (5) of the Act is repealed and the following substituted:

Post-2007 expenditures

   (5)  The amount determined under this subsection in respect of a first-time production for the purposes of subsection (3) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2007:

    1.  40 per cent of the lesser of,

            i.  the amount, if any, by which $240,000 exceeds the sum of,

                  A.  the sum of the company's qualifying labour expenditures for the production for previous taxation years, and

                  B.  the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4) in respect of the production for the taxation year, and

           ii.  the company's qualifying labour expenditure for the taxation year for the production.

    2.  35 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii.

    3.  If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production.

   (4)  Subsection 91 (6) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection (4.1) or".

   (5)  Subsection 91 (9) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  35 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2007 that are included in the Ontario labour expenditure for the year in respect of the production.

   (6)  Subsection 91 (10) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  45 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2007 that are included in the Ontario labour expenditure for the year in respect of the production.

   (7)  The definition of "eligible television series production" in subsection 91 (19) of the Act is repealed.

   11.  (1)  Subsection 92 (3) of the Act is amended by adding "and" at the end of clause (a) and by repealing clauses (a.1) and (b) and substituting the following:

  (b)  25 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the year that relates to expenditures incurred after December 31, 2007.

   (2)  Subsection 92 (4) of the Act is amended by striking out "clause (3) (a.1) or (b)" and substituting "clause (3) (b)".

   12.  (1)  Clause (a) of the definition of "municipal tax" in subsection 98 (1) of the Act is repealed and the following substituted:

  (a)  taxes for municipal and school purposes levied in respect of real property in Ontario but, in the case of real property in the City of Toronto, excluding any tax imposed under Part X of the City of Toronto Act, 2006,

   (2)  The definition of "principal residence" in subsection 98 (1) of the Act is repealed and the following substituted:

"principal residence" means, in respect of an individual, premises, including a non-seasonal mobile home, that are occupied by the individual as the individual's primary place of residence; ("résidence principale")

   (3)  Subsection 98 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Occupancy cost, single individual

   (2)  For the purposes of this Division and subject to subsections (2.1), (2.2) and (5), the occupancy cost for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the taxation year is the amount determined as follows:

.     .     .     .     .

   (4)  Paragraphs 1, 2 and 3 of subsection 98 (2) of the Act are amended by striking out "paid in and for the year" wherever it appears and substituting in each case "paid for the year".

   (5)  Section 98 of the Act is amended by adding the following subsections:

Occupancy cost re non-seasonal mobile home owned by individual

   (2.1)  For the purposes of this Division and subject to subsection (5), if a designated principal residence for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the year is a non-seasonal mobile home owned by the individual, the individual's occupancy cost for the year in respect of the non-seasonal mobile home is determined as follows:

    1.  Determine the sum of all amounts, if any, each of which is the amount paid for the year by the individual to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year.

    2.  Determine the sum of all amounts, if any, each of which is an amount of municipal tax paid for the year by the individual in respect of the non-seasonal mobile home.

    3.  Add the amounts, if any, determined under paragraphs 1 and 2.

Occupancy cost, single individual re life lease interest, etc.

   (2.2)  For the purposes of this Division and subject to subsection (5), if a designated principal residence for a taxation year of an individual who is not a qualifying spouse or qualifying common-law partner at any time in the year is occupied by the individual pursuant to a life lease or a lease having a term of 10 years or more, and the individual has paid in full for the lease, the individual's occupancy cost for the year in respect of the designated principal residence is the amount of municipal tax that is reasonably applicable to the residence for the taxation year.

   (6)  Subsection 98 (3) of the Act is amended by striking out "subsections (4) and (5)" in the portion before paragraph 1 and substituting "subsections (3.1), (3.2), (4) and (5)".

   (7)  Paragraphs 1, 2 and 3 of subsection 98 (3) of the Act are amended by striking out "paid in and for the year" wherever it appears and substituting in each case "paid for the year".

   (8)  Section 98 of the Act is amended by adding the following subsections:

Occupancy cost re non-seasonal mobile home owned by qualifying spouse or qualifying common law partner

   (3.1)  For the purposes of this Division and subject to subsections (4) and (5), if a designated principal residence for a taxation year of an individual who is a qualifying spouse or qualifying common-law partner at any time in the year is a non-seasonal mobile home owned by the individual or his or her qualifying spouse or qualifying common-law partner, or by both of them, the individual's occupancy cost in respect of the non-seasonal mobile home for the year is the amount determined as follows:

    1.  Determine the sum of all amounts, if any, each of which is the amount paid for the year by the individual or the individual's qualifying spouse or qualifying common-law partner to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year.

    2.  Determine the sum of all amounts, if any, each of which is an amount of municipal tax paid for the year by the individual or the individual's qualifying spouse or qualifying common-law partner in respect of the non-seasonal mobile home.

    3.  Add the amounts, if any, determined under paragraphs 1 and 2.

Occupancy cost, qualifying spouse or qualifying common law partner re life lease interest, etc.

   (3.2)  For the purposes of this Division and subject to subsections (4) and (5), if a designated principal residence for a taxation year of an individual who is a qualifying spouse or qualifying common-law partner at any time in the year is occupied by the individual pursuant to a life lease or a lease having a term of 10 years or more in respect of which the individual or the individual's qualifying spouse or qualifying common-law partner has paid in full for the lease, the individual's occupancy cost for the year in respect of the designated principal residence is the amount of municipal tax that is reasonably applicable to the residence for the year.

   (9)  Subsection 98 (4) of the Act is repealed and the following substituted:

Occupancy cost, if not spouse or partner for entire year

   (4)  If an individual was a qualifying spouse or qualifying common-law partner for one or more periods during a taxation year but not throughout the year, the individual's occupancy cost for the year is the sum of the following amounts:

    1.  The individual's occupancy cost, as determined under subsection (2), (2.1) or (2.2), as applicable, for the period or periods in the year when the individual was not a qualifying spouse or qualifying common-law partner.

    2.  The individual's occupancy cost, as determined under subsection (3), (3.1) or (3.2), as applicable, for the period or periods in the year throughout which the individual was a qualifying spouse or qualifying common-law partner.

   (10)  Paragraph 1 of subsection 98 (5) of the Act is repealed and the following substituted:

    1.  If the individual did not have a qualifying spouse or qualifying common-law partner at any time in the taxation year and occupied a designated principal residence for only part of the year, the individual's occupancy cost in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the individual that relate to a period when the residence was not the individual's designated principal residence, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the individual's designated principal residence.

  1.1  If the individual had a qualifying spouse or qualifying common-law partner at any time in the taxation year but neither of them occupied a particular designated principal residence throughout the year, the occupancy cost in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the individual or his or her qualifying spouse or qualifying common-law partner that relate to a period when the residence was not the designated principal residence of either of them, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the designated principal residence of either of them.

   13.  Paragraph 4 of section 101 of the Act is repealed and the following substituted:

    4.  If two or more individuals inhabit the same principal residence in a taxation year and each of them is entitled to claim a property tax credit for the year in respect of the residence, the total occupancy cost relating to the residence is allocated to each of them according to the following:

            i.  The beneficial ownership of each of them in the principal residence, if the principal residence is not a non-seasonal mobile home and is not a residence occupied pursuant to a life lease or a lease having a term of 10 years or more.

           ii.  The portion of the rent for the principal residence that each of them paid in respect of the occupation of the residence in the year.

          iii.  In the case of a principal residence that is a non-seasonal mobile home owned and occupied by one or both of them, the amount paid for the year by each of them to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year and the amount of municipal tax that was paid by each of them for the year in respect of the mobile home.

          iv.  In the case of a principal residence occupied pursuant to a life lease or a lease having a term of 10 years or more where the lease has been paid in full, the same percentage of the amount of municipal tax that is reasonably applicable to the residence for the taxation year as the percentage interest of each of them in the lease.

   14.  The definition of "A" in subsection 104 (5) of the Act is repealed and the following substituted:

  "A"  is,

         (a)  $600 if the month ends before July 1, 2009, or

         (b)  $1,100 if the month commences after June 30, 2009.

   15.  (1)  The definition of "municipal tax" in subsection 104.1 (1) of the Act is repealed and the following substituted:

"municipal tax" means an amount that is municipal tax for the purposes of determining occupancy cost under section 98; ("impôts municipaux")

   (2)  The definition of "property tax" in subsection 104.1 (1) of the Act is repealed.

   (3)  Section 104.1 of the Act is amended by adding the following subsections:

Property tax

   (1.1)  Subject to subsection (1.3), each of the following amounts paid by an eligible senior or his or her cohabiting spouse or common-law partner for a taxation year in respect of a designated principal residence of either or both of them is property tax for the purposes of this section:

    1.  Municipal tax, if the designated principal residence is beneficially owned by one or both of them or is held in trust for the use or occupation of one or both of them.

    2.  If the designated principal residence is a non-seasonal mobile home owned and occupied by one or both of them,

            i.  municipal tax paid for the year in respect of the mobile home, and

           ii.  any amount that can reasonably be considered to have been paid to the owner of the land on which the mobile home is located to compensate the owner for municipal tax assessed against the land for the year.

    3.  If the designated principal residence is occupied by one or both of them pursuant to a life lease or a lease having a term of 10 years or more in respect of which one or both of them have paid in full for the lease, the amount of municipal tax that is reasonably applicable to the residence for the year.

Deemed municipal tax payment re life lease, etc.

   (1.2)  If paragraph 3 of subsection (1.1) applies in respect of an eligible senior or his or her cohabiting spouse or common-law partner for a taxation year, the amount of municipal tax that is reasonably applicable to the residence for the year is deemed to be paid by one or both of them for the purposes of this section.

Property tax, exceptions

   (1.3)  The following rules apply in determining the property tax paid for a taxation year by an eligible senior:

    1.  If the eligible senior did not have a cohabiting spouse or common-law partner at any time in the taxation year and occupied a designated principal residence for only part of the year, the property tax paid in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the eligible senior that relate to a period when the residence was not the eligible senior's designated principal residence, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the eligible senior's designated principal residence.

    2.  If the eligible senior had a cohabiting spouse or common-law partner at any time in the taxation year but neither of them occupied a particular designated principal residence throughout the year, the property tax paid in respect of that designated principal residence for the year must not include,

            i.  any amounts paid by the eligible senior or his or her cohabiting spouse or common-law partner that relate to a period when the residence was not the designated principal residence of either of them, and

           ii.  the portion of any municipal tax for the year in respect of the residence that can reasonably be considered to relate to the part of the year when the residence was not the designated principal residence of either of them.

   (4)  Paragraphs 4 and 5 of subsection 104.1 (2) of the Act are repealed and the following substituted:

    4.  The individual or his or her cohabiting spouse or common law partner paid property tax for the previous taxation year in respect of one or more principal residences that are designated principal residences for that year.

    5.  On December 31 of the previous taxation year, the individual or his or her cohabiting spouse or common-law partner,

            i.  beneficially owned and occupied a designated principal residence or occupied a designated principal residence held in trust for the use or occupation of one or both of them,

           ii.  owned and occupied a designated principal residence that was a non-seasonal mobile home, or

          iii.  occupied a designated principal residence pursuant to a life lease or a lease having a term of 10 years or more in respect of which one or both of them have paid in full for the lease.

   (5)  Clause (a) of the definition of "A" in subsection 104.1 (3) of the Act is repealed and the following substituted:

  (a)  the total amount of property tax paid by the eligible senior or his or her cohabitating spouse or common-law partner for the previous taxation year in respect of their designated principal residence for that year, and

   16.  (1)  The French version of clause 105 (3) (a) of the Act is amended by striking out "l'impôt supplémentaire" at the beginning and substituting "la surtaxe".

   (2)  The French version of clause 105 (3) (b) of the Act is amended by striking out "l'impôt supplémentaire" and substituting "la surtaxe".

   (3)  Section 105 of the Act is amended by adding the following subsections:

Additional refund for basic tax and surtax paid in prior years

   (3.1)  If a mutual fund trust's refund for a taxation year under section 132 of the Federal Act is equal to the amount of its federal refundable capital gains tax on hand at the end of that year, the trust is entitled to receive an additional refund for the taxation year in the amount equal to the sum of,

  (a)  the trust's additional refund of basic tax for the year, if any, calculated using the formula,

K – (L + M)

in which,

         "K"  is the trust's Ontario refundable capital gains tax on hand at the end of the year,

         "L"  is the sum of all amounts each of which is determined under subsection (3.2) for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act, and

        "M"  is the amount that the trust is entitled to receive as an Ontario capital gains refund for the year under subsection (1); and

  (b)  the trust's additional refund of surtax for the year, if any, calculated using the formula,

N – (O + P)

in which,

         "N"  is the sum of all amounts, each of which is,

                 (a)  the amount that would be the trust's surcharge or surtax, as the case may be, under section 3 of the Income Tax Act for a taxation year ending after 1995 and before 2009 if the amount determined to be "A" or "B", whichever applies, for the purposes of the formula in subsection 4 (9.1) of that Act for the year were its gross tax amount determined under subsection 3 (2) of that Act for the year, or

                 (b)  the amount that would be the trust's surtax under section 16 for a taxation year ending after 2008 if the trust's gross tax amount determined under subsection 16 (2) for the year were the amount added to the trust's Ontario refundable capital gains tax on hand at the end of the year,

         "O"  is the sum of all amounts, each of which is,

                 (a)  an amount determined under subsection (3.3) for a taxation year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act, or

                 (b)  an amount previously refunded to the trust as an additional refund of surtax for a year, as calculated under this clause, and

         "P"  is the sum of all amounts refunded to the trust under subsection 4 (9) of the Income Tax Act or subsection (3) of this section in respect of taxation years ending after 1995.

Amounts determined in respect of an additional refund of basic tax

   (3.2)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, calculated using the formula,

Q – R

in which,

  "Q"  is the amount that the trust was entitled to receive for the year under subsection 4 (9.1) of the Income Tax Act, and

  "R"  is the amount determined to be "C" for the year for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

         (a)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

         (b)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust under subsection 4 (9) of the Income Tax Act in respect of a taxation year ending after 1995.

Amounts previously refunded as additional refunds of surtax

   (3.3)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of surcharge or surtax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, calculated using the formula,

Q – S

in which,

  "Q"  has the meaning assigned by subsection (3.2), and

  "S"  is the amount determined as "A" or "B" for the year, whichever applies, for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

         (a)  the sum of all amounts of basic tax that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

         (b)  the sum of all amounts of basic tax that were refunded as part of an amount refunded to the trust under subsection 4 (8) of the Income Tax Act in respect of a taxation year ending after 1995.

   (4)  Subsection 105 (4) of the Act is repealed and the following substituted:

Ontario refundable capital gains tax on hand

   (4)  The amount of a mutual fund trust's Ontario refundable capital gains tax on hand at the end of a particular taxation year is the amount calculated using the formula,

(D – E) + (F – G)

in which,

  "D"  is the amount of the mutual fund trust's refundable capital gains tax on hand at the end of its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (1.1) of the Income Tax Act,

  "E"  is the amount of the mutual fund trust's capital gains refund for its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (8) of the Income Tax Act,

  "F"  is the sum of all amounts, each of which is an amount in respect of a taxation year (in this subsection referred to as a "relevant year") that is the particular taxation year or a previous taxation year ending after December 31, 2008 throughout which the trust was a mutual fund trust, equal to the lesser of,

         (a)  the amount of tax that would be payable under Division B of Part II of this Act by the trust for the relevant year, calculated without reference to sections 16 and 21 of this Act, and

         (b)  the amount calculated using the formula,

H × T × U

in which,

                 "H"  is the lesser of the trust's taxable income for the relevant year and the amount of its taxed capital gains for the relevant year for the purposes of section 132 of the Federal Act,

                 "T"  is the highest tax rate for the relevant year for the purposes of Division B of Part II of this Act, and

                 "U"  is the trust's Ontario allocation factor for the relevant year for the purposes of Division B of Part II of this Act, and

  "G"  is the sum of,

         (a)  the sum of all refunds, each of which the trust was entitled to claim under subsection (1) for a previous taxation year ending after December 31, 2008, and

         (b)  the sum of all amounts, each of which is an amount determined under clause (3.1) (a) for a previous taxation year ending after December 31, 2008.

   17.  (1)  Clause 172 (1) (a) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection 91 (4.1) or".

   (2)  Clause 172 (1) (b) of the Act is repealed.

   (3)  Clause 172 (1) (c) of the Act is amended by striking out "December 31, 2009" and substituting "December 31, 2007".

   (4)  Clause 172 (1) (d) of the Act is repealed.

   (5)  Clause 172 (1) (e) of the Act is amended by striking out "December 31, 2009" and substituting "December 31, 2007".

   (6)  Subsection 172 (2) of the Act is amended by striking out "clause (1) (a), (b), (c), (d) or (e)" and substituting "clause (1) (a), (c) or (e)".

Commencement

   18.  This Schedule is deemed to have come into force on January 1, 2009.

Schedule 29
Teachers' Pension Act

   1.  (1)  The definition of "pension fund" in subsection 1 (1) of the Teachers' Pension Act is repealed and the following substituted:

"pension fund" means, unless the context requires otherwise, the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan; ("caisse de retraite")

   (2)  The definition of "pension plan" in subsection 1 (1) of the Act is repealed and the following substituted:

"pension plan" means, unless otherwise provided, the Ontario Teachers' Pension Plan; ("régime de retraite")

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

Objects of the Board

   3.  The objects of the Board are to administer the pension plan and manage the pension fund in accordance with this Act, the Pension Benefits Act and the Income Tax Act (Canada).

Authorized subsidiaries

Definition

   3.1  (1)  In this section,

"pension plan" means the Ontario Teachers' Pension Plan or any other pension plan.

Authorized by agreement

   (2)  If authorized by an agreement between the Minister of Education and the executive of The Ontario Teachers' Federation under section 12.1, the Board may incorporate or cause to be incorporated and may make and maintain an investment in one or more corporations that, after the investment is made, are authorized subsidiaries of the Board.

Authorized subsidiary

   (3)  For the purposes of this section, a corporation is an authorized subsidiary of the Board if,

  (a)  the corporation carries on business with a view to profit;

  (b)  the business of the corporation is limited to providing one or more eligible services to one or more persons and entities described in subsection (6); and

   (c)  the Board has beneficial ownership of shares of the corporation representing more than 50 per cent of the shareholders' equity of the corporation.

Authority re investment entity

   (4)  An authorized subsidiary of the Board may, for the purpose of providing eligible services, incorporate, establish, manage or operate one or more corporations, trusts, partnerships or other entities as investment entities.

Eligible services

   (5)  For the purposes of this section, each of the following is an eligible service if it is carried out in compliance with all applicable laws:

    1.  Providing advice to an administrator of a pension plan regarding the administration of the pension plan or the investment policies for the pension fund maintained to provide benefits in respect of that pension plan.

    2.  Providing advice to a client on investing in, holding, buying or selling securities or other assets.

    3.  Buying, selling, holding and managing investments for a client, with or without discretionary authority granted by the client to manage the client's investment portfolio.

    4.  Activities and services ancillary to the services listed in paragraphs 1 to 3, including,

            i.  activities relating to the distribution or sale to clients of securities issued by an investment entity referred to in subsection (4), and

           ii.  entering into derivative contracts in which the return is based in whole or in part on the performance of all or part of the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan or of any of the pension fund's investments.

    5.  Providing administrative services to an administrator of a pension plan.

Clients

   (6)  An authorized subsidiary may provide services described in subsection (5) only to one or more of the following:

    1.  The Board.

    2.  The administrator of another pension plan, whether the pension plan is in or outside Canada.

    3.  The Government of Canada or the government of a province or territory of Canada, or

            i.  a Crown corporation, Crown agency or wholly-owned entity of the Government of Canada or of the government of a province or territory of Canada, or

           ii.  a corporation established by federal or provincial statute.

    4.  A municipal corporation or a municipal or public body performing a function of government in Canada.

    5.  A board, within the meaning of the Education Act, or a school board or similar authority that operates under comparable legislation in another province of Canada.

    6.  A college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002, a university that receives regular and ongoing operating funding from Ontario for purposes of post-secondary education or an educational institution in another province in Canada that receives regular and ongoing operating funding from the province.

    7.  An educational institution outside Canada.

    8.  An endowment fund for a university, college or educational institution referred to in paragraph 6 or 7.

    9.  A registered charity within the meaning of the Income Tax Act (Canada).

  10.  A national, federal, state, provincial, territorial or municipal government of or in any jurisdiction outside Canada or any entity owned or controlled by that government.

  11.  An investment entity referred to in subsection (4).

  12.  A client or class of clients prescribed by the regulations or that satisfies conditions prescribed by the regulations.

Investing in or through investment entity of authorized subsidiary

   (7)  With the approval of the Board, assets of the pension fund maintained to provide benefits in respect of the Ontario Teachers' Pension Plan may be invested, directly or indirectly,

  (a)  in an investment entity referred to in subsection (4); or

  (b)  in an investment in which assets of an investment entity referred to in subsection (4) are also invested.

Regulations

   (8)  The Minister of Finance may make regulations,

  (a)  prescribing clients or classes of clients for the purposes of paragraph 12 of subsection (6);

  (b)  prescribing conditions that must be satisfied by a client or class of clients for the purposes of paragraph 12 of subsection (6).

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

Powers, etc., of the Board

   (1)  The powers and duties of the Board shall be as set out in this Act, the pension plan and any agreements under sections 10 and 12.1, except that in the event of any conflict between the pension plan and an agreement under section 10, the agreement under section 10 prevails.

   (2)  Section 8 of the Act is amended by adding the following subsection:

Exception re protection from liability

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

  (a)  a member of the Board or to a member of a committee of the Board for any act done in relation to the activities of an authorized subsidiary or investment entity referred to in section 3.1; and

  (b)  an authorized subsidiary and an investment entity referred to in section 3.1.

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

Agreement respecting authorized subsidiaries

   12.1  The Minister of Education and the executive of The Ontario Teachers' Federation may enter into an agreement granting to the Board the power to incorporate or cause to be incorporated and to make and maintain investments in one or more corporations if, after the investments are made in each such corporation, the corporation is an authorized subsidiary under section 3.1.

Commencement

   5.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 30
tobacco Tax Act

   1.  Subsection 23.1 (1) of the Tobacco Tax Act is amended by striking out "clause 29 (1) (b)" and substituting "subsection 29 (1)".

   2.  (1)  Subsections 24 (2), (2.1), (2.2), (2.3) and (2.4) of the Act are repealed and the following substituted:

Application for retention of documents or things

   (2)  If any document or thing is seized under subsection (1), the Minister shall, within 14 days, apply to a justice under the Provincial Offences Act for an order to permit the retention of the document or thing.

Application to include information under oath

   (2.1)  An application under subsection (2) must be supported by information under oath from a person who has reasonable and probable grounds for believing that the document or thing may afford evidence of a contravention of this Act or the regulations.

Order of justice re seized documents

   (2.2)  If the justice who considers an application under subsection (2) is satisfied on reasonable grounds that the document or thing that was seized may afford evidence of a contravention of this Act or the regulations, the justice may, without notice, order that the document or thing be retained by a person named in the order for no longer than three months from the date of the seizure, and may include in the order any provisions that, in the opinion of the justice, are necessary for the preservation of the document or thing.

Same

   (2.3)  If the justice who considers an application under subsection (2) is not satisfied on reasonable grounds that the document or thing that was seized may afford evidence of a contravention of this Act or the regulations, he or she may direct that the document or thing be returned to the person from whom it was seized.

Time limit for retention

   (2.4)  No document or thing shall be retained under an order made under subsection (2.2) for a period of more than three months from the date of the seizure unless, before the expiry of that period,

  (a)  an application to the justice is made for retention of the document or thing for an additional period and the justice is satisfied that, having regard to the nature of the inspection, the further retention of the document or thing for a specified period is warranted and makes an order for the continuing retention of the document or thing for the specified period;

  (b)  a proceeding is instituted in which the retained document or thing may be required; or

   (c)  the owner of the document or thing consents to the continued retention of it.

   (2)  Paragraph 1 of subsection 24 (3) of the Act is amended by striking out "More than 200 unmarked cigarettes" at the beginning and substituting "Any number of unmarked cigarettes".

   (3)  Paragraph 2 of subsection 24 (3) of the Act is amended by striking out "More than 200 unmarked cigarettes" at the beginning and substituting "Any number of unmarked cigarettes".

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

Exemptions from Act for investigation purposes, etc.

   24.0.1  The Minister may, for the purpose of investigations and enforcement activities under this Act, exempt a person who is authorized by the Minister to do anything under subsection 23 (1) or 24 (1) from the application of any provision of this Act or the regulations when carrying out his or her duties under this Act, subject to such conditions as the Minister considers necessary.

   4.  (1)  Subsection 29 (1) of the Act is repealed and the following substituted:

Prohibition re unmarked cigarettes

   (1)  No person shall, unless permitted under this Act or the regulations to do so, have in the person's possession, purchase or receive any number of unmarked cigarettes for any purpose.

   (2)  Subsection 29 (1.1) of the Act is repealed and the following substituted:

Seizure of unmarked cigarettes

   (1.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of any number of unmarked cigarettes contrary to subsection (1), the person authorized by the Minister may, without a warrant,

  (a)  stop and detain the person;

  (b)  inspect the person's personal belongings for unmarked cigarettes;

   (c)  require the person, if any number of unmarked cigarettes are found, to provide identification for the purpose of,

           (i)  assessing a penalty against the person under this section, or

          (ii)  charging the person with an offence under this section; and

  (d)  subject to subsection (1.2), seize, impound, hold and dispose of the unmarked cigarettes.

Individual to provide identification

   (1.1.1)  A person who is required under subsection (1.1) to provide identification shall identify himself or herself by giving his or her correct name and address and displaying supporting documentation sufficient for identification purposes.

   (3)  Clause 29 (1.3) (a) of the Act is repealed and the following substituted:

  (a)  the applicant is an individual who brought the cigarettes into Ontario or received delivery of the cigarettes in Ontario in circumstances in which section 13 applies and has paid the tax required under that section; or

   (4)  Subsections 29 (2) and (2.0.1) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who contravenes subsection (1) is guilty of an offence and is liable on conviction,

  (a)  to a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act; and

  (b)  to a term of imprisonment of not more than two years, in addition to the fine and additional fine under clause (a), if,

           (i)  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

          (ii)  it is not the person's first conviction under this subsection.

   (5)  Subsection 29 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Penalty

   (4)  Every person who, except as permitted under this Act or the regulations, has in the person's possession or has purchased or received any number of unmarked cigarettes for any purpose shall pay a penalty, when assessed for it, equal to the sum of,

.     .     .     .     .

   5.  Subsections 29.1 (3) and (4) of the Act are repealed and the following substituted:

Offence

   (3)  Every person who contravenes subsection (2) is guilty of an offence and is liable on conviction,

  (a)  to a fine of not less than $1,000 and not more than $50,000; and

  (a)  to a fine of not less than $1,000 and not more than $50,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act; and

  (b)  to a term of imprisonment of not more than two years, in addition to the fine under clause (a), if,

           (i)  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

          (ii)  it is not the person's first conviction under this subsection.

   6.  Subsections 31 (2) and (2.1) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who sells or delivers tobacco in Ontario for resale without holding a wholesaler's permit issued under this Act is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

   7.  Subsections 35 (2), (2.0.1), (2.0.2) and (2.0.3) of the Act are repealed and the following substituted:

Offence

   (2)  Every person who purchases or receives tobacco for resale from a person who does not hold a wholesaler's permit under section 3 is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

Same

   (2.0.1)  Every person who delivers, stores, transports or possesses tobacco in bulk in Ontario that was acquired from or that is owned by a person who does not hold a registration certificate issued under subsection 5 (1) or 7 (1) or a permit issued under subsection 3 (1), 8 (2) or 9 (1) is guilty of an offence and is liable to the following on conviction:

    1.  If the tobacco is unmarked cigarettes,

            i.  a fine of not less than $500 and not more than $10,000 and an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if,

                  A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or

                  B.  it is not the person's first conviction under this subsection.

    2.  If the tobacco is marked cigarettes,

            i.  a fine of $8 for each 200 cigarettes, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person's first conviction under this subsection.

    3.  If the tobacco is tobacco other than unmarked or marked cigarettes,

            i.  a fine of not less than $1,000 and not more than $50,000, and

           ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if,

                  A.  the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or

                  B.  it is not the person's first conviction under this subsection.

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

Suspension of driver's licence on conviction of offence

Definitions

   35.1  (1)  In this section,

"driver's licence" has the same meaning as in subsection 1 (1) of the Highway Traffic Act; ("permis de conduire")

"motor vehicle" means a motor vehicle to which a number plate is attached as required by the Highway Traffic Act and includes anything attached to the motor vehicle; (véhicule automobile")

"Registrar of Motor Vehicles" means the Registrar of Motor Vehicles appointed under the Highway Traffic Act. ("registrateur des véhicules automobiles")

Court may order suspension of driver's licence

   (2)  If a person uses a motor vehicle for the unauthorized delivery, distribution or transportation of tobacco or tear tape and is convicted of an offence for doing so under subsection 9.1 (4), 31 (2), 34.1 (4) or 35 (2.0.1), the court may, on sentencing the person, in addition to any other penalty that may be imposed, order the Registrar of Motor Vehicles to suspend the person's driver's licence for a period of,

  (a)  on a first conviction, not more than six months; and

  (b)  on a subsequent conviction, not less than six months.

Registrar shall suspend licence

   (3)  If an order is made under subsection (2), the Registrar of Motor Vehicles shall suspend the person's licence in accordance with the order.

Commencement

   9.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

Schedule 31
Treasury Board Act, 1991

   1.  The French version of clause 6 (1) (d) of the Treasury Board Act, 1991 is amended by striking out "fixer le prix de prestation de services par les ministères" at the beginning and substituting "fixer les droits ou frais des services des ministères".

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

Board may require right to consent to fees, etc.

   6.1  (1)  The Board may require a minister of the Crown to obtain the consent of the Board before the minister exercises his or her discretion to,

  (a)  establish, set, charge, require the payment of, collect or otherwise impose a new fee;

  (b)  make a regulation prescribing the amount of a fee, make an order setting out the amount of a fee or otherwise determine the amount of a fee;

   (c)  waive the payment of a fee or refund a fee that is otherwise required to be paid;

  (d)  change the amount of a fee; or

  (e)  approve or authorize the exercise of discretion by another person or entity to do anything described in clause (a), (b), (c) or (d) with respect to a fee payable into the Consolidated Revenue Fund.

Definition

   (2)  In this section,

"fee" means a fee or other charge the amount of which,

  (a)  is not specified in an Act or in a regulation made by the Lieutenant Governor in Council, and

  (b)  is not determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

Commencement

   3.  This Schedule comes into force on the day the Budget Measures Act, 2009 receives Royal Assent.

 

This reprint of the Bill is marked to indicate the changes that were made in Committee.

The changes are indicated by underlines for new text and a strikethrough for deleted text.

 

______________

 

 

 

EXPLANATORY NOTE

Schedule 1
assessment Act

The Assessment Act is amended by adding clauses (c) and (c.1) to subsection 2 (2) of the Act.  The new clauses allow the Minister to define "machinery and equipment" for the purposes of paragraph 18 of subsection 3 (1) of the Act and to prescribe machinery and equipment for the purposes of paragraph 18.1 of subsection 3 (1) of the Act.

Subsection 3 (1) of the Act is amended by adding paragraph 18.1.  The new paragraph exempts from taxation machinery and equipment used for the purposes of energy conservation or efficiency and that has been prescribed by the Minister.

Schedule 2
Bailiffs Act

Sections 14, 15 and 16 of the Bailiffs Act are repealed.  The sections currently require bailiffs and assistant bailiffs to be bonded.  The sections also provide for circumstances in which the bond may be forfeited, and for disposition of the proceeds of forfeited bonds and any collateral security.

New sections 3.0.1 and 3.1.1 of the Act set out a requirement for bailiffs and assistant bailiffs to provide financial security in accordance with the regulations made under the Act.  New section 18.2 of the Act gives authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

schedule 3
Capital Investment Plan Act, 1993

Subsection 5 (1) of the Capital Investment Plan Act, 1993 currently provides that, in the case of the Ontario Financing Authority, the Ontario Transportation Capital Corporation, the Ontario Clean Water Agency and the Ontario Realty Corporation, the corporation is managed by its board of directors.  The subsection is re-enacted to provide that the board of directors shall manage or supervise the management of the business and affairs of the corporation.

Schedule 4
City of Toronto act, 2006

Section 228 of the City of Toronto Act, 2006 is amended to require revenues in the City's budgets to be at least equal to expenses, once a reserve fund adjustment is made.  The section is also amended to require the City's budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year's budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year's budget.  The section is further amended to require the City's budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 241 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of the City.  Authority is provided to make regulations permitting the City to exclude certain expenses from its budget.

The amendments to the Act are made in connection with the implementation for the City of the requirement to report on tangible capital assets in its financial statements.

Schedule 5
Collection Agencies Act

The amendments to the Collection Agencies Act give authority to make regulations requiring that collection agencies and collectors provide financial security as a term and condition of registration under the Act.  The amendments also provide authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

Schedule 6
Commodity Futures Act

A new section 2.2 is added to the Commodity Futures Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest.  Criteria are set out for determining whether extraordinary circumstances exist.  In such circumstances, the Commission is authorized to make specified orders that expire in 10 days or less.  With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods.  The Lieutenant Governor in Council is also authorized to make regulations.

A technical amendment is made to subsection 65 (1) of the Act, which governs the authority of the Ontario Securities Commission to make rules.  Paragraph 7 of that subsection is re-enacted to replace references to "market participants" with a more detailed description of persons and companies that are subject to the rules made under the paragraph.

Schedule 7
Community Small Business Investment Funds Act

The amendments to the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act permit the holder of a tax-free savings account to be an eligible investor in a labour sponsored investment fund corporation.

The tax credit under the Income Tax Act for eligible investors in employee ownership labour sponsored venture capital corporations is not available after the 2008 taxation year.  New subsection 25 (2.2) of the Community Small Business Investment Funds Act incorporates this time limit into the Act.

Schedule 8
Corporations Act

Section 161 of the Corporations Act currently provides that the annual statements of a mutual insurance corporation must be mailed to its shareholders or members or published in a newspaper published near the corporation's head office.  The re-enactment of section 161 of the Act also permits the corporation to publish its annual statement on its website.  If a mutual insurance corporation publishes its annual statement on its website, the notice of its annual general meeting at which the statement will be considered must advise the shareholders or members that the annual statement is available on the corporation's website and that the shareholders or members may make a written request to receive a copy by mail.  The re-enactment of section 161 of the Act also changes the deadline for giving notice of an annual general meeting and for making the annual statement available to shareholders or members from seven days before the meeting to 21 days before the meeting.  The deadline for giving notice of a special general meeting continues to be seven days before the meeting.

schedule 9
Corporations Tax Act

The amendments to the Corporations Tax Act are consequential amendments to add a reference to clause 41 (3.2) (f) of the Act in various sections of the Act.  Clause 41 (3.2) (f) of the Act was enacted in 2008 to increase the small business limit from $400,000 to $500,000, effective January 1, 2007, for the purposes of the small business deduction.

Schedule 10
education Act

Technical amendments are made to subsections 257.11.1 (1) and (2) of the Education Act.

Schedule 11
employer health tax Act

Various provisions of the Employer Health Tax Act relate specifically to self-employed individuals, who were subject to tax under the Act for years before 1999.  These provisions are repealed and certain consequential amendments are made.

Schedule 12
Financial Administration Act

The definition of  "non-cash expense" in section 1 of the Financial Administration Act is re-enacted to include the classes of non-cash expenses currently prescribed in Ontario Regulation 26/03 (Non-Cash Expenses) made under the Act and to add a new non-cash expense class for any adjustments in expenses for employee or pensioner benefits required as a result of actuarial valuations of the amount of the liabilities for those benefits.

Section 1 of the Act is amended to add the definition of "non-cash investment", which includes imputed interest incurred during construction of a capital asset and any other investment not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations under the Act.

Under subsection 5 (3.1) of the Act, the liability of a person who owes money to the Crown is not affected if the amount of the debt is deleted from the government accounts as an uncollectible debt.  The subsection is re-enacted to also expressly state that the deletion of the debt from the government accounts does not preclude the Minister of Finance from subsequently setting off the amount of the debt under subsection 43 (2) of the Act against any amount that becomes payable by the Crown to the debtor.

Section 11.1 of the Act is re-enacted to reflect the re-enactment of the definition of "non-cash expense" in section 1 of the Act, to provide a statutory appropriation for certain non-cash expenses and for non-cash investments prescribed by the regulations and to expressly state that the charging of a non-cash expense or a non-cash investment to an appropriation does not authorize the making of a payment from the Consolidated Revenue Fund. 

Section 16.0.2 of the Act requires that certain matters, including whether a ministry has incurred a liability during a fiscal year, must be determined for the purposes of Part II of the Act in accordance with the accounting principles set out in the Public Accounts for the relevant fiscal year.  The amendment to the section provides that whether a debt owed to the Crown has become uncollectible during a fiscal year and is a bad debt is also to be determined in accordance with the accounting principles set out in the Public Accounts for the year for the purposes of Part II of the Act.

Section 38 of the Act is amended to reflect the re-enactment of the definition of "non-cash expense" in section 1 of the Act, the new definition of "non-cash investment" and the statutory appropriation for certain non-cash investments under subsection 11.1 (4) of the Act.  New subsection 38 (2) of the Act permits regulations relating to non-cash expenses and non-cash investments to be made effective April 1, 2009, the effective date of the amendments to section 1 of the Act relating to non-cash expenses and non-cash investments.

Technical changes are made to sections 11 and 11.9 and to the French version of clause 38 (c.2.1) of the Act.

Schedule 13
Government Advertising Act, 2004

The Government Advertising Act, 2004 is amended.  Amendments to section 2 of the Act extend the application of the Act to advertisements screened at a cinema and to public transit advertisements.

Section 6 of the Act sets out the standards that reviewable advertisements, reviewable printed matter and reviewable messages are required to meet.  The re-enactment of section 6 of the Act revises the standards and specifies the criteria for determining whether an item is considered to be partisan under the Act.

Consequential amendments are made to section 12 of the Act.

Schedule 14
Income Tax Act

Section 8.5 of the Income Tax Act implements the Ontario child care supplement for working families.  The amendments to the section provide that the supplement is available in respect of qualified dependants born before July 1, 2009 and add a reference to the Ontario child benefit which, after 2008, is available under the Taxation Act, 2007 and not the Income Tax Act.

Section 8.6.2 of the Act is amended to provide that Ontario child benefit payments are not payable under the Act for months after 2008.  For 2009 and later years, monthly Ontario child benefit payments are made to eligible individuals under the Taxation Act, 2007.

Schedule 15
Interim Appropriation for 2009-2010 Act, 2008

Sections 2 and 3 of the Interim Appropriation for 2009-2010 Act, 2008 are re-enacted to update accounting terminology and to permit the Crown to recognize non-cash investments.

Schedule 16
Legislative Assembly Act

The re-enactment of subsection 61 (1.2) of the Legislative Assembly Act maintains the amount of the annual salary of members of the Assembly for the 2009-2010 fiscal year at the salary level in effect on March 26, 2009.

Subsection 61 (1.3), section 61.1 and subsection 69 (6) of the Act are spent and are repealed in this Schedule.

Schedule 17
local roads boards Act

Currently, subsection 29.1 (1.2) of the Local Roads Boards Act allows a board to enter into an agreement with the Minister of Finance on or before March 1, 2009 providing for the delegation to the Minister of Finance of the board's power under the Act to collect tax for the 2009 taxation year.  Subsection 29.1 (1.2) of the Act is re-enacted to allow an agreement for a delegation that applies to the 2009 taxation year to be entered into at any time during the 2009 taxation year that the Minister of Finance considers appropriate.

A technical amendment is made to the English version of section 33.1 of the Act.

Schedule 18
Ministry of Revenue Act

Section 11 of the Ministry of Revenue Act authorizes the Lieutenant Governor in Council to remit any tax, fee, penalty or other debt if the Lieutenant Governor in Council considers the remission to be in the public interest.  The remission of a tax or fee may be made before liability for the tax or fee arises.  The amendment permits remissions of certain other debts owed to the Crown to also be made before liability for the debt arises.

Schedule 19
Municipal Act, 2001

Sections 289 and 290 of the Municipal Act, 2001 are amended to require revenues in municipal budgets to be at least equal to expenses, once a reserve fund adjustment is made.  Those sections are also amended to require a municipal budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year's budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year's budget.  Those sections are further amended to require a municipal budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 292 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of municipalities.  Authority is provided to make regulations permitting municipalities to exclude certain expenses from their budgets.

The amendments to the Act are made in connection with the implementation for municipalities of the requirement to report on tangible capital assets in their financial statements.

Schedule 20
Ontario Child Benefit Equivalent Act, 2009

The Ontario Child Benefit Equivalent Act, 2009 establishes a program for the payment of an amount equivalent to the Ontario child benefit in respect of qualified children.

Schedule 21
ontario home ownership savings plan Act

The repeal of the Ontario Home Ownership Savings Plan Act completes the wind-up of the Ontario Home Ownership Savings Plan (OHOSP) program that was commenced in 2004.  The OHOSP program provided tax credits to individuals resident in Ontario in respect of contributions made to an OHOSP before May 19, 2004.  Amendments to the Act in 2004 provided that no new OHOSP could be registered and no new contributions to existing plans would be allowed after May 18, 2004.

schedule 22
ONTARIO LOAN ACT, 2009

The Ontario Loan Act, 2009 is enacted.  Subsection 1 (1) of the Act authorizes the Crown to borrow a maximum of $23.5 billion.  Subsection 1 (2) of the Act authorizes the Crown to borrow additional amounts up to a maximum of $10 billion through the issue and sale of short term securities over a specified period not exceeding 25 years.

Schedule 22.1
Ontario Municipal Employees Retirement System Act, 2006

New section 35.1 of the Ontario Municipal Employees Retirement System Act, 2006 is enacted and permits the Administration Corporation to establish authorized subsidiaries to provide services described in subsection 35.1 (5) of the Act to the Administration Corporation, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in subsection 35.1 (6) of the Act.   A corporation is an authorized subsidiary if the criteria set out in subsection 35.1 (3) of the Act are satisfied.

The Administration Corporation is permitted by subsection 35.1 (7) of the Act to invest the assets of the OMERS pension funds in an authorized subsidiary.

The services of an authorized subsidiary may be provided as described in new section 35.1 of the Act only under an agreement authorized under new section 35.2 of the Act which provides that, if authorized by the Sponsors Corporation, the Administration Corporation may enter into agreements under which its authorized subsidiaries will provide the services.  Subsection 35.2 (3) of the Act permits the Administration Corporation itself to continue to provide services under certain agreements.

Section 29 of the Act is repealed with the enactment of new section 35.1 of the Act.  It currently authorizes the Sponsors Corporation to enter into agreements under which the Administration Corporation provides certain services to the administrators of other pension plans.

Schedule 23
Ontario Provincial Police Collective Bargaining Act, 2006AND Police services Act

This Schedule amends the Ontario Provincial Police Collective Bargaining Act, 2006 and makes related amendments to the Police Services Act.

Sections 1 to 13 amend the Ontario Provincial Police Collective Bargaining Act, 2006. 

Section 3 amends the descriptions of the two bargaining units represented by the Ontario Provincial Police Association:  subsection 2 (1) of the Act.  Terminology used in describing the officers' bargaining unit is updated.  The civilian employees' bargaining unit is described more specifically, in that it no longer refers to results of potential certification applications, and includes some employees not currently included in the unit.

Sections 4, 5 and 8 amend sections 4, 7 and 11 of the Act.  New subsection 7 (2) of the Act provides that matters relating to prescribed supplemental pension benefits for employees in the bargaining units may be referred to an arbitration board.  The amendment to section 4 of the Act provides that the Negotiating Committee shall not arbitrate a grievance relating to these matters. Section 11 of the Act is amended to authorize the Lieutenant Governor in Council to make regulations prescribing supplemental pension benefits.

Section 7 provides that the probationary period for a person appointed as a Recruit Constable begins on the date of the appointment and ends on the first anniversary date of his or her appointment to the rank of Probationary Constable.

Sections 6, 9, 11 and 13 repeal spent provisions of the Act.

Related amendments to the Police Services Act are made by sections 14 and 15.  Section 14 amends the definition of "member of a police force" in section 2 of the Police Services Act.  Section 15 amends section 18 of that Act, respecting the composition of the Ontario Provincial Police.  These amendments provide that employees of the Ontario Provincial Police who are not police officers are members of the Ontario Provincial Police.  This is already the case for employees of a municipal police force.

Schedule 24
Pension Benefits Act

Section 82 of the Pension Benefits Act is amended to incorporate into the section the provision currently in the regulations requiring employers who make contributions to pension plans that provide defined benefits to fund the Pension Benefits Guarantee Fund.  The amount of the funding is determined under rules prescribed by the regulations.  Subsection 82 (3.3) sets out matters to be taken into consideration when making new regulations to determine the amount of the funding.  Clause 115 (1) (e) of the Act is re-enacted to set out matters to be prescribed by the regulations relating to the collection of amounts payable to the Guarantee Fund.

Section 82 of the Act currently permits the Lieutenant Governor in Council to authorize the Minister of Finance to make loans out of the Consolidated Revenue Fund to the Pension Benefits Guarantee Fund if the amount in the fund is insufficient for the purpose of paying claims.  Amendments to section 82 of the Act permit the Lieutenant Governor in Council to authorize the Minister of Finance to make grants to the fund from any money appropriated for that purpose by the Legislature.  New subsection 82 (6) of the Act provides that neither the Act nor the regulations require the Lieutenant Governor in Council to authorize the Minister of Finance to make either a loan or a grant to the Pension Benefits Guarantee Fund.  Under new subsection 82 (7) of the Act, the maximum liability of the Pension Benefits Guarantee Fund is limited to the assets of the fund.

The re-enactment of subsection 115 (6) of the Act and the enactment of subsection 115 (7) of the Act permit the Lieutenant Governor in Council to make regulations before June 30, 2010 relating to the funding of pension plans that provide defined benefits.  The regulations may be retroactive, but cannot apply earlier than September 30, 2008.

Schedule 25
provincial land tax Act, 2006

Section 15 of the Provincial Land Tax Act, 2006 is amended by adding subsections (4.1) and (4.2).  If a person other than the owner of the land or a spouse of the owner of the land pays an amount owing under the Act in respect of land for which the Minister has issued a notice of possible forfeiture, that person has a lien on the land for the amount paid, and the lien has priority over the interest in the land of any person to whom the notice was sent.

Section 19 of the Act is amended by adding subsection (3).  The new subsection allows the Minister to charge such fee as he or she considers appropriate for the issuance of a statement of amounts owing for taxes.

Section 19.1 is added to the Act.  It allows the Minister, at the request of an owner of land, to give to that owner a statement of account that sets out all amounts owing for taxes in respect of the owner's land as of the day the statement is issued.  A statement of account is not binding on the Minister.  The Minister may charge such fee as he or she considers appropriate for the issuance of a statement of account.

Section 24.1 of the Act is amended by adding subsection (2).  The new subsection provides that, for greater certainty, agreements entered into under that section may authorize a municipality to receive payments of property tax in the municipality's name.

Schedule 26
Securities Act

Proposed amendments to the Securities Act specify the authority of the Province and the Ontario Securities Commission in extraordinary circumstances; revise the registration requirements for dealers, advisers and others; revise the exemptions from the registration requirements; revise the prospectus exemptions under the Act; and make technical and other changes to the Act.

Authority in extraordinary circumstances 

A new section 2.2 is added to the Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest.  Criteria are set out for determining whether extraordinary circumstances exist.  In such circumstances, the Commission is authorized to make cease trade orders that expire in 10 days or less.  With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods.  The Lieutenant Governor in Council is also authorized to make regulations.

Registration requirements 

Part XI of the Act, which governs registration under the Act of dealers, advisers and certain other persons and companies, is re-enacted.  Some of the highlights of the amendments to the registration requirements are:

    1.   The registration requirements no longer apply to every person or company that trades a security.  Under section 25 of the Act, registration is required only for those who engage in or hold themselves out as engaging in the business of trading in securities.  Investment fund managers must be registered.

    2.   Individuals appointed as chief compliance officers or ultimate designated persons by registered dealers, registered advisers or registered investment fund managers must be registered. 

    3.   The registration requirement is extended to every representative who is authorized to trade securities on behalf of a registered dealer or who is authorized to provide advice on behalf of a registered adviser with respect to investing in, buying or selling securities, whether or not the representative is employed by the registered dealer or registered adviser.

    4.   Categories of registration are set out in section 26 of the Act, and additional categories and subcategories may be prescribed by the regulations.  Subsection 26 (2) of the Act creates two new dealer registration categories of restricted dealer and exempt market dealer.  The permitted activities for each registration category may be prescribed by the regulations.

    5.   The registration process is governed by sections 27 to 31 of the Act.  Provision is made for the revocation, suspension or surrender of a registration.  Certain duties of registrants are set out in section 32 of the Act.

Registration exemptions

Part XII of the Act, which governs exemptions from the requirement to be registered under the Act, is re-enacted.  Some of the highlights of the amendments to the registration exemptions are:

    1.  Section 34 of the Act exempts an adviser from the registration requirements under the Act if the adviser provides only general investment advice in the form of publications or other media without any representation that the advice is tailored to the needs of anyone who receives it.

    2.  A number of dealer registration exemptions are repealed that relate to trades that are not conducted in the course of engaging in the business of trading in securities.

    3.  Section 35 of the Act provides a dealer registration exemption for trades in debt securities issued or guaranteed by governments in Canada.  Exemptions are provided for transactions that are governed by other statutory schemes.

    4.  Section 35.1 of the Act provides a registration exemption for federal and Ontario financial institutions in specified circumstances.

    5.  Other registration exemptions may be established by regulation.

Amendments that relate to the re-enactment of Parts XI and XII of the Act are made to sections 36, 37, 44, 74, 119, 134, 135, 136 and 143 of the Act.  Sections 39, 40, 41, 45 and 118 of the Act are repealed.

Prospectus exemptions 

Part XVII of the Act, which governs exemptions from prospectus requirements, is amended.  The amendments are related, in part, to the changes to the registration requirements.  Some of the highlights of the amendments to the prospectus exemptions are:

    1.   A transitional amendment provides for the re-enactment of section 73 of the Act.  It is consequential to the changes to the registration requirements.  This transitional version of the section maintains certain current prospectus exemptions, including exemptions for distributions of debt securities issued or guaranteed by governments in Canada, and for distributions of debt securities issued or guaranteed by federal and Ontario financial institutions in specified circumstances.  Exceptions are specified.

    2.   This transitional version of section 73 of the Act is repealed on a date to be named by proclamation and is replaced by sections 73 to 73.6 of the Act, governing prospectus exemptions.

    3.   Sections 73 to 73.5 of the Act continue the prospectus exemptions for distributions of debt securities issued or guaranteed by governments in Canada, and for distributions of debt securities issued or guaranteed by federal and Ontario financial institutions in specified circumstances.  Provision is also made for prospectus exemptions for certain distributions to accredited investors, for distributions by private issuers in specified circumstances and for distributions of government incentive securities.

    4.   Other prospectus exemptions may be established by regulation.

    5.   Section 73.7 of the Act governs the circumstances in which the first trade in a security previously distributed under a prospectus exemption will not be treated as a distribution that is subject to the prospectus requirements.  It also governs the circumstances in which a distribution of securities by a control person will not be treated as a distribution that is subject to the prospectus requirements.

Related amendments are made to section 143 of the Act concerning regulation-making authority.

Other amendments

The regulation-making authority in paragraph 5 of subsection 143 (1) of the Act currently provides for a rule that requires notice to be given to the Commission in specified circumstances when there is a proposed change in the beneficial ownership of, or control or direction over, the securities of a registrant and authorizes the Commission to make an order.  The provision is re-enacted and notice must be given, in addition, when the change relates to the securities of a person or company of which the registrant is a subsidiary.

New regulation-making authority is set out in paragraph 8.1 of subsection 143 (1) of the Act enabling the Commission to make a rule exempting a person or company from any requirement under the Act or regulations that is comparable to a requirement imposed on the person or company by a self-regulatory organization.

Schedule 27
Supplementary Interim Appropriation for 2009-2010 Act, 2009

The Supplementary Interim Appropriation for 2009-2010 Act, 2009 is enacted.  It authorizes additional expenditures for the fiscal year ending March 31, 2010 up to specified maximum amounts.  The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation for 2009-2010 Act, 2008.  The expenditures authorized under both the Interim Appropriation for 2009-2010 Act, 2008 and the Supplementary Interim Appropriation for 2009-2010 Act, 2009 are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending March 31, 2010 tabled in the Legislative Assembly.

Schedule 28
Taxation Act, 2007

New subsection 4 (4) of the Taxation Act, 2007 provides that the rules in subsection 128 (2) of the Income Tax Act (Canada), applicable in respect of an individual who becomes a bankrupt, apply for the purposes of the Act.  These rules include provisions stating that the estate of the bankrupt is not a trust or estate separate from the individual for tax purposes and that the trustee is to be treated for tax purposes as if the trustee were the agent of the individual for the purposes of determining the individual's income and taxable income while in bankruptcy.

When the Taxation Act, 2007 was enacted in 2007, sections 6, 9, 16 and 20 of the Act reflected the specific dollar amounts that would apply for the 2007 taxation year in determining the amount of personal income tax, Ontario surtax, personal income tax credits and the Ontario tax reduction, and provided that those amounts would be adjusted annually under section 23 of the Act.  The dollar amounts applicable for the 2009 taxation year, the first taxation year to which the Act applies, could not be calculated in 2007 because the annual adjustments are determined under a formula based on the Consumer Price Index.  The amendments to those sections and to section 23 of the Act in this Schedule substitute the applicable dollar amounts for the 2009 taxation year and provide for the annual adjustment of those amounts for taxation years ending after 2009 using the formula based on the Consumer Price Index set out in section 23 of the Act.

New paragraph 10.1 of section 8 of the Act provides that only certain non-refundable tax credits may be claimed by individuals not resident in Canada at any time in a taxation year, unless all or substantially all of their income for the year is included in calculating their taxable income earned in Canada for the year.  This provision is consistent with a comparable provision in the Ontario Income Tax Act applicable to taxation years ending before 2009.

New sections 53.1 and 53.2 of the Act provide that, for taxation years ending after 2008, a non-refundable tax credit is available to corporations that make eligible political contributions to registered candidates, registered constituency associations or registered parties.  A corporation may carry forward unused eligible contributions, including contributions made before 2009, for up to 20 years. The new tax credit replaces the deduction for political donations available under section 36 of the Corporations Tax Act for taxation years ending before 2009.

The co-operative education tax credit in section 88 of the Act currently provides corporate and unincorporated employers with a refundable tax credit in respect of amounts paid to co-operative education students employed in qualifying work placements.  The rate of the tax credit is 15 per cent for employers paying salaries or wages up to $400,000 and 10 per cent for employers paying salaries or wages equal to or greater than $600,000.  For employers paying salaries or wages between $400,000 and $600,000, the higher rate of 15 per cent is gradually phased out.  The amount of the tax credit is also capped at $1,000 for each qualifying work placement.  The amendments to section 88 of the Act increase the 15 per cent rate for smaller employers to 30 per cent and increase the 10 per cent rate for larger employers to 25 per cent, effective for eligible expenditures incurred after March 26, 2009.  In addition, the $1,000 limit for each qualifying work placement is increased as of March 26, 2009 to $3000, prorated for qualifying work placements straddling March 26, 2009.

The amendments to sections 91 and 92 of the Act repeal the scheduled reduction in tax credit rates for the Ontario film and television tax credit and the Ontario production services tax credit for qualifying labour expenditures incurred after 2009.  The tax credit rates for qualifying labour expenditures incurred after 2009 will remain the same as the tax credit rates that apply to qualifying labour expenditures incurred in 2008 and 2009.  Complementary amendments are made to section 172 of the Act relating to the authority to prescribe regulations.

The amendments to sections 98, 101 and 104.1 of the Act set out requirements if a senior is claiming a property tax credit or a senior homeowners' property tax grant in respect of a principal residence that is a non-seasonal mobile home or a residence occupied pursuant to a prepaid life lease or a prepaid lease having a term of at least 10 years.  The definition of "municipal tax" is amended to exclude land transfer tax levied by the City of Toronto for the purposes of determining the amount of the property tax credit and senior homeowners' property tax grant.

Section 104 of the Act provides for the payment of a monthly Ontario child benefit to eligible individuals with qualified dependants.  Under the current legislation, the full monthly Ontario child benefit payment (based on an annual amount of $1,100 per qualified dependant) is to be phased in and paid for months commencing after June 30, 2011.  Subsection 104 (5) of the Act is amended to accelerate the payment of the full monthly Ontario child benefit to July 2009 and subsequent months.

The Ontario Income Tax Act provides that for taxation years ending before 2009 there is an additional capital gains refund for a mutual fund trust in the event that the full amount of basic income tax and surtax paid by the trust on capital gains was not refunded in previous years.  Section 105 of the Taxation Act, 2007 is amended to provide for a comparable additional capital gains refund for taxation years ending after 2008.  A technical change to the French terminology is made in subsection 105 (3) of the Act.

Schedule 29
Teachers' Pension Act

New section 12.1 of the Teachers' Pension Act permits the Minister of Education and the executive of The Ontario Teachers' Federation to enter into an agreement granting the Ontario Teachers' Pension Plan Board the power to incorporate one or more corporations and invest assets of the pension fund in such a corporation.

The Board must control a corporation it incorporates by holding shares representing more than 50 per cent of the shareholders' equity of the corporation.  The business of the corporation must be limited to providing services described in new subsection 3.1 (5) of the Act to the Board, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in new subsection 3.1 (6) of the Act.

Subsection 8 (2) of the Act currently provides a statutory protection from liability for members of the Board for acts done in good faith relating to the pension plan.  New subsection 8 (3) of the Act states that subsection 8 (2) of the Act does not apply to protect a corporation incorporated by the Board or to protect members of the Board with respect to acts done in relation to a corporation incorporated by the Board.

Schedule 30
Tobacco Tax Act

Under the current Tobacco Tax Act, the Minister may apply to the court for an order to permit the retention of documents seized under subsection 24 (1) of the Act that may afford evidence of a contravention of the Act.  Amendments to that section permit an application for an order to permit the retention of things that are seized that may afford evidence of a contravention of the Act.

Under the current Act, a person may have in his or her possession up to 200 unmarked cigarettes without contravening the Act, as long as the person does not possess the cigarettes for the purpose of sale.  Sections 23.1, 24 and 29 of the Act are amended to prohibit the possession of any number of unmarked cigarettes for any purpose, unless authorized under the Act.

New section 24.0.1 of the Act protects persons who are engaged in the enforcement of the Act on behalf of the Minister from being in technical violation of the Act by, for example, being in possession of unmarked tobacco, when carrying out their duties under the Act.

Currently, under subsection 29 (1.1) of the Act, if a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of unmarked cigarettes, the authorized person may stop and detain the person and seize the unmarked cigarettes. The re-enactment of the subsection also allows the authorized person to search the person's personal belongings for unmarked cigarettes and, if unmarked cigarettes are found, require the person to provide identification.

Under new section 35.1 of the Act, when a person is convicted of an offence for the unauthorized delivery, distribution or transportation of tobacco or tear tape, the court may order the Registrar of Motor Vehicles to suspend the person's driver's licence for not more than six months on a first conviction and not less than six months on each subsequent conviction.

Other amendments to the Act standardize the penalties imposed on convictions for offences under the Act.

Schedule 31
Treasury Board Act, 1991

New section 6.1 of the Treasury Board Act, 1991 permits the Treasury Board to require a minister of the Crown to obtain the consent of the Board before charging a new fee, determining or prescribing the amount of a fee, waiving or refunding a fee or changing the amount of a fee.  The Board may also require a minister to obtain the consent of the Board before approving or otherwise authorizing the exercise by another person or entity of a similar power in connection with fees payable into the Consolidated Revenue Fund.  The section does not apply if the amount of the fee is set out in an Act or in a regulation made by the Lieutenant Governor in Council or is determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

A terminology change is made to the French version of clause 6 (1) (d) of the Act.