Bill 135, Helping Ontario Families and Managing Responsibly Act, 2010

Duncan, Hon. Dwight Minister of Finance

Versions

Bill 135 2010

An Act respecting financial and 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.	Contents of this Act Commencement Short title
Schedule 1	Alcohol and Gaming Regulation and Public Protection Act, 1996
Schedule 2	Assessment Act
Schedule 3	Commodity Futures Act
Schedule 4	Corporations Tax Act
Schedule 5	Education Act
Schedule 6	Employer Health Tax Act
Schedule 7	Financial Administration Act
Schedule 8	Financial Services Commission of Ontario Act, 1997
Schedule 9	Insurance Act
Schedule 10	Interim Appropriation for 2011-2012 Act, 2010
Schedule 11	Loan and Trust Corporations Act
Schedule 12	Ministry of Revenue Act
Schedule 13	Ontario Clean Energy Benefit Act, 2010
Schedule 14	Ontario Municipal Employees Retirement System Act, 2006
Schedule 15	Pension Benefits Act
Schedule 16	Public Sector Compensation Restraint to Protect Public Services Act, 2010
Schedule 17	Retail Sales Tax Act
Schedule 18	Securities Act
Schedule 19	Supplementary Interim Appropriation Act, 2010 (No. 2)
Schedule 20	Taxation Act, 2007
Schedule 21	Workplace Safety and Insurance Act, 1997

______________

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 Helping Ontario Families and Managing Responsibly Act, 2010.

Schedule 1
alcohol and gaming regulation and public protection act, 1996

1. (1) Subsection 17 (1) of the Alcohol and Gaming Regulation and Public Protection Act, 1996 is amended by adding the following definition:

"increase date" means, with respect to a basic rate of tax on the purchase of beer, the date on which an increase to the rate of basic tax payable by a purchaser under section 21, 22 or 25 takes effect in accordance with section 26 or otherwise under this Act; ("date d'augmentation")

(2) Paragraph 3 of subsection 17 (2) of the Act is amended by striking out "wine" wherever it appears and substituting in each case "wine or wine coolers".

(3) Paragraph 4 of subsection 17 (2) of the Act is repealed and the following substituted:

4. A winery that purchases wine or wine coolers in Ontario that are not sold to another person, but only with respect to the wine or wine coolers that are purchased and not sold.

2. Section 20 of the Act is repealed and the following substituted:

Application

20. This Division applies to purchasers in respect of purchases of beer, wine and wine coolers on and after July 1, 2010.

3. Section 21 of the Act is amended by adding the following subsection:

Transition, after change in tax rate

(4) Despite subsections (1), (2) and (3) and section 22, if the beer sold to the purchaser was received by the beer vendor before an increase date and then sold to the purchaser on or after the increase date, the basic tax payable by the purchaser in respect of the purchase of the beer shall be calculated at the basic tax rate in effect immediately before the increase date.

4. Subsection 22 (3) of the Act is amended by striking out "and" at the end of clause (b) and by adding the following clause:

(b.1) it has not entered into any agreement or other arrangement pursuant to which it manufactures beer for any beer manufacturer that is not a microbrewer; and

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

Transition, after change in tax rate

(4) Despite subsections (1) and (2), if the draft beer sold to the purchaser was made at the brew pub before the increase date and then sold to the purchaser on or after the increase date, the basic tax payable by the purchaser in respect of the purchase of the draft beer shall be calculated at the basic tax rate in effect immediately before the increase date.

6. Subsection 26 (2.1) of the Act is amended by striking out the portion before the formula and substituting the following:

Index factor

(2.1) For the purposes of subsection (2), the index factor is the greater of zero and the value calculated using the following formula, rounded to the nearest one-thousandth:

. . . . .

7. (1) Subsection 30 (1) of the Act is amended by striking out "on or after the first day Division B applies" and substituting "on or after July 1, 2010".

(2) Subsection 30 (5) of the Act is repealed and the following substituted:

Collection by authorized beer manufacturer

(5) Every authorized beer manufacturer that, on or after July 1, 2010, sells or delivers beer in Ontario to any of the following persons or entities shall, as agent of the Minister, collect from the person or entity at the time of the sale or delivery an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer:

1. Brewers Retail Inc.

2. An agency store.

3. A licensee.

4. A store owned and operated by the authorized beer manufacturer under the Liquor Control Act.

(3) Section 30 of the Act is amended by adding the following subsections:

Collection and remittance after change in tax rate, beer vendor

(10) This subsection applies if a beer vendor receives beer before an increase date and then sells or delivers the beer to a purchaser on or after the increase date:

1. Despite subsection (1), the taxes to be collected by the beer vendor in respect of the beer shall be determined as if the beer were sold or delivered to the purchaser immediately before the increase date.

2. Despite subsection (2), the taxes to be paid by the beer vendor to Brewers Retail Inc. or to an authorized beer manufacturer in respect of the beer shall be determined as if the beer were to be sold or delivered to a purchaser immediately before the increase date.

3. Despite subsection (3), the amount to be collected by Brewers Retail Inc. from a licensee or agency store on account of taxes imposed under this Part on a purchaser in respect of the beer shall be determined as if the taxes were being imposed on the purchaser immediately before the increase date.

Same, authorized beer manufacturer

(11) This subsection applies if beer is available for sale before an increase date at a store owned and operated by an authorized beer manufacturer under the Liquor Control Act and then the beer is sold or delivered to a purchaser on or after the increase date:

1. Despite subsection (1), the taxes to be collected by the authorized beer manufacturer in respect of the beer shall be determined as if the beer were sold or delivered to the purchaser immediately before the increase date.

Same, licensee of brew pub

(12) This subsection applies if draft beer is made at a brew pub before an increase date and then the licensee of the brew pub sells or delivers the draft beer to a purchaser on or after the increase date or sells or delivers the draft beer on or after the increase date to an operator of a place that is a secondary location related to the brew pub:

1. Despite subsection (1), the taxes to be collected by the licensee of the brew pub in respect of the draft beer sold or delivered to a purchaser shall be determined as if the draft beer were sold to the purchaser immediately before the increase date.

2. Despite subsection (8), the amount to be collected by the licensee of the brew pub from the operator of the secondary location on account of taxes imposed on a purchaser in respect of the purchase of the draft beer shall be determined as if the draft beer were sold immediately before the increase date.

Same, operator of secondary location

(13) This subsection applies if draft beer is made at a brew pub before an increase date and then an operator of a place that is a secondary location related to the brew pub sells or delivers the draft beer to a purchaser on or after the increase date:

1. Despite subsection (1), the taxes to be collected by the operator of the secondary location in respect of the draft beer shall be determined as if the draft beer were sold or delivered to the purchaser immediately before the increase date.

8. Subsection 31 (1) of the Act is amended by striking out "on or after the first day Division B applies" and substituting "on or after July 1, 2010".

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

payments in lieu of tax

Amounts in lieu of tax

31.1 The following rules apply if a person sells beer, wine or a wine cooler and receives any payment made as or in lieu of the tax payable under this Act:

1. The person must deal with and account for the payment as tax under this Act.

2. If the person fails to deal with and account for the payment in accordance with this Act and the regulations, the person is liable to the same penalties and fines, and is guilty of the same offences, as would apply if the payment were the tax payable under this Act.

3. The Minister may collect and receive the payment using the same remedies and procedures that are provided by this Act and the regulations for the collection and enforcement of the tax payable under this Act.

4. For the purposes of the assessment and collection of the payment, the person receiving the payment is deemed to be a collector for the purposes of Division D.

10. Section 38 of the Act is amended by adding the following subsection:

Class of collectors

(4) The Minister may require a class of collectors to complete an inventory report in accordance with subsection (3).

11. Subsections 41 (3) and (4) of the Act are repealed and the following substituted:

Penalty, failure to submit a return

(3) The Minister may assess a penalty against a collector that fails to submit a return in accordance with this Part and the regulations equal to 10 per cent of the tax collectable or 5 per cent of the tax payable by the collector, as the case may be, for the period covered by the return.

12. Section 50 of the Act is amended by adding the following subsection:

Application of subrule 60.07 (2), Rules of Civil Procedure

(1.1) Subrule 60.07 (2) of the Rules of Civil Procedure does not apply in respect of a warrant issued by the Minister under clause (1) (b).

13. Section 64 of the Act is amended by striking out "on and after the first day Division B applies" at the end of the portion before paragraph 1 and substituting "on and after July 1, 2010".

14. Clause 66 (a) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

15. (1) Subsection 67 (1) of the Act is amended by striking out "before the first day Division B applies" in the portion before clause (a) and substituting "before July 1, 2010".

(2) Subsection 67 (3) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

(3) Subsection 67 (4) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

16. (1) Subsection 68 (1) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

(2) Subsection 68 (3) of the Act is amended by striking out "before the first day Division B applies" in the portion before clause (a) and substituting "before July 1, 2010".

(3) Subsection 68 (4) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

17. (1) Subsection 69 (1) of the Act is amended by striking out "before the first day Division B applies" and substituting "before July 1, 2010".

(2) Subsection 69 (2) of the Act is amended by striking out "before the first day Division B applies" in the portion before clause (a) and substituting "before July 1, 2010".

18. (1) Subsection 72 (1) of the Act is amended by striking out "before the first day Division B applies" at the end and substituting "before July 1, 2010".

(2) Paragraph 1 of subsection 72 (2) of the Act is amended by striking out "before the first day Division B applies" at the end and substituting "before July 1, 2010".

Commencement

19. (1) Subject to subsection (2), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Subsections 1 (2) and (3) are deemed to have come into force on July 1, 2010.

Schedule 2
assessment ACt

1. Paragraph 29 of subsection 3 (1) of the Assessment Act is amended by striking out "and located on an easement on land that is not owned by the power utility" at the end.

Commencement

2. This Schedule is deemed to have come into force on January 1, 1998.

Schedule 3
commodity futures act

1. Subsection 59 (5) of the Commodity Futures Act is repealed and the following substituted:

Review by court

(5) As soon as practicable and not later than 10 days after a direction is issued under subsection (1), the Commission shall serve and file a notice of application in the Superior Court of Justice to continue the direction or for such other order as the court considers appropriate.

2. The English version of subsection 64 (3) of the Act is repealed and the following substituted:

Liability of Crown

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

Commencement

3. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 4
corporations tax ACt

1. (1) The definition of "planholder" in subsection 74.2 (1) of the Corporations Tax Act is repealed and the following substituted:

"planholder" means,

(a) in relation to a benefit plan that is not a qualifying trust, a person who provides or causes another person to provide the benefit plan, either alone or together with one or more other persons, or

(b) in relation to a benefit plan that is a qualifying trust, each trustee of the qualifying trust; ("titulaire de régime")

(2) Subsection 74.2 (1) of the Act is amended by adding the following definition:

"qualifying trust" means a trust established on or after December 1, 2010 that is a type of trust prescribed by the regulations; ("fiducie admissible")

(3) Paragraph 1 of subsection 74.2 (2) of the Act is repealed and the following substituted:

1. The amount of tax payable by a planholder of the plan is equal to the sum of the following amounts:

i. 2 per cent of the taxable contributions made by the planholder to the plan.

ii. 2 per cent of the net administration fees paid in respect of the plan to the extent that the funds used to pay the fees have not been subject to tax as taxable contributions to the plan.

1.1 Despite paragraph 1, if the plan is a qualifying trust, the amount of tax payable by a planholder of the plan is equal to the sum of the following amounts:

i. 2 per cent of the taxable contributions received by the planholder from a person other than a member of the plan.

ii. 2 per cent of the net administration fees paid in respect of the plan to the extent that the funds used to pay the fees have not been subject to tax as taxable contributions to the plan.

(4) Paragraph 1 of subsection 74.2 (3) of the Act is repealed and the following substituted:

1. The amount of tax payable by a planholder of the plan is equal to the sum of the following amounts:

i. 2 per cent of the taxable benefits paid under the plan that are funded by the planholder.

ii. 2 per cent of the net administration fees paid in respect of the plan.

1.1 Despite paragraph 1, if the plan is a qualifying trust, the amount of tax payable by a planholder of the plan is equal to the sum of the following amounts:

i. 2 per cent of the taxable benefits paid under the plan that are funded from amounts received by the planholder from a person other than a member of the plan.

ii. 2 per cent of the net administration fees paid in respect of the plan.

(5) Section 74.2 of the Act is amended by adding the following subsections:

Election by qualifying trust

(3.1) A planholder of a benefit plan that is a qualifying trust may elect on or after December 1, 2010 to have the rules in subsection (3.2) apply if the following circumstances exist:

1. The planholder elects, in the form and manner approved by the Minister, to have the rules in subsection (3.2) apply.

2. The amounts in the plan out of which benefits will be paid exceed the amounts required for the payment of benefits foreseeable and payable within three years, or a different period prescribed by the Minister.

Same, effect of election

(3.2) If a planholder makes an election under subsection (3.1), the following rules apply:

1. The planholder's tax payable under subsection 2 (2.1) shall not be determined under subsection (2).

2. The planholder's tax payable under subsection 2 (2.1) shall be determined under subsection (3).

3. The qualifying trust is considered an unfunded benefit plan for the purposes of this Act.

Unfunded plan becomes funded

(3.3) The following rules apply with respect to an unfunded benefit plan that becomes a funded benefit plan at any particular time on or after November 18, 2010:

1. In addition to any amounts of tax payable that are determined under subsection (3) or (4), the amount of tax payable under subsection 2 (2.1) by a planholder or by a member of a plan shall be determined in accordance with paragraphs 2 and 3.

2. The amount of tax payable by a planholder of the plan shall be an amount equal to 2 per cent of the amounts held by the plan at the particular time that are attributable to amounts funded by the planholder or received by the planholder from a person other than a member of the plan.

3. The amount of tax payable by a member of the plan shall be an amount equal to 2 per cent of the amounts held by the plan at the particular time that are attributable to amounts funded by the member.

Funded plan becomes unfunded

(3.4) The following rules apply with respect to a funded benefit plan that becomes an unfunded benefit plan at any particular time on or after November 18, 2010:

1. The amount of tax payable under subsection 2 (2.1) that is determined under subsection (3) after the particular time by a planholder or a member of the plan shall be reduced in accordance with paragraphs 2 and 3.

2. The amount of tax payable by a planholder shall be reduced by 2 per cent of the amounts held by the plan at the particular time and that are attributable to taxable contributions made by the planholder or received by the planholder from a person other than a member of the plan to the extent that they have not been applied under this subsection to reduce the tax payable under subsection (3) since the particular time.

3. The amount of tax payable by a member shall be reduced by 2 per cent of the amounts held by the plan at the particular time that are attributable to taxable contributions made by the member to the extent that they have not been applied under this subsection to reduce the tax payable under subsection (3) since the particular time.

2. Section 102 of the Act is amended by adding the following subsection:

Application of subrule 60.07 (2), Rules of Civil Procedure

(3) Subrule 60.07 (2) of the Rules of Civil Procedure does not apply in respect of a warrant issued by the Minister under clause (1) (b).

Commencement

3. (1) Subject to subsection (2), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Section 1 is deemed to have come into force on December 1, 2010.

Schedule 5
education ACt

1. (1) The French version of clause 232 (6) (a) of the Education Act is amended by striking out "prévisions" and substituting "prévisions budgétaires".

(2) The French version of clause 232 (6) (c) of the Act is amended by striking out "prévisions" and substituting "prévisions budgétaires".

2. The French version of subsection 233.2 (3) of the Act is amended by striking out "affectées en vertu du paragraphe 233 (1)" and substituting "affectées dans le cadre du paragraphe 233 (1)".

3. Subsection 247 (5) of the Act is repealed and the following substituted:

Payments re debt instruments

(5) Subject to the regulations, if under subsection (1) or (2) a board issues a debt instrument prescribed under clause (3) (f), the board shall,

(a) on or before each due date in each year, pay the principal and interest coming due on the debt instrument in the year; and

(b) where a sinking fund, retirement fund or other fund prescribed under clause (3) (e) has been established in respect of the debt instrument, on or before the anniversary in each year of the issue date of the debt instrument, pay the amount required to be paid into the sinking fund, retirement fund or such prescribed fund in respect of the debt instrument in the year.

4. (1) Clause 257.30 (1) (a) of the Act is amended by striking out "a deficit" and substituting "an accumulated deficit".

(2) Subsection 257.30 (6) of the Act is amended by striking out "a deficit or a probable deficit" and substituting "an accumulated deficit or a probable accumulated deficit".

5. The French version of clause 257.34 (2) (g) of the Act is amended by striking out "à partir d'une fraction" and substituting "avec une fraction".

6. Subsection 257.50 (2) of the Act is amended by striking out "a deficit" and substituting "an accumulated deficit".

Commencement

7. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 6
employer health tax ACt

1. Subsection 2 (8) of the Employer Health Tax Act is repealed and the following substituted:

Delivery of agreement

(8) A copy of the agreement referred to in subsection (7) or (7.1) shall be delivered to the Minister by at least one of the employers on or before the date on which the return for the year is required to be delivered under section 5.

2. Section 2.1 of the Act is repealed.

3. Subsections 3 (4.1) and (4.2) of the Act are repealed.

4. (1) Subsection 5 (3) of the Act is repealed.

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

Requirements re returns

(4.1) A person who delivers a return under this section, or in respect of whom a return is delivered under this section, shall satisfy the prescribed requirements in respect of accuracy and completeness of the return.

5. Section 8.1 of the Act is repealed.

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

Notice of objection

(1) A taxpayer who objects to an assessment may, within 180 days after the day the notice of assessment was sent, serve on the Minister a notice of objection in the form approved by the Minister.

(2) Clause 9 (4) (b) of the Act is amended by striking out "or statement of disallowance".

(3) Subsection 9 (5) of the Act is repealed and the following substituted:

Minister's duty to reconsider

(5) Upon receipt of a notice of objection, the Minister shall, as quickly as possible, reconsider the assessment and vacate, confirm or vary it, or make a reassessment.

(4) Subsection 9 (7) of the Act is amended by striking out "or disallowance".

7. (1) Subsection 10 (1) of the Act is amended by striking out "or disallowance".

(2) Subsection 10 (10) of the Act is amended by striking out "or disallowance".

8. (1) Subsection 11 (3) of the Act is amended by striking out "or disallowance".

(2) Subsection 11 (4) of the Act is repealed and the following substituted:

Powers of court

(4) The court may dispose of an appeal by dismissing it, allowing it or allowing it and,

(a) vacating the assessment;

(b) varying the amount assessed;

(d) referring the assessment back to the Minister for reconsideration and reassessment.

9. Section 20 of the Act is amended by adding the following subsection:

Application of subrule 60.07 (2), Rules of Civil Procedure

(1.1) Subrule 60.07 (2) of the Rules of Civil Procedure does not apply in respect of a warrant issued by the Minister under clause (1) (b).

10. The English version of subsection 31 (8) of the Act is amended by striking out "or rebate" wherever it appears.

11. Clauses 38 (1) (h), (j), (k), (l) and (m) of the Act are repealed.

Commencement

12. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 7
financial administration ACt

1. Clause (f) of the definition of "non-cash expense" in subsection 1 (1) of the Financial Administration Act is repealed and the following substituted:

(f) an imputed interest subsidy arising when a loan that has been made bears interest at a rate below the lender's cost of funds,

2. (1) Section 1.0.10 of the Act is amended by adding the following clauses:

(c.1) respecting the accounting policies and practices of public entities;

(c.2) respecting the accounting policies and practices of entities (other than public entities) whose financial statements are included in the consolidated financial statements of the Province as set out in the Public Accounts;

(2) Section 1.0.10 of the Act is amended by adding the following subsections:

Accounting policies and practices, public entities

(2) Regulations made under clause (1) (c.1) may authorize or require public entities to follow specified accounting policies and practices.

Same, other entities

(3) Regulations made under clause (1) (c.2) may authorize or require entities described in that clause to follow specified accounting policies and practices.

Conflict re policies and practices

(4) A regulation made under clause (1) (c.1) or (c.2) respecting accounting policies and practices prevails over a requirement of another Act or regulation, if the regulation made under clause (1) (c.1) or (c.2) so provides.

Incorporation by reference

(5) A regulation made under clause (1) (c.1) or (c.2) may incorporate documents by reference, in whole or in part, and may specify that a document is incorporated as it reads on a specified date or as it may be amended in the future.

Subdelegation

(6) A regulation made under clause (1) (c.1) or (c.2) may provide that the Minister of Finance, or a public servant employed under Part III of the Public Service of Ontario Act, 2006 in a position in the Ministry of Finance that is specified in the regulation, is authorized to specify the accounting policies or practices that must or may be followed by a particular public entity or by a particular entity whose financial statements are included in the consolidated financial statements of the Province as set out in the Public Accounts.

Same

(7) Part III (Regulations) of the Legislation Act, 2006 does not apply with respect to the specification of accounting policies or practices by the Minister of Finance or the public servant in accordance with a regulation referred to in subsection (6).

3. Subsection 1.0.14 (3) of the Act is amended by striking out "may issue such directives, policies and guidelines" and substituting "may issue such directives, policies and guidelines and may establish such practices and procedures".

4. Subsection 1.0.16 (2) of the Act is repealed and the following substituted:

Exception

(2) The Minister of Finance may not delegate his or her powers under subsection 5.1 (3) or 5.2 (2).

5. Section 1.0.20 of the Act is amended by striking out "in accordance with such directives, policies and guidelines as are made or issued under this Act" at the end and substituting "in accordance with such directives, policies and guidelines as are issued and such practices and procedures as are established under subsection 1.0.14 (3)".

6. Section 1.0.23 of the Act is repealed.

7. Subsection 5 (4) of the Act is amended by striking out "who works in the Ministry of Finance, other than in the Minister's office" and substituting "who works in a ministry but not in a minister's office".

8. Section 11.1 of the Act is amended by adding the following subsection:

Effect of statutory appropriation for a specified purpose

(3.1) A provision of an Act that provides a statutory appropriation authorizing money to be paid out of the Consolidated Revenue Fund for a specified purpose is deemed to provide an additional statutory appropriation authorizing the Crown to incur non-cash expenses for the same purpose.

9. Section 11.3 of the Act is amended by adding the following subsections:

Same, non-cash expenses

(3) Every agreement that would require the Crown to recognize a non-cash expense is deemed to contain a provision stating that the performance by the Crown of the obligation that would require it to recognize the non-cash expense shall be subject to an appropriation to which that non-cash expense can be charged being available in the fiscal year in which the obligation must be performed.

Same, non-cash investments

(4) Every agreement that would require the Crown to recognize a non-cash investment is deemed to contain a provision stating that the performance by the Crown of the obligation that would require it to recognize the non-cash investment shall be subject to an appropriation to which that non-cash investment can be charged being available in the fiscal year in which the obligation must be performed.

Application

(5) Subsections (3) and (4) apply in respect of fiscal years commencing on or after April 1, 2010.

10. Section 17 of the Act is amended by adding the following definitions:

"certificated security" means a security that is represented by a certificate; ("valeur mobilière avec certificat")

"security certificate" means a certificate representing a security, but does not include a certificate in electronic form; ("certificat de valeur mobilière")

"uncertificated security" means a security that is not represented by a certificate. ("valeur mobilière sans certificat")

11. (1) Clause 20 (1) (d) of the Act is amended by striking out "to determine with respect to a security to be issued and sold the form in which it is issued and sold, the length of the term to maturity" at the beginning and substituting "to determine, with respect to a security to be issued and sold, the length of the term to maturity".

(2) Subsection 20 (1) of the Act is amended by adding the following clause:

(d.1) to determine, with respect to a security,

(i) the form in which it is to be issued, including whether it is to be issued in registered form or bearer form, issued as a certificated security or an uncertificated security, issued in physical or electronic form or issued in any other form acceptable to the Minister of Finance, and

(ii) the manner in which the security may be held, including whether it may be held directly or held indirectly through a clearing agency, a clearing system or a securities depository or held in any other manner acceptable to the Minister of Finance;

(3) Clause 20 (1) (g) of the Act is amended by adding at the end "and, if securities are sold by way of auction, to enter into such agreements governing auctions or to establish such terms and conditions governing auctions as the Minister of Finance considers to be necessary or desirable".

(4) Subsection 20 (1) of the Act is amended by adding the following clause:

(h.1) to enter into agreements and arrangements with clearing agencies, securities depositories and other entities, to take such other steps in connection with the issuance of securities as the Minister of Finance considers to be necessary or advisable and to maintain the register for securities issued by Ontario;

(5) Clause 20 (1) (j) of the Act is repealed and the following substituted:

(j) to provide, as a term of a security or a loan, for the payment by Ontario of additional amounts to compensate for present or future withholding taxes, duties, assessments or charges that are imposed by law on, or with respect to, a payment to the holder under the security or to the lender under the loan;

(j.1) to provide, as a term of a security or a loan, that the Minister of Finance will not exercise a right of set-off in respect of amounts due and payable by Ontario under the security or loan subject to such terms and conditions as the Minister of Finance considers appropriate, whether the right of set-off arises under this Act or otherwise;

(6) Subsection 20 (1) of the Act is amended by adding the following clause:

(k.1) subject to the terms of any order made under this Act, to do any of the following things as considered appropriate by the Minister of Finance:

(i) to determine the terms and conditions of a security, and

(ii) to certify the terms and conditions that apply to an uncertificated security and to specify the document in which the applicable terms and conditions are stated;

(7) Clause 20 (1) (l) of the Act is repealed and the following substituted:

(l) to borrow money from a bank, corporation, government, person or authority,

(i) by way of loan repayable on demand or at a fixed time and raised by way of bank overdraft, loan agreement or the giving of short term security by Ontario,

(ii) within such maximum principal amount as may be specified by the Lieutenant Governor in Council in the order made under this subsection, and

(iii) on such terms and conditions as the Minister of Finance considers advisable and expedient, including the terms and conditions that may be authorized under this subsection for securities,

and to enter into such agreements, execute such documents and instruments and take such other steps as the Minister of Finance considers to be necessary or advisable in connection with the borrowing.

(8) Subsection 20 (7) of the Act is amended by striking out "during a specified period not exceeding twenty-five years" in the portion before paragraph 1.

(9) Paragraph 1 of subsection 20 (7) of the Act is repealed and the following substituted:

1. The Minister of Finance may issue, reissue, renew or replace securities issued under the order if the maximum aggregate principal amount, determined in accordance with this Act, of securities issued under the order and outstanding from time to time does not at any time exceed the maximum amount specified in the order.

(10) Paragraph 3 of subsection 20 (7) of the Act is repealed and the following substituted:

3. Subject to paragraph 2, all of the powers of the Minister of Finance under subsection (1) apply with respect to securities issued under the order.

(11) Section 20 of the Act is amended by adding the following subsection:

Same, transition

(8) The following rules apply with respect to the orders made under this section that expressly refer to subsection (7) and are in force on the day that the Helping Ontario Families and Managing Responsibly Act, 2010 received Royal Assent:

1. Subsection (7) as it reads on the day that the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent applies with respect to those orders on and after that day.

2. If the Lieutenant Governor in Council amends or replaces one or more of those orders, the aggregate maximum amount of all of those orders, as they existed immediately before the Helping Ontario Families and Managing Responsibly Act, 2010 received Royal Assent, cannot be increased as a result of the amendment or replacement.

12. Section 29 of the Act is amended by striking out "the manner of executing securities" and substituting "the manner of executing security certificates".

13. Section 37 of the Act is repealed and the following substituted:

Statement re authority

37. If a security is issued pursuant to this Act, the terms and conditions of the security must include a statement that the security is issued pursuant to this Act.

14. Clause 38 (1) (b) of the Act is repealed and the following substituted:

(b) prescribing the terms and conditions of securities or prescribing the documents in which the terms and conditions of uncertificated securities may be stated;

(b.1) for the issuance, sale, registration and holding of uncertificated securities;

Commencement

15. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Sections 1, 8 and 9 are deemed to have come into force on April 1, 2010.

Same

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

Schedule 8
financial services commission of ontario ACt, 1997

1. Subsection 5 (3) of the Financial Services Commission of Ontario Act, 1997 is amended by striking out "this Act or any other Act" and substituting "this Act, any other Act or an agreement under section 100 of the Pension Benefits Act".

Commencement

2. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 9
insurance ACt

1. (1) Section 238 of the Insurance Act is amended by adding the following subsection:

Request for additional information

(3.1) The Superintendent may require that the insurer provide such additional information, material and evidence as the Superintendent may specify in order to make a decision with respect to a filed ground.

(2) Subsection 238 (4) of the Act is repealed and the following substituted:

Prohibition from using ground

(4) The Superintendent shall notify the insurer orally or otherwise that the insurer is prohibited from using one or more of the grounds filed under subsection (2) if the Superintendent is of the opinion that the ground,

(a) is subjective;

(b) is arbitrary;

(d) is contrary to public policy.

When insurer may use ground

(4.1) Unless the Superintendent notifies the insurer that the insurer is prohibited from using a ground, the insurer may use the ground 30 days after the later of,

(a) the day the insurer files the ground under subsection (2); or

(b) the day the additional information, material or evidence requested is provided, if the Superintendent requires the insurer to provide additional information, material or evidence under subsection (3.1).

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

Affiliated automobile insurers, concurrent filing

238.1 (1) The Superintendent may require that affiliated insurers who write automobile insurance in Ontario file their grounds under section 238 concurrently.

Insurer's application, consideration of affiliate's grounds

(2) The Superintendent may consider the grounds filed by the affiliates of an insurer when deciding on the grounds filed by the insurer.

Interpretation

(3) For the purpose of this section, an insurer is considered to be affiliated with another insurer if one of them is the subsidiary of the other or both are subsidiaries of the same body corporate or each of them is controlled by the same person.

Commencement

3. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 10
interim appropriation for 2011-2012 ACt, 2010

Interpretation

1. (1) Expressions used in this Act have the same meaning as in the Financial Administration Act unless the context requires otherwise.

Same

(2) In this Act, a reference to the estimates and supplementary estimates for 2011-12 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2012 as tabled in the Assembly on or before March 31, 2012.

Expenses of the public service

2. (1) For the fiscal year ending on March 31, 2012, amounts not exceeding a total of $70,400,000,000 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.

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 2011-12.

Investments of the public service

3. (1) For the fiscal year ending on March 31, 2012, amounts not exceeding a total of $2,300,000,000 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.

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 2011-12.

Expenses of the Legislative Offices

4. For the fiscal year ending on March 31, 2012, amounts not exceeding a total of $121,000,000 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 2011-12.

Expenditures of the public service

5. An expenditure of the public service in the votes and items set out in the estimates and supplementary estimates for 2011-12 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2012, responsibility has been given for the program or activity that includes that expenditure.

Commencement

6. The Act set out in this Schedule comes into force on April 1, 2011.

Short title

7. The short title of the Act set out in this Schedule is the Interim Appropriation for 2011-2012 Act, 2010.

Schedule 11
loan and trust corporations ACt

1. Section 38 of the Loan and Trust Corporations Act is repealed.

Commencement

2. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 12
ministry of revenue ACt

1. Section 13 of the Ministry of Revenue Act is amended by adding the following clause:

Commencement

2. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 13
ontario clean energy benefit ACT, 2010

CONTENTS

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Purpose

Definitions

Base invoice amount

Financial assistance

Invoices

Financial arrangements

Definition

Records

Inspections and inquiries

Recovery of overpayments

Confidentiality

Offences

Limitation period

Payment of fines

Regulations

Amendment to s. 9 (9)

Ontario Energy Board Act, 1998

Repeal

Commencement

Short title

______________

Purpose

1. The purpose of this Act is to provide financial assistance in respect of electricity costs.

Definitions

2. (1) In this Act,

"billing period" means a period of time that is wholly or partly in the eligible period and for which an invoice in respect of an eligible account is issued; ("période de facturation")

"Board" means the Ontario Energy Board; ("Commission")

"consumer" means a person,

(a) to whom an invoice is issued in respect of an eligible account for a billing period, or

(b) who is prescribed by the regulations or who satisfies such conditions as may be prescribed by the regulations; ("consommateur")

"distribution system" has the same meaning as in section 3 of the Ontario Energy Board Act, 1998; ("réseau de distribution")

"electricity vendor" means the IESO, a licensed distributor, a licensed retailer or a person prescribed by the regulations; ("vendeur d'électricité")

"eligible account" means, in respect of a consumer, an account with an electricity vendor, or with a person prescribed by the regulations, for the provision of electricity in Ontario if,

(a) the consumer has a demand for electricity of 50 kilowatts or less,

(b) the consumer annually uses not more than 250,000 kilowatt hours of electricity,

(i) carries on a business that is a farming business for the purposes of the Farm Registration and Farm Organizations Funding Act, 1993, and

(ii) holds a valid registration number assigned under that Act or the consumer's obligation to file a farming business registration form was waived pursuant to an order made under subsection 22 (6) of that Act,

(d) the account relates to,

(i) a dwelling,

(ii) a property, within the meaning of the Condominium Act, 1998,

(iii) a residential complex, within the meaning of the Residential Tenancies Act, 2006,

(iv) a property that includes one or more housing units and that is owned or leased by a co-operative within the meaning of the Co-operative Corporations Act, or

(e) the consumer or the account satisfies such conditions as may be prescribed by the regulations; ("compte admissible")

"eligible period" means the period commencing January 1, 2011 and ending on December 31, 2015; ("période admissible")

"IESO" means the Independent Electricity System Operator; ("SIERE")

"licensed distributor" means a person licensed under Part V of the Ontario Energy Board Act, 1998 to own or operate a distribution system; ("distributeur titulaire d'un permis")

"licensed retailer" means a person who is licensed under Part V of the Ontario Energy Board Act, 1998 to retail electricity; ("détaillant titulaire d'un permis")

"market rules" means the market rules made under section 32 of the Electricity Act, 1998; (règles du marché")

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

"retail" has the same meaning as in section 56 of the Ontario Energy Board Act, 1998; ("vendre au détail")

"unit sub-metering" means activities that are unit sub-metering for the purposes of the Ontario Energy Board

Act, 1998; ("activités liées aux compteurs divisionnaires d'unité")

"unit sub-meter provider" means a person who is licensed to engage in unit sub-metering by the Board under Part V of the Ontario Energy Board Act, 1998. ("fournisseur de compteurs divisionnaires d'unité")

Eligible account

(2) For the purposes of this Act, if a consumer would, but for this subsection, have an eligible account with a licensed retailer and with a licensed distributor, but only one of them issues an invoice to the consumer for a billing period for all amounts payable by the consumer to them for the billing period,

(a) the consumer is deemed to have an eligible account for the billing period only with whichever of them issues the invoice for the billing period; and

(b) the licensed distributor or licensed retailer who issues the invoice for the billing period is deemed to be imposing all charges and other amounts payable under the invoice for the purposes of determining the amount of financial assistance to which the consumer is entitled.

Base invoice amount

3. (1) For the purposes of this Act, the base invoice amount for a billing period in respect of an eligible account is determined in accordance with the regulations and, unless otherwise prescribed by the regulations, includes, if the invoice is issued by a licensed distributor or a licensed retailer, amounts in respect of,

(a) the commodity price of the electricity;

(b) the rates and charges set out in the applicable rate order issued by the Board under subsection 78 (3) of the Ontario Energy Board Act, 1998 that are not required under subsection (2) or the regulations to be excluded;

(d) any adjustment on the invoice required pursuant to section 25.33 of the Electricity Act, 1998;

(e) any debt retirement charge payable by the consumer under subsection 85 (4) of the Electricity Act, 1998; and

(f) the amount of harmonized sales tax payable under Part IX of the Excise Tax Act (Canada) in respect of amounts that are included in the base invoice amount by reason of clauses (a) to (e) or the regulations.

Exclusions

(2) Except as otherwise prescribed by the regulations, the base invoice amount for a billing period must exclude,

(a) the balance of any amounts carried forward from previous invoices;

(b) all penalties and interest;

(d) the fixed monthly service charge payable by a generation facility, within the meaning of section 56 of the Ontario Energy Board Act, 1998, that is classified as "microFIT" in a rate order issued by the Board under subsection 78 (3) of that Act;

(e) charges labelled as "specific service charges" or "retail service charges" in the applicable rate order issued by the Board under subsection 78 (3) of the Ontario Energy Board Act, 1998;

(f) the amount of any harmonized sales tax payable under Part IX of the Excise Tax Act (Canada) in respect of amounts excluded from the base invoice amount for the billing period under clause (c), (d) or (e) or the regulations; and

(g) any other amounts prescribed by the regulations.

Financial assistance

4. (1) A consumer who has an eligible account during a billing period is entitled to receive financial assistance in respect of the cost of electricity during the billing period in an amount equal to 10 per cent of the base invoice amount for the billing period in respect of the eligible account.

Exception

(2) Despite subsection (1), a consumer is not entitled to receive financial assistance under this Act,

(a) in respect of electricity consumed in generation station service; or

(b) in such circumstances as may be prescribed by the regulations.

Payment of financial assistance

(3) The financial assistance to which a consumer is entitled under this Act shall be paid,

(a) by crediting the consumer's eligible account; or

(b) in such other manner as may be prescribed by the regulations.

Money appropriated by the Legislature

(4) The money required for the purposes of this Act shall be paid out of the money appropriated for those purposes by the Legislature.

No assignment of financial assistance

(5) An assignment by a consumer to another person or entity, including a licensed retailer, of the consumer's entitlement to any payment, rebate or credit does not apply to any financial assistance to which the consumer is entitled under this Act, whether the assignment was made before or after this subsection comes into force.

Same

(6) Subsection (7) applies if,

(a) a consumer provides to another person electricity in respect of which the consumer is entitled to financial assistance under subsection (1); and

(b) an invoice for the electricity is issued to the person by the consumer, by an agent of the consumer or by a unit sub-meter provider providing unit sub-metering for the consumer.

Requirement to pass on benefit

(7) Despite subsections (1) and (5), the consumer and every unit sub-meter provider providing unit sub-metering for the consumer shall ensure that each person who is liable to pay an invoice referred to in clause (6) (b) receives a credit, determined in the manner prescribed by the regulations, in respect of the financial assistance to which the consumer is entitled with respect to electricity the consumer provides to the person.

Invoices

5. (1) Subject to subsection (2) and the regulations, every electricity vendor who issues an invoice for a billing period to a consumer in respect of an eligible account shall clearly show on the invoice,

(a) a credit equal to the amount of the financial assistance provided to the consumer for the billing period; and

(b) the net amount of the invoice after the credit.

Invoice issued by consumer, etc.

(2) An invoice that is issued by a consumer, an agent of a consumer, a unit sub-meter provider or another person prescribed by the regulations must be in the form required by the regulations and contain or be accompanied by the information required by the regulations.

Transitional

(3) If, for technical or operational reasons, an electricity vendor or a person referred to in subsection (2) is unable to adapt its invoices to comply with this Act and the regulations by the time it issues its first invoice in 2011 in respect of an eligible account,

(a) the electricity vendor or person shall adapt its invoices as soon as possible and, in any event, no later than May 1, 2011; and

(b) consumers continue to be entitled to receive the financial assistance to which they are entitled under this Act and may receive it as a lump sum credit on the invoice for the first billing period after the invoices have been adapted or by such other means as may be prescribed by the regulations.

Financial arrangements

Purposes

6. (1) The purposes of this section are,

(a) to ensure that financial assistance under this Act and the regulations is provided to those persons entitled to receive it; and

(b) to authorize the making of financial arrangements to reimburse electricity vendors, and other persons prescribed by the regulations, for financial assistance provided under this Act and the regulations.

Regulations

(2) The Lieutenant Governor in Council may, for the purpose of this section, make regulations,

(a) authorizing the Minister of Energy to make payments to persons who are electricity vendors or persons prescribed by the regulations in respect of the amount of financial assistance to which consumers are entitled under this Act and prescribing methods for determining the amounts payable;

(b) requiring the IESO to make payments to licensed distributors, or to persons prescribed by the regulations, in respect of financial assistance provided under this Act or the regulations and prescribing methods for determining the amounts payable;

(c) requiring a licensed distributor to make payments to other licensed distributors or licensed retailers in respect of financial assistance under this Act and prescribing methods for determining the amounts payable;

(d) requiring a person who is an electricity vendor or a person prescribed by the regulations to make payments in respect of financial assistance to consumers or other persons entitled to receive the financial assistance and prescribing the circumstances in which such payments are to be made and methods for determining the amounts payable;

(e) authorizing the Minister of Energy to make payments of financial assistance directly to consumers and prescribing the circumstances when such payments are to be made;

(f) requiring a person who is an electricity vendor or a person prescribed by the regulations to make payments to the Minister of Finance in respect of amounts received by them or in circumstances prescribed by the regulations and prescribing methods for determining the amounts payable;

(g) authorizing payments referred to in clause (a), (b), (c), (d) or (f) to be made by way of set-offs and credits and prescribing conditions entitling or requiring amounts to be set off or credited;

(h) governing the payments required under clause (a), (b), (c), (d) or (f), including methods for paying the amounts payable and when the payments must be made, and governing methods for determining amounts to be set off or credited, including the times within which amounts must or may be set off or credited;

(i) for the purposes of this Act and the regulations, requiring persons who are electricity vendors or persons prescribed by the regulations to provide information to the Minister of Energy, the Minister of Revenue, the IESO, the Board or licensed distributors and prescribing the information to be provided and when it must be provided;

(j) governing the establishment and maintenance of variance accounts required for the purposes of this Act.

Conflict with market rules

(3) In the event of a conflict, a regulation made under subsection (2) prevails over the market rules to the extent of the conflict.

Provision of information

(4) A person may do anything required by a regulation made under clause (2) (i) despite any agreement to the contrary and, if the person does so,

(a) the person is not liable for doing the thing in contravention of any agreement to the contrary; and

(b) doing the thing is deemed not to constitute a breach, termination, repudiation or frustration of any contract.

Definition

7. In sections 8, 9 and 10,

"Minister" means the Minister of Revenue or such other member of the Executive Council to whom the administration of those sections is assigned under the Executive Council Act.

Records

8. (1) Every electricity vendor and every person prescribed by the regulations shall keep at a location in Ontario such records as are necessary to determine and verify compliance with this Act and the regulations and any records required by the regulations to be kept.

Electronic records

(2) If a person keeps records in an electronic form, the person shall ensure that, from the time the records are first made and for as long as they are required to be retained,

(a) they remain complete and unaltered, apart from any changes or additions made in the normal course of communication, storage or display; and

(b) they are capable of being printed and of being produced in electronically readable format for inspection, examination or audit.

Retention of records

(3) Records required to be kept under subsection (1) shall not be destroyed unless authorization has been given in writing by the Minister.

Offence

(4) Every person who fails to keep records in accordance with this section is guilty of an offence and, on conviction, is liable to a fine of not less than $50 and not more than $5,000.

Inspections and inquiries

9. (1) The Minister may appoint one or more inspectors who are authorized to exercise any of the powers and perform any of the duties of a person authorized by the Minister under subsection 31 (1) of the Retail Sales Tax Act for any purpose related to the administration and enforcement of this Act.

Same

(2) Subsections 31 (1), (2) and (2.1) of the Retail Sales Tax Act apply, with necessary modifications, with respect to the administration and enforcement of this Act.

Admission of evidence

(3) The Minister, or a person authorized by the Minister, may, for any purpose related to the administration of this Act or the regulations, reproduce from original data stored electronically any information previously submitted as required under this Act or the regulations in any form by any person, and the electronically reproduced document shall be admissible in evidence and shall have the same probative force as the original document would have had if it had been proved in the ordinary way.

Inquiry

(4) The Minister may, for any purpose related to the administration of this Act or the regulations, authorize any person, whether or not the person is an employee in the Ministry of the Minister, to make such inquiry as the Minister considers necessary with reference to anything relating to the administration of this Act or the regulations.

Copies

(5) If a book, record or other document is examined or produced under this section, the person by whom it is examined or to whom it is produced or any officer of the Ministry may make, or cause to be made, one or more copies of it, and a document purporting to be certified by the person to be a copy made pursuant to this section is admissible in evidence and has the same probative force as the original document would have if proved in the ordinary way.

Compliance

(6) No person shall hinder or molest or interfere with any person doing anything that the person is authorized by this section to do or prevent or attempt to prevent any person doing any such thing.

Same

(7) Despite any other law to the contrary, every person shall, unless the person is unable to do so, do everything he, she or it is required by this section to do.

Administration of oaths

(8) Declarations or affidavits in connection with statements of information submitted pursuant to this section may be taken before any person having authority to administer an oath or before any person specially authorized for that purpose by the Lieutenant Governor in Council, but any person so specially authorized shall not charge any fee for doing so.

Powers of inquiry

(9) For the purpose of an inquiry under subsection (4), the person authorized to make the inquiry has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to the inquiry as if it were an inquiry under that Act.

Recovery of overpayments

Definitions

10. (1) In this section,

"inspector" means an inspector referred to in section 9; ("inspecteur")

"overpayment" means an amount received by a person in excess of any reimbursement to which the person is entitled under this Act and the regulations. ("trop-perçu")

Notice of overpayment

(2) If it appears to an inspector that a person has received an overpayment, the Minister may send a written notice to the person advising the person of the following:

1. That the person has received an overpayment.

2. The amount of the overpayment and how it was calculated.

3. The required steps to be taken by the person with respect to the overpayment.

4. The date, not more than six months after the date of the notice, by which these steps must be completed.

5. That the Minister has the authority to assess the person for the amount of the overpayment, plus interest, if the person fails to complete the required steps by the specified date.

Calculation of amount of overpayment

(3) For the purposes of this section, an inspector shall calculate an overpayment or the outstanding balance of an overpayment in the manner and form and using such procedures as the Minister considers adequate and expedient.

Assessment

(4) If a person fails to complete the steps required in a notice under subsection (2) within the time specified in the notice, and any additional time requested by the person and permitted by the Minister, the Minister may assess or reassess the amount of the overpayment, or the outstanding balance of the overpayment, based on the inspector's calculation described in subsection (3).

Penalty

(5) If the Minister makes an assessment or reassessment under subsection (4) and is satisfied that the person's non-compliance with the required steps in the notice was attributable to neglect, carelessness, wilful default or fraud, the Minister may assess a penalty against the person equal to the outstanding balance of the overpayment when the penalty is assessed.

Time limit

(6) The Minister shall not assess or reassess under subsection (4) more than 48 months after the end of the month in which the person received the overpayment.

Exception, where misrepresentation, etc.

(7) Subsection (6) does not apply if the Minister establishes that the person has made a misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in supplying information under this Act or the regulations or in omitting to disclose information.

Deemed debt retirement charge

(8) An amount assessed or reassessed by the Minister under this section is deemed for the purposes of the administration and enforcement of this Act to be a debt retirement charge, as defined in subsection 85 (1) of the Electricity Act, 1998, that has been collected, on the last day of the month in which the person received the overpayment, by the person as a collector appointed under subsection 85.3 (1) of the Electricity Act, 1998 and, for those purposes,

(a) sections 85.11, 85.12, 85.14, 85.17 and 85.30 of that Act apply with necessary modifications;

(b) in the application of sections 85.11 and 85.14 of that Act and without limiting the generality of clause (a), references to the Financial Corporation are read as references to the Minister of Finance and references to the Minister of Finance are read as references to the Minister;

(c) the regulations made under that Act for the purposes of calculating the rate or rates of interest payable under section 85.11 of that Act and the manner of calculating the amount of interest apply with necessary modifications; and

(d) sections 23 and 36, subsections 37 (1) and (2) and sections 38 and 39 of the Retail Sales Tax Act apply with necessary modifications.

Disposition of repaid amounts

(9) If all or part of an overpayment is repaid to the Minister of Finance, the Minister of Energy shall make such financial arrangements and payments as may be necessary to ensure that any electricity vendor or other person entitled to all or part of the overpayment receives the appropriate amount.

Confidentiality

11. (1) Except as authorized by this section, no person employed by the Government of Ontario shall,

(a) knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Energy or the Minister of Revenue for the purposes of this Act; or

(b) knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of either Minister for the purposes of this Act.

Testimony

(2) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings,

(a) to give evidence relating to any information obtained by or on behalf of the Minister of Energy or Minister of Revenue for the purposes of this Act; or

(b) to produce any record or thing obtained by or on behalf of either Minister for the purposes of this Act.

Exception

(3) Subsections (1) and (2) do not apply in respect of,

(a) criminal proceedings under any Act of the Parliament of Canada;

(b) proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

(c) proceedings relating to the administration or enforcement of this Act or Part V.1 or VI of the Electricity Act, 1998.

Communication

(4) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this Act,

(a) communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law or to an employee of the Board information obtained by or on behalf of either Minister for the purposes of this Act; and

(b) allow another person employed by the Government of Ontario in the administration or enforcement of any law or an employee of the Board to inspect or have access to any record or thing obtained by or on behalf of either Minister for the purposes of this Act.

Reciprocal communication

(5) A person who receives information or obtains access to any record or thing under subsection (4) has a duty to communicate or furnish to that Minister on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this Act.

Use of information

(6) Any information, record or thing communicated or furnished under this section may be used only for the administration or enforcement of this Act or an Act that is administered or enforced by the person receiving the information, record or thing.

Same

(7) The Minister of Revenue may permit information or a copy of any record or thing obtained by or on behalf of the Minister of Revenue for the purposes of this Act to be given to,

(a) the person from whom the information, record or thing was obtained;

(b) any person by whom an amount is payable or has been paid under this Act; or

(c) the legal representative of a person mentioned in clause (a) or (b) or the agent of the person authorized in writing in that behalf.

Information

(8) The Minister of Revenue may permit information or a copy of any record or thing obtained by or on behalf of the Minister of Revenue for the purposes of this Act to be given to any person employed by any government if,

(a) the information, record or thing obtained by that government for the purpose of any Act that imposes a tax or duty are communicated or furnished on a reciprocal basis to the Minister; and

(b) the information, record or thing will not be used for any purpose other than the administration or enforcement of a law that provides for the imposition of a tax or duty.

Offence

(9) Every person who contravenes any provision of this section is guilty of an offence and on conviction is liable to a fine of not more than $2,000.

Offences

False statements, etc., and fraud

12. (1) Every person who engages in any of the following acts or omissions is guilty of an offence:

1. Making, participating in, assenting to or acquiescing in the making of a false or deceptive statement in any document or answer required or submitted under this Act or the regulations.

2. Destroying, altering, mutilating, hiding or otherwise disposing of information or records of an electricity vendor or other person, for the purpose of evading compliance with this Act or the regulations.

3. Making, assenting to or acquiescing in the making of a false or deceptive entry of a material particular in a record of an electricity vendor or other person required to maintain records for the purposes of this Act.

4. Omitting to make or assenting to or acquiescing in the omission of an entry of a material particular in a record of an electricity vendor or other person required to maintain records for the purposes of this Act.

5. Wilfully evading or attempting to evade, in any manner, compliance with an obligation under this Act or the regulations.

Penalty upon conviction

(2) A person convicted of an offence under subsection (1) is liable to either or both of the following penalties in addition to any other penalty assessed under this Act:

1. A fine in an amount that is not less than $1,000 and not more than $10,000.

2. Imprisonment for a term of not more than two years.

General offence

(3) Every person who contravenes, by any act or omission, a requirement imposed under this Act is guilty of an offence and, on conviction, is liable, where no other penalty is provided for the offence, to a fine of not less than $50 and not more than $5,000.

Limitation period

13. A proceeding to prosecute an offence under this Act must be commenced within six years after the date on which the matter of the offence arose.

Payment of fines

14. Fines imposed on conviction of an offence under this Act are payable to the Minister of Finance on behalf of the Crown in right of Ontario.

Regulations

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

(a) prescribing anything required to be or referred to in this Act as being prescribed by the regulations;

(b) defining any word or expression used in this Act that is not already expressly defined in this Act;

(c) requiring any person to take such action or refrain from taking such action as may be necessary for the purposes of or in connection with any regulation made under this Act;

(d) prescribing information that must or may be included on invoices issued to consumers or that must or may accompany invoices issued to consumers or payments of financial assistance under this Act;

(e) governing the presentation of financial assistance under this Act on invoices issued to consumers;

(f) governing information that must or may be provided to consumers concerning this Act and eligibility for financial assistance under it;

(g) governing the determination of the base invoice amount for a billing period with respect to a class of electricity vendors or a class of consumers;

(h) prescribing a method of paying or crediting to a consumer an amount of financial assistance to which the consumer is entitled under this Act and the circumstances in which the method applies;

(i) requiring a unit sub-meter provider to provide financial assistance in respect of the cost of electricity and prescribing,

(i) the circumstances in which the financial assistance is to be provided,

(ii) the person or class of persons entitled to receive the financial assistance,

(iii) the method of determining the amount of the financial assistance to be provided,

(iv) the manner for paying or otherwise providing the financial assistance;

(j) respecting records to be kept by electricity vendors or by persons prescribed by the regulations;

(k) providing for matters which, in the opinion of the Lieutenant Governor in Council, are necessary or desirable to facilitate the implementation of this Act and the regulations.

Retroactive regulations

(2) A regulation made under this Act is, if it so provides, effective with reference to a period before it is filed.

Subdelegation

(3) A regulation under this Act may authorize a person to require, authorize, prescribe or otherwise determine any matter that may be required, authorized, prescribed or otherwise determined by the Lieutenant Governor in Council under this Act.

Amendment to s. 9 (9)

16. On the day section 33 of the Public Inquiries Act, 2009 comes into force, subsection 9 (9) of this Act is repealed and the following substituted:

Application of Public Inquiries Act, 2009

(9) Section 33 of the Public Inquiries Act, 2009 applies to an inquiry under subsection (4).

Ontario Energy Board Act, 1998

17. (1) The definition of "enforceable provision" in section 3 of the Ontario Energy Board Act, 1998 is amended by adding the following clause:

(c.1) a provision of the Ontario Clean Energy Benefit Act, 2010 or the regulations made under it;

(2) Section 70 of the Act is amended by adding the following subsection:

Deemed condition of licences, unit sub-meter provider

(2.2) Every licence issued to a unit sub-meter provider is deemed to contain the condition that the unit sub-meter provider is required to comply with the Ontario Clean Energy Benefit Act, 2010 and the regulations made under it.

Repeal

18. This Act is repealed on a day to be named by proclamation of the Lieutenant Governor.

Commencement

19. The Act set out in this Schedule comes into force on January 1, 2011.

Short title

20. The short title of the Act set out in this Schedule is the Ontario Clean Energy Benefit Act, 2010.

Schedule 14
ontario municipal employees retirement system aCt, 2006

1. Section 5 of the Ontario Municipal Employees Retirement System Act, 2006 is amended by adding the following subsections:

Other employers as determined by the Sponsors Corporation

(2.1) The Sponsors Corporation is authorized to determine whether an employer described in paragraph 1, 2 or 3 may participate in the OMERS pension plans, and to determine the conditions applicable to the employer's participation:

1. An employer that is an authorized subsidiary of the Administration Corporation, within the meaning of subsection 35.1 (1).

2. An employer that is an investment entity of an authorized subsidiary of the Administration Corporation, within the meaning of subsection 35.1 (4),

i. if the investment entity provides eligible services described in subsection 35.1 (5), and

ii. if the Administration Corporation or an authorized subsidiary of the Administration Corporation,

A. in the case of an investment entity that is a corporation, directly or indirectly has beneficial ownership of the issued and outstanding shares of the investment entity representing more than 50 per cent of the shareholders' equity,

B. in the case of an investment entity that is a trust, directly or indirectly owns, or directly or indirectly has beneficial ownership of, more than 50 per cent of the units of the trust, and

C. in the case of an investment entity that is a partnership or other type of entity, directly or indirectly has more than a 50 per cent beneficial interest in the partnership or other entity.

3. Any other employer that is a corporation, trust or partnership,

i. if the corporation, trust or partnership supports the Administration Corporation in carrying out its objects described in paragraph 1 or 2 of section 34 or in exercising its powers under section 35 for the purpose of carrying out those objects, and

ii. if the Administration Corporation, an authorized subsidiary of the Administration Corporation or an investment entity described in paragraph 2,

A. in the case of a corporation, directly or indirectly has beneficial ownership of the issued and outstanding shares - shares of any class - of the corporation representing more than 50 per cent of the shareholders' equity,

B. in the case of a trust, directly or indirectly owns, or directly or indirectly has beneficial ownership of, more than 50 per cent of the units of the trust, and

C. in the case of a partnership, directly or indirectly has more than a 50 per cent beneficial interest in the partnership.

Same

(2.2) If the Sponsors Corporation determines under subsection (2.1) that an employer may participate in the OMERS pension plans, the employer may participate in the OMERS pension plans in respect of the employer's eligible employees who are employed in Canada and may do so only in accordance with such conditions as may be imposed by the Sponsors Corporation.

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

Termination of participation

8. (1) The following employers are not entitled to terminate their participation in an OMERS pension plan unless the employer has the consent of the Sponsors Corporation:

1. An employer described in paragraphs 1 to 7 or 9 or 10 of subsection 5 (1).

2. An employer described in paragraph 1, 2 or 3 of subsection 5 (2.1).

By-law

(2) An employer referred to in subsection (1) shall not pass a by-law providing for the termination of its participation in an OMERS pension plan, except upon such terms as may be established by the Sponsors Corporation.

Commencement

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

Schedule 15
pension benefits ACt

1. (1) Clause 42 (1) (c) of the Pension Benefits Act is repealed.

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

Purchase of life annuity before June 30, 2011

(6.2) If a life annuity is purchased under clause (1) (c) before June 30, 2011 for a former member and if the amount of the commuted value of the former member's deferred pension that is used to purchase the life annuity is greater than the amount permitted under the Income Tax Act (Canada) for such a purchase, the administrator shall pay to the former member as a lump sum the portion of the commuted value that exceeds the amount permitted under that Act for the purchase of the life annuity.

Commencement

2. (1) Subject to subsection (2), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Subsection 1 (1) comes into force on June 30, 2011.

Schedule 16
public sector compensation restraint to protect public services ACt, 2010

1. Section 12 of the Public Sector Compensation Restraint to Protect Public Services Act, 2010 is amended by adding the following subsection:

Same

(5) Nothing in this Act shall be interpreted or applied so as to prevent the application of the insurance plan under the Workplace Safety and Insurance Act, 1997 after the effective date to an individual to whom the insurance plan did not apply on the effective date.

Commencement

2. This Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Schedule 17
retail sales tax ACt

1. (1) Subsection 1 (1) of the Retail Sales Tax Act is amended by adding the following definition:

"band" has the same meaning as in the Indian Act (Canada); ("bande")

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

"benefits plan" means a funded benefits plan, an unfunded benefits plan or a qualifying trust; ("régime d'avantages sociaux")

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

"council of the band" has the same meaning as in the Indian Act (Canada); ("conseil de la bande")

"Federal Minister" means a minister of the Government of Canada who is responsible for the administration, enforcement or collection of the tax imposed under Part IX of the Excise Tax Act (Canada); ("ministre fédéral")

(4) The definition of "funded benefits plan" in subsection 1 (1) of the Act is repealed and the following substituted:

"funded benefits plan" means a plan,

(a) that provides protection against risk to an individual that could otherwise be obtained by taking out a contract of insurance, whether the benefits are partly insured or not, and

(b) that comes into existence when the premiums paid into a fund out of which benefits will be paid exceed amounts required for the payment of benefits that are foreseeable and payable within 30 days after payment of the premium,

and includes a multi-employer benefits plan but not a qualifying trust; ("régime d'avantages sociaux par capitalisation")

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

"Indian" has the same meaning as in the Indian Act (Canada); ("Indien")

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

"planholder" means, in relation to a benefits plan, the person who provides the plan, including an employer under a multi-employer benefits plan and the trustee of a qualifying trust; ("titulaire du régime")

(7) The definition of "premium" in subsection 1 (1) of the Act is amended by adding the following clause:

(f) in respect of a qualifying trust,

(i) any amounts paid by the planholder by reason of the occurrence of a risk, less any amounts paid to the planholder by members in order to receive benefits under the plan, and

(ii) any amounts paid by members in order to receive benefits under the plan,

and includes dues, assessments, or administration costs and fees paid for the administration or servicing of the plan to the vendor; ("prime")

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

"qualifying trust" means, subject to subsection (1.0.1), a trust that is established on or after December 1, 2010 to provide members and others with protection against risk to an individual that could otherwise be obtained by taking out a contract of insurance, whether the benefits are partly insured or not, and that satisfies the criteria prescribed by the Minister; ("fiducie admissible")

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

"reserve" has the same meaning as in the Indian Act (Canada); ("réserve")

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

Qualifying trust

(1.0.1) For the purposes of this Act, a qualifying trust comes into existence on the earlier of,

(a) the date on which it satisfies such requirements as may be prescribed by the Minister for the purposes of this clause; or

(b) the earliest date on which amounts paid into the plan exceed the amounts required for the payment of benefits that are foreseeable and payable within three years, or within such other period as may be prescribed by the Minister.

2. Subsection 2 (20) of the Act is amended by striking out "a tax at the rate provided in subsection (1)" and substituting "the tax under subsection (1)".

3. (1) Subsection 2.1 (9) of the Act is repealed.

(2) Subsections 2.1 (19) and (20) of the Act are repealed and the following substituted:

Initial designation of benefit plans as funded or unfunded

(19) A planholder who establishes a new benefits plan on or after November 18, 2010, other than a qualifying trust, shall designate in writing, in the manner required by the Minister, whether the benefits plan is intended to be a funded benefits plan or an unfunded benefits plan and, when the designation is made in the required manner, the plan is deemed to be so designated for the purposes of this Act unless the designation is changed under subsection (20).

Change of designation

(20) If the planholder of a funded benefits plan or an unfunded benefits plan gives written notice to the Minister, in the manner required by the Minister, that the plan is changed and that the designation of the plan is changed, the designation is deemed to be so changed on the day the Minister receives the notice.

Transition

(21) Subsection (20) applies with respect to benefits plans initially designated under this section before, on or after November 18, 2010.

Effect of change in designation

(22) The following rules apply if the designation of a benefits plan is changed under subsection (20):

1. If, after the change, the plan is designated as an unfunded benefits plan, no tax is payable under subsection (1) on benefits paid out of the benefits plan on or after the effective date of the change that may reasonably be attributed to premiums paid into the benefits plan on which tax has previously been paid.

2. If, after the change, the plan is designated as a funded benefits plan,

i. tax is payable under subsection (1) on the total amount in the benefits plan at the time the change in the designation takes effect, and

ii. the planholder shall remit the tax referred to in subparagraph i in the same manner and at the same time any tax payable or collected under this section is to be remitted.

4. The definition of "returning resident" in subsection 2.2 (1) of the Act is amended by striking out "on a reserve (as defined by the Indian Act (Canada)) by an Indian, a band or the council of a band (as those terms are defined by that Act)" at the end and substituting "on a reserve by an Indian, a band or the council of the band".

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

Exception

(1.4) Subsections (1) and (1.3) do not apply to a vendor after June 30, 2010 in respect of,

(a) the sale of tangible personal property after that day;

(b) the sale after that day of a taxable service, other than transient accommodation in respect of which a purchaser is subject to tax under section 2.1.1;

(d) the brewing of beer or the fermentation of wine for persons after that day.

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

Change in name, address or nature of business

(2) A vendor who is required under this section to have a permit and has been issued a permit shall notify the Minister of any change in the vendor's name or address and any change in the nature of the vendor's business.

6. (1) Paragraph 59 of subsection 7 (1) of the Act is amended,

(a) by striking out "on a reserve, as defined by the Indian Act (Canada) or by the Minister" and substituting "on a reserve"; and

(b) by striking out "by an Indian, a band or the council of the band, all as defined under the Indian Act (Canada)" and substituting "by an Indian, a band or the council of the band".

(2) Paragraph 60 of subsection 7 (1) of the Act is amended,

(a) by striking out "on a reserve, as defined by the Indian Act (Canada) or by the Minister" and substituting "on a reserve"; and

(b) by striking out "by an Indian, a band or the council of the band, all as defined by the Indian Act (Canada)" at the end and substituting "by an Indian, a band or the council of the band".

7. Section 15 of the Act is amended by adding the following subsection:

Exception

(2) A vendor is not required to file a return under subsection (1) in respect of a period commencing on or after July 1, 2010 unless the vendor,

(a) collected an amount as or on account of tax under this Act during the period; or

(b) was required under section 5 to have a permit during the period.

8. Section 15.1 of the Act is amended by adding the following subsection:

Exception

(1.1) Despite subsection (1), no return is required in respect of tangible personal property manufactured after June 30, 2010.

9. Section 16 of the Act is amended by adding the following subsection:

Records of vendors of insurance

(3.1) Every vendor who sells a contract of insurance, receives reimbursement for premiums under a contract of group insurance or administers a benefits plan shall keep records containing such information as will enable the determination of the vendor's liabilities and obligations under this Act, and any failure to do so constitutes an offence under this Act.

10. (1) The French version of subsection 20 (1) of the Act is amended,

(a) by striking out "un remboursement" and substituting "un remboursement ou une remise"; and

(b) by striking out "de ce remboursement" and substituting "de ce remboursement ou de cette remise".

(2) The French version of subsection 20 (2) of the Act is amended by striking out "de remboursement" and substituting "de remboursement ou de remise".

(3) Section 20 of the Act is amended by adding the following subsections:

Interpretation, certain rebates, etc.

(2.1) Subsections (1) and (2) apply with respect to a credit or payment under a regulation made under subsection 51.1 (1) (Rebates for First Nations) as if the credit or payment were a refund of tax to the person under this Act.

. . . . .

Interpretation, certain rebates, etc.

(4.1) If a supplier credits or pays an amount under a regulation made under subsection 51.1 (1) (Rebates for First Nations) to a person who is not entitled to the credit or payment, subsections (3), (4) and (5) to (5.4) apply with respect to the supplier as if the supplier were a vendor who fails to collect tax that the vendor is responsible to collect under this Act and as if the amount to which the person was not entitled were uncollected taxes.

Assessment, certain rebates

(4.2) If a supplier files an incorrect return or other information with the Canada Revenue Agency, the Minister of Revenue or any other tax authority indicating that the supplier has credited an amount to a person under a regulation made under subsection 51.1 (1) (Rebates for First Nations) when the supplier has not in fact credited that amount, the Minister may assess the supplier under this section, and the assessment shall be for the amount incorrectly reported as having been credited and shall be accompanied by a brief statement in writing of the grounds upon which the person is assessed.

Penalty for false return, certain rebates

(4.3) If the Minister is satisfied that a supplier, by neglect, carelessness, wilful default or fraud, filed a false return or other information with the Canada Revenue Agency, the Minister of Revenue or any other tax authority indicating that the supplier has credited an amount to a person under a regulation made under subsection 51.1 (1) (Rebates for First Nations) when the supplier has not in fact credited that amount, the Minister may assess a penalty against the supplier in an amount equal to the greater of $25 or 25 per cent of the amount that was not in fact credited.

Same

(4.4) If the Minister assesses a penalty against a supplier under subsection (4.2), subsections (5) to (5.4) apply with respect to the supplier as if the supplier were a vendor and as if the penalty was imposed under subsection (3).

Same

(4.5) Expressions used in subsections (4.1) to (4.4) have the same meaning as in section 51.1 unless the context requires otherwise.

11. (1) The French version of subsection 32 (5) of the Act is amended,

(a) by striking out "un remboursement" and substituting "un remboursement ou une remise"; and

(b) by striking out "du remboursement" and substituting "du remboursement ou de la remise".

(2) Section 32 of the Act is amended by adding the following subsections:

Rebate obtained by fraud

(6) Every person who, by deceit, falsehood, or by any fraudulent means, obtains or attempts to obtain a credit or payment under a regulation made under subsection 51.1 (1) (Rebates for First Nations) to which the person is not entitled is guilty of an offence and on conviction is liable to a fine of not less than $500 and not more than an amount that is double the amount of the credit or payment obtained or sought to be obtained, or to a term of imprisonment of not more than two years, or to both.

False reporting

(7) Every supplier, as defined in subsection 51 (1), is guilty of an offence if the supplier, by deceit, falsehood or by any fraudulent means, files a false return or other information with the Canada Revenue Agency, the Minister of Revenue or any other tax authority indicating that the supplier has credited an amount to a person under a regulation made under subsection 51.1 (1) (Rebates for First Nations) when the supplier has not in fact credited that amount.

Penalty, false reporting

(8) A person convicted of an offence under subsection (7) is liable to a fine of not less than $500 and not more than an amount that is double the amount falsely claimed to have been credited to a person under a regulation made under subsection 51.1 (1), or to a term of imprisonment of not more than two years, or to both.

12. Section 37 of the Act is amended by adding the following subsection:

Application of subrule 60.07 (2), Rules of Civil Procedure

(1.1) Subrule 60.07 (2) of the Rules of Civil Procedure does not apply in respect of a warrant issued by the Minister under clause (1) (b).

13. The definition of "Federal Minister" in subsection 51 (1) of the Act is repealed.

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

Rebates for First Nations

51.1 (1) The Minister may, by regulation, provide for credits and payments to be made to an Indian, a band or a council of the band in respect of the provincial component of the tax that is paid or payable on or after September 1, 2010 under Part IX of the Excise Tax Act (Canada) in respect of Ontario.

Authority to pay

(2) A regulation under subsection (1) may authorize the Minister of Finance to make payments out of the Consolidated Revenue Fund to an Indian, a band or a council of the band and may authorize the Federal Minister or a supplier to credit or pay an amount on behalf of the Crown in right of Ontario.

Obligation to repay

(3) If a person receives a credit or payment under a regulation under subsection (1) to which the person is not entitled, the person shall pay to the Minister the amount to which the person was not entitled.

Same

(4) This Act applies in respect of an amount payable to the Minister under subsection (3) as if the person were a purchaser and as if the amount were a tax payable under this Act.

Same

(5) An amount payable under subsection (3) that has not been paid to the Minister constitutes a debt to the Crown in right of Ontario and may be recovered by way of deduction or set-off or in proceedings commenced at any time in a court of competent jurisdiction or in any other manner provided by this Act.

Deduction or set-off from payment to Ontario

(6) Subsections 51 (9) and (10) apply, with necessary modifications, with respect to amounts credited or paid under this section by the Federal Minister.

Interpretation

(7) Expressions used in this section have the same meaning as in section 51 unless the context requires otherwise.

Transition

(8) Ontario Regulation 317/10 (Rebates for First Nations in Ontario) is deemed to have been made under this section.

Commencement

15. (1) Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Subsections 1 (2), (4), (6), (7), (8) and (10) are deemed to have come into force on December 1, 2010.

Same

(3) Section 2 is deemed to have come into force on July 1, 2010.

Same

(4) Subsection 3 (2) is deemed to have come into force on November 18, 2010.

Schedule 18
securities ACt

1. (1) The definition of "adviser" in subsection 1 (1) of the Securities Act is amended by adding "or derivatives" at the end.

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

"alternative trading system" means a marketplace that,

(a) is not a recognized quotation and trade reporting system or a recognized exchange,

(b) does not require an issuer to enter into an agreement to have its securities traded on the marketplace,

(c) does not provide, directly or through one or more subscribers, a guarantee of a two-sided market for a security or derivative on a continuous or reasonably continuous basis,

(d) does not set requirements governing the conduct of subscribers, other than conduct in respect of the trading by those subscribers on the marketplace, and

(e) does not discipline subscribers other than by exclusion from participation in the marketplace; ("système de négociation parallèle")

(3) The definition of "clearing agency" in subsection 1 (1) of the Act is repealed and the following substituted:

"clearing agency" means,

(a) with respect to securities, a person or company that,

(i) acts as an intermediary in paying funds or delivering securities, or both, in connection with trades and other transactions in securities,

(ii) provides centralized facilities for the clearing of trades and other transactions in securities, including facilities for comparing data respecting the terms of settlement of a trade or transaction, or

(iii) provides centralized facilities as a depository of securities,

but does not include,

(iv) the Canadian Payments Association or its successors,

(v) an exchange or a quotation and trade reporting system,

(vi) a registered dealer, or

(vii) a bank, trust company, loan corporation, insurance company, treasury branch, credit union or caisse populaire that, in the normal course of its authorized business in Canada, engages in an activity described in subclause (a) (i), but does not also engage in an activity described in subclause (a) (ii) or (iii), and

(b) with respect to derivatives, a person or company that provides centralized facilities for the clearing and settlement of trades in derivatives that, with respect to a contract, instrument or transaction,

(i) enables each party to the contract, instrument or transaction to substitute, through novation or otherwise, the credit of the clearing agency for the credit of the parties,

(ii) arranges or provides, on a multilateral basis, for the settlement or netting of obligations resulting from such contracts, instruments or transactions executed by participants in the clearing agency, or

(iii) otherwise provides clearing services or arrangements that mutualize or transfer among participants in the clearing agency the credit risk arising from such contracts, instruments or transactions executed by the participants,

but does not include a person or company solely because the person or company arranges or provides for,

(iv) settlement, netting or novation of obligations resulting from agreements, contracts or transactions on a bilateral basis and without a central counterparty,

(v) settlement or netting of cash payments through the Automated Clearing Settlement System or the Large Value Transfer System, or

(vi) settlement, netting or novation of obligations resulting from a sale of a commodity in a transaction in the spot market; ("agence de compensation")

(4) Subsection 1 (1) of the Act is amended by adding the following definitions:

"credit rating" means an assessment that is publicly disclosed or distributed by subscription concerning the creditworthiness of an issuer,

(a) as an entity, or

(b) with respect to specific securities or a specific pool of securities or assets; ("notation")

"credit rating organization" means a person or company that issues credit ratings; ("organisme de notation")

(5) The definition of "dealer" in subsection 1 (1) of the Act is amended by adding "or derivatives" after "securities".

(6) Subsection 1 (1) of the Act is amended by adding the following definitions:

"derivative" means an option, swap, futures contract, forward contract or other financial or commodity contract or instrument whose market price, value, delivery obligations, payment obligations or settlement obligations are derived from, referenced to or based on an underlying interest (including a value, price, rate, variable, index, event, probability or thing), but does not include,

(a) a commodity futures contract as defined in subsection 1 (1) of the Commodity Futures Act,

(b) a commodity futures option as defined in subsection 1 (1) of the Commodity Futures Act,

(c) a contract or instrument that, by reason of an order of the Commission under subsection (10), is not a derivative, or

(d) a contract or instrument in a class of contracts or instruments prescribed by the regulations not to be derivatives; ("produit dérivé")

"designated credit rating organization" means a credit rating organization that is designated by the Commission under Part IX; ("organisme de notation désigné")

"designated derivative" means a derivative,

(a) that, by reason of an order of the Commission under subsection (11), is a designated derivative, or

(b) that belongs to a class of derivatives prescribed by the regulations; ("produit dérivé désigné")

"designated trade repository" means a trade repository that is designated by the Commission under section 21.2.2; ("répertoire des opérations désigné")

(7) The definition of "market participant" in subsection 1 (1) of the Act is repealed and the following substituted:

"market participant" means,

(a) a registrant,

(b) a person or company exempted from the requirement to be registered under this Act by a ruling of the Commission,

(d) a manager or custodian of assets, shares or units of a mutual fund,

(e) a recognized clearing agency,

(f) a recognized commodity futures exchange,

(g) a recognized exchange,

(h) a recognized quotation and trade reporting system,

(i) a recognized self-regulatory organization,

(j) a designated credit rating organization,

(k) a designated trade repository,

(l) a transfer agent for securities of a reporting issuer,

(m) a registrar for securities of a reporting issuer,

(n) the Canadian Investor Protection Fund,

(o) the Ontario Contingency Trust Fund,

(p) the general partner of a market participant, or

(q) any other person or company or member of a class of persons or companies prescribed by the regulations; ("participant au marché")

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

"marketplace" means any of the following, but does not include an inter-dealer bond broker:

1. An exchange.

2. A quotation and trade reporting system.

3. A person or company not included in paragraph 1 or 2 that,

i. constitutes, maintains or provides a market or facility for bringing together buyers and sellers of securities or derivatives,

ii. brings together the orders for securities or derivatives of multiple buyers and sellers, and

iii. uses established non-discretionary methods under which the orders interact with each other, and the buyers and sellers entering the orders agree to the terms of a trade.

4. With respect to securities, a dealer who executes a trade of an exchange-traded security outside a marketplace described in paragraph 1, 2 or 3; ("marché")

(9) The English version of the definition of "quotation and trade reporting system" in subsection 1 (1) of the Act is amended by striking out "a stock exchange" and substituting "an exchange".

(10) The definition of "recognized stock exchange" in subsection 1 (1) of the Act is repealed and the following substituted:

"recognized exchange" means a person or company recognized by the Commission under section 21; ("bourse reconnue")

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

"related derivative" means, with respect to a security, a derivative that is related to the security because the derivative's market price, value, delivery obligations, payment obligations or settlement obligations are, in a material way, derived from, referenced to or based on the market price, value, delivery obligations, payment obligations or settlement obligations of the security; ("produit dérivé connexe")

(12) The English version of clause (c) of the definition of "reporting issuer" in subsection 1 (1) of the Act is amended by striking out "stock exchange" and substituting "exchange".

(13) The definition of "representative" 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 or derivatives 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 securities or buying or selling securities or derivatives, whether or not the individual is employed by the adviser; ("représentant")

(14) The English version of clause (b) of the definition of ""trade" or "trading"" in subsection 1 (1) of the Act is amended by striking out "stock exchange" and substituting "exchange".

(15) The definition of ""trade" or "trading"" in subsection 1 (1) of the Act is amended by adding the following clauses:

(b.1) entering into a derivative or making a material amendment to, terminating, assigning, selling or otherwise acquiring or disposing of a derivative, or

(b.2) a novation of a derivative, other than a novation with a clearing agency;

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

"trade repository" means a person or company that collects and maintains reports of completed trades by other persons and companies; ("répertoire des opérations")

(17) Subsection 1 (1.1) of the Act is repealed and the following substituted:

Same

(1.1) For the purposes of this Act, any of "business combination", "consultant", "disclosure controls and procedures", "exchange-traded security", "future-oriented financial information", "going private transaction", "insider bid", inter-dealer bond broker", "internal controls", "penny stocks", "related party transactions" and "reverse take-overs" may be defined in the regulations or the rules and, if so defined, has the defined meaning.

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

Purchase and sale of a derivative

(1.1.1) For the purposes of this Act,

(a) a person or company purchases a derivative by entering into, making a material amendment to or otherwise acquiring a derivative;

(b) a person or company sells a derivative by making a material amendment to, terminating, assigning or otherwise disposing of a derivative; and

(c) a novation of a derivative, other than a novation with a clearing agency, is deemed to be the purchase and sale of a derivative.

(19) Subsection 1 (10) of the Act is repealed and the following substituted:

Relieving orders

(10) If the Commission is satisfied that it would not be prejudicial to the public interest, it may make an order that, for the purposes of Ontario securities law,

(a) a person or company is not,

(i) an insider, or

(ii) a reporting issuer;

(b) a contract or instrument is not a derivative; or

(20) Subsection 1 (11) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

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

Extended meaning for purposes of subs. (14)

(15) A person or company that is a party to a contract, instrument or derivative referred to in clause (10) (b) or (c) or (11) (c) is deemed, for the purpose of subsection (14), to be a person or company that would be subject to an order made under subsection (10) or (11).

2. Subsection 2.2 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Order to suspend trading

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

. . . . .

3. Subsection 3.5 (2) of the Act is amended by striking out "securities or commodities" and substituting "securities, derivatives or commodities".

4. (1) Clause 11 (1) (b) of the Act is repealed and the following substituted:

(b) to assist in the due administration of the securities or derivatives laws or the regulation of the capital markets in another jurisdiction.

(2) Clause 11 (5) (b) of the Act is repealed and the following substituted:

(b) to assist in the due administration of the securities or derivatives laws or the regulation of the capital markets in another jurisdiction.

5. Clause 12 (1) (b) of the Act is repealed and the following substituted:

(b) to assist in the due administration of the securities or derivatives laws or the regulation of the capital markets in another jurisdiction.

6. The English version of subsection 19 (2) of the Act is repealed and the following substituted:

Record of transaction

(2) Without limiting the generality of subsection (1), every recognized exchange shall keep a record of the time at which each transaction on the recognized exchange took place and shall supply to any client of a member of the recognized exchange, on production of a written confirmation of a transaction with the member, particulars of the time at which the transaction took place and verification or otherwise of the matters set forth in the written confirmation.

7. (1) Section 20 of the Act is amended by adding the following subsection:

Compliance reviews, derivatives

(1.1) The Commission may designate in writing one or more persons for the purpose of reviewing the books, records and documents that are required to be kept by a person or company under the regulations with respect to derivatives.

(2) Subsection 20 (2) of the Act is repealed and the following substituted:

Powers of compliance reviewer

(2) A person conducting a compliance review may, on production of his or her designation, do the following:

1. In respect of a compliance review under subsection (1),

i. enter the business premises of any market participant during business hours, and

ii. inquire into and examine the books, records and documents of the market participant that are required to be kept under section 19, and make copies of the books, records and documents.

2. In respect of a compliance review under subsection (1.1),

i. enter the business premises of any person or company during business hours, and

ii. inquire into and examine the books, records and documents of the person or company that are required to be kept under the regulations with respect to derivatives, and make copies of the books, records and documents.

8. (1) The English version of subsection 21 (1) of the Act is repealed and the following substituted:

Exchanges

(1) No person or company shall carry on business as an exchange in Ontario unless recognized by the Commission under this section.

(2) Section 21 of the Act is amended by adding the following subsection:

Exception, commodity futures exchange

(1.1) Subsection (1) does not apply to a person or company with respect to carrying on business as a commodity futures exchange if the person or company is registered to do so under the Commodity Futures Act.

(3) The English version of subsection 21 (2) of the Act is amended by striking out "a stock exchange" and substituting "an exchange".

(4) The English version of subsection 21 (4) of the Act is amended by striking out "A recognized stock exchange" at the beginning and substituting "A recognized exchange".

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

Commission's powers

(5) The Commission may, if it considers it in the public interest, make any decision with respect to,

(a) the manner in which a recognized exchange carries on business;

(b) the trading of securities or derivatives on or through the facilities of a recognized exchange;

(d) issuers, whose securities are listed or posted for trading on a recognized exchange, to ensure that they comply with Ontario securities law; or

(e) any by-law, rule, regulation, policy, procedure, interpretation or practice of a recognized exchange.

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

Alternative trading systems

21.0.1 The Commission may, if it considers it in the public interest, make any decision with respect to,

(a) the manner in which an alternative trading system carries on business in Ontario;

(b) the trading of securities or derivatives on or through the facilities of the alternative trading system; or

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

Trade repository designation

21.2.2 (1) The Commission may, on the application of a person or company proposing to carry on business as a trade repository in Ontario, designate the person or company if the Commission considers it in the public interest.

Further requirements

(2) A designation under this section must be made in writing and is subject to such terms and conditions as the Commission may impose.

Commission's powers

(3) The Commission may, if it considers it in the public interest, make any decision with respect to,

(a) the manner in which a designated trade repository carries on business; or

(b) any by-law, rule, regulation, policy, procedure, interpretation or practice of a designated trade repository.

11. (1) The English version of subsection 21.3 (1) of the Act is amended by striking out "A recognized stock exchange" at the beginning and substituting "A recognized exchange".

(2) The English version of subsection 21.3 (2) of the Act is amended by striking out "a recognized stock exchange" in the portion before clause (a) and substituting "a recognized exchange".

(3) The English version of clauses 21.3 (2) (a), (b) and (c) of the Act are amended by striking out "the recognized stock exchange" wherever it appears and substituting in each case "the recognized exchange".

(4) The English version of subsection 21.3 (3) of the Act is amended by striking out "recognized stock exchanges" and substituting "recognized exchanges".

12. Section 21.4 of the Act is repealed and the following substituted:

Voluntary surrender

21.4 On application by a recognized exchange, recognized self-regulatory organization, recognized quotation and trade reporting system, recognized clearing agency or designated trade repository, the Commission may accept the voluntary surrender of the recognition or designation, and may impose terms and conditions applicable to the acceptance, if the Commission is satisfied that the surrender of the recognition or designation is not prejudicial to the public interest.

13. The English version of subsections 21.5 (1) and (2) of the Act are amended by striking out "a recognized stock exchange" wherever it appears and substituting in each case "a recognized exchange".

14. Section 21.6 of the Act is repealed and the following substituted:

Contravention of Ontario securities law

21.6 No by-law, rule, regulation, policy, procedure, interpretation or practice of a recognized exchange, recognized self-regulatory organization, recognized quotation and trade reporting system, recognized clearing agency or designated trade repository shall contravene Ontario securities law, but a recognized exchange, recognized self-regulatory organization, recognized quotation and trade reporting system, recognized clearing agency or designated trade repository may impose additional requirements within its jurisdiction.

15. Subsection 21.7 (1) of the Act is repealed and the following substituted:

Review of decisions

(1) The Executive Director or a person or company directly affected by, or by the administration of, a direction, decision, order or ruling made under a by-law, rule, regulation, policy, procedure, interpretation or practice of a recognized exchange, recognized self-regulatory organization, recognized quotation and trade reporting system, recognized clearing agency or designated trade repository may apply to the Commission for a hearing and review of the direction, decision, order or ruling.

16. Subsection 21.8 (1) of the Act is repealed the following substituted:

Auditors

Exchanges

(1) Every recognized exchange shall appoint an auditor for the exchange.

17. (1) The English version of subsections 21.9 (1) and (3) of the Act are amended by striking out "Every recognized stock exchange" at the beginning of each subsection and substituting in each case "Every recognized exchange".

(2) The English version of subsection 21.9 (5) of the Act is amended by striking out "the recognized stock exchange" and substituting "the recognized exchange".

18. The Act is amended by adding the following Part:

Part IX
Credit Rating organizations

Application for designation

22. (1) A credit rating organization may apply to the Commission to be designated by the Commission if the credit rating organization wants its credit ratings to satisfy,

(a) a requirement in Ontario securities law that a credit rating be given by a credit rating organization designated by the Commission; or

(b) a condition for an exemption under Ontario securities law.

Designation

(2) The Commission may designate a credit rating organization, subject to any terms and conditions the Commission considers advisable, if,

(a) an application for designation is made by the credit rating organization or the Director; and

(b) the Commission considers it in the public interest to designate the credit rating organization.

Cancellation of designation

(3) The Commission may, if it considers it in the public interest, cancel the designation of a credit rating organization or impose or change the terms and conditions of the designation.

Right to hearing

(4) The Commission shall not, without giving the credit rating organization an opportunity to be heard, refuse to designate a credit rating organization, cancel its designation or impose or change the terms and conditions to which the designation is subject.

Same

(5) If the Director applies to the Commission for the designation of a credit rating organization, the Commission shall not designate the credit rating organization without giving the credit rating organization an opportunity to be heard.

Duty to comply with prescribed requirements

23. A designated credit rating organization shall comply with such requirements as may be prescribed by the regulations, including requirements,

(a) relating to the establishment, publication and enforcement by the credit rating organization of a code of conduct applicable to its directors, officers and employees and the minimum requirements to be included in the code of conduct;

(b) prohibiting conflicts of interest between the credit rating organization and a person or company whose securities are being rated and establishing procedures to be followed if conflicts of interest arise or to avoid conflicts of interest.

Commission not involved in credit rating

24. (1) Nothing in this Part shall be construed as authorizing the Commission to direct or regulate the content of credit ratings or methodologies used to determine credit ratings.

Same

(2) No credit rating organization and no person or company acting on its behalf shall make any written or oral representation that the Commission has in any way passed upon the merits of a credit rating or the methodologies used to determine the credit rating.

19. (1) Subsection 25 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Registration

Dealers

(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 or derivatives unless the person or company,

. . . . .

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

If trading in derivatives

(1.1) Despite subsection (1), if the regulations provide that a person or company trading in derivatives must be registered in a category of registration prescribed by the regulations or that the person or company must comply with prescribed requirements when trading derivatives on his, her or its own account, or both, the person or company shall not trade in derivatives unless,

(a) the person or company,

(i) is, if required by the regulations, registered in the applicable category under the regulations, and

(ii) is in compliance with such requirements as may be prescribed by the regulations; or

(b) the person or company is exempt under Ontario securities law from the requirement to comply with this subsection.

(3) Subsection 25 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

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 securities or buying or selling securities or derivatives unless the person or company,

. . . . .

(4) Subsection 25 (7) of the Act is repealed and the following substituted:

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 he, she or it,

(a) is trading securities or derivatives;

(b) is providing advice with respect to investing in securities; or

20. (1) Subclause 27 (3) (b) (i) of the Act is repealed and the following substituted:

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

(2) Subclause 27 (3) (b) (iii) of the Act is repealed and the following substituted:

(iii) providing advice with respect to,

(A) investing in, buying or selling only specified securities or specified classes of securities or securities of specified classes of issuers, or

(B) buying or selling only specified derivatives or specified classes of derivatives.

21. (1) Subsection 34 (1) of the Act is amended by striking out the portion before paragraph 1 and paragraph 1 and substituting the following:

Exemption from registration requirements, advisers

(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 securities or buying or selling securities or derivatives:

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 securities or buying or selling securities or derivatives, including any class of securities or derivatives and the securities of a class of issuers, that are not purported to be tailored to the needs of anyone receiving the advice.

. . . . .

(2) Subsection 34 (3) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

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, or buying or selling a specified derivative or specified class of derivatives, 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:

. . . . .

(3) Subsection 34 (5) of the Act is repealed and the following substituted:

Interpretation

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

"financial or other interest" in a security or derivative includes,

(a) an ownership interest, beneficial or otherwise, in the security or derivative,

(b) an ownership interest, beneficial or otherwise, in another security issued by the same issuer,

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

(e) a financial arrangement with any person or company regarding the security or derivative,

(f) a financial arrangement with an underwriter or other person or company who has an interest in the security or derivative, and

(g) in the case of a derivative and except as otherwise prescribed by the regulations, a material interest, financial or otherwise, in the derivative's underlying interest.

22. (1) Section 35 of the Act is amended by adding the following subsection:

Prescribed derivatives

(5.1) A person or company is exempt from the requirement to be registered under this Act to act as a dealer when trading in such classes of derivatives as may be prescribed by the regulations.

(2) Subsection 35 (6) of the Act is amended by striking out "subsection (5)" at the end and substituting "subsection (5) or (5.1)".

23. The heading immediately before section 36 and section 36 of the Act are repealed and the following substituted:

PART XIII
TRADING IN SECURITIES and derivatives GENERALLY

Confirmation of trade

36. (1) Subject to the regulations, every registered dealer who has acted as principal or agent in connection with the purchase or sale of a security or derivative 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 the purchase or sale of a security or derivative 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 or derivative was bought or sold.

24. Subsection 37 (1) of the Act is repealed and the following substituted:

Order prohibiting calls to residences

(1) The Commission may by order suspend, cancel, restrict or impose terms and conditions on the right of any person or company named or described in the order to call at a residence or telephone from a location in Ontario to a residence located in or out of Ontario for the purpose of trading in any security or derivative or in any class of securities or derivatives.

25. (1) Section 38 of the Act is amended by adding the following subsection:

Representation prohibited, derivatives

(1.1) No person or company, with the intention of effecting a trade in a derivative, shall make any representation, written or oral, that he, she or it or any other person or company will refund any amount paid in respect of the derivative, unless the terms of the derivative provide for a refund or provide a right to a party to require a refund.

(2) Subsection 38 (2) of the Act is repealed and the following substituted:

Future value

(2) No person or company, with the intention of effecting a trade in a security or derivative, shall give any undertaking, written or oral, relating to the future value or price of the security or derivative.

(3) Subsection 38 (3) of the Act is repealed and the following substituted:

Listing

(3) Subject to the regulations, no person or company, with the intention of effecting a trade in a security or derivative, shall, except with the written permission of the Director, make any written or oral representation that the security or derivative will be listed on an exchange or quoted on a quotation and trade reporting system, or that application has been or will be made to list the security or derivative on an exchange or quote the security or derivative on a quotation and trade reporting system, unless,

(a) in the case of securities, application has been made to list or quote the securities and other securities issued by the same issuer are already listed on an exchange or quoted on a quotation and trade reporting system; or

(b) the exchange or quotation and trade reporting system has granted approval to the listing or quoting of the securities or derivatives, conditional or otherwise, or has consented to, or indicated that it does not object to, the representation.

(4) Subsection 38 (4) of the Act is repealed and the following substituted:

Application of section

(4) This section does not apply to a representation referred to in subsection (1) or (1.1) if the representation is contained in an enforceable written agreement and,

(a) in the case of a representation in respect of a security, the security has a total acquisition cost of more than $50,000; or

(b) in the case of a representation in respect of a derivative, the derivative is in a class of derivatives prescribed by the regulations.

26. Section 46 of the Act is repealed and the following substituted:

Prohibited representation re Commission approval

46. No person or company shall make a written or oral representation that the Commission has in any way passed on the financial standing, fitness or conduct of a registrant or on the merits of an issuer or a security, derivative or underlying interest of a derivative.

27. (1) Subsection 50 (1) of the Act is amended by adding at the end "or derivatives".

(2) The definition of "sales literature" in subsection 50 (2) of the Act is repealed and the following substituted:

"sales literature" includes audio and visual recordings in any media, written matter and all other material designed for use in a presentation to a purchaser, whether such material is given or shown to the purchaser, but does not include,

(a) preliminary prospectuses,

(b) prospectuses, and

(c) disclosure documents, in respect of derivatives, that satisfy the requirements prescribed by the regulations. ("documentation commerciale")

28. The Act is amended by adding the following Part:

Part XV.1
Trading in Derivatives

Disclosure document, designated derivative

64.1 (1) No person or company shall trade a designated derivative unless a disclosure document that satisfies the requirements prescribed by the regulations,

(a) has been filed and accepted by the Director; and

(b) has been delivered in accordance with the regulations.

Exception

(2) Subsection (1) does not apply in respect of,

(a) a trade described in clause (e) of the definition of ""trade" or "trading"" in subsection 1 (1); or

(b) a trade that is otherwise exempt under this Act or the regulations.

Acceptance of disclosure document

(3) The Director shall accept the filed disclosure document unless,

(a) the Director considers that it would not be in the public interest to accept the disclosure document; or

(b) the Director is prohibited by the regulations from accepting it.

Opportunity to be heard

(4) The Director shall not refuse to accept a disclosure document that satisfies the requirements prescribed by the regulations without giving the person or company that filed the disclosure document an opportunity to be heard.

Part XV not applicable

(5) Part XV and the regulations made for the purposes of that Part do not apply in respect of,

(a) a designated derivative; or

(b) a derivative that is traded on,

(i) an exchange, under standardized terms determined by the exchange, or

(ii) any other marketplace, if any conditions prescribed by the regulations are satisfied.

Deemed to be securities for certain purposes

64.2 (1) If authorized by the regulations, a derivative that belongs to a class of derivatives prescribed by the regulations is deemed to be a security for such purposes as may be prescribed by the regulations, and such provisions of this Act and the regulations as may be prescribed by the regulations apply to or in respect of the derivative in the manner and to the extent prescribed by the regulations.

Not void for failure to comply with Act, etc.

(2) Unless the terms of the derivative provide otherwise, a derivative transaction is not void, voidable or unenforceable, and no counterparty to the transaction is entitled to rescind the transaction, solely by reason that the transaction failed to comply with this Act or the regulations.

29. (1) Subsection 75 (3) of the Act is repealed and the following substituted:

Exception

(3) A reporting issuer may, instead of complying with subsection (1), promptly file with the Commission the report required under subsection (2), marked as confidential, and its written reasons for doing so if,

(a) the reporting issuer reasonably believes that a disclosure required under subsections (1) and (2) would be unduly detrimental to its interests; or

(b) the material change consists of a decision made by the senior management of the reporting issuer to implement a change and the senior management,

(i) believes that confirmation by the board of directors of the decision to implement the change is probable, and

(ii) has no reason to believe that any person or company with knowledge of the material change has purchased or sold the reporting issuer's securities or traded a related derivative.

(2) Subsection 75 (5) of the Act is repealed and the following substituted:

Requirement to disclose subsequently

(5) A reporting issuer that has filed a report under subsection (3) shall promptly disclose the material change in the manner referred to in subsection (1) if the reporting issuer becomes aware or has reasonable grounds to believe that a person or company having knowledge of the material change is purchasing or selling securities of the reporting issuer or trading a related derivative.

30. (1) Subsection 76 (5) of the Act is amended by adding the following definition:

"reporting issuer" includes an issuer that has a real and substantial connection to Ontario and whose securities are listed and posted for trading on the TSX Venture Exchange. ("émetteur assujetti")

(2) Subsection 76 (6) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

31. (1) Clause 122 (1) (b) of the Act is amended by striking out "issuer bid circular" and substituting "issuer bid circular, disclosure document in respect of a designated derivative".

(2) The definition of "loss avoided" in subsection 122 (6) of the Act is repealed and the following substituted:

"loss avoided" means,

(a) in respect of a security, other than anything deemed to be a security under subsection 76 (6), the amount by which the amount received for the security sold in contravention of subsection 76 (1) exceeds the average trading price of the security in the 20 trading days following general disclosure of the material fact or the material change, and

(b) in respect of anything deemed to be a security under subsection 76 (6), such amount as may be prescribed by or determined in accordance with a regulation made by the Lieutenant Governor in Council; ("perte évitée")

(3) Clause (a) of the definition of "profit made" in subsection 122 (6) of the Act is repealed and the following substituted:

(a) in respect of a security, other than anything deemed to be a security under subsection 76 (6), and except in respect of a short sale, the amount by which the average trading price of the security in the 20 trading days following general disclosure of the material fact or the material change exceeds the amount paid for the security purchased in contravention of subsection 76 (1),

(4) The definition of "profit made" in subsection 122 (6) of the Act is amended by striking out "or" at the end of clause (b) and by adding the following clause:

(b.1) in respect of anything deemed to be a security under subsection 76 (6), such amount as may be prescribed by or determined in accordance with a regulation made by the Lieutenant Governor in Council, or

32. Subsection 126 (5) of the Act is repealed and the following substituted:

Review by court

(5) As soon as practicable, but not later than 10 days after a direction is issued under subsection (1), the Commission shall serve and file a notice of application in the Superior Court of Justice to continue the direction or for such other order as the court considers appropriate.

33. Section 126.1 of the Act is repealed and the following substituted:

Fraud and market manipulation

126.1 A person or company shall not, directly or indirectly, engage or participate in any act, practice or course of conduct relating to securities, derivatives or the underlying interest of a derivative that the person or company knows or reasonably ought to know,

(a) results in or contributes to a misleading appearance of trading activity in, or an artificial price for, a security, derivative or underlying interest of a derivative; or

(b) perpetrates a fraud on any person or company.

34. Clause 126.2 (1) (b) of the Act is repealed and the following substituted:

(b) would reasonably be expected to have a significant effect on the market price or value of a security, derivative or underlying interest of a derivative.

35. (1) Paragraphs 2 and 2.1 of subsection 127 (1) of the Act are repealed and the following substituted:

2. An order that trading in any securities by or of a person or company or that trading in any derivatives by a person or company cease permanently or for such period as is specified in the order.

2.1 An order that the acquisition of any securities by a particular person or company is prohibited permanently or for the period specified in the order.

(2) Paragraph 5 of subsection 127 (1) of the Act is amended by striking out the portion before subparagraph i and substituting the following:

5. If the Commission is satisfied that Ontario securities law has not been complied with, an order that a release, report, preliminary prospectus, prospectus, return, financial statement, information circular, take-over bid circular, issuer bid circular, offering memorandum, proxy solicitation, disclosure document in respect of a derivative or any other document described in the order,

. . . . .

(3) Paragraph 1 of subsection 127 (10) of the Act is amended by adding "or derivatives" at the end.

(4) Paragraph 2 of subsection 127 (10) of the Act is amended by adding "or derivatives" at the end.

(5) Paragraph 3 of subsection 127 (10) of the Act is amended by adding "or derivatives" at the end.

(6) Paragraphs 4 and 5 of subsection 127 (10) of the Act are repealed and the following substituted:

4. The person or company is subject to an order made by a securities regulatory authority, derivatives regulatory authority or financial regulatory authority, in any jurisdiction, that imposes sanctions, conditions, restrictions or requirements on the person or company.

5. The person or company has agreed with a securities regulatory authority, derivatives regulatory authority or financial regulatory authority, in any jurisdiction, to be made subject to sanctions, conditions, restrictions or requirements.

36. The English version of subsection 131 (10) of the Act is amended by striking out "designated stock exchange" and substituting "designated exchange".

37. (1) Subsection 134 (7) of the Act is amended by adding the following definition:

"reporting issuer" includes an issuer that has a real and substantial connection to Ontario and whose securities are listed and posted for trading on the TSX Venture Exchange. ("émetteur assujetti")

(2) Subsection 134 (8) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

38. (1) The English version of subclause (b) (ii) of the definition of "document" in section 138.1 of the Act is amended by striking out "stock exchange" and substituting "exchange".

(2) The definition of "expert" in section 138.1 of the Act is repealed and the following substituted:

"expert" means a person or company whose profession gives authority to a statement made in a professional capacity by the person or company, including, without limitation, an accountant, actuary, appraiser, auditor, engineer, financial analyst, geologist or lawyer, but not including a designated credit rating organization; ("expert")

(3) The English version of the definition of "release" in section 138.1 of the Act is amended by striking out "a stock exchange" and substituting "an exchange".

39. The English version of clause 138.4 (14) (a) of the Act is amended,

(a) by striking out "a stock exchange" and substituting "an exchange"; and

(b) by striking out "stock exchange" and substituting "exchange".

40. The English version of subsection 141 (3) of the Act is repealed and the following substituted:

Liability of Crown

41. (1) Subsection 142 (1) of the Act is amended by striking out "Subject to subsection (2)" at the beginning and substituting "Subject to subsections (2) and (3)".

(2) Section 142 of the Act is amended by adding the following subsection:

Exception, derivatives

(3) Rules made under paragraph 11 and subparagraphs 35 iii, iv and v of subsection 143 (1) do not apply to derivatives traded by,

(a) Her Majesty in right of Ontario or the Ontario Financing Authority when acting as agent for Her Majesty in right of Ontario;

(b) Her Majesty in right of Canada; or

42. (1) Paragraph 8.2 of subsection 143 (1) of the Act is repealed and the following substituted:

8.2 Exempting registered dealers from the requirement under subsection 36 (1) to send a customer a written confirmation of a transaction.

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

10.1 Prescribing a class of instruments, certificates, agreements, documents or other things that are not securities for the purposes of the Act.

(3) Paragraph 11 of subsection 143 (1) of the Act is repealed and the following substituted:

11. Regulating the listing or trading of publicly traded securities or the trading of derivatives, including rules,

i. relating to clearing and settling trades,

ii. requiring the reporting of trades and quotations, and

iii. prescribing classes of derivatives in respect of which trades must be cleared or settled through a clearing agency.

(4) Paragraph 12 of subsection 143 (1) of the Act is repealed and the following substituted:

12. Regulating recognized exchanges, recognized self-regulatory organizations, recognized quotation and trade reporting systems, alternative trading systems, recognized clearing agencies and designated trade repositories, including,

i. prescribing requirements in respect of the review or approval by the Commission of any by-law, rule, regulation, policy, procedure, interpretation or practice,

ii. prescribing restrictions on the ownership, control and direction of a recognized exchange, clearing agency or alternative trading system.

(5) Paragraph 13 of subsection 143 (1) of the Act is repealed and the following substituted:

13. Regulating trading in or advising about securities or derivatives to prevent trading or advising that is fraudulent, manipulative, deceptive or unfairly detrimental to investors.

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

19.1 Prescribing one or more classes of contracts or instruments that are not derivatives for the purpose of prescribed provisions of Ontario securities law and prescribing those provisions.

19.2 Prescribing one or more classes of derivatives that are designated derivatives for the purposes of prescribed provisions of Ontario securities law and prescribing those provisions.

19.3 Prescribing registration requirements in respect of persons or companies trading in derivatives.

19.4 Prescribing derivatives or classes of derivatives that are deemed to be securities for the purposes of prescribed provisions of this Act, the regulations and the rules and prescribing those provisions.

19.5 Prescribing circumstances in which a material interest in a derivative's underlying interest is not a financial or other interest for the purposes of section 34.

19.6 Prescribing one or more classes of derivatives for the purpose of clause 38 (4) (b).

19.7 Prescribing one or more conditions for the purposes of subclause 64.1 (5) (b) (ii).

(7) Paragraph 31 of subsection 143 (1) of the Act is amended by adding the following subparagraph:

ii.1 prescribing requirements for investment funds in respect of derivatives,

(8) Paragraph 35 of subsection 143 (1) of the Act is repealed and the following substituted:

35. Prescribing requirements relating to derivatives, including,

i. requirements for disclosure documents relating to designated derivatives,

ii. record keeping, reporting and transparency requirements relating to derivatives,

iii. requirements in respect of persons or companies trading in derivatives, including requirements in respect of margin, collateral, capital, clearing and settlement,

iv. requirements that one or more classes of derivatives be traded on a recognized exchange or an alternative trading system,

v. requirements relating to position limits for derivatives transactions,

vi. requirements that one or more classes of derivatives not be traded in Ontario.

(9) The English version of subparagraph 40 i of subsection 143 (1) of the Act is repealed and the following substituted:

i. recognizing exchanges, self-regulatory organizations and clearing agencies,

(10) Subsection 143 (1) of the Act is amended by adding the following paragraph:

63. Prescribing requirements in respect of credit rating organizations, including requirements relating to,

i. the disclosure or furnishing of information to the Commission by a credit rating organization,

ii. the establishment, publication and enforcement of a code of conduct applicable to directors, officers and employees of credit rating organizations, including minimum requirements to be included in the code,

iii. prohibitions against and procedures regarding conflicts of interest between a credit rating organization and the person or company whose securities it is rating,

iv. the maintenance of books and records necessary for the conduct of a credit rating organization's business and the issuance and maintenance of credit ratings,

v. the appointment by credit rating organizations of one or more compliance officers and any minimum standards that must be met or qualifications a compliance officer must have.

(11) Subsection 143 (2) of the Act is amended by adding the following clause:

(0.a) any matter referred to in this Act as being prescribed by or determined in accordance with regulations made by the Lieutenant Governor in Council;

43. Clause 143.10 (1) (a) of the Act is repealed and the following substituted:

(a) another securities, derivatives or financial regulatory authority;

44. Subsection 152 (4) of the Act is amended by striking out "to administer or regulate trading in securities" and substituting "to administer or regulate trading in securities or derivatives".

45. Paragraphs 1 and 2 of section 153 of the Act are repealed and the following substituted:

1. Other securities, derivatives or financial regulatory authorities.

2. Exchanges.

2.1 Trade repositories.

2.2 Clearing agencies.

2.3 Alternative trading systems.

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

Disclosure

154. The disclosure of information to the Commission or a trade repository that is made in good faith by a person or company in compliance or attempted compliance with Ontario securities law,

(a) does not constitute a breach of any contractual provision to which the person or company or any other person or company is subject; and

(b) does not constitute any other basis of liability against the person or company or any other person or company.

Commencement

47. (1) Subject to subsection (2), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

1. Subsections 1 (1), (5) and (13).

2. Sections 7, 19, 20, 21, 22 and 28.

3. Subsections 31 (1) and 35 (2).

4. Section 41.

5. Subsections 42 (6), (7), (8) and (11).

Schedule 19
supplementary interim appropriation ACt, 2010 (No. 2)

Interpretation

1. (1) Expressions used in this Act have the same meaning as in the Financial Administration Act unless the context requires otherwise.

Same

(2) In this Act, a reference to the estimates and supplementary estimates for 2010-2011 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2011 as tabled in the Assembly on or before March 31, 2011.

Additional amounts to be paid out of CRF

2. All amounts authorized under sections 3 and 4 to be paid out of the Consolidated Revenue Fund or recognized as non-cash expenses or non-cash investments are in addition to the amounts authorized to be paid out of the Consolidated Revenue Fund or recognized as non-cash expenses or non-cash investments under sections 2, 3 and 4 of the Interim Appropriation for 2010-2011 Act, 2009 and sections 3, 4 and 5 of the Supplementary Interim Appropriation Act, 2010.

Expenses of the public service

3. For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $11,847,502,200 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 2010-2011.

Investments of the public service

4. For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $443,695,600 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 2010-2011.

Expenditures of the public service

5. An expenditure in the votes and items set out in the estimates and supplementary estimates for 2010-2011 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2011, responsibility has been given for the program or activity that includes that expenditure.

Commencement

6. The Act set out in this Schedule is deemed to have come into force on April 1, 2010.

Short title

7. The short title of the Act set out in this Schedule is the Supplementary Interim Appropriation Act, 2010 (No. 2).

Schedule 20
taxation ACt, 2007

1. (1) Subsection 23 (1) of the Taxation Act, 2007 is amended by striking out the portion before paragraph 1 and substituting the following:

Annual adjustment

(1) Subject to the regulations, each amount expressed in dollars in the following provisions shall be adjusted in accordance with this section for every taxation year ending after December 31, 2009 or for every taxation year otherwise indicated:

. . . . .

(2) Paragraph 4 of subsection 23 (1) of the Act is amended by adding at the end "with respect to taxation years ending after December 31, 2010".

(3) Paragraphs 6 and 7 of subsection 23 (1) of the Act are repealed.

(4) Paragraph 7.1 of subsection 23 (1) of the Act is repealed and the following substituted:

7.1 Subsection 103.1 (7) and clause 103.1 (9) (b) with respect to taxation years ending after December 31, 2010.

(5) Paragraph 8 of subsection 23 (1) of the Act is repealed and the following substituted:

8. Subsection 104.11 (5) with respect to taxation years ending on or after December 31, 2010 that are base taxation years under Part V.3.

8.1 Subsection 104.22 (2) with respect to taxation years ending on or after December 31, 2010 that are base taxation years under Part V.6.

(6) Subsection 23 (1.1) of the Act is repealed.

(7) Subsection 23 (2) of the Act is amended by striking out the portion before the formula and substituting the following:

Calculation of adjusted income

(2) Each amount referred to in a provision listed in subsection (1), other than a provision to which subsection (3.1) applies, shall be adjusted to the amount calculated using the formula,

. . . . .

(8) Section 23 of the Act is amended by adding the following subsection:

Calculation of adjusted income, certain tax credits

(3.1) Each amount referred to in a provision listed in paragraph 8 or 8.1 of subsection (1) shall be adjusted to the amount calculated using the formula,

D + [D × (E/F – 1)]

in which,

"D" is the amount that would have been used for the base taxation year if it had not been rounded to a whole dollar,

"E" is the Consumer Price Index for the 12-month period that ended on September 30 of the base taxation year, and

"F" is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of "E".

(9) Subsection 23 (3.1) of the Act, as enacted by subsection (7), is amended by striking out "paragraph 8 or 8.1" in the portion before the formula and substituting "paragraph 8, 8.1, 9 or 10".

(10) Section 23 of the Act is amended by adding the following subsection:

Same

(3.2) For the purposes of subsection (3.1), the amount of "(E/F – 1)" shall be adjusted each year in such manner as may be prescribed and rounded to the nearest thousandth or, if the result obtained is equidistant between two consecutive thousandths, to the higher thousandth.

2. (1) Subsection 24 (4) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Bankruptcy, before 2010

(4) The following rules apply if an individual is bankrupt in a calendar year before 2010:

. . . . .

(2) Section 24 of the Act is amended by adding the following subsection:

Bankruptcy, after 2009

(4.1) The following rules apply if an individual is bankrupt in a calendar year after 2009:

1. The individual's taxable income for the calendar year for the purposes of this section is deemed to be the sum of all amounts, each of which is his or her taxable income for a taxation year ending in the calendar year of bankruptcy.

2. The individual's Ontario Health Premium for the calendar year shall be allocated to and payable in respect of each taxation year ending in the calendar year of bankruptcy in the manner described in paragraphs 3 to 5.

3. For a taxation year that is deemed to end under paragraph 128 (2) (d) of the Federal Act on the day immediately before the day on which the individual became a bankrupt, the amount of the individual's Ontario Health Premium is the amount that would be determined in accordance with subsection (2) if the taxation year were the only taxation year of the individual ending in the calendar year.

4. For a taxation year in respect of which a return of income under paragraph 128 (2) (e) of the Federal Act is required to be filed, the amount of the individual's Ontario Health Premium is nil.

5. For a taxation year other than a taxation year described in paragraph 3 or 4, in respect of which a return of income is required to be filed under this Act, the amount of the individual's Ontario Health Premium is the amount calculated using the formula,

A – B

where,

"A" is the individual's Ontario Health Premium for the calendar year as determined under subsection (2) as if each reference in that subsection to "taxation year" were read as a reference to "calendar year", and

"B" is the amount of the individual's Ontario Health Premium payable in respect of the taxation year described in paragraph 3.

3. Subsection 31 (3) of the Act is repealed and the following substituted:

Ontario small business income

(3) A corporation's Ontario small business income for a taxation year is the lesser of "A" and "B" where,

"A" is the amount calculated using the formula,

C × D

in which,

"C" is the least of,

(a) the amount determined under paragraph 125 (1) (a) of the Federal Act in respect of the corporation for the year,

(b) the amount determined under paragraph 125 (1) (b) of the Federal Act in respect of the corporation for the year, and

"D" is the corporation's Ontario domestic factor for the year, and

"B" is the corporation's Ontario taxable income for the year.

4. Section 84 of the Act is amended by adding the following subsection:

Death in taxation year

(2.1) If an individual dies in a taxation year, subsection (1) applies to the individual for the year to the extent that the individual, or a legal representative on behalf of the individual, has claimed and the individual has been allowed a tax credit referred to in paragraph 1, 2, 3, 13 or 14 of subsection (1) for the year.

5. (1) Paragraph 1 of subsection 98 (2) of the Act is amended by striking out "the amount of municipal tax that was paid for the year by the individual" and substituting "the amount of municipal tax that was paid for the year by, or on behalf of, the individual".

(2) Paragraph 2 of subsection 98 (2) of the Act is amended by striking out "the amount of municipal tax paid for the year by the individual" and substituting "the amount of municipal tax paid for the year by, or on behalf of, the individual".

(3) Paragraph 3 of subsection 98 (2) of the Act is amended by striking out "the amount of rent paid for the year by the individual" and substituting "the amount of rent paid for year by, or on behalf of, the individual".

(4) Paragraph 1 of subsection 98 (2.1) of the Act is amended by striking out "the amount paid for the year by the individual" and substituting "the amount paid for the year by, or on behalf of, the individual".

(5) Paragraph 2 of subsection 98 (2.1) of the Act is amended by striking out "an amount of municipal tax paid for the year by the individual" and substituting "an amount of municipal tax paid for the year by, or on behalf of, the individual".

(6) Subsection 98 (2.2) of the Act is amended by striking out "and the individual has paid in full for the lease" and substituting "and the individual or a person on behalf of the individual has paid in full for the lease".

(7) Paragraph 1 of subsection 98 (3) of the Act is amended by striking out "the amount of municipal tax that was paid for the year by the individual" and substituting "the amount of municipal tax that was paid for the year by, or on behalf of, the individual".

(8) Paragraph 2 of subsection 98 (3) of the Act is amended by striking out "the amount of municipal tax paid for the year by the individual" and substituting "the amount of municipal tax paid for the year by, or on behalf of, the individual".

(9) Paragraph 3 of subsection 98 (3) of the Act is amended by striking out "the amount of rent paid for the year by the individual" and substituting "the amount of rent paid for the year by, or on behalf of, the individual".

(10) Paragraph 1 of subsection 98 (3.1) of the Act is amended by striking out "the amount paid for the year by the individual" and substituting "the amount paid for the year by, or on behalf of, the individual".

(11) Paragraph 2 of subsection 98 (3.1) of the Act is amended by striking out "an amount of municipal tax paid for the year by the individual" and substituting "an amount of municipal tax paid for the year by, or on behalf of, the individual".

(12) Subsection 98 (3.2) of the Act is amended by striking out "in respect of which the individual or the individual's qualifying spouse or qualifying common-law partner has paid in full for the lease" and substituting "in respect of which the lease was paid in full by, or on behalf of, the individual or the individual's qualifying spouse or qualifying common-law partner".

(13) Subparagraph 1 i of subsection 98 (5) of the Act is amended by striking out "any amounts paid by the individual" at the beginning and substituting "any amounts paid by, or on behalf of, the individual".

(14) Subparagraph 1.1 i of subsection 98 (5) of the Act is amended by striking out "any amounts paid by the individual" at the beginning and substituting "any amounts paid by, or on behalf of, the individual".

6. (1) Subsection 102 (2) of the Act is repealed and the following substituted:

Qualifying individual

(2) An individual is a qualifying individual for a taxation year for the purposes of this section if the individual is resident in Ontario on the last day of the taxation year.

(2) Subsection 102 (4) of the Act is repealed and the following substituted:

Requirement to file receipts

(4) A qualifying individual is not eligible to receive a political contribution tax credit for a taxation year under this section unless he or she files with the Ontario Minister the receipt required by the Chief Electoral Officer under the Election Finances Act to be issued to the individual for each eligible contribution.

(3) Subsection 102 (6) of the Act is amended by adding the following definition:

"Chief Electoral Officer" means the Chief Electoral Officer appointed under the Election Act; ("directeur général des élections")

7. Subsection 103 (2) of the Act is repealed and the following substituted:

Qualifying individual

(2) An individual is a qualifying individual for a taxation year for the purposes of this section if the individual is resident in Ontario on the last day of the taxation year.

8. (1) The definition of "eligible individual" in subsection 104 (1) of the Act is repealed and the following substituted:

"eligible individual" means, in respect of a qualified dependant, a person who would be an eligible individual in respect of the dependant for the purposes of subdivision a.1 of Division E of Part 1 of the Federal Act if paragraph (b) of the definition of "eligible individual" in section 122.6 of that Act read as follows:

(b) is a parent of the qualified dependant who,

(i) primarily fulfils the responsibility for the care and upbringing of the qualified dependant and who is not a shared-custody parent in respect of the qualified dependant, or

(ii) is a shared-custody parent in respect of the qualified dependant; ("particulier admissible")

(2) Subsection 104 (1) of the Act is amended by adding the following definition:

"shared-custody parent", in respect of a qualified dependant at a particular time, means, where the presumption referred to in paragraph (f) of the definition of "eligible individual" in section 122.6 of the Federal Act does not apply in respect of the qualified dependant, an individual who is one of the two parents of the qualified dependant who,

(a) are not at that time cohabiting spouses or common-law partners of each other,

(b) reside with the qualified dependant on an equal or near equal basis, and

(c) primarily fulfil the responsibility for the care and upbringing of the qualified dependant when residing with the qualified dependant, as determined in consideration of prescribed factors. ("parent ayant la garde partagée")

(3) Section 104 of the Act is amended by adding the following subsection:

Amount of monthly payment, shared-custody parent

(5.1) Despite subsection (5), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants for a specified month after June 2011, the amount of an Ontario child benefit to which the individual is entitled for the specified month is equal to the amount determined by the formula,

where,

"A" is the amount determined for the month by the formula in subsection (5), calculated without reference to this subsection, and

"B" is the amount determined for the month by the formula in subsection (5), calculated without reference to this subsection and calculated as if the individual were not an eligible individual in respect of any qualified dependants in respect of whom the individual is a shared-custody parent.

9. (1) Subsection 104.1 (11) of the Act is repealed.

(2) Section 104.1 of the Act is amended by adding the following subsection:

Exception, family orders

(12.1) Subsection (12) does not affect or restrict the garnishment or attachment of payments under this section pursuant to the Family Orders and Agreements Enforcement Assistance Act (Canada).

10. (1) Subsection 104.11 (1) of the Act is amended by adding the following definition:

(a) are not at that time cohabiting spouses or common-law partners of each other,

(b) reside with the qualified dependant on an equal or near equal basis, and

(2) Section 104.11 of the Act is amended by adding the following subsection:

Amount of monthly payment, shared-custody parent

(5.2) Despite subsection (5), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants for a specified month after June 2011, the amount of the Ontario sales tax credit to which the individual is entitled for the specified month is equal to the amount determined by the formula,

where,

"A" is the amount determined for the month by the formula in subsection (5), calculated without reference to this subsection, and

(3) Section 104.11 of the Act is amended by adding the following subsection:

Exception, family orders

(7.1) Subsection (7) does not affect or restrict the garnishment or attachment of payments under this section pursuant to the Family Orders and Agreements Enforcement Assistance Act (Canada).

11. Section 104.12 of the Act is amended by adding the following subsection:

Exception, family orders

(22.0.1) Subsection (22) does not affect or restrict the garnishment or attachment of payments under this section pursuant to the Family Orders and Agreements Enforcement Assistance Act (Canada).

12. (1) The definition of "adjusted income" in subsection 104.19 (1) of the Act is amended by striking out "subdivision a of Division E of Part 1 of the Federal Act" at the end and substituting "section 122.5 of the Federal Act".

(2) The definition of "base taxation year" in subsection 104.19 (1) of the Act is repealed and the following substituted:

"base taxation year", when used in relation to a specified month, means,

(a) if the specified month is July, September or December, the taxation year that ended on December 31 of the preceding taxation year, or

(b) if the specified month is March or June, the taxation year that ended on December 31 of the second preceding taxation year; ("année de base")

(3) Subsection 104.19 (1) of the Act is amended by adding the following definition:

"designated long-term care home" means, in respect of an individual for a base taxation year, a designated principal residence of the individual that is a long-term care home in Ontario,

(a) that was exempt in whole or in part from municipal tax for the year, and

(b) for which no grant in lieu of municipal tax is payable by the owner under any statutory authority or, if payable, has not been paid; ("foyer de soins de longue durée désigné")

(4) Subsection 104.19 (1) of the Act is amended by adding the following definition:

(a) are not at that time cohabiting spouses or common-law partners of each other,

(b) reside with the qualified dependant on an equal or near equal basis, and

(5) The definition of "specified month" in subsection 104.19 (1) of the Act is repealed and the following substituted:

"specified month" means,

(a) in respect of a base taxation year ending after December 31, 2009 and before January 1, 2011, any of July 2011, December 2011, March 2012 and June 2012, or

(b) in respect of a base taxation year ending after December 31, 2010, any of September and December of the first calendar year starting after the end of the base taxation year and March and June of the second calendar year starting after the end of the base taxation year. ("mois déterminé")

(6) Subsection 104.19 (4) of the Act is amended by striking out "on the determination date in respect of a specified month" and substituting "on December 31 of the base taxation year in respect of a specified month".

(7) Section 104.19 of the Act is amended by adding the following subsections:

Qualified relation

(5) For the purposes of this Part, an individual is,

(a) deemed to have a qualified relation for every specified month with respect to a base taxation year if the individual had a qualified relation on December 31 of the base taxation year; and

(b) deemed not to have a qualified relation for the specified months with respect to a base taxation year if the individual did not have a qualified relation on December 31 of the base taxation year.

Application of Federal Act

(6) Paragraphs 122.5 (2) (a), (b), (c), (d) and (e) and subsections 122.5 (5), (6), (6.1) and (6.2) and 160.1 (1.1) of the Federal Act apply for the purposes of this Part in respect of an overpayment deemed to arise under this Part as if a reference in any of those provisions to a provision of the Federal Act were a reference to the corresponding provision of this Part.

13. Section 104.20 of the Act is amended by adding the following subsection:

Notice

(2) If the Ontario Minister determines that an individual is entitled to a Northern Ontario energy credit under this Part, the Ontario Minister shall send a notice to the individual setting out the amount of the payments to which the individual is entitled.

14. (1) Paragraph 2 of subsection 104.21 (1) of the Act is repealed and the following substituted:

2. The individual and, if required by the Ontario Minister, the individual's qualified relation have each filed a return of income under this Act for the base taxation year.

(2) Paragraph 3 of subsection 104.21 (1) of the Act is repealed and the following substituted:

3. The individual, the individual's qualified relation, or a person on behalf of the individual or the individual's qualified relation,

i. paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for the base taxation year that would be included in computing the individual's occupancy cost for the purposes of section 98 of this Act,

ii. paid taxes, charges or rates, as may be prescribed by the Minister of Finance, in respect of a designated principal residence of the individual for the base taxation year,

iii. paid an amount in respect of the supply of electricity or other source of energy to the individual's designated principal residence for the base taxation year, if the residence is situated on a reserve in Northern Ontario, or

iv. paid an amount for the individual's accommodation at any time in the base taxation year in a designated long-term care home.

(3) Section 104.21 of the Act is amended by adding the following subsection:

Receipt of grant under s. 104.1

(3) If an individual has a qualified relation on December 31 of a base taxation year and receives a grant under section 104.1 for that year, the individual and not the individual's qualified relation may receive an amount payable under this Part for a specified month in respect of the base taxation year.

15. (1) Subsection 104.22 (2) of the Act is amended by striking out "under paragraph 1 or 2" in the portion before paragraph 1 and substituting "under paragraph 1, 2 or 3".

(2) Subsection 104.22 (2) of the Act is amended by adding the following paragraph:

3. Despite paragraph 2, if the individual has a qualified dependant in respect of whom the individual is a shared-custody parent but does not have any other qualified dependants or any qualified relation on the determination date in respect of the specified month after June 2011, the amount of the instalment is the total of "C" and "D", where,

"C" is nil if the individual is under the age of 18 years and, if the individual is 18 years of age or more, is the amount calculated using the formula,

in which,

"A" has the same meaning as in paragraph 1, and

"D" is the amount calculated using the formula,

in which,

"B" has the same meaning as in paragraph 2.

(3) Section 104.22 of the Act is amended by adding the following subsections:

Effect of death

(6) Subsection (7) applies for the purposes of this Part if an individual (the "specified individual") dies after December 31 of a base taxation year and before a specified month and would have been, but for his or her death,

(a) an eligible individual at the beginning of the specified month who has a qualified relation or qualified dependant; or

(b) an individual who is a qualified relation or a qualified dependant in respect of an eligible individual at the beginning of the specified month.

Continuation of credit

(7) If this subsection applies in respect of a specified individual, the entitlement of the specified individual, or of an eligible individual in respect of whom the specified individual is a qualified relation or a qualified dependant, to a Northern Ontario energy credit for a specified month under this Part shall be determined under this Part as if the specified individual had not died.

16. Section 104.23 of the Act is amended by adding the following subsection:

Exception, family orders

(7) Subsection (6) does not affect or restrict,

(a) the application of subsection 164 (2) of the Federal Act as it applies for the purposes of this Act with respect to payments under this Part, or

(b) the garnishment or attachment of payments under this section pursuant to the Family Orders and Agreements Enforcement Assistance Act (Canada).

17. Paragraph 4 of subsection 104.27 (1) of the Act is repealed and the following substituted:

4. The individual, the individual's qualified relation, or a person on behalf of the individual or the individual's qualified relation,

i. paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for 2009 that would be included in computing an individual's occupancy cost for the purposes of section 98 of this Act,

ii. paid taxes, charges or rates as may be prescribed by the Minister of Finance, in respect of a designated principal residence of the individual for 2009, or

iii. paid an amount in respect of the supply of electricity or other source of energy to the individual's designated principal residence, if the residence is situated on a reserve in Northern Ontario on December 31, 2009.

18. Subsection 127.1 (4) of the Act is repealed and the following substituted:

Time

(4) A notice of objection must be served,

(a) in respect of a specified refund under Part V.2, not later than 90 days after the day on which the notice of determination or revised notice of determination is sent; and

(b) in respect of a specified refund under Part V.5, not later than 180 days after the day on which the notice of determination or revised notice of determination is sent.

19. Section 132 of the Act is amended by adding the following subsection:

Application of subrule 60.07 (2), Rules of Civil Procedure

(2) Subrule 60.07 (2) of the Rules of Civil Procedure does not apply in respect of a warrant issued by the Minister under subsection (1).

Commencement

20. (1) Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Subsections 1 (3) and (9) apply only if Bill 109 (Enhancement of the Ontario Energy and Property Tax Credit for Seniors and Ontario Families Act, 2010), introduced on September 28, 2010, receives Royal Assent and, in that case, subsections 1 (3) and (9) come into force on the later of,

(a) the day on which the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent; and

(b) the day on which Bill 109 receives Royal Assent.

Same

(3) Subsection 6 (1) and section 7 are deemed to have come into force on January 1, 2009.

Same

(4) Subsection 10 (3) is deemed to have come into force on July 1, 2010.

Same

(5) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

1. Section 8.

2. Subsections 10 (1) and (2).

3. Section 11.

4. Subsection 12 (4).

5. Subsections 15 (1) and (2).

Schedule 21
workplace safety and insurance ACt, 1997

1. (1) Subsections 96 (4), (5) and (6) of the Workplace Safety and Insurance Act, 1997 are repealed.

(2) Section 96 of the Act is repealed and the following substituted:

Insurance fund

Definitions

96. (1) In this Part,

"current benefits" means the benefits payable under the insurance plan in the current calendar year; ("prestations courantes")

"future benefits" means the present value of the cost of benefits that will become due under the insurance plan in the future in respect of current or past claims, as determined by the Board's actuary. ("prestations futures")

Insurance fund

(2) The Board shall maintain an insurance fund for the following purposes:

1. To pay for current benefits and to provide for future benefits under the insurance plan to workers employed by Schedule 1 employers and to the survivors of deceased workers.

2. To pay the expenses of the Board and the cost of administering this Act.

3. To pay such other costs as are required under any Act to be paid by the Board or out of the insurance fund.

Sufficiency of fund

(3) Subject to the regulations, the Board shall maintain the insurance fund so that the amount of the fund is sufficient to allow the Board to meet its obligations under this Act to make payments under the insurance plan for current benefits as they become due and to provide for future benefits.

Same

(4) The Board shall meet its obligation under subsection (3) in accordance with the regulations.

Same

(5) The Board shall maintain the insurance fund so as not to burden unduly or unfairly any class of Schedule 1 employers with payments,

(a) in any year in respect of current benefits; or

(b) in future years in respect of future benefits.

Plan, sufficiency of fund

96.1 (1) If the insurance fund is insufficient for the purposes set out in subsection 96 (3) at any time before the date prescribed under clause 100 (b), the Board shall develop and implement a plan to achieve sufficiency that complies with the prescribed requirements.

Same

(2) The Board shall ensure that the plan sets out the steps the Board will take to ensure that the insurance fund is sufficient by the date prescribed under clause 100 (b).

Revision of plan

(3) Subject to any regulation made under clause 100 (d), the Board may revise the plan.

Plan submitted to Minister

(4) The Board shall submit the plan and any revisions made to the plan to the Minister.

Report to Minister

(5) The Board shall report to the Minister on the progress of the plan at such times as the Minister may determine and shall address in the report such matters as the Minister may specify.

Minister may obtain review

(6) If, at any time before the date prescribed under clause 100 (b), the Minister determines that it is unlikely that the insurance fund will become sufficient by the prescribed date, the Minister may obtain a review of the following:

1. The sufficiency of the fund.

2. The plan made under subsection (1) and the Board's implementation of the plan.

Same

(7) The review shall be conducted by an actuary or auditor appointed by the Minister.

Report on findings of review

(8) The actuary or auditor shall,

(a) on completing the review, submit a written report to the Board and the Minister on the findings of the review; and

(b) address in the report such matters as the Minister may specify.

Revised or new plan

(9) If a finding of the review is that it is unlikely that the insurance fund will become sufficient by the date prescribed under clause 100 (b), the Board shall revise its plan or make a new plan and subsections (1) to (5) apply to the plan with necessary modifications.

Costs of review

(10) The costs of the review are an administrative expense of the Board.

Insufficiency of fund after prescribed date

96.2 If the insurance fund is insufficient at any time after the date prescribed under clause 100 (b), the Board shall comply with the prescribed requirements to make the fund sufficient.

Transition

96.3 The accident fund maintained under the Workers' Compensation Act is continued as the insurance fund.

2. (1) Section 97 of the Act is amended by adding the following subsection:

Use of reserve funds

(2.1) If there is not sufficient money available in the insurance fund to pay current benefits as they become due without resorting to the reserve funds, the Board may make the payments out of the reserve funds.

(2) Subsections 97 (1), (2) and (2.1) of the Act are repealed and the following substituted:

Reserve funds

(1) Once the insurance fund is sufficient for the purposes set out in subsection 96 (3), the Board may establish and maintain one or more reserve funds to provide for future benefits.

Use of reserve funds

(2) If, before the insurance fund becomes sufficient for the purposes set out in subsection 96 (3), there is not sufficient money available in the fund to allow the Board to meet its obligations under this Act to make payments under the insurance plan for current benefits as they become due without resorting to the reserve funds, the Board may make the payments out of the reserve funds.

Same

(2.1) Subject to the regulations, if, after the insurance fund becomes sufficient for the purposes set out in subsection 96 (3), there is not sufficient money available in the fund to allow the Board to meet its obligations under this Act to make payments under the insurance plan for current benefits as they become due and to provide for future benefits without resorting to the reserve funds, the Board may make the payments out of the reserve funds.

3. (1) Section 100 of the Act is repealed.

(2) The Act is amended by adding the following section:

Regulations

100. The Lieutenant Governor in Council may make regulations,

(a) prescribing anything referred to in this Part as prescribed;

(b) prescribing the date by which the insurance fund must become sufficient and prescribing interim dates by which the fund must become partially sufficient;

(c) prescribing the amount of the insurance fund required to make the fund sufficient by the prescribed date or partially sufficient by prescribed interim dates, or prescribing the method of determining those amounts, including any formula, ratio or percentage to be used to calculate the amounts;

(d) prescribing the requirements for a plan for the purposes of subsection 96.1 (1), including the contents of the plan and the time period within which the plan is to be established by the Board and submitted to the Minister;

(e) prescribing the requirements with which the Board shall comply for the purposes of section 96.2, including the time period within which the Board must comply with those requirements;

(f) prescribing any terms, conditions, limitations or requirements on the use of reserve funds for the purposes of subsection 97 (2.1);

(g) providing for such transitional matters as the Lieutenant Governor in Council considers necessary or advisable in relation to this Part and the regulations made under it.

4. Section 167 of the Act is repealed.

5. (1) Clause 183 (1) (a) of the Act is amended by striking out "sections 15.1 and 52.1" and substituting "sections 15.1, 52.1 and 100".

(2) If subsection (1) does not come into force before the day on which subsection 11 (1) of the Workplace Safety and Insurance Amendment Act, 2008 comes into force, subsection (1) is repealed on the same day that subsection 11 (1) of the Workplace Safety and Insurance Amendment Act, 2008 comes into force.

Commencement

6. (1) Subject to subsection (2), this Schedule comes into force on the day the Helping Ontario Families and Managing Responsibly Act, 2010 receives Royal Assent.

Same

(2) Subsections 1 (2), 2 (2), 3 (2) and 5 (1) come into force on a day to be named by proclamation of the Lieutenant Governor.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 135 and does not form part of the law. Bill 135 has been enacted as Chapter 26 of the Statutes of Ontario, 2010.

The Bill implements financial measures, including measures contained in the 2010 Ontario Budget, and enacts or amends various Acts. The major elements of the Bill are described below.

Schedule 1
alcohol and gaming regulation and public protection act, 1996

Amendments to the Alcohol and Gaming Regulation and Public Protection Act, 1996 establish transitional rules that apply whenever the basic rate of tax on beer is increased. Amendments to the Act also address other matters. Here are some details of the amendments to the Act.

Amendments to sections 17, 21, 25 and 30 of the Act establish transitional rules that apply whenever the basic rate of tax on beer is increased. These rules apply with respect to beer in inventory before the increase takes effect that is sold to a purchaser after the increase takes effect. A definition of "increase date" is added to subsection 17 (1) of the Act. New subsection 21 (4) of the Act provides that the tax payable for the beer by the purchaser is calculated at the tax rate in effect immediately before the increase date. A corresponding amendment is made to section 25 of the Act, with respect to tax payable by the purchaser for draft beer. Related amendments are made to section 30 of the Act, concerning the amounts to be collected and remitted to the Minister by beer vendors, authorized beer manufacturers, brew pubs and others.

Currently, subsection 17 (2) of the Act deems wineries to be purchasers of wine that they distribute without charge or purchase but don't resell. The provision is amended to refer to wine coolers in addition to wine.

Section 22 of the Act provides special rules concerning the basic tax rate that applies to purchases of beer manufactured by microbrewers. Subsection 22 (3) of the Act sets out conditions that a beer manufacturer must meet to be considered a microbrewer for a sales year. An amendment provides that beer manufacturers are not eligible if they have entered into an agreement or arrangement to manufacture beer for non-microbrewers.

Section 26 of the Act provides for an annual adjustment to the basic tax rate that applies to the purchase of beer. Amendments are made to provide that the index factor (one of the components for determining the annual adjustment) cannot be a negative number and must be rounded to the nearest one-thousandth.

New section 31.1 of the Act provides rules that apply if a person sells beer, wine or a wine cooler and receives a payment in lieu of tax payable. Generally, the person is required to treat the payment as tax under the Act and is otherwise subject to the same offences, penalties and fines that would apply if the payment were tax payable. The Minister may use the same remedies and procedures for collecting and enforcing tax payable under the Act. Furthermore, the person who receives the payment is deemed to be a collector for the purposes of Division D of Part II of the Act.

Subsection 38 (3) of the Act currently provides that the Minister of Revenue may require a collector to complete an inventory report that shows all draft beer, non-draft beer, wine and wine coolers in the collector's possession. New subsection 38 (4) of the Act provides that the Minister may require a class of collectors to complete an inventory report in accordance with subsection 38 (3).

The penalty provided in subsections 41 (3) and (4) of the Act for failing to submit a return is replaced. The penalty is determined with reference to the amount of the tax collectable or payable during the period to which the return relates.

An amendment is made to section 50 of the Act respecting the use of warrants to enforce the obligation to pay tax. Subrule 60.07 (2) of the Rules of Civil Procedure requires that leave of the court be obtained before certain writs are issued. The amendment provides that this rule does not apply for the purposes of section 50.

Technical amendments are also made to the Act.

Schedule 2
assessment ACt

Subsection 3 (1) of the Assessment Act provides that certain types of real property are exempt from taxation under the Act. Paragraph 29 of subsection 3 (1) of the Act exempts certain structures, such as poles and wires, that are owned by power utilities or municipal electricity utilities. Currently, that exemption is available when those structures are located on easements on land that are not owned by power utilities. The amendment deletes that requirement.

Schedule 3
commodity futures act

Section 59 of the Commodity Futures Act authorizes the Ontario Securities Commission to issue a direction for the interim preservation of property or money in certain circumstances. Subsection 59 (5) of the Act currently provides that the Commission must apply to the Superior Court of Justice, no later than seven days after it issues the direction, for an order of the court to continue the direction or for such other order as the court considers appropriate. The re-enactment of the subsection extends the time limit from seven days to 10 days.

Subsection 64 (3) of the Act is re-enacted to make its wording consistent with Crown immunity provisions in other Ontario statutes.

Schedule 4
corporations tax ACt

Section 74.2 of the Corporations Tax Act provides rules relating to tax in respect of benefit plans. Currently, different rules apply for determining tax payable in respect of funded benefit plans and unfunded benefit plans. Amendments are made to allow a funded benefit plan that is a qualifying trust to elect to be treated as if it were an unfunded benefit plan. A qualifying trust is defined as a type of trust prescribed by the regulations. New subsections 74.2 (3.3) and (3.4) of the Act address situations where a benefit plan changes status from unfunded to funded or from funded to unfunded.

An amendment is made to section 102 of the Act respecting the use of warrants to enforce the obligation to pay tax. Subrule 60.07 (2) of the Rules of Civil Procedure requires that leave of the court be obtained before certain writs are issued. The amendment provides that this rule does not apply for the purposes of section 102.

Schedule 5
education ACt

Currently, subsection 247 (1) of the Education Act permits district school boards to borrow money and incur debt for permanent improvements. Subsection 247 (5) of the Act provides rules relating to payments on debt instruments that are issued by boards. The subsection is amended by removing the requirement that payments be made out of a board's general revenue and the requirement that the board provide for the setting aside of the payments in its estimates for each fiscal year.

References to "deficit" in sections 257.30 and 257.50 of the Act are changed to "accumulated deficit".

Technical changes are made to the French version of the Act.

Schedule 6
employer health tax ACt

Under section 2 of the Employer Health Tax Act, eligible employers determine their taxable total remuneration paid in Ontario for a year by subtracting an exemption amount provided under subsections 2 (6) and (6.1). An associated group of eligible employers may agree to allocate the exemption amount in accordance with subsections 2 (7) and (7.1). Currently, subsection 2 (8) requires every employer in the group to file a copy of the agreement with their annual return. That subsection is amended to require only one employer to file a copy of the agreement on or before the date that the return is due.

Section 2.1 of the Act, which provided tax relief to eligible employers in respect of tax payable for 1994, 1995 and 1996, is repealed. Related provisions are also repealed (see subsections 3 (4.1) and (4.2) and clauses 38 (1) (j), (k), (l) and (m) of the Act).

Section 5 of the Act sets out requirements relating to annual returns that must delivered for the purposes of the Act. Subsection 5 (3) of the Act, which requires a taxpayer to ensure the veracity of a return, is repealed. New subsection 5 (4.1) of the Act provides that a person who delivers a return, or in respect of whom a return is delivered, must satisfy prescribed requirements in respect of the accuracy and completeness of the return.

Section 8.1 of the Act, which provides rules relating to the disallowance of rebates and the assessment of rebates and refunds, is repealed. Consequential amendments are made to sections 9, 10 and 11 of the Act.

An amendment is made to section 20 of the Act respecting the use of warrants to enforce the obligation to pay tax. Subrule 60.07 (2) of the Rules of Civil Procedure requires that leave of the court be obtained before certain writs are issued. The amendment provides that this rule does not apply for the purposes of section 20.

Clause 38 (1) (h) of the Act, which enables the Lieutenant Governor in Council to make regulations providing for rebates of tax, is repealed. A related amendment is made to subsection 31 (8) of the Act.

Schedule 7
financial administration ACt

A technical amendment is made to the definition of "non-cash expense" in subsection 1 (1) of the Financial Administration Act.

Several amendments are made to section 1.0.10 of the Act, which sets out the authority of Treasury Board to make regulations, subject to the approval of the Lieutenant Governor in Council. New clauses 1.0.10 (c.1) and (c.2) provide for regulations to be made with respect to the accounting policies and practices to be followed by public entities and by other entities whose financial statements are included in the consolidated financial statements of the Province as set out in the Public Accounts. New subsection 1.0.10 (4) provides that a regulation made under either of those new clauses prevails over a requirement of another Act or regulation, if the regulation under the new clause states that it prevails. New subsection 1.0.10 (6) permits the delegation of certain authority under those new clauses to the Minister of Finance or to a public servant employed in the Ministry of Finance.

Currently, subsection 1.0.14 (3) permits the Minister of Finance to issue directives, policies and guidelines. An amendment also authorizes the Minister to establish practices and procedures. A related amendment is made to section 1.0.20 of the Act.

Currently, subsection 1.0.16 (2) of the Act specifies that the Minister of Finance is not permitted to delegate certain specified powers, including the power to make regulations. An amendment repeals the reference to the delegation of the Minister's power to make regulations, and provides that the Minister is not permitted to delegate his or her authority under subsection 5.2 (2) of the Act.

A technical amendment is made to section 11.1 of the Act with respect to non-cash expenses. The new subsection 11.1 (3.1) of the Act provides that a statutory appropriation authorizing payments out of the Consolidated Revenue Fund for a particular purpose also authorizes the recognition of non-cash expenses for the same purpose.

Technical amendments are made to section 11.3 of the Act in connection with agreements that would require the Crown to recognize a non-cash expense or non-cash investment.

Technical amendments are made to section 20 of the Act with respect to the exercise of Ontario's borrowing authority. Here are some highlights. A new clause 20 (1) (d.1) authorizes the Minister of Finance to determine whether a security is to be issued as a certificated security or an uncertificated security. A new clause 20 (1) (j.1) authorizes the Minister of Finance to provide, as a term of a security or a loan, that the Minister will not exercise a right of set-off in specified circumstances. Currently, subsection 20 (7) specifies that an order to authorize the issuance and sale of short term securities may only authorize the issuance and sale during a specified period that does not exceed 25 years. An amendment to subsection 20 (7) repeals the reference to the 25-year period. Under the new subsection 20 (8), orders that are in effect on the day the Bill receives Royal Assent may be amended accordingly. Related amendments are made to other sections of the Act.

Schedule 8
financial services commission of ontario ACt, 1997

The Financial Services Commission of Ontario Act, 1997 is amended to allow the Superintendent to delegate in writing to FSCO employees the exercise of powers and performance of duties that are delegated to the Superintendent in an agreement under section 100 of the Pension Benefits Act.

Schedule 9
insurance ACt

The Insurance Act is amended with respect to the process by which an insurer may file grounds for declining to issue, terminating or refusing to renew a contract of insurance, or refusing to provide or continue a coverage or endorsement. The Act permits the Superintendent to require an insurer to provide additional information, material and evidence in order to make a decision with respect to a filed ground. The date on which a ground is effective is amended to provide for circumstances in which the Superintendent requires further information from the insurer. The Act permits the Superintendent to require affiliated insurers to file their grounds concurrently.

Schedule 10
interim appropriation for 2011-2012 ACt, 2010

The Schedule enacts the Interim Appropriation for 2011-2012 Act, 2010 which authorizes expenditures for the fiscal year ending on March 31, 2012 up to specified maximum amounts. The expenditures authorized under the Act are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2012 that are tabled in the Assembly.

Schedule 11
loan and trust corporations ACt

Section 38 of the Loan and Trust Corporations Act is repealed. That section permits a corporation to apply to the Superintendent of Financial Institutions for approval to carry on the business of a loan corporation or a trust corporation after July 1, 2004. The Superintendent's authority to approve applications expired on July 2, 2004.

Schedule 12
ministry of revenue ACt

The Ministry of Revenue Act is amended to provide the power to make regulations prescribing services that may be provided by the Minister to another ministry for certain purposes.

Schedule 13
ontario clean energy benefit ACt, 2010

The Ontario Clean Energy Benefit Act, 2010 authorizes financial assistance for Ontario electricity consumers in respect of electricity costs relating to homes and farms and for consumers whose demand for electricity is not more than 50 kilowatts or whose annual electricity consumption does not exceed 250,000 kilowatt hours. Most consumers receive the financial assistance by means of a 10 per cent credit, after tax, to their electricity accounts for each billing period. The amount of the credit for a billing period is required to be shown on invoices issued to consumers for the billing period. Certain additional amounts that may be included on a consumer's invoice, such as a late payment fee or interest charge, are not considered to be electricity costs for the purposes of determining the amount of the consumer's financial assistance. The financial assistance is available with respect to electricity consumed on or after January 1, 2011 and before January 1, 2016.

The Act authorizes the making of regulations to reimburse electricity vendors for amounts credited to consumers' accounts under the Act.

The Act contains administrative and enforcement provisions, including requirements relating to record keeping by electricity vendors and authorization for inspections and inquiries with respect to amounts of financial assistance provided and reimbursements to electricity vendors. The Ontario Energy Board Act, 1998 is amended so that provisions of the Ontario Clean Energy Benefit Act, 2010 and regulations made under it will be enforceable by the Ontario Energy Board.

Schedule 14
ontario municipal employees retirement system aCt, 2006

Section 5 of the Ontario Municipal Employees Retirement System Act, 2006 is amended to enable additional employers to participate in the OMERS pension plans. These additional employers include authorized subsidiaries of the Administration Corporation, as well as investment entities and others that support the Administration Corporation in carrying out certain of its objects. Under the new subsection 5 (2.1) of the Act, the Sponsors Corporation is authorized to determine whether an employer who satisfies specified criteria may participate in the OMERS pension plans, and to determine the conditions applicable to the employer's participation. Consequential amendments are made to section 8 of the Act.

Schedule 15
pension benefits ACt

Currently, clause 42 (1) (c) of the Pension Benefits Act enables a former member of a pension plan to transfer the commuted value of his or her deferred pension for the purchase of a life annuity. That clause is repealed on June 30, 2011.

A related amendment to section 42 provides that if the commuted value of the former member's deferred pension is greater than the amount that the Income Tax Act (Canada) permits to be used to purchase the former member's life annuity, the excess amount is payable to the former member.

Schedule 16
public sector compensation restraint to protect public services ACt, 2010

The Public Sector Compensation Restraint to Protect Public Services Act, 2010 establishes restraint measures with respect to the compensation plans of employers, employees and office holders who are subject to the Act. An amendment to the Act provides that the restraint measures do not prevent the application of the insurance plan under the Workplace Safety and Insurance Act, 1997 to individuals to whom the insurance plan did not previously apply.

Schedule 17
retail sales tax ACt

Amendments to the Retail Sales Tax Act provide for taxation with respect to a new form of benefits plan, to be called a qualifying trust. A definition of "qualifying trust" is added to subsection 1 (1) of the Act, and related changes are made to other definitions. Under the new subsection 1 (1.0.1) of the Act, a qualifying trust does not come into existence until it contains contributions that exceed three years worth of benefits payable to its members, unless otherwise prescribed. The planholder of a qualifying trust must pay tax in respect of benefits paid to the members or, if applicable, in respect of contributions made by members of the plan to receive benefits from the plan. A qualifying trust cannot be designated under the Act as a funded benefits plan or an unfunded benefits plan.

A technical amendment is made to subsection 2 (20) of the Act.

Amendments to section 2.1 of the Act provide for the tax consequences when a funded benefits plan changes to an unfunded benefits plan and vice versa. If a funded benefits plan changes to an unfunded benefits plan, no tax is payable in respect of benefits paid to members out of contributions on which tax has previously been paid. If an unfunded benefits plan changes to a funded benefits plan, tax is payable in respect of the total amount in the plan as of the date of the change.

Section 5 of the Act is amended to limit the requirement for a vendor to have a permit under the Act after June 30, 2010, and to make a further complementary amendment.

Section 15 of the Act is amended to limit a vendor's duty to file returns after June 30, 2010. A similar amendment is made to section 15.1 of the Act, with respect to the duty of certain other persons to file returns.

Section 16 of the Act is amended to require vendors of insurance to keep specified records.

An amendment is made to section 37 of the Act respecting the use of warrants to enforce the obligation to pay tax. Subrule 60.07 (2) of the Rules of Civil Procedure requires that leave of the court be obtained before certain writs are issued. The amendment provides that this rule does not apply for the purposes of section 37.

The new section 51.1 of the Act authorizes regulations that provide for credits and payments to Indians, bands and councils of the bands (all as defined in the Indian Act (Canada)) in respect of the provincial portion of the HST that is payable on or after September 1, 2010. The current regulation, Ontario Regulation 317/10 (Rebates for First Nations in Ontario), is deemed to have been made under this authority. Sections 20 and 32 of the Act are amended with respect to the administration and enforcement of those credits and payments. Consequential amendments are made to other provisions of the Act.

Schedule 18
securities ACt

In general terms, the amendments to the Securities Act deal with five matters: the establishment of a regulatory framework for trading in derivatives; the regulation of credit rating organizations; the regulation of alternative trading systems; insider trading; and technical matters. Here are some highlights of these amendments.

Regulatory framework for derivatives

Amendments to the Act establish a regulatory framework for trading in derivatives in Ontario. A new Part respecting trading in derivatives is added to the Act. New rule-making authority is also added to the Act. Current provisions of the Act are made applicable to derivatives, including provisions respecting registration, fraud, market manipulation, insider trading and the oversight of exchanges.

Here is a more detailed description of some of those amendments.

Definitions of "derivative", "designated derivative" and "related derivative" are added to subsection 1 (1) of the Act. Related amendments are made to several other definitions. Amendments to other provisions of the Act authorize the Ontario Securities Commission to include or exclude financial instruments from the definition of derivative or designated derivative. (See, for example, the amendment to subsection 1 (10) of the Act.) Related amendments are made to subsection 143 (1) of the Act, which authorizes the Commission to make rules. (See, in particular, new paragraphs 10.1, 19.1, 19.2 and 19.4 of subsection 143 (1) of the Act.)

A new Part XV.1 is added to the Act. It imposes requirements for trading in designated derivatives. Section 64.1 of the Act prohibits a person or company from trading in a designated derivative unless a prescribed disclosure document has been filed and accepted by the Director. Provision is made for exceptions to this requirement. Subsection 64.2 (2) of the Act provides that no derivatives transaction is void, voidable or unenforceable, and no counterparty is entitled to rescind a transaction, solely because the transaction failed to comply with the Act or the regulations. Related amendments are made to subsection 143 (1) of the Act, which authorizes the Commission to make rules. (See, in particular, paragraphs 11 and 35 of subsection 143 (1) of the Act.)

Subsection 21 (5) of the Act is re-enacted to extend the Commission's supervisory powers to exchanges on which derivatives are traded. A new section 21.2.2 of the Act permits the Commission to designate trade repositories and to regulate them. Related amendments are made to subsection 143 (1) of the Act, which authorizes the Commission to make rules. (See, in particular, paragraphs 11, 12 and 35 of subsection 143 (1) of the Act.)

The registration requirement in subsection 25 (1) of the Act, which currently applies only in relation to securities, is amended to apply in relation to derivatives, too. Persons or companies who are in the business of trading in derivatives are required to be registered as dealers. Additional categories of registration may be prescribed under the new subsection 25 (1.1) of the Act for persons or companies trading in derivatives. Corresponding amendments are made with respect to registration as advisors, and relating to exemptions from the registration requirements. (See, for example, the amendments to subsections 25 (7), 27 (3) and section 34 and the new subsection 35 (5.1) of the Act.)

Part XIII of the Act is amended to extend the market conduct requirements to dealers in derivatives. These amendments include the requirement to provide trade confirmations (subsection 36 (1) of the Act), the requirement to provide trade information to the Commission (subsection 36 (2) of the Act), the prohibition against telephoning a residence or calling at a residence for the purpose of trading in a derivative (subsection 37 (1) of the Act) and the requirement to obtain Commission approval of certain advertising material and disclosure documents (subsection 50 (2) of the Act).

Provisions dealing with insider trading and tipping (sections 76 and 134 of the Act), misrepresentation in disclosure documents (section 122 of the Act) and fraud and market manipulation (sections 126.1 and 126.2 of the Act) are extended to include derivatives. Amendments to subsections 134 (7) and (8) of the Act also extend, for "related derivatives", the operation of the provision concerning civil liability for insider trading and tipping.

The Commission's investigation and enforcement powers are extended to cover derivatives. This includes amendments to the Commission's power to order investigations and financial examinations (sections 11 and 12 of the Act) and to conduct compliance reviews (section 20 of the Act). The Commission's authority under section 127 of the Act to issue sanctions when required in the public interest is also extended.

Regulation of credit rating organizations

A new Part IX of the Act authorizes the Commission to regulate credit rating organizations. Definitions of "credit rating organization" and "credit rating" are added to subsection 1 (1) of the Act.

Under a new section 22 of the Act, credit rating organizations may apply to the Commission to be designated. Section 23 of the Act requires the designated credit rating organizations to comply with requirements established under the Act. A related amendment is made to subsection 143 (1) of the Act, which authorizes the Commission to make rules. (See paragraph 63 of subsection 143 (1) of the Act.)

A new section 24 of the Act prohibits designated credit rating organizations from making representations that the Commission has in any way passed upon the merits of a credit rating or the methodologies used to determine the credit rating.

Regulation of alternative trading systems

Currently, under section 21 of the Act, the Commission is authorized to recognize stock exchanges and to make decisions relating to them. A new section 21.0.1 of the Act gives the Commission analogous authority to make decisions relating to alternative trading systems. A definition of "alternative trading system" is added to subsection 1 (1) of the Act. A related amendment is made to subsection 143 (1) of the Act, which authorizes the Commission to make rules. (See paragraph 12 of subsection 143 (1) of the Act.)

Insider trading

Currently, section 76 of the Act prohibits insider trading and tipping in relation to reporting issuers. This prohibition is extended in relation to issuers that have a real and substantial connection to Ontario and whose securities are listed and posted for trading on the TSX Venture Exchange. (See the new definition of "reporting issuer" in subsection 76 (5) of the Act.)

Technical matters

Currently, section 126 of the Act authorizes the Commission to issue a direction for the interim preservation of property or money in certain circumstances, and requires the Commission to apply to court no later than seven days after the direction is issued for a court order continuing the direction. An amendment to the section requires the Commission, instead, to serve and file a notice of application for a court order no later than 10 days after the Commission issues the direction.

The English version of subsection 141 (3) of the Act is re-enacted to make its wording consistent with Crown immunity provisions in other Ontario statutes.

Schedule 19
supplementary interim appropriation ACt, 2010 (No. 2)

The Supplementary Interim Appropriation Act, 2010 (No. 2) is enacted. The Act authorizes additional expenditures for the fiscal year ending March 31, 2011 up to specified maximum amounts. The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation for 2010-2011 Act, 2009 and the Supplementary Interim Appropriation Act, 2010. The expenditures authorized under the Interim Appropriation for 2010-2011 Act, 2009, the Supplementary Interim Appropriation Act, 2010 and the new Act 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, 2011 that are tabled in the Assembly.

Schedule 20
taxation ACt, 2007

Section 23 of the Taxation Act, 2007 is amended to provide that the indexing of specific dollar amounts set out in the Act will apply to dollar amounts referred to in the calculation of the Northern Ontario energy credit. The amendment applies in respect of base taxation years ending on or after December 31, 2010. Section 23 is also amended to specify in more detail the application of the indexing formula in respect of certain dollar amounts used in calculating the Ontario sales tax credit and the Northern Ontario energy credit.

Amendments are made to section 24 of the Act with respect to the determination of an individual's Ontario Health Premium for taxation years in which the individual is bankrupt. New subsection 24 (4.1) of the Act provides new rules that apply for taxation years that fall in calendar years after 2009.

Subsection 31 (3) of the Act currently provides a formula for calculating a corporation's Ontario small business income, which is used to determine the corporation's small business deduction for a taxation year. That subsection is amended to provide that a corporation's Ontario small business income cannot exceed the amount of its Ontario taxable income for the year.

Subsection 84 (1) of the Act deems certain refundable tax credits claimed under the Act to be payments made by a taxpayer on account of the taxpayer's tax payable. Section 84 is amended to specify the particular tax credits that are available in the year in which an individual dies.

Section 98 of the Act sets out various interpretation rules that apply to individuals for the purposes of Division D of Part IV of the Act, including rules relating to the determination of an individual's occupancy cost for the purposes of the Ontario property tax credit. Amendments are made to subsections 98 (2) to (5) of the Act. These amendments provide that payments used to determine an individual's occupancy cost include payments that are made on behalf of the individual or individual's qualifying spouse or qualifying common-law partner.

Section 102 of the Act provides for a political contribution tax credit for qualifying individuals. Subsection 102 (2) is amended to provide that a qualifying individual is an individual who is resident in Ontario on the last day of the taxation year. Subsection 102 (4) currently provides for the type of receipt that a qualifying individual must file to be eligible for the credit. That subsection is amended to update the reference to the receipt that the Chief Electoral Officer requires to be issued to the individual. A definition of "Chief Electoral Officer" is added to subsection 102 (6) of the Act.

Section 103 of the Act provides an Ontario focused flow-through share tax credit for qualifying individuals. Subsection 103 (2) is amended to provide that a qualifying individual is an individual who is resident in Ontario on the last day of the taxation year.

Section 104 of the Act, which provides for the payment of an Ontario child benefit to eligible individuals, is amended to allow the benefit in respect of a qualified dependant to be paid in equal amounts to parents who have shared custody of the dependant.

Section 104.1 of the Act provides for the senior homeowners' property tax grant. Subsection 104.1 (11), which provides that the grant may not be set off against any debts owed to the Ontario government or the federal government, is repealed. Currently, subsection 104.1 (12) provides that the grant cannot be assigned, charged, attached, given as security, or garnished. New subsection 104.1 (12.1) permits the garnishment or attachment of the grant payments for the purposes of the Family Orders and Agreements Enforcement Assistance Act (Canada).

Section 104.11 of the Act, which provides for the payment of an Ontario sales tax credit to eligible individuals, is amended to allow the credit in respect of a qualified dependant to be paid in equal amounts to parents who have shared custody of a qualified dependant. Currently, subsection 104.11 (7) provides that the credit cannot be assigned, charged, attached, given as a security, or garnished. New subsection 104.11 (7.1) permits the garnishment or attachment of the grant payments for the purposes of the Family Orders and Agreements Enforcement Assistance Act (Canada).

Section 104.12 of the Act provides for the payment of the Ontario sales tax transition benefit. New subsection 104.12 (22.0.1) permits the garnishment or attachment of the benefit payments for the purposes of the Family Orders and Agreements Enforcement Assistance Act (Canada).

The following amendments are made to Part V.6 of the Act, which provides for the Northern Ontario energy credit:

1. Subsection 104.19 (1) of the Act sets out definitions that apply for the purposes of the Northern Ontario energy credit. The definition of "adjusted income" is amended to refer to section 122.5 of the Income Tax Act (Canada). The definitions of "base taxation year" and "specified month", which currently refer to regulations made by the Minister of Finance, are replaced with more detailed definitions. Definitions for "designated long-term care home" and "shared-custody parent" are added to subsection 104.19 (1) of the Act.

2. New subsection 104.19 (5) of the Act is added with respect to the determination of whether an individual has a qualified relation for a specified month. A consequential amendment is made to subsection 104.19 (4) of the Act.

3. New subsection 104.19 (6) of the Act provides that various provisions of the Income Tax Act (Canada) apply for the purposes of Part V.6.

4. New subsection 104.20 (2) of the Act provides that the Ontario Minister must send a notice to individuals setting out their entitlement to payments in respect of a Northern Ontario energy credit.

5. Subsection 104.21 (1) of the Act is amended to require an individual, and his or her qualified relation if the Ontario Minister requests, to have each filed a return of income. Amendments are also made to provide that the credit applies to payments made by a person on behalf of an individual or the individual's qualified relation. Furthermore, the subsection is amended to refer to payments made in respect of an individual's accommodation in a designated long-term care home.

6. New subsection 104.21 (3) of the Act is added to provide that if an individual has a qualified relation and receives a grant under section 104.1 of the Act, the individual may also receive a Northern Ontario energy credit, but that his or her qualified relation would not.

7. Section 104.22 of the Act is amended to provide for the calculation of the amount of a Northern Ontario energy credit payable to individuals who have shared custody of a qualified dependant. New subsections 104.22 (6) and (7) of the Act provide how the credit applies in certain situations where an individual has died.

8. Currently, subsection 104.23 (6) of the Act provides that subsection 122.61 (4) of the Income Tax Act (Canada) is applicable for the purposes of the Northern Ontario energy credit. New subsection 104.23 (7) permits the credit to be set off against any debts owed to the Ontario government or the federal government and permits the garnishment or attachment of the credit payments for the purposes of the Family Orders and Agreements Enforcement Assistance Act (Canada).

Subsection 104.27 (1) of the Act, which provides for the transitional Northern Ontario energy tax credit for 2010, is amended to provide that the credit applies to payments made by a person on behalf of an individual or the individual's qualified relation.

Subsection 127.1 (4) of the Act currently provides that a notice of objection with respect to a specified refund under Part V.2 or V.5 of the Act must be served no later than 90 days after a notice of determination or revised notice of determination is sent. That subsection is amended to provide that a notice of objection with respect to a specified refund under Part V.5 (Small Beer Manufacturers' Tax Credit) must be filed no later than 180 days after the notice or revised notice is sent.

An amendment is made to section 132 of the Act respecting the use of warrants to enforce the obligation to pay tax. Subrule 60.07 (2) of the Rules of Civil Procedure requires that leave of the court be obtained before certain writs are issued. The amendment provides that this rule does not apply for the purposes of section 132.

Schedule 21
workplace safety and insurance ACt, 1997

The Bill amends the Workplace Safety and Insurance Act, 1997 with respect to the insurance fund.

Subsections 96 (4), (5) and (6) of the Act are repealed on Royal Assent.

Section 96 of the Act is re-enacted on proclamation.

The new section 96 requires the Board to maintain an insurance fund to pay for current benefits and to provide for future benefits under the insurance plan. Subject to the regulations, the fund must be maintained so that the amount of the fund is sufficient to allow the Board to meet its obligations under the Act to make payments under the insurance plan for current benefits as they become due and to provide for future benefits.

If, at any time before the prescribed date, the insurance fund is insufficient, the new section 96.1 requires the Board to develop and implement a plan to achieve sufficiency that complies with the prescribed requirements. The section sets out the Board's obligation to submit the plan to the Minister and the Minister's authority to obtain a review of the plan and the sufficiency of the fund.

If, at any time after the prescribed date, the insurance fund is insufficient, the new section 96.2 requires the Board to comply with the prescribed requirements to make the fund sufficient.

The new subsection 97 (2.1) comes into force on Royal Assent and states that if, prior to the insurance fund becoming sufficient, there is not sufficient money available in the fund to pay current benefits as they become due, the Board may make the payments out of the reserve funds.

Section 97 of the Act is amended on proclamation.

The new subsections 97 (1), (2) and (2.1) state that once the insurance fund is sufficient, the Board may establish and maintain one or more reserve funds to provide for future benefits. If, before the fund is sufficient, there is not sufficient money in the fund to pay current benefits as they become due, the Board may make the payments out of the reserve funds. Subject to the regulations, if, after the fund becomes sufficient, there is not sufficient money in the fund to pay current benefits as they become due and to provide for future benefits, the Board may make the payments out of the reserve funds.

Section 100 of the Act is repealed on Royal Assent.

The new section 100 sets out the regulation-making powers of the Lieutenant Governor in Council.

Section 167 of the Act is repealed on Royal Assent.

Transitional matters are provided for and consequential amendments are made to the Act.

[39] Bill 135 As Amended by Standing Committee (PDF)

Bill 135 2010

An Act respecting financial and 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.	Contents of this Act Commencement Short title
Schedule 1	Alcohol and Gaming Regulation and Public Protection Act, 1996
Schedule 2	Assessment Act
Schedule 3	Commodity Futures Act
Schedule 4	Corporations Tax Act
Schedule 5	Education Act
Schedule 6	Employer Health Tax Act
Schedule 7	Financial Administration Act
Schedule 8	Financial Services Commission of Ontario Act, 1997
Schedule 9	Insurance Act
Schedule 10	Interim Appropriation for 2011-2012 Act, 2010
Schedule 11	Loan and Trust Corporations Act
Schedule 12	Ministry of Revenue Act
Schedule 13	Ontario Clean Energy Benefit Act, 2010
Schedule 14	Ontario Municipal Employees Retirement System Act, 2006
Schedule 15	Pension Benefits Act
Schedule 16	Public Sector Compensation Restraint to Protect Public Services Act, 2010
Schedule 17	Retail Sales Tax Act
Schedule 18	Securities Act
Schedule 19	Supplementary Interim Appropriation Act, 2010 (No. 2)
Schedule 20	Taxation Act, 2007
Schedule 21	Workplace Safety and Insurance Act, 1997