Bill 168 2014

An Act to promote the purchase of mass transit vehicles that are made in Canada

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

Definition

   1.  In this Act,

"mass transit vehicles" includes passenger commuter rail cars, subway cars, light rail vehicles, street cars and diesel multiple units, airport people movers and buses.

Purchase of mass transit vehicles

   2.  (1)  If a municipality receives a grant, loan or other financial assistance from the Province of Ontario for the purchase of mass transit vehicles, the municipality shall only consider a bid for a contract to purchase the mass transit vehicles if the bid meets the conditions of subsection (2).

Conditions to be met

   (2)  To be eligible for consideration under subsection (1), a bid must meet the following conditions:

    1.  The bid must be a compliant bid and conform to the rules and procedures applicable to the purchase process.

    2.  At least 60 per cent of the portion of the bid price relating to materials, overhead, labour and profit shall be on account of materials, overhead, labour and profit originating in Canada, as determined in accordance with the regulations.

    3.  The following steps in the production of the mass transit vehicles must be performed in Canada:

            i.  Installation and interconnection of propulsion control equipment, propulsion cooling equipment, braking equipment, heating and air conditioning equipment, communications equipment, motors, wheels and axles, suspensions and frames, and energy sources for auxiliaries and controls.

           ii.  Inspection and verification of all installation and interconnection work.

          iii.  Testing and verification of all functions of the stationary, fully assembled vehicles in the assembly plant.

Audit

   (3)  If a municipality accepts a bid, the municipality shall audit the production of the mass transit vehicles to ensure compliance with the conditions set out in subsection (2).    

Deemed condition of financial assistance

   3.  It is deemed to be a condition of any grant, loan or other financial assistance provided to a municipality by the Province of Ontario for the purchase of mass transit vehicles that the municipality comply with this Act.

Regulations

   4.  The Lieutenant Governor in Council may make regulations,

  (a)  governing the determination of whether a portion of a bid price relates to materials, overhead, labour or profits that originate in Canada for the purposes of paragraph 2 of subsection 2 (2);

  (b)  providing for any transitional matters the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of this Act.

Commencement

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

Short title

   6.  The short title of this Act is the Buy in Canada for Mass Transit Vehicles Act, 2014.

EXPLANATORY NOTE

The Bill requires municipalities that receive financial assistance from the Province of Ontario for the purchase of mass transit vehicles to consider only bids that meet certain conditions. Bids must conform to the rules and procedures applicable to the purchase process. In addition, at least 60% of the portion of the bid price relating to materials, overhead, labour and profit must be on account of materials, overhead, labour and profit originating in Canada. Certain production steps must also be performed in Canada.