EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 162 and does not form part of the law. Bill 162 has been enacted as Chapter 18 of the Statutes of Ontario, 2009.

SCHEDULE 1
ASSESSMENT ACT

The Assessment Act is amended by adding clauses (c) and (c.1) to subsection 2 (2) of the Act. The new clauses allow the Minister to define “machinery and equipment” for the purposes of paragraph 18 of subsection 3 (1) of the Act and to prescribe machinery and equipment for the purposes of paragraph 18.1 of subsection 3 (1) of the Act.

Subsection 3 (1) of the Act is amended by adding paragraph 18.1. The new paragraph exempts from taxation machinery and equipment used for the purposes of energy conservation or efficiency and that has been prescribed by the Minister.

SCHEDULE 2
BAILIFFS ACT

Sections 14, 15 and 16 of the Bailiffs Act are repealed. The sections currently require bailiffs and assistant bailiffs to be bonded. The sections also provide for circumstances in which the bond may be forfeited, and for disposition of the proceeds of forfeited bonds and any collateral security.

New sections 3.0.1 and 3.1.1 of the Act set out a requirement for bailiffs and assistant bailiffs to provide financial security in accordance with the regulations made under the Act. New section 18.2 of the Act gives authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

SCHEDULE 3
CAPITAL INVESTMENT PLAN ACT, 1993

Subsection 5 (1) of the Capital Investment Plan Act, 1993 currently provides that, in the case of the Ontario Financing Authority, the Ontario Transportation Capital Corporation, the Ontario Clean Water Agency and the Ontario Realty Corporation, the corporation is managed by its board of directors. The subsection is re-enacted to provide that the board of directors shall manage or supervise the management of the business and affairs of the corporation.

SCHEDULE 4
CITY OF TORONTO ACT, 2006

Section 228 of the City of Toronto Act, 2006 is amended to require revenues in the City’s budgets to be at least equal to expenses, once a reserve fund adjustment is made. The section is also amended to require the City’s budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year’s budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year’s budget. The section is further amended to require the City’s budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 241 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of the City. Authority is provided to make regulations permitting the City to exclude certain expenses from its budget.

The amendments to the Act are made in connection with the implementation for the City of the requirement to report on tangible capital assets in its financial statements.

SCHEDULE 5
COLLECTION AGENCIES ACT

The amendments to the Collection Agencies Act give authority to make regulations requiring that collection agencies and collectors provide financial security as a term and condition of registration under the Act. The amendments also provide authority to make regulations governing the type, amount, form and terms of the security, prescribing additional obligations relating to the security, providing for cancellation of the security, providing for the security to continue in force following cancellation, and governing forfeiture of the security and disposition of the proceeds.

SCHEDULE 6
COMMODITY FUTURES ACT

A new section 2.2 is added to the Commodity Futures Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest. Criteria are set out for determining whether extraordinary circumstances exist. In such circumstances, the Commission is authorized to make specified orders that expire in 10 days or less. With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods. The Lieutenant Governor in Council is also authorized to make regulations.

A technical amendment is made to subsection 65 (1) of the Act, which governs the authority of the Ontario Securities Commission to make rules. Paragraph 7 of that subsection is re-enacted to replace references to “market participants” with a more detailed description of persons and companies that are subject to the rules made under the paragraph.

SCHEDULE 7
COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

The amendments to the definition of “eligible investor” in subsection 12 (1) of the Community Small Business Investment Funds Act permit the holder of a tax-free savings account to be an eligible investor in a labour sponsored investment fund corporation.

The tax credit under the Income Tax Act for eligible investors in employee ownership labour sponsored venture capital corporations is not available after the 2008 taxation year. New subsection 25 (2.2) of the Community Small Business Investment Funds Act incorporates this time limit into the Act.

SCHEDULE 8
CORPORATIONS ACT

Section 161 of the Corporations Act currently provides that the annual statements of a mutual insurance corporation must be mailed to its shareholders or members or published in a newspaper published near the corporation’s head office. The re-enactment of section 161 of the Act also permits the corporation to publish its annual statement on its website. If a mutual insurance corporation publishes its annual statement on its website, the notice of its annual general meeting at which the statement will be considered must advise the shareholders or members that the annual statement is available on the corporation’s website and that the shareholders or members may make a written request to receive a copy by mail. The re-enactment of section 161 of the Act also changes the deadline for giving notice of an annual general meeting and for making the annual statement available to shareholders or members from seven days before the meeting to 21 days before the meeting. The deadline for giving notice of a special general meeting continues to be seven days before the meeting.

SCHEDULE 9
CORPORATIONS TAX ACT

The amendments to the Corporations Tax Act are consequential amendments to add a reference to clause 41 (3.2) (f) of the Act in various sections of the Act. Clause 41 (3.2) (f) of the Act was enacted in 2008 to increase the small business limit from $400,000 to $500,000, effective January 1, 2007, for the purposes of the small business deduction.

SCHEDULE 10
EDUCATION ACT

Technical amendments are made to subsections 257.11.1 (1) and (2) of the Education Act.

SCHEDULE 11
EMPLOYER HEALTH TAX ACT

Various provisions of the Employer Health Tax Act relate specifically to self-employed individuals, who were subject to tax under the Act for years before 1999. These provisions are repealed and certain consequential amendments are made.

SCHEDULE 12
FINANCIAL ADMINISTRATION ACT

The definition of “non-cash expense” in section 1 of the Financial Administration Act is re-enacted to include the classes of non-cash expenses currently prescribed in Ontario Regulation 26/03 (Non-Cash Expenses) made under the Act and to add a new non-cash expense class for any adjustments in expenses for employee or pensioner benefits required as a result of actuarial valuations of the amount of the liabilities for those benefits.

Section 1 of the Act is amended to add the definition of “non-cash investment”, which includes imputed interest incurred during construction of a capital asset and any other investment not requiring an outlay of money or the incurring of a liability that is prescribed by the regulations under the Act.

Under subsection 5 (3.1) of the Act, the liability of a person who owes money to the Crown is not affected if the amount of the debt is deleted from the government accounts as an uncollectible debt. The subsection is re-enacted to also expressly state that the deletion of the debt from the government accounts does not preclude the Minister of Finance from subsequently setting off the amount of the debt under subsection 43 (2) of the Act against any amount that becomes payable by the Crown to the debtor.

Section 11.1 of the Act is re-enacted to reflect the re-enactment of the definition of “non-cash expense” in section 1 of the Act, to provide a statutory appropriation for certain non-cash expenses and for non-cash investments prescribed by the regulations and to expressly state that the charging of a non-cash expense or a non-cash investment to an appropriation does not authorize the making of a payment from the Consolidated Revenue Fund.

Section 16.0.2 of the Act requires that certain matters, including whether a ministry has incurred a liability during a fiscal year, must be determined for the purposes of Part II of the Act in accordance with the accounting principles set out in the Public Accounts for the relevant fiscal year. The amendment to the section provides that whether a debt owed to the Crown has become uncollectible during a fiscal year and is a bad debt is also to be determined in accordance with the accounting principles set out in the Public Accounts for the year for the purposes of Part II of the Act.

Section 38 of the Act is amended to reflect the re-enactment of the definition of “non-cash expense” in section 1 of the Act, the new definition of “non-cash investment” and the statutory appropriation for certain non-cash investments under subsection 11.1 (4) of the Act. New subsection 38 (2) of the Act permits regulations relating to non-cash expenses and non-cash investments to be made effective April 1, 2009, the effective date of the amendments to section 1 of the Act relating to non-cash expenses and non-cash investments.

Technical changes are made to sections 11 and 11.9 and to the French version of clause 38 (c.2.1) of the Act.

SCHEDULE 13
INCOME TAX ACT

Section 8.5 of the Income Tax Act implements the Ontario child care supplement for working families. The amendments to the section provide that the supplement is available in respect of qualified dependants born before July 1, 2009 and add a reference to the Ontario child benefit which, after 2008, is available under the Taxation Act, 2007 and not the Income Tax Act.

Section 8.6.2 of the Act is amended to provide that Ontario child benefit payments are not payable under the Act for months after 2008. For 2009 and later years, monthly Ontario child benefit payments are made to eligible individuals under the Taxation Act, 2007.

SCHEDULE 14
INTERIM APPROPRIATION FOR 2009-2010 ACT, 2008

Sections 2 and 3 of the Interim Appropriation for 2009-2010 Act, 2008 are re-enacted to update accounting terminology and to permit the Crown to recognize non-cash investments.

SCHEDULE 15
LEGISLATIVE ASSEMBLY ACT

The re-enactment of subsection 61 (1.2) of the Legislative Assembly Act maintains the amount of the annual salary of members of the Assembly for the 2009-2010 fiscal year at the salary level in effect on March 26, 2009.

Subsection 61 (1.3), section 61.1 and subsection 69 (6) of the Act are spent and are repealed in this Schedule.

SCHEDULE 16
LOCAL ROADS BOARDS ACT

Currently, subsection 29.1 (1.2) of the Local Roads Boards Act allows a board to enter into an agreement with the Minister of Finance on or before March 1, 2009 providing for the delegation to the Minister of Finance of the board’s power under the Act to collect tax for the 2009 taxation year. Subsection 29.1 (1.2) of the Act is re-enacted to allow an agreement for a delegation that applies to the 2009 taxation year to be entered into at any time during the 2009 taxation year that the Minister of Finance considers appropriate.

A technical amendment is made to the English version of section 33.1 of the Act.

SCHEDULE 17
MINISTRY OF REVENUE ACT

Section 11 of the Ministry of Revenue Act authorizes the Lieutenant Governor in Council to remit any tax, fee, penalty or other debt if the Lieutenant Governor in Council considers the remission to be in the public interest. The remission of a tax or fee may be made before liability for the tax or fee arises. The amendment permits remissions of certain other debts owed to the Crown to also be made before liability for the debt arises.

SCHEDULE 18
MUNICIPAL ACT, 2001

Sections 289 and 290 of the Municipal Act, 2001 are amended to require revenues in municipal budgets to be at least equal to expenses, once a reserve fund adjustment is made. Those sections are also amended to require a municipal budget to include in estimated revenues any surplus that resulted because revenues in the previous year were higher than the estimated revenues in the previous year’s budget, and similarly to include any surplus that resulted because expenses in the previous year were lower than the estimated expenses in the previous year’s budget. Those sections are further amended to require a municipal budget to provide for a deficit of a previous year that resulted from a revenue shortfall for that year, or that resulted from certain expenses being incurred in that year.

Consequential changes to budget related terminology are also made.

Amendments are made to section 292 of the Act with respect to the authority to make regulations phasing in changes in financial reporting requirements of municipalities. Authority is provided to make regulations permitting municipalities to exclude certain expenses from their budgets.

The amendments to the Act are made in connection with the implementation for municipalities of the requirement to report on tangible capital assets in their financial statements.

SCHEDULE 19
ONTARIO CHILD BENEFIT EQUIVALENT ACT, 2009

The Ontario Child Benefit Equivalent Act, 2009 establishes a program for the payment of an amount equivalent to the Ontario child benefit in respect of qualified children.

SCHEDULE 20
ONTARIO HOME OWNERSHIP SAVINGS PLAN ACT

The repeal of the Ontario Home Ownership Savings Plan Act completes the wind-up of the Ontario Home Ownership Savings Plan (OHOSP) program that was commenced in 2004. The OHOSP program provided tax credits to individuals resident in Ontario in respect of contributions made to an OHOSP before May 19, 2004. Amendments to the Act in 2004 provided that no new OHOSP could be registered and no new contributions to existing plans would be allowed after May 18, 2004.

SCHEDULE 21
ONTARIO LOAN ACT, 2009

The Ontario Loan Act, 2009 is enacted. Subsection 1 (1) of the Act authorizes the Crown to borrow a maximum of $23.5 billion. Subsection 1 (2) of the Act authorizes the Crown to borrow additional amounts up to a maximum of $10 billion through the issue and sale of short term securities over a specified period not exceeding 25 years.

SCHEDULE 22
ONTARIO MUNICIPAL EMPLOYEES RETIREMENT SYSTEM ACT, 2006

New section 35.1 of the Ontario Municipal Employees Retirement System Act, 2006 is enacted and permits the Administration Corporation to establish authorized subsidiaries to provide services described in subsection 35.1 (5) of the Act to the Administration Corporation, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in subsection 35.1 (6) of the Act. A corporation is an authorized subsidiary if the criteria set out in subsection 35.1 (3) of the Act are satisfied.

The Administration Corporation is permitted by subsection 35.1 (7) of the Act to invest the assets of the OMERS pension funds in an authorized subsidiary.

The services of an authorized subsidiary may be provided as described in new section 35.1 of the Act only under an agreement authorized under new section 35.2 of the Act which provides that, if authorized by the Sponsors Corporation, the Administration Corporation may enter into agreements under which its authorized subsidiaries will provide the services. Subsection 35.2 (3) of the Act permits the Administration Corporation itself to continue to provide services under certain agreements.

Section 29 of the Act is repealed with the enactment of new section 35.1 of the Act. It currently authorizes the Sponsors Corporation to enter into agreements under which the Administration Corporation provides certain services to the administrators of other pension plans.

SCHEDULE 23
ONTARIO PROVINCIAL POLICE COLLECTIVE BARGAINING ACT, 2006 AND POLICE SERVICES ACT

This Schedule amends the Ontario Provincial Police Collective Bargaining Act, 2006 and makes related amendments to the Police Services Act.

Sections 1 to 13 amend the Ontario Provincial Police Collective Bargaining Act, 2006.

Section 3 amends the descriptions of the two bargaining units represented by the Ontario Provincial Police Association: subsection 2 (1) of the Act. Terminology used in describing the officers’ bargaining unit is updated. The civilian employees’ bargaining unit is described more specifically, in that it no longer refers to results of potential certification applications, and includes some employees not currently included in the unit.

Sections 4, 5 and 8 amend sections 4, 7 and 11 of the Act. New subsection 7 (2) of the Act provides that matters relating to prescribed supplemental pension benefits for employees in the bargaining units may be referred to an arbitration board. The amendment to section 4 of the Act provides that the Negotiating Committee shall not arbitrate a grievance relating to these matters. Section 11 of the Act is amended to authorize the Lieutenant Governor in Council to make regulations prescribing supplemental pension benefits.

Section 7 provides that the probationary period for a person appointed as a Recruit Constable begins on the date of the appointment and ends on the first anniversary date of his or her appointment to the rank of Probationary Constable.

Sections 6, 9, 11 and 13 repeal spent provisions of the Act.

Related amendments to the Police Services Act are made by sections 14 and 15. Section 14 amends the definition of “member of a police force” in section 2 of the Police Services Act. Section 15 amends section 18 of that Act, respecting the composition of the Ontario Provincial Police. These amendments provide that employees of the Ontario Provincial Police who are not police officers are members of the Ontario Provincial Police. This is already the case for employees of a municipal police force.

SCHEDULE 24
PENSION BENEFITS ACT

Section 82 of the Pension Benefits Act is amended to incorporate into the section the provision currently in the regulations requiring employers who make contributions to pension plans that provide defined benefits to fund the Pension Benefits Guarantee Fund. The amount of the funding is determined under rules prescribed by the regulations. Subsection 82 (3.3) sets out matters to be taken into consideration when making new regulations to determine the amount of the funding. Clause 115 (1) (e) of the Act is re-enacted to set out matters to be prescribed by the regulations relating to the collection of amounts payable to the Guarantee Fund.

Section 82 of the Act currently permits the Lieutenant Governor in Council to authorize the Minister of Finance to make loans out of the Consolidated Revenue Fund to the Pension Benefits Guarantee Fund if the amount in the fund is insufficient for the purpose of paying claims. Amendments to section 82 of the Act permit the Lieutenant Governor in Council to authorize the Minister of Finance to make grants to the fund from any money appropriated for that purpose by the Legislature. New subsection 82 (6) of the Act provides that neither the Act nor the regulations require the Lieutenant Governor in Council to authorize the Minister of Finance to make either a loan or a grant to the Pension Benefits Guarantee Fund. Under new subsection 82 (7) of the Act, the maximum liability of the Pension Benefits Guarantee Fund is limited to the assets of the fund.

The re-enactment of subsection 115 (6) of the Act and the enactment of subsection 115 (7) of the Act permit the Lieutenant Governor in Council to make regulations before June 30, 2010 relating to the funding of pension plans that provide defined benefits. The regulations may be retroactive, but cannot apply earlier than September 30, 2008.

SCHEDULE 25
PROVINCIAL LAND TAX ACT, 2006

Section 15 of the Provincial Land Tax Act, 2006 is amended by adding subsections (4.1) and (4.2). If a person other than the owner of the land or a spouse of the owner of the land pays an amount owing under the Act in respect of land for which the Minister has issued a notice of possible forfeiture, that person has a lien on the land for the amount paid, and the lien has priority over the interest in the land of any person to whom the notice was sent.

Section 19 of the Act is amended by adding subsection (3). The new subsection allows the Minister to charge such fee as he or she considers appropriate for the issuance of a statement of amounts owing for taxes.

Section 19.1 is added to the Act. It allows the Minister, at the request of an owner of land, to give to that owner a statement of account that sets out all amounts owing for taxes in respect of the owner’s land as of the day the statement is issued. A statement of account is not binding on the Minister. The Minister may charge such fee as he or she considers appropriate for the issuance of a statement of account.

Section 24.1 of the Act is amended by adding subsection (2). The new subsection provides that, for greater certainty, agreements entered into under that section may authorize a municipality to receive payments of property tax in the municipality’s name.

SCHEDULE 26
SECURITIES ACT

Proposed amendments to the Securities Act specify the authority of the Province and the Ontario Securities Commission in extraordinary circumstances; revise the registration requirements for dealers, advisers and others; revise the exemptions from the registration requirements; revise the prospectus exemptions under the Act; and make technical and other changes to the Act.

Authority in extraordinary circumstances

A new section 2.2 is added to the Act specifying the authority of the Province and the Ontario Securities Commission to take immediate action in extraordinary circumstances to protect the public interest. Criteria are set out for determining whether extraordinary circumstances exist. In such circumstances, the Commission is authorized to make cease trade orders that expire in 10 days or less. With the approval of the Minister of Finance, the Commission is authorized to make regulations that are revoked in 30 days or less, but that can be extended for further 30-day periods. The Lieutenant Governor in Council is also authorized to make regulations.

Registration requirements

Part XI of the Act, which governs registration under the Act of dealers, advisers and certain other persons and companies, is re-enacted. Some of the highlights of the amendments to the registration requirements are:

Registration exemptions

Part XII of the Act, which governs exemptions from the requirement to be registered under the Act, is re-enacted. Some of the highlights of the amendments to the registration exemptions are:

1. Section 34 of the Act exempts an adviser from the registration requirements under the Act if the adviser provides only general investment advice in the form of publications or other media without any representation that the advice is tailored to the needs of anyone who receives it.

2. A number of dealer registration exemptions are repealed that relate to trades that are not conducted in the course of engaging in the business of trading in securities.

3. Section 35 of the Act provides a dealer registration exemption for trades in debt securities issued or guaranteed by governments in Canada. Exemptions are provided for transactions that are governed by other statutory schemes.

4. Section 35.1 of the Act provides a registration exemption for federal and Ontario financial institutions in specified circumstances.

5. Other registration exemptions may be established by regulation.

Amendments that relate to the re-enactment of Parts XI and XII of the Act are made to sections 36, 37, 44, 74, 119, 134, 135, 136 and 143 of the Act. Sections 39, 40, 41, 45 and 118 of the Act are repealed.

Prospectus exemptions

Part XVII of the Act, which governs exemptions from prospectus requirements, is amended. The amendments are related, in part, to the changes to the registration requirements. Some of the highlights of the amendments to the prospectus exemptions are:

Related amendments are made to section 143 of the Act concerning regulation-making authority.

Other amendments

The regulation-making authority in paragraph 5 of subsection 143 (1) of the Act currently provides for a rule that requires notice to be given to the Commission in specified circumstances when there is a proposed change in the beneficial ownership of, or control or direction over, the securities of a registrant and authorizes the Commission to make an order. The provision is re-enacted and notice must be given, in addition, when the change relates to the securities of a person or company of which the registrant is a subsidiary.

New regulation-making authority is set out in paragraph 8.1 of subsection 143 (1) of the Act enabling the Commission to make a rule exempting a person or company from any requirement under the Act or regulations that is comparable to a requirement imposed on the person or company by a self-regulatory organization.

SCHEDULE 27
SUPPLEMENTARY INTERIM APPROPRIATION FOR 2009-2010 ACT, 2009

The Supplementary Interim Appropriation for 2009-2010 Act, 2009 is enacted. It authorizes additional expenditures for the fiscal year ending March 31, 2010 up to specified maximum amounts. The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation for 2009-2010 Act, 2008. The expenditures authorized under both the Interim Appropriation for 2009-2010 Act, 2008 and the Supplementary Interim Appropriation for 2009-2010 Act, 2009 are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending March 31, 2010 tabled in the Legislative Assembly.

SCHEDULE 28
TAXATION ACT, 2007

New subsection 4 (4) of the Taxation Act, 2007 provides that the rules in subsection 128 (2) of the Income Tax Act (Canada), applicable in respect of an individual who becomes a bankrupt, apply for the purposes of the Act. These rules include provisions stating that the estate of the bankrupt is not a trust or estate separate from the individual for tax purposes and that the trustee is to be treated for tax purposes as if the trustee were the agent of the individual for the purposes of determining the individual’s income and taxable income while in bankruptcy.

When the Taxation Act, 2007 was enacted in 2007, sections 6, 9, 16 and 20 of the Act reflected the specific dollar amounts that would apply for the 2007 taxation year in determining the amount of personal income tax, Ontario surtax, personal income tax credits and the Ontario tax reduction, and provided that those amounts would be adjusted annually under section 23 of the Act. The dollar amounts applicable for the 2009 taxation year, the first taxation year to which the Act applies, could not be calculated in 2007 because the annual adjustments are determined under a formula based on the Consumer Price Index. The amendments to those sections and to section 23 of the Act in this Schedule substitute the applicable dollar amounts for the 2009 taxation year and provide for the annual adjustment of those amounts for taxation years ending after 2009 using the formula based on the Consumer Price Index set out in section 23 of the Act.

New paragraph 10.1 of section 8 of the Act provides that only certain non-refundable tax credits may be claimed by individuals not resident in Canada at any time in a taxation year, unless all or substantially all of their income for the year is included in calculating their taxable income earned in Canada for the year. This provision is consistent with a comparable provision in the Ontario Income Tax Act applicable to taxation years ending before 2009.

New sections 53.1 and 53.2 of the Act provide that, for taxation years ending after 2008, a non-refundable tax credit is available to corporations that make eligible political contributions to registered candidates, registered constituency associations or registered parties. A corporation may carry forward unused eligible contributions, including contributions made before 2009, for up to 20 years. The new tax credit replaces the deduction for political donations available under section 36 of the Corporations Tax Act for taxation years ending before 2009.

The co-operative education tax credit in section 88 of the Act currently provides corporate and unincorporated employers with a refundable tax credit in respect of amounts paid to co-operative education students employed in qualifying work placements. The rate of the tax credit is 15 per cent for employers paying salaries or wages up to $400,000 and 10 per cent for employers paying salaries or wages equal to or greater than $600,000. For employers paying salaries or wages between $400,000 and $600,000, the higher rate of 15 per cent is gradually phased out. The amount of the tax credit is also capped at $1,000 for each qualifying work placement. The amendments to section 88 of the Act increase the 15 per cent rate for smaller employers to 30 per cent and increase the 10 per cent rate for larger employers to 25 per cent, effective for eligible expenditures incurred after March 26, 2009. In addition, the $1,000 limit for each qualifying work placement is increased as of March 26, 2009 to $3000, prorated for qualifying work placements straddling March 26, 2009.

The amendments to sections 91 and 92 of the Act repeal the scheduled reduction in tax credit rates for the Ontario film and television tax credit and the Ontario production services tax credit for qualifying labour expenditures incurred after 2009. The tax credit rates for qualifying labour expenditures incurred after 2009 will remain the same as the tax credit rates that apply to qualifying labour expenditures incurred in 2008 and 2009. Complementary amendments are made to section 172 of the Act relating to the authority to prescribe regulations.

The amendments to sections 98, 101 and 104.1 of the Act set out requirements if a senior is claiming a property tax credit or a senior homeowners’ property tax grant in respect of a principal residence that is a non-seasonal mobile home or a residence occupied pursuant to a prepaid life lease or a prepaid lease having a term of at least 10 years. The definition of “municipal tax” is amended to exclude land transfer tax levied by the City of Toronto for the purposes of determining the amount of the property tax credit and senior homeowners’ property tax grant.

Section 104 of the Act provides for the payment of a monthly Ontario child benefit to eligible individuals with qualified dependants. Under the current legislation, the full monthly Ontario child benefit payment (based on an annual amount of $1,100 per qualified dependant) is to be phased in and paid for months commencing after June 30, 2011. Subsection 104 (5) of the Act is amended to accelerate the payment of the full monthly Ontario child benefit to July 2009 and subsequent months.

The Ontario Income Tax Act provides that for taxation years ending before 2009 there is an additional capital gains refund for a mutual fund trust in the event that the full amount of basic income tax and surtax paid by the trust on capital gains was not refunded in previous years. Section 105 of the Taxation Act, 2007 is amended to provide for a comparable additional capital gains refund for taxation years ending after 2008. A technical change to the French terminology is made in subsection 105 (3) of the Act.

SCHEDULE 29
TEACHERS’ PENSION ACT

New section 12.1 of the Teachers’ Pension Act permits the Minister of Education and the executive of The Ontario Teachers’ Federation to enter into an agreement granting the Ontario Teachers’ Pension Plan Board the power to incorporate one or more corporations and invest assets of the pension fund in such a corporation.

The Board must control a corporation it incorporates by holding shares representing more than 50 per cent of the shareholders’ equity of the corporation. The business of the corporation must be limited to providing services described in new subsection 3.1 (5) of the Act to the Board, administrators of other pension plans, governments, certain educational institutions, charities and other types of clients listed in new subsection 3.1 (6) of the Act.

Subsection 8 (2) of the Act currently provides a statutory protection from liability for members of the Board for acts done in good faith relating to the pension plan. New subsection 8 (3) of the Act states that subsection 8 (2) of the Act does not apply to protect a corporation incorporated by the Board or to protect members of the Board with respect to acts done in relation to a corporation incorporated by the Board.

SCHEDULE 30
TOBACCO TAX ACT

Under the current Tobacco Tax Act, the Minister may apply to the court for an order to permit the retention of documents seized under subsection 24 (1) of the Act that may afford evidence of a contravention of the Act. Amendments to that section permit an application for an order to permit the retention of things that are seized that may afford evidence of a contravention of the Act.

Under the current Act, a person may have in his or her possession up to 200 unmarked cigarettes without contravening the Act, as long as the person does not possess the cigarettes for the purpose of sale. Sections 23.1, 24 and 29 of the Act are amended to prohibit the possession of any number of unmarked cigarettes for any purpose, unless authorized under the Act.

New section 24.0.1 of the Act protects persons who are engaged in the enforcement of the Act on behalf of the Minister from being in technical violation of the Act by, for example, being in possession of unmarked tobacco, when carrying out their duties under the Act.

Currently, under subsection 29 (1.1) of the Act, if a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of unmarked cigarettes, the authorized person may stop and detain the person and seize the unmarked cigarettes. The re-enactment of the subsection also allows the authorized person to search the person’s personal belongings for unmarked cigarettes and, if unmarked cigarettes are found, require the person to provide identification.

Under new section 35.1 of the Act, when a person is convicted of an offence for the unauthorized delivery, distribution or transportation of tobacco or tear tape, the court may order the Registrar of Motor Vehicles to suspend the person’s driver’s licence for not more than six months on a first conviction and not less than six months on each subsequent conviction.

Other amendments to the Act standardize the penalties imposed on convictions for offences under the Act.

SCHEDULE 31
TREASURY BOARD ACT, 1991

New section 6.1 of the Treasury Board Act, 1991 permits the Treasury Board to require a minister of the Crown to obtain the consent of the Board before charging a new fee, determining or prescribing the amount of a fee, waiving or refunding a fee or changing the amount of a fee. The Board may also require a minister to obtain the consent of the Board before approving or otherwise authorizing the exercise by another person or entity of a similar power in connection with fees payable into the Consolidated Revenue Fund. The section does not apply if the amount of the fee is set out in an Act or in a regulation made by the Lieutenant Governor in Council or is determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

A terminology change is made to the French version of clause 6 (1) (d) of the Act.

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