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REPORT
CLERK'S DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Report #: CLD-012-07
File #:
6Pf1-;)if-OI
By-law #:
Date: MARCH 26, 2007
Subject:
BILL 130 - MUNICIPAL STATUTE LAW AMENDMENT ACT, 2006
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report CLD-012-07 be received for information.
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Reviewed by: Franklin Wu,
Chief Administrative Officer
PLB
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-6506
REPORT NO.:CLD-012-07
PAGE 2 of7
1.0 Overview
On January 1, 2007, Bill 130, the Municipal Statute Law Amendment Act, 2006, came
into force, with some provisions being proclaimed at a later date. The revisions to the
Municipal Act (the Act) provide municipal governments with more flexibility in meeting
their communities' expectations and in fulfilling their responsibilities, and place a much
higher standard of transparency and accountability on municipal governments.
When the Municipal Act, 2001 was enacted, a number of requirements were imposed
on municipalities, which have now been removed. Some of these include:
1. Fees and Charges - The ability to charge a license fee was subject to council
taking into account the cost of administering and enforcing by-laws within the
municipality.
2. Regulatory By-laws - Licensing powers could only be exercised for one or more
of:
a) Health and safety;
b) Nuisance control; and
c) Consumer protection
3. Sunset Clause - Licensing by-laws no longer expire five years from the date they
come into force.
4. Public Notice - The specific requirements for giving of public notice are now
removed.
This report provides a review of some of the key features in the revised Act.
2.0 Expanded Powers
The Act now provides more emphases on broad, permissive authority than the
prescriptive approach of earlier Acts. All municipalities receive the power to pass
by-laws respecting:
. Governance structure of the municipality and its local boards
. Accountability and transparency of the municipality and its operations and of its
local boards and their operations
. Financial management of the municipality and its local boards
. Public assets of the municipality acquired for the purpose of exercising its
authority
. Economic, social and environmental well-being of the municipality
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. Health, safety and well-being of persons
. Services and things that the municipality is authorized to provide (subject to
limits)
. Protection of persons and property, including consumer protection
Some specific details include:
1. Local and Service Boards - Municipalities now have broad permissive powers to
establish, dissolve, change or impose requirements on certain local boards and
have the power to establish a municipal service board for any municipal service
or activity.
2. Delegation - Municipalities now have expanded authority to delegate their powers
and duties to any person or body subject to certain restrictions. The delegation
may be exclusive or shared with the delegated body, can be subject to limits and
may always be revoked. Some specific powers and duties cannot be delegated,
such as zoning by-laws, official plan approval, imposing taxes, budget approval
and appoint/removing of statutory officers. Legislative and quasi-judicial powers
may only be delegated to one or more members of municipal council; a body that
has at least two members of which 50% are council members, council
appointees, or a combination; or an officer, employee or agent of the
municipality.
3. Business Regulation - Municipalities now have broad powers to license
businesses, subject to certain limits. Specific new powers authorize
municipalities to administratively suspend a license prior to a hearing where there
is a danger to health or safety. Municipalities are now able to impose an
administrative penalty over and above the fines for failure to comply with any part
of a licensing system.
4. Enforcement - Municipalities now have broader enforcement abilities, such as the
authority to set fines for by-law offences and an administrative power of entry to
determine by-law compliance, subject to special provisions respecting dwelling
units. Previously, municipalities were limited to the fines set out in the Provincial
Offences Act; we are now able to set fines of up to $100,000. Municipalities also
now have the power to impound objects as evidence.
5. Economic Development - Municipalities have greater authority to offer financial
incentives within a community improvement plan.
6. Business Improvement Areas (BIAs) - Municipalities can now establish their own
rules and conditions for BIAs. However, the current BIA rules and conditions in
the Municipal Act, 2001 will continue if a municipality does not exercise its new
right to do so.
7. Housing - Municipalities now have the authority to prohibit or regulate the
demolition or conversion of residential rental properties with six or more dwelling
units.
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3.0 Transparency and Accountability
In response to public concerns over events in recent years, the Act now contains
general requirements which replace specific provisions. Accountability mechanisms
have been strengthened to balance broader powers.
Municipalities are empowered to pass by-laws to establish:
1. Code of Conduct for Council and Local Boards - A code of conduct may speak to
such matters as standards for appropriate interaction with municipal staff,
residents and key stakeholders, and appropriate use of corporate resources.
Many municipalities, including the Municipality of Clarington, have established a
code of conduct, but the revisions to the Act make the ability to do so clear.
2. Integrity Commissioner - Municipalities have explicit authority to appoint an
Integrity Commissioner to perform functions related to the application of the code
of conduct and other procedures, rules and policies governing ethical behaviour
for members of council and local boards. Penalties that may be imposed by the
municipality where the Integrity Commissioner reports that a member of council
or local board has contravened the code of conduct include reprimand and
suspension of pay for up to 90 days. Note that this does not include suspension
of service.
3. Ombudsman - Municipalities may appoint an Ombudsman whose function is to
investigate, in an independent manner, administrative decisions,
recommendations and actions undertaken or omitted. The Ombudsman is given
broad investigative powers, including the ability to access any documentation.
Once the investigation is complete, the Ombudsman will prepare a public report
containing such recommendations as are deemed fit. There is no review by the
courts of the proceedings and decisions of the Ombudsman, except on the
grounds of jurisdiction.
4. Auditor General- Municipalities have explicit authority to appoint an Auditor
General who is responsible for assisting council in holding itself and municipal
administrators accountable for the quality of stewardship over public funds and
for achievement of value for money in municipal operations. These
responsibilities do not include the responsibilities of the municipal external
Auditor.
5. Lobbyist Registry - Municipalities have the ability to establish and maintain a
lobbyist registry and appoint a registrar to monitor lobbyist activity and conduct
inquiries where there is activity by an unregistered lobbyist. The purpose of the
registry is so members of council and the public would know for certain when an
individual is lobbying a council.
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6. Meeting Investigator - Although not yet proclaimed, Bill 130 provides for a non-
court process whereby the public can request an investigation to determine
compliance with meeting rules. Municipalities will be able to appoint an
investigator to investigate, upon complaint, whether rules in procedural by-laws
and section 239 of the Municipal Act respecting meetings have been followed. If
a municipality does not appoint an investigator, Ontario's Ombudsman will have
the authority to investigate.
7. Appeal Body - When a municipality delegates a power to a municipal service
board, existing municipal by-laws or resolutions are deemed to be by-laws of the
board. The authority exists to establish an appeal body to hear appeals or
review decisions made under the delegated power. This includes the power to
determine procedures, powers and rules of those conducting the appeal.
3.1 Policies
Although not yet proclaimed, the Act requires that municipalities adopt the following
policies:
. Sale and other disposition of land
. Hiring of Employees
. Procurement of goods and services
. Notice - when, under what circumstances and how notice to the public is to be
given
. Accountability and transparency
. Delegation of powers and duties contained within the Municipal Act or the
Planning Act
Municipalities are being advised by the Province to consider preparing the mandatory
policies now in order to be ready for the proclamation.
The Municipality currently has policies relating to the sale and other disposition of land,
hiring of employees, procurement of goods and services and notice, however these will
be reviewed to ensure they comply with the requirements of Bill 130. Policies related to
accountability and transparency and the delegation of powers and duties will need to be
prepared and a further report will be forwarded to Council addressing these matters.
3.2 Meetings
Changes to the Act build on the meeting provisions that have been in place for the last
ten years. Public notice is required for all meetings and such notice is to be included in
the Procedural By-law. The Act now states that a record of all meetings (open and
closed) is mandatory. The Municipality currently follows this practice.
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Prior to the passing of Bill 130, the Municipal Act stated that a council could hold a
closed meeting for the following subject matters:
. Security of property
. Personal matter about an identifiable individual
. Acquisition or disposal of land
. Labour relations
. Litigation or potential litigation
. Advice that is subject to solicitor-client privilege
In addition to the reasons listed above, Bill 130 now allows for a meeting to be closed to
the public if it is being held for the purpose of education or training the council members
and no member discusses or otherwise deals with any matter in a way that materially
advances the business or decision-making of the council, local board or committee. We
are currently in the process of reviewing our Procedural By-law to include the new
requirements related to meetings and will be reporting to Council at a later date.
3.3 Expanded Roles
3.3.1 Role of Head of Council
Previously, Section 224 of the Act defined the role of the head of council as:
. To act as chief executive officer of the municipality;
. To preside over council meetings;
. To provide leadership to the council;
. To represent the municipality at official functions; and
. To carry out the duties of the head of council under this or any other Act.
In addition to this, Bill 130 now adds:
. Uphold and promote the purposes of the municipality;
. Promote public involvement in the municipality's activities;
. Act as the representative of the municipality both within and outside the
municipality, and promote the municipality locally, nationally and internationally;
and
. Participate in and foster activities that enhance the economic, social and
environmental well-being of the municipality and its residents.
3.3.2 Role of Council
The role of the council was previously defined as:
. To represent the public and to consider the well-being and interests of the
municipality;
. To develop and evaluate the policies and programs of the municipality;
. To determine which services the municipality provides;
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. To ensure that administrative practices and procedures are in place to implement
the decisions of council;
. To maintain the financial integrity of the municipality; and
. To carry out the duties of council under this or any other Act.
Bill 130 enhances this role by adding the following responsibilities:
. To ensure that administrative policies, practices and procedures and
controllership policies, practices and procedures are in place to implement the
decisions of council; and
. To ensure the accountability and transparency of the operations of the
municipality, including the activity of the senior management of the municipality.
4.0 Amendments to Other Legislation
Bill 130 amends other legislation in addition to the Municipal Act. Some of these
include:
1. Highway Traffic Act - Municipalities now have the authority to set speed limits
(up to 100 km/h). Default speed limits of 50 km/h in urban areas and 80 km/h on
highways in prescribed former townships remain.
2. Liquor Licence Act - Authority to pass by-laws extending the hours of sale of
liquor by licence holders in all or part of a municipality. This authority is to be
proclaimed at a later date.
3. Retail Business Holidays Act - Proposed amendments, which have not as yet
been proclaimed, will permit the Region of Durham to pass a by-law that would
state that the Retail Business Holidays Act does not apply to any retail business
within the Region. This will extend the scope beyond the tourism criteria which is
set out in the Retail Business Holidays Act.
5.0 Conclusion
This report is provided as an overview of the amendments to the Municipal Act as
affected by Bill 130. Staff will continue to inform council of developments with the new
Act provisions through additional reports addressing, in more detail, specific areas
identified in this report.