40:2 Bill 65, Prosperous and Fair Ontario Act (Budget Measures), 2013

Sousa, Hon Charles Minister of Finance

Viewing: Royal Assent (current version) pdf

Bill 65                                                          2013

An Act to implement Budget measures and to enact and amend various Acts

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.

Contents of this Act

2.

Commencement

3.

Short title

Schedule 1

Automobile Insurance Rate Stabilization Act, 2003

Schedule 2

Commodity Futures Act

Schedule 3

Dedicated Funding for Public Transportation Act, 2013

Schedule 4

Electricity Act, 1998

Schedule 5

Electronic Commerce Act, 2000

Schedule 6

Financial Services Commission of Ontario Act, 1997

Schedule 7

Fuel Tax Act

Schedule 8

Insurance Act

Schedule 9

Interim Appropriation for 2013-2014 Act, 2013

Schedule 10

Ontario Loan Act, 2013

Schedule 11

Pension Benefits Act

Schedule 12

Retail Sales Tax Act

Schedule 13

Securities Act

Schedule 14

Taxation Act, 2007

______________

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 Prosperous and Fair Ontario Act (Budget Measures), 2013.

schedule 1
automobile insurance rate stabilization act, 2003

   1.  (1)  The definitions of “automobile insurance”, “contract” and “Superintendent” in section 1 of the Automobile Insurance Rate Stabilization Act, 2003 are repealed.

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

Interpretation

   (2)  Expressions used in this Act have the same meaning as in the Insurance Act, unless the context requires otherwise.

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  (1)  Subsection 2 (1) of the Act is repealed and the following substituted:

Application of Act

   (1)  This Act applies to insurers and contracts of automobile insurance, but only with respect to the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

   (2)  Subsection 2 (3) of the Act is repealed.

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

Industry-wide rate reduction target

   2.1  (1)  This section establishes an industry-wide target for the reduction of rates that insurers are permitted to charge for the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

Target

   (2)  The target is a 15 per cent reduction in the average of the authorized rates that may be charged by all insurers.  The average is to be determined in accordance with the regulations, and the reduction must be achieved during the period prescribed by regulation.

Periodic reductions

   (3)  The regulations may provide for periodic reductions toward the target and may specify the period within which each such reduction must be achieved.

Applications by insurers

   (4)  When making an application under section 3 or 7 or making written submissions under section 7.1, every insurer is required to propose a risk classification system and rates that contribute adequately to the achievement of the target.

Contribution to achieving the target

   (5)  When making a decision under section 3, 7 or 7.1, the Superintendent shall consider such factors as may be prescribed by regulation and such other factors as the Superintendent considers reasonable in determining whether an insurer’s risk classification system and rates contribute adequately to the achievement of the target.

Presumption, consistency with rate reduction target

   (6)  For the purposes of clauses 3 (5) (a), 7 (7) (a) and 7.1 (1) (a), an insurer’s current or proposed risk classification system and rates are presumed not to be just and reasonable if, in the Superintendent’s opinion, they do not contribute adequately to the achievement of the target.

Presumption, safe driving history

   (7)  For the purposes of clauses 3 (5) (a), 7 (7) (a) and 7.1 (1) (a), an insurer’s current or proposed risk classification system is presumed not to be just and reasonable unless it includes one or more elements that, in the Superintendent’s opinion, appropriately take into account the safe driving history of the persons who would be insured under a contract.

Regulations

   (8)  The Lieutenant Governor in Council may make the regulations referred to in this section.

Referral of regulations to Standing Committee

   (9)  Each of the following regulations stands permanently referred to the Standing Committee on General Government (established under the Standing Orders of the Assembly) when the regulation is filed with the Registrar of Regulations under section 18 of the Legislation Act, 2006:

    1.  Every regulation referred to in subsection (2) concerning the average of the authorized rates that may be charged by all insurers and concerning the period within which the 15 per cent reduction in the average of the authorized rates must be achieved.

    2.  Every regulation referred to in subsection (3) concerning periodic reductions toward the target and the period within which each such reduction must be achieved.

Terms of reference

   (10)  The Standing Committee may examine the regulations with particular reference to whether they are reasonable in the circumstances and with respect to such other matters as the Standing Committee considers appropriate.

Authority to call persons

   (11)  The Standing Committee may examine any member of the Executive Council or any public servant designated by the member respecting the regulations.

Report

   (12)  The Standing Committee shall report its observations, opinions and recommendations about the regulations to the Assembly from time to time.

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

Application re risk classification system, rates

   3.  (1)  Every insurer shall apply to the Superintendent for approval of,

  (a)  the risk classification system it intends to use in determining the rates for each coverage for the Personal Vehicles — Private Passenger Automobile category of automobile insurance; and

  (b)  the rates it intends to use for each coverage for that category of automobile insurance.

Material to be furnished

   (2)  An application for approval of a risk classification system or rates shall be in a form approved by the Superintendent and shall be filed together with such information, material and evidence as the Superintendent may specify.

Additional information

   (3)  The Superintendent may require an applicant to provide such additional information, material and evidence as the Superintendent considers necessary in order to make a decision with respect to the application.

Superintendent’s powers

   (4)  The Superintendent may make one or more of the following decisions with respect to an application:

    1.  Approve all or part of the application.

    2.  Refuse to approve all or part of the application.

    3.  Require the applicant to vary one or more of the elements of its proposed risk classification system.

    4.  Require the applicant to reduce or otherwise vary one or more of its proposed rates.

Criteria for refusal to approve, etc.

   (5)  The Superintendent shall refuse to approve all or part of an application and may require the applicant to vary one or more of the elements of its proposed risk classification system or to reduce or vary one or more of its proposed rates if, in the Superintendent’s opinion,

  (a)  the proposed risk classification system or proposed rate is not just and reasonable in the circumstances;

  (b)  the proposed risk classification system is not reasonably predictive of risk or does not distinguish fairly between risks;

   (c)  the proposed rates would impair the applicant’s solvency; or

  (d)  the proposed rates are excessive in relation to the applicant’s financial circumstances.

Deemed approval

   (6)  An application under this section is deemed to have been approved by the Superintendent 60 days after the later of the following days, unless the Superintendent advises the applicant orally or otherwise within that 60-day period that the Superintendent has not approved the application:

    1.  The day the application is filed.

    2.  The day the additional information, material and evidence, if any, required by the Superintendent under subsection (3) is provided.

Decision final

   (7)  A decision, or deemed decision, of the Superintendent is final for all purposes.

Applications by affiliates

   (8)  Section 414 of the Insurance Act applies with necessary modifications to applications under this section.

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

Suspension of applications under Insurance Act

   4.  (1)  No insurer shall apply to the Superintendent under section 410 of the Insurance Act for approval of a risk classification system or rates for the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

Same

   (2)  No insurer shall submit or resubmit an application to the Superintendent under subsection 411 (5) of the Insurance Act for approval of a risk classification system or rates for the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

Suspension of approvals

   (3)  The Superintendent shall not approve an application under section 410 of the Insurance Act, or an application submitted or resubmitted under subsection 411 (5) of that Act, for approval of a risk classification system or rates for the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

   6.  Sections 5 and 6 of the Act are repealed.

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

Order requiring application for approval

   (1)  The Superintendent may order any insurer that is subject to this Act to apply to the Superintendent for approval of,

  (a)  the risk classification system it intends to use, as of the date specified in the order, in determining the rates for each coverage for the Personal Vehicles — Private Passenger Automobile category of automobile insurance; and

  (b)  the rates it intends to use, as of the date specified in the order, for each coverage for that category of automobile insurance.

   (2)  Subsection 7 (2) of the Act is repealed.

   (3)  Paragraph 4 of subsection 7 (6) of the Act is repealed and the following substituted:

    4.  Require the applicant to vary one or more of the elements of its current or proposed risk classification systems.

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

Criteria for refusal to approve, etc.

   (7)  The Superintendent shall refuse to approve all or part of an application and may require the applicant to vary one or more of the elements of its current or proposed risk classification system or to reduce or vary one or more of its current or proposed rates if, in the Superintendent’s opinion,

  (a)  the proposed risk classification system or proposed rate is not just and reasonable in the circumstances;

  (b)  the proposed risk classification system is not reasonably predictive of risk or does not distinguish fairly between risks;

   (c)  the proposed rates would impair the applicant’s solvency; or

  (d)  the proposed rates are excessive in relation to the applicant’s financial circumstances.

   (5)  Subsection 7 (8) of the Act is repealed and the following substituted:

Written submissions

   (8)  The Superintendent shall give the insurer an opportunity to make written submissions before making an order refusing to approve all or part of an application or requiring the insurer to vary one or more of the elements of its current or proposed risk classification system or requiring the insurer to reduce or vary one or more if its current or proposed rates.

   (6)  Section 7 of the Act is amended by adding the following subsection:

Deemed approval

   (9.1)  An application is deemed to have been approved by the Superintendent upon the expiry of the 60-day period described in subsection (9) unless the Superintendent advises the applicant orally or otherwise within that 60-day period that the Superintendent has not approved the application.

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

Concurrent authority

   (13)  The Superintendent’s authority to make orders under this section in respect of a matter is not affected by his or her authority to make an order under subsection 7.1 (3) in respect of the same matter.

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

Reconsideration by Superintendent

   7.1  (1)  The Superintendent may notify an insurer that the Superintendent intends to make an order with respect to the risk classification system or rates for any coverage for the Personal Vehicles — Private Passenger Automobile category of automobile insurance of the insurer if, in the Superintendent’s opinion,

  (a)  the current risk classification system or current rate is not just and reasonable in the circumstances;

  (b)  the current risk classification system is not reasonably predictive of risk or does not distinguish fairly between risks;

   (c)  the current rates would impair the insurer’s solvency; or

  (d)  the current rates are excessive in relation to the insurer’s financial circumstances.

Written submissions

   (2)  The Superintendent shall give the insurer an opportunity to make written submissions with respect to the matter.

Orders

   (3)  After considering the written submissions, if any, the Superintendent may make the order described in the notice, may make a revised order or may instead make an order under subsection 7 (1).

Order final

   (4)  An order of the Superintendent under subsection (3) is final for all purposes.

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

Mandatory rate

   8.  For the Personal Vehicles — Private Passenger Automobile category of automobile insurance, no insurer shall charge a rate other than the authorized rate.

   10.  Section 9 of the Act is amended by striking out “After the repeal of section 4, the rates and risk classification systems of an insurer as approved under section 7” at the beginning and substituting “After the repeal of subsection 4 (1) under section 14, the rates and risk classification system of an insurer as approved under this Act”.

   11.  Paragraph 1 of subsection 12 (1) of the Act is repealed and the following substituted:

    1.  Contravenes subsection 3 (1) or 7 (3) or section 8.

Commencement

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

schedule 2
commodity futures act

   1.  (1)  Section 13 of the Commodity Futures Act is amended by adding the following subsection:

Order without notice

   (2.1)  Despite subsection (2), if the Commission considers that it would be in the public interest, it may make an order without notice and without giving an opportunity to be heard authorizing the disclosure of the things described in clauses (1) (a) to (c) to any entity referred to in paragraph 1, 3, 4 or 5 of section 153 of the Securities Act.

   (2)  Subsection 13 (3) of the Act is amended by striking out “subsection (1)” and substituting “subsection (1) or (2.1)”.

   (3)  Subsection 13 (4) of the Act is amended by striking out “subsection (1)” and substituting “subsection (1) or (2.1)”.

   2.  Section 59.1 of the Act is amended by adding the following subsection:

Attempts

   (2)  A person or company shall not, directly or indirectly, attempt to engage or participate in any act, practice or course of conduct that is contrary to subsection (1).

Commencement

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

schedule 3
dedicated funding for public transportation Act, 2013

Dedicated portion of gasoline tax

   1.  (1)  A portion of the tax that is paid to Ontario under the Gasoline Tax Act in each fiscal year is dedicated to the provision of grants to municipalities for public transportation.

Amount

   (2)  The portion of the tax that is dedicated to that purpose in each fiscal year that begins on or after April 1, 2013 is the amount determined using the formula,

2 cents × A/B

in which,

  “A”  is the total revenue from gasoline tax for the previous fiscal year as reported in the Public Accounts, and

  “B”  is the tax rate per litre of gasoline that is specified in clause 2 (1) (b) of the Gasoline Tax Act.

Special purpose

   (3)  For the purposes of the Financial Administration Act, the amount described in subsection (2) is deemed to be money paid to Ontario for the special purpose set out in subsection (1).

Authority for grants

   (4)  The grants referred to in subsection (1) may be provided by the Minister of Transportation under subsection 118 (2) of the Public Transportation and Highway Improvement Act.

Commencement

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

Short title

   3.  The short title of the Act set out in this Schedule is the Dedicated Funding for Public Transportation Act, 2013.

schedule 4
electricity act, 1998

   1.  Subsection 102 (4) of the Electricity Act, 1998 is repealed.

   2.  Subsection 104 (2) of the Act is repealed.

   3.  Subsection 104.1 (5) of the Act is repealed.

Commencement

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

schedule 5
Electronic Commerce Act, 2000

   1.  The Electronic Commerce Act, 2000 is amended by adding the following section after the heading “Application of Act”:

Application to information, documents

   25.1  For greater certainty, the application of this Act to information or a document is not affected by when the information or document was created or came into existence.

   2.  Paragraph 4 of subsection 31 (1) of the Act is repealed.

Commencement

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

Schedule 6
financial services commission of ontario act, 1997

   1.  The definition of “regulated sector” in section 1 of the Financial Services Commission of Ontario Act, 1997 is amended by adding the following clause:

(c.1) all holders of a service provider’s licence issued under Part VI (Automobile Insurance) of the Insurance Act,

   2.  Section 26 of the Act is amended by adding the following subsection:

Holder of service provider’s licence

   (5.1)  If a person or entity who holds a service provider’s licence issued under Part VI (Automobile Insurance) of the Insurance Act and who is assessed does not pay the assessment, the Superintendent may revoke the licence.

Commencement

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

schedule 7
fuel tax act

   1.  The definition of “biodiesel” in subsection 1 (1) of the Fuel Tax Act is repealed.

   2.  Subsection 2 (3.1) of the Act is repealed.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  If a proclamation is issued under subsection (1) that names a day as the day section 1 or 2 comes into force, the proclamation cannot provide that section 1 or 2 comes into force before April 1, 2014.

schedule 8
insurance act

   1.  Section 29 of the Insurance Act is repealed.

   2.  Section 30 of the Act is repealed.

   3.  Section 31 of the Act is repealed.

   4.  Section 32 of the Act is repealed.

   5.  (1)  Subsection 121 (1) of the Act is amended by adding the following paragraph:

26.0.0.1          prescribing anything that, in sections 288.1 to 288.7, is required or permitted to be prescribed or to be done in accordance with the regulations;

   (2)  Section 121 of the Act is amended by adding the following subsection:

Classes, service provider’s licences

   (4.1)  For greater certainty, a regulation made under paragraph 26.0.0.1 of subsection (1) may create different classes of service provider’s licences and may establish different requirements, conditions and restrictions for each class.

   6.  (1)  Subsection 175 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Same

   (2)  An insurer shall include the following information in the policy:

.     .     .     .     .

   (2)  Subsection 175 (2) of the Act is amended by adding the following paragraph:

    7.  The following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Limitations Act, 2002.

   7.  Section 176 of the Act is amended by striking out “an insurer shall set forth the following particulars in the policy” in the portion before paragraph 1 and substituting “an insurer shall include the following information in the policy”.

   8.  Subsection 177 (1) of the Act, as re-enacted by section 13 of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “in which are set forth the following particulars” in the portion before paragraph 1 and substituting “which shall include the following information”.

   9.  Clause 180 (1) (b) of the Act is repealed and the following substituted:

  (b)  payment of the initial premium is made to the insurer or its authorized agent; and

   10.  Subsection 191 (1) of the Act is amended by striking out “and the insurance money is not subject to the control of the insured or of the insured’s creditors and does not form part of the insured’s estate” at the end and substituting “and the insurance money is not subject to the control of the insured, is not subject to the claims of the insured’s creditor and does not form part of the insured’s estate”.

   11.  Subsection 214 (2) of the Act, as enacted by subsection 29 (2) of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is repealed.

   12.  Subsection 224 (1) of the Act is amended by adding the following definitions:

“listed expenses” means, in connection with statutory accident benefits, the amounts payable that, under section 288.1, are listed expenses;  (“frais désignés”)

“service provider’s licence” means a licence issued under section 288.5;  (“permis de fournisseur de services”)

   13.  Section 268.3 of the Act is amended by adding the following subsection:

Incorporation by reference

   (2.1)  Despite subsection (2), a guideline that is incorporated by reference into the Statutory Accident Benefits Schedule is binding.

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

Insurers’ Payments for Listed Expenses — Statutory Accident Benefits

Listed expenses in connection with statutory accident benefits

   288.1  (1)  For the purposes of this Part, the following are listed expenses in connection with statutory accident benefits:

    1.  Amounts payable for such assessments, examinations, reports, forms or plans authorized or required by the Statutory Accident Benefits Schedule as may be prescribed for the purposes of this section and expenses relating to those assessments, examinations, reports, forms and plans.

    2.  Amounts payable for prescribed goods or services that relate to such medical benefits, rehabilitation benefits, attendant care benefits and other statutory accident benefits as may be prescribed for the purposes of this section.

Exceptions

   (2)  Despite subsection (1), the regulations may specify that certain types of amounts payable are not listed expenses in such circumstances as may be prescribed.

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

Restrictions re payments for listed expenses

Payment by insurer

   288.2  (1)  An insurer is not permitted to make payments for listed expenses directly to a person or entity who does not hold a service provider’s licence at the applicable time, as determined in accordance with the regulations.

Exception

   (2)  The restriction imposed by subsection (1) does not apply with respect to payments to such persons or entities as may be prescribed, or in such circumstances as may be prescribed.

Reimbursement of insured person

   (3)  An insurer is permitted to reimburse an insured person for a listed expense, whether or not the payment for which reimbursement is sought was made to the holder of a service provider’s licence.

Motor Vehicle Accident Claims Fund

   (4)  This section applies, with necessary modifications, with respect to the Motor Vehicle Accident Claims Fund.

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

Public registry re service provider’s licences

   288.3  (1)  The Superintendent shall maintain one or more registers listing the holders of a service provider’s licence and the former holders of such a licence.

Same

   (2)  The registers must contain such other information as may be prescribed.

Same

   (3)  The information in a register shall be made available for inspection by the public without charge and in accordance with the regulations.

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

Service provider’s licence — attributes and duties

   288.4  (1)  The holder of a service provider’s licence is eligible to be paid directly by an insurer for listed expenses in connection with statutory accident benefits.

Standards for business systems and practices, etc.

   (2)  It is a condition of a service provider’s licence that the licensee is required to comply with such standards as may be prescribed with respect to its business systems and practices, in connection with statutory accident benefits, and such standards as may be prescribed with respect to matters of integrity in the management of the licensee’s operations.

Invoices for listed expenses

   (3)  It is a condition of a service provider’s licence that the licensee is required to submit invoices to the applicable insurer, or to such other person or entity as the insurer directs, for payment of listed expenses in connection with statutory accident benefits.

Other conditions

   (4)  A service provider’s licence is subject to such other conditions as may be prescribed or as may be imposed by the Superintendent or Tribunal with respect to the matters described in subsection (2) and with respect to the administration of this Act and the Statutory Accident Benefits Schedule.

Same

   (5)  For greater certainty, a regulation prescribing conditions may require the licensee to submit periodic reports to the Superintendent.

Principal representative

   (6)  A licensee shall designate an individual as the licensee’s principal representative to exercise such powers and perform such duties as may be prescribed, and the individual so designated shall carry out his or her powers and duties in accordance with the regulations, if any.

Same

   (7)  An individual who satisfies the prescribed criteria is eligible to be designated as a licensee’s principal representative.

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

Issuance of service provider’s licence

Application

   288.5  (1)  A person or entity who wishes to apply for a service provider’s licence shall submit an application to the Superintendent in the manner required by the Superintendent and shall give the Superintendent such information, evidence and material as he or she may require and shall pay the applicable fee.

Withdrawal of application

   (2)  The applicant may withdraw the application at any time before the licence is issued.

Issuance of licence

   (3)  The Superintendent shall issue a service provider’s licence to an applicant who satisfies the prescribed requirements relating to its business systems and practices and the management of its operations,

  (a)  unless the Superintendent believes, on reasonable grounds, that the applicant is not suitable to hold a licence having regard to such circumstances as may be prescribed relating to the applicant’s business systems and practices and the management of its operations or having regard to such other matters as the Superintendent considers appropriate; or

  (b)  unless an administrative penalty imposed on the applicant under Part XVIII.1 has not been paid.

Not transferable

   (4)  A service provider’s licence is not transferable.

Proposal to refuse application

   (5)  If the Superintendent proposes to refuse to issue a service provider’s licence to an applicant, the Superintendent shall take the steps required by section 288.7.

Proposal to impose conditions

   (6)  If the Superintendent proposes to issue the service provider’s licence and, without the applicant’s consent, to impose conditions on the licence, the Superintendent shall take the steps required by section 288.7.

Amendment of licence

   (7)  The Superintendent may amend a service provider’s licence at any time.

Proposal to amend

   (8)  If the Superintendent proposes to amend a service provider’s licence without the licensee’s consent, the Superintendent shall take the steps required by section 288.7.

Revocation, suspension or surrender of service provider’s licence

Revocation or suspension

   288.6  (1)  The Superintendent may, by order, revoke or suspend a service provider’s licence in any of the following circumstances:

    1.  The licensee ceases to satisfy a prescribed requirement for issuance of the licence.

    2.  The licensee has contravened or failed to comply with this Act, the regulations or a condition of the licence.

    3.  The Superintendent believes, on reasonable grounds, that the licensee is no longer suitable to be licensed having regard to such circumstances as may be prescribed relating to the licensee’s business systems and practices and the management of its operations or having regard to such other matters as the Superintendent considers appropriate.

    4.  Such other circumstances as may be prescribed.

Proposal to revoke or suspend

   (2)  If the Superintendent proposes to revoke or suspend a service provider’s licence under subsection (1) without the licensee’s consent, the Superintendent shall take the steps required by section 288.7.

Expedited order to revoke or suspend

   (3)  The Superintendent may, by order, revoke or suspend a service provider’s licence in any of the following circumstances, without taking the steps required by section 288.7:

    1.  The licensee fails to pay an administrative penalty imposed under Part XVIII.1.

    2.  Such other circumstances as may be prescribed.

Effect of suspension

   (4)  During a suspension, the licensee is deemed not to hold a service provider’s licence for the purposes of section 288.2.

Interim order suspending licence

   (5)  If, in the Superintendent’s opinion, the interests of the public may be adversely affected by any delay in the revocation or suspension of a licence as a result of the steps required by section 288.7, the Superintendent may, without notice, make an interim order suspending the licence and may do so before or after giving the notice required by subsection 288.7 (2) with respect to the proposal to revoke or suspend the licence.

Effect of interim order

   (6)  An interim order suspending a service provider’s licence takes effect immediately and remains in effect until the expiry of the period for requesting a hearing under subsection 288.7 (3) about the Superintendent’s proposal to revoke or suspend the licence.

Same

   (7)  Despite subsection (6), if the Superintendent does not give the licensee the notice required by subsection 288.7 (2) within 21 days after the day on which the interim order is made or within such other period as may be prescribed, the interim order expires at the end of the 21-day period or the prescribed period, as the case may be.

Extension of interim order

   (8)  If the licensee requests a hearing about the Superintendent’s proposal to revoke or suspend the licence, the Superintendent may extend the interim order until the proposal is finally determined.

Application to surrender licence

   (9)  A licensee may apply to the Superintendent for permission to surrender the service provider’s licence and shall submit the application to the Superintendent in the manner required by the Superintendent, shall give the Superintendent such information, evidence and material as he or she may require and shall pay the applicable fee.

Decision re surrender

   (10)  The Superintendent shall allow the applicant to surrender the licence unless the Superintendent believes, on reasonable grounds, that the surrender of the licence is not in the public interest having regard to such criteria as may be prescribed relating to the licensee’s business systems and practices and the management of its operations and such other factors as the Superintendent considers appropriate.

Same

   (11)  If the Superintendent allows the surrender of the licence, the Superintendent may impose conditions relating to the licensee’s business systems and practices or the management of its operations in connection with the surrender.

Proposal to refuse application to surrender

   (12)  If the Superintendent proposes to refuse to allow the surrender of the licence, the Superintendent shall take the steps required by section 288.7.

Proposal to impose conditions

   (13)  If the Superintendent proposes to allow the surrender of the licence and, without the applicant’s consent, to impose conditions in connection with the surrender, the Superintendent shall take the steps required by section 288.7.

Revocation of order suspending licence

   (14)  The Superintendent may, at any time, revoke an order or an interim order that suspends a service provider’s licence.

Superintendent’s proposal to refuse application, etc.

   288.7  (1)  This section applies if the Superintendent proposes to do any of the following things:

    1.  Refuse to issue a service provider’s licence to an applicant.

    2.  Issue a service provider’s licence and, without the applicant’s consent, impose conditions.

    3.  Amend a service provider’s licence without the licensee’s consent.

    4.  Revoke a service provider’s licence under subsection 288.6 (1) without the licensee’s consent.

    5.  Suspend a service provider’s licence under subsection 288.6 (1) without the licensee’s consent.

    6.  Refuse to allow the surrender of a service provider’s licence.

    7.  Allow the surrender of a service provider’s licence and, without the applicant’s consent, impose conditions in connection with the surrender.

Notice of proposal

   (2)  The Superintendent shall give written notice of the proposal to the applicant or licensee, including the reasons for the proposal; the Superintendent shall also inform the applicant or licensee that he, she or it can request a hearing by the Tribunal about the proposal and shall advise the applicant or licensee about the process for requesting a hearing.

Hearing requested

   (3)  If the applicant or licensee requests a hearing in writing within 15 days after the notice under subsection (2) is given, the Tribunal shall hold a hearing.

Order

   (4)  The Tribunal may, by order, direct the Superintendent to carry out the proposal, with or without changes, or substitute its opinion for that of the Superintendent, and the Tribunal may impose such conditions as it considers appropriate in the circumstances.

Appeal

   (5)  A party to a hearing held by the Tribunal may appeal the order of the Tribunal to the Divisional Court.

Effect of appeal

   (6)  An order of the Tribunal takes effect immediately, but if the order is appealed, the Tribunal may grant a stay of the order until the appeal is finally determined.

Hearing not requested

   (7)  If the applicant or licensee does not request a hearing, or does not make the request in accordance with subsection (3), the Superintendent may carry out the proposal.

   19.  Sections 289 and 289.1 of the Act are repealed and the following substituted:

Review of this Part

   289.  (1)  The Superintendent shall undertake a review of the following matters at least every three years or more often at the request of the Minister:

    1.  A review of this Part and any related regulations, excluding those made under the paragraphs of subsection 121 (1) that are referred to in paragraph 2.

    2.  A review of the operation of such regulations made under paragraphs 35, 36 and 36.1 of subsection 121 (1) as the Minister may request.

Report

   (2)  The Superintendent shall give a report to the Minister setting out the results of the review, any recommendations made by the Superintendent and such other information as the Minister may request.

Report to the Assembly

   (3)  The Minister shall lay the Superintendent’s report before the Assembly at the earliest reasonable opportunity.

Initial review

   (4)  The Superintendent shall begin a review under this section no later than 2013.

   20.  The English version of subsection 294 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Same

   (2)  An insurer shall include the following information in the policy:

.     .     .     .     .

   21.  The English version of section 296 of the Act, as amended by subsection 39 (1) of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “an insurer shall set forth the following particulars in the policy” in the portion before paragraph 1 and substituting “an insurer shall include the following information in the policy”.

   22.  Subsection 298 (1) of the Act, as amended by subsection 41 (1) of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “in which are set out the following particulars” in the portion before paragraph 1 and substituting “in which the following information shall be included”.

   23.  (1)  Condition 5 set out in section 300 of the Act is repealed and the following substituted:

Termination by Insured

   5.  The insured may at any time request that this contract be terminated and the insurer shall, as soon as practicable after the insured makes the request, refund the amount of premium actually paid by the insured that is in excess of the short rate premium calculated to the date of the request according to the table in use by the insurer at the time of the termination.

   (2)  Subcondition 6 (3) set out in section 300 of the Act is repealed and the following substituted:

   (3)  Where the notice of termination is delivered to the insured, five days notice of termination shall be given.  Where it is mailed to the insured, 15 days notice of termination shall be given, and the 15-day period begins on the day the registered letter or notification of it is delivered to the insured’s address.

   (3)  Subsection 42 (3) of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, which amends subcondition 6 (3) set out in section 300 of the Act, is repealed.

   24.  (1)  Subsections 308 (2) and (3) of the Act are repealed and the following substituted:

Failure to disclose, general

   (2)  Subject to sections 309 and 312 and subsection (3), a failure to disclose, or a misrepresentation of, such a fact renders a contract voidable by the insurer.

Failure to disclose, application for change, etc., in contract

   (3)  A failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) relating to evidence of insurability with respect to the following kinds of applications renders the contract voidable by the insurer, but only in relation to the addition, increase or change applied for:

    1.  For additional coverage under a contract.

    2.  For an increase in insurance under a contract.

    3.  For any other change to insurance after the policy is issued.

   (2)  Section 49 of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, which re-enacts subsection 308 (2) of the Act, is repealed.

   25.  (1)  The French version of subsection 309 (1) of the Act, as re-enacted by section 50 of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “des paragraphes (2) et (4)” and substituting “des paragraphs (2) à (4)”.

   (2)  Subsection 309 (1) of the Act, as re-enacted by section 50 of Schedule 23 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “referred to in subsection 308 (2)” and substituting “referred to in subsection 308 (3)”.

   26.  Section 410 of the Act is amended by adding the following subsection:

Exception

   (1.1)  Subsection (1) does not apply with respect to the Personal Vehicles — Private Passenger Automobile category of automobile insurance while subsection 4 (1) of the Automobile Insurance Rate Stabilization Act, 2003 is in force.

   27.  Section 417.1 of the Act is repealed.

   28.  The heading to Part XVIII of the Act is repealed and the following substituted:

part xviii
unfair or deceptive acts or practices

   29.  (1)  Section 440 of the Act is amended by adding the following subsection:

Same, former insurers, etc.

   (2)  The Superintendent may examine and investigate the affairs of every person who has been but is no longer engaged in the business of insurance in Ontario in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice.

   (2)  Section 440 of the Act is amended by adding the following subsection:

Same, service provider’s licences

   (3)  The Superintendent may examine and investigate the affairs of every person who holds a service provider’s licence issued under Part VI, or who held such a licence, in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice.

   (3)  Section 440 of the Act is amended by adding the following subsections:

Same, prescribed persons

   (4)  The Superintendent may examine and investigate the affairs of such other persons as may be prescribed, in such circumstances as may be prescribed, in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice.

Same, other persons

   (5)  The Superintendent may examine and investigate the affairs of every other person who, in the opinion of the Superintendent, may have engaged in any unfair or deceptive act or practice in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice.

   30.  Section 442 of the Act is repealed and the following substituted:

Interpretation, Part XIX

   442.  (1)  In this Part,

“person” has the same meaning as in section 438; (“personne”)

“unfair or deceptive act or practice” has the same meaning as in section 438. (“acte ou pratique malhonnêtes ou mensongers”)

Same, “examination”

   (2)  In sections 443 and 444 and in subsection 446.1 (2), a reference to an examination includes an appraisal, audit or inspection under this Act.

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

Inquiries

To insurers, etc.

   442.1  (1)  The Superintendent or a person designated by the Superintendent may direct an inquiry to any of the following persons about contracts, settlements or adjustments under contracts, the financial affairs of an insurer, the acts and practices of an insurer, agent or adjuster or such other matters as may be specified by the Superintendent:

    1.  An insurer who holds or held a licence under this Act.

    2.  An insurer who, in the opinion of the Superintendent, is or was required to hold a licence under this Act.

    3.  The chief agent of an insurer described in paragraph 1 or 2 that has its head office outside Ontario.

    4.  An agent or adjuster who holds or held a licence under this Act.

    5.  An agent or adjuster who, in the opinion of the Superintendent, is or was required to hold a licence under this Act.

    6.  A broker who is or was a registered insurance broker under the Registered Insurance Brokers Act.

To other licensees, etc.

   (2)  The Superintendent or a person designated by the Superintendent may direct an inquiry to any person who holds or held a service provider’s licence under Part VI (Automobile Insurance) about matters relevant to the purposes of Part VI or Part XVIII (Unfair or Deceptive Acts or Practices).

Re unfair or deceptive acts or practices

   (3)  The Superintendent or a person designated by the Superintendent may direct an inquiry to any other person who, in the opinion of the Superintendent, may have committed an unfair or deceptive act or practice.  The inquiry may be about matters relevant to the purposes of Part XVIII (Unfair or Deceptive Acts or Practices).

To other prescribed persons

   (4)  The Superintendent or a person designated by the Superintendent may direct an inquiry to any other prescribed person, in such circumstances as may be prescribed, about the prescribed matters.

Duty re inquiry

   (5)  A person to whom an inquiry is directed shall answer promptly, explicitly and completely and shall do so in the manner and within the period specified by the Superintendent or the designate.

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

Right of access to books, records, etc.

Of insurers, etc.

   442.2  (1)  The Superintendent or a person designated by the Superintendent may at any reasonable time examine the books, records, information, money, valuables and things of an insurer, agent, adjuster or broker that are related to the business of an insurer, agent, adjuster or broker.

Of other licensees, etc.

   (2)  The Superintendent or a person designated by the Superintendent may at any reasonable time examine the books, records, information, money, valuables and things of a person who holds or held a service provider’s licence under Part VI (Automobile Insurance) about matters relevant to the purposes of Part VI or Part XVIII (Unfair or Deceptive Acts or Practices).

Interpretation

   (3)  For greater certainty, the Superintendent or designate may examine any data storage, processing or retrieval device or system that is used in connection with the business or activities of the insurer, agent, adjuster, broker or person and may use it to produce information.

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

Duty to provide information

   442.3  (1)  Upon the request of the Superintendent or a person designated by the Superintendent, a person to whom an inquiry may be directed under section 442.1 shall give the Superintendent or designate full information, and shall provide records, about the following matters:

    1.  A contract issued by an insurer.

    2.  A settlement or adjustment under a contract.

    3.  Activities related to the business of insurance.

    4.  Activities related to the business of a person who holds or held a licence under this Act.

    5.  Activities related to the business of any other person who, in the opinion of the Superintendent, is or was required to hold a licence under this Act.

    6.  Such other matters as may be prescribed.

    7.  Such other matters as may be specified by the Superintendent or the designate.

Same, insured persons

   (2)  Upon the request of the Superintendent or a person designated by the Superintendent, an insured person shall give the Superintendent or designate full information about the following matters:

    1.  A contract issued to the insured person.

    2.  A settlement or adjustment under a contract, if the settlement or adjustment relates to the insured person.

    3.  The acts or practices of a person who holds or held a licence under this Act that are relevant to the purposes of this Act.

    4.  The acts or practices of any other person who, in the opinion of the Superintendent, is or was required to hold a licence under this Act that are relevant to the purposes of this Act.

    5.  The acts or practices of a person who, in the opinion of the Superintendent, may have committed an unfair or deceptive act or practice.

    6.  Such other matters as may be prescribed.

Performance of duty

   (3)  A person to whom a request is directed under this section shall answer promptly, explicitly and completely and shall do so in the manner and within the period specified by the Superintendent or the designate.

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

Annual, etc., examination of insurers

   442.4  (1)  Once each year or more frequently as the Superintendent may consider appropriate for all insurers or for a particular insurer, the Superintendent or a person appointed by the Superintendent,

  (a)  shall examine an insurer’s statement made under section 102;

  (b)  may make such inquiries as are necessary to ascertain the insurer’s condition and ability to meet its obligations as and when they become due; and

   (c)  may make such inquiries as are necessary to ascertain whether the insurer has complied with the requirements of this Act applicable to its transactions.

Exception

   (2)  Subsection (1) does not apply so as to require an examination of an insurer in respect of which the Superintendent adopts an examination by another government.

Preparation of abstracts, valuation

   (3)  The Superintendent may cause abstracts to be prepared of the books and vouchers and a valuation to be made of the assets and liabilities of an insurer and the insurer shall pay the Minister of Finance for the cost of the preparation of the abstracts or the valuation upon receiving a certificate of the Superintendent stating the amount payable.

Expenses of examination

   (4)  Where the office of an insurer at which an examination is made under this section is outside Ontario, the insurer shall pay the Minister of Finance for the cost of the examination upon receiving a certificate of the Superintendent stating the amount payable.

   35.  Subsections 443 (2), (3) and (4) of the Act are repealed and the following substituted:

Material to be furnished

   (2)  For the purpose of an examination of any of the following persons, the person shall prepare and submit to the person conducting the examination such statements or returns with respect to the person’s business, finances or other affairs (in addition to the statements or returns mentioned in this Act) as the Superintendent may require, and shall do so in the manner and within the period specified by the Superintendent or by the person conducting the examination:

    1.  A person who holds or held a licence under this Act.

    2.  Any other person who, in the opinion of the Superintendent, is or was required to hold a licence under this Act.

Duty of officers, etc.

   (3)  The officers, agents and employees of a person described in subsection (2) shall facilitate an examination under this Act so far as it is in their power.  For greater certainty, this includes opening the books for inspection, providing records, providing access to information, using any data storage, processing or retrieval device or system that is used in connection with the business or activities of the person described in subsection (2), providing assistance and answering questions about anything that may be relevant to the examination.

Same

   (3.1)  An officer, agent or employee shall perform the duties described in subsection (3) in the manner and within the period specified by the Superintendent.

Production of books, etc.

   (4)  In order to facilitate an examination of the books and records of a person described in subsection (2), the Superintendent or a person designated by the Superintendent may require the person to do the following things at the person’s principal place of business in Ontario or at such other convenient place as the Superintendent may direct:

    1.  To produce the books and records.

    2.  To provide access to information.

    3.  To use devices and systems that relate to the storage, processing or retrieval of data.

    4.  To provide assistance and to answer questions about anything that may be relevant to the examination.

   36.  (1)  Clauses 444 (1) (b) and (c) of the Act are repealed and the following substituted:

  (b)  may require the production for inspection of all books, records, information, money, valuables or things that may be relevant to the carrying out of the duties;

(b.1) may, in order to produce information, use any data storage, processing or retrieval device or system that is used in connection with the business of the person being examined;

   (c)  may, upon giving a receipt therefor, remove anything produced for inspection under clause (b) for the purpose of examining it or making copies of it, including removing a data storage, processing or retrieval device in order to produce information, and shall return it within a reasonable time to the person who produced it; and

   (2)  Subsection 444 (3) of the Act is repealed and the following substituted:

Warrant for search

   (3)  Where a justice of the peace is satisfied on information upon oath that there is, in a place, books, records, information, money, valuables or things that there are reasonable grounds to believe will afford evidence related to the carrying out of an examination under this Act, the justice of the peace may issue a warrant authorizing the person named in the warrant to search the place and to exercise any of the powers described in subsection (1).

   (3)  Section 444 of the Act is amended by adding the following subsections:

Expert help

   (5.1)  A warrant issued under subsection (3) or (4) may authorize persons who have special, expert or professional knowledge to accompany and assist the person named in the warrant.

Identification

   (5.2)  Upon request, the Superintendent shall produce evidence of his or her office and the Superintendent’s designate shall produce evidence of his or her designation.

   (4)  Subsection 444 (7) of the Act is repealed and the following substituted:

Same

   (7)  Subsection (6) is not contravened where a person refuses to produce books, records, information, money, valuables or things unless a warrant has been issued under subsection (3).

   (5)  Subsection 444 (8) of the Act is repealed and the following substituted:

Admissibility of copies

   (8)  A copy of, or an extract from, books, a record, information or a thing removed from a place under this Act and certified by the person who made the copy or extract as a true copy of, or extract from the original is admissible in evidence to the same extent as, and has the same evidentiary value as, the books, record, information or thing of which it is a copy or an extract.

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

Power to summon persons, etc.

   444.1  (1)  The Superintendent may issue a summons where he or she believes that,

  (a)  it is necessary in order to determine whether a person is complying with this Act or a requirement imposed under this Act; and

  (b)  it is, in the circumstances, in the public interest.

Same

   (2)  A summons issued under subsection (1) may require a person to produce such records, information and things as are specified by the Superintendent and to give such information on oath as the Superintendent considers relevant to determining whether a person is complying with this Act or a requirement imposed under this Act.

Identification

   (3)  Upon request, the Superintendent shall produce evidence of his or her office.

Administering oath

   (4)  The Superintendent or a person designated by him or her may administer an oath required under this section.

Right to counsel

   (5)  A person may be represented by counsel when giving information on oath and may claim any privilege to which the person is entitled.

Stated case

   (6)  If the person does not comply with the summons, the Superintendent may state a case to the Divisional Court setting out the facts and, after hearing any witnesses who may be produced against or on behalf of that person and after hearing any statement that may be offered in defence, the court may punish the person in the same manner as if the person had been guilty of contempt of the court.

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

Prohibition re obstruction

   446.1  (1)  No person or entity shall hinder or obstruct the Superintendent or a person designated by the Superintendent in the performance of his or her duties under this Act.

Same

   (2)  No person or entity shall withhold from the Superintendent or a person designated by the Superintendent or conceal, alter or destroy anything relevant to an examination.

   39.  Subsection 447 (1) of the Act is repealed.

Commencement

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

schedule 9
interim appropriation for 2013-2014 act, 2013

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 2013-14 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2014 as tabled in the Assembly on or before March 31, 2014.

Expenses of the public service

   2.  (1)  For the fiscal year ending on March 31, 2014, amounts not exceeding a total of $116,340,644,300may 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 2013-14.

Investments of the public service

   3.  (1)  For the fiscal year ending on March 31, 2014, amounts not exceeding a total of $4,154,974,800may 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 2013-14.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2014, amounts not exceeding a total of $199,600,000 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 2013-14.

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 2013-14 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2014, 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, 2013.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation for 2013-2014 Act, 2013.

schedule 10
ontario loan act, 2013

Borrowing authorized

   1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $24.4 billion as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

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

Expiry

   2.  (1)  No order in council authorizing borrowing authorized under this Act shall be made after December 31, 2015.

Same

   (2)  The Crown shall not borrow money after December 31, 2016 under the authority of an order in council that authorizes borrowing under this Act unless, on or before December 31, 2016,

  (a)  the Crown has entered into an agreement to borrow the money under the order in council; or

  (b)  the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

   3.  The Act set out in this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2013.

schedule 11
pension benefits act

   1.  (1)  If subsection 115 (6) of the Pension Benefits Act has not been repealed by subsection 115 (7) of the Act on or before the day this subsection comes into force, subsection 115 (7) of the Act is repealed.

   (2)  If subsection 115 (6) of the Act has been repealed by subsection 115 (7) of the Act on or before the day this subsection comes into force, section 115 of the Act is amended by adding the following subsection:

Authority to make retroactive regulations re funding defined benefit plans

   (6)  A regulation relating to the funding of a pension plan that provides defined benefits, including any regulation prescribing anything referred to in section 55 as being prescribed and any regulation prescribing matters referred to in clause 115 (1) (c) or (i), may come into force on a day earlier than the day the regulation is filed and apply to a period that commences on or after December 31, 2009.

Commencement

   2.  (1)  Subject to subsection (2), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  If a proclamation under subsection (1) names a day after June 30, 2013 as the day subsection 1 (2) comes into force, subsection 1 (2) is deemed to have come into force on June 30, 2013.

schedule 12
retail sales tax act

   1.  (1)  If section 6 of the Retail Sales Tax Act has not been repealed by subsection 6 (7) of the Act on or before the day this subsection comes into force, subsection 6 (7) of the Act is repealed.

   (2)  If section 6 of the Act has been repealed by subsection 6 (7) of the Act on or before the day this subsection comes into force, the Act is amended by adding the following section:

Sales in bulk

   6.  (1)  This section applies with respect to a sale in bulk that is not completed under section 8 of the Bulk Sales Act before July 1, 2011, but it does not apply with respect to a sale in bulk made pursuant to a written agreement entered into on or before March 29, 2011.

Application re sellers

   (2)  This section applies with respect to a person who, on or before June 30, 2010, held or was required to hold a permit under section 5 and with respect to a person who, after June 30, 2010, holds or is required to hold a permit under section 5.

Seller’s duty to obtain certificate

   (3)  No person described in subsection (2) shall dispose of the person’s stock through a sale in bulk to which the Bulk Sales Act applies without first obtaining a certificate in duplicate from the Minister indicating that all taxes, penalties and interest collectable or payable by the person under any of the following statutes have been paid or indicating that the person has entered into an arrangement satisfactory to the Minister for the payment of such taxes, penalties and interest or for securing their payment:

    1.  Alcohol and Gaming Regulation and Public Protection Act, 1996.

    2.  Fuel Tax Act.

    3.  Gasoline Tax Act.

    4.  Race Tracks Tax Act.

    5.  Retail Sales Tax Act.

    6.  Tobacco Tax Act.

Liability of seller

   (4)  The issuance of a certificate under subsection (3) by the Minister does not affect any liability under the statutes listed in subsection (3) of the person in respect of whom the certificate is issued.

Liability of a purchaser

   (5)  Every person (“purchaser”) purchasing stock through a sale in bulk to which the Bulk Sales Act applies from a person (“seller”) described in subsection (2) shall obtain from the seller the duplicate copy of the certificate furnished under subsection (3) and, if the purchaser fails to do so, the purchaser is responsible to the Minister for payment to the Minister of all taxes, penalties and interest imposed under the statutes listed in subsection (3) that are collectable or payable by the seller.

Transition

   (6)  This section as it read on June 30, 2011 continues to apply with respect to a sale in bulk made pursuant to a written agreement entered into on or before March 29, 2011 or with respect to a sale in bulk completed under section 8 of the Bulk Sales Act before July 1, 2011.

   2.  Subsection 18 (3.1) of the Act is repealed and the following substituted:

Assessment re amounts held in trust

   (3.1)  The Minister may assess the amount that a person is responsible to pay under the following provisions, and the assessed amount shall be deemed to be tax collectable, collected or payable, as the case may be, by the person:

    1.  Subsection 6 (2), as it read on June 30, 2011, in respect of a sale in bulk described in subsection 6 (6).

    2.  Subsection 6 (5), in respect of a sale in bulk to which section 6 applies.

Commencement

   3.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  If a proclamation under subsection (1) names a day after June 30, 2013 as the day subsection 1 (2) comes into force, subsection 1 (2) is deemed to have come into force on June 30, 2013.

Same

   (3)  If a proclamation under subsection (1) names a day as the day section 2 comes into force, section 2 is deemed to have come into force on June 30, 2011.

schedule 13
Securities Act

   1.  (1)  Section 17 of the Securities Act is amended by adding the following subsection:

Order without notice

   (2.1)  Despite subsection (2), if the Commission considers that it would be in the public interest, it may make an order without notice and without giving an opportunity to be heard authorizing the disclosure of the things described in clauses (1) (a) to (c) to any entity referred to in paragraph 1, 3, 4 or 5 of section 153.

   (2)  Subsection 17 (3) of the Act is amended by striking out “subsection (1)” in the portion before clause (a) and substituting “subsection (1) or (2.1)”.

   (3)  Subsection 17 (4) of the Act is amended by striking out “subsection (1)” and substituting “subsection (1) or (2.1)”.

   2.  (1)  Subsection 76 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Same

   (3)  No person or company that is considering or evaluating whether, or that proposes,

.     .     .     .     .

   (2)  Subsection 76 (3) of the Act is amended by striking out “to effect” in the portion after clause (c) and substituting “relating to”.

   (3)  Subclauses (a) (ii) and (iii) of the definition of “person or company in a special relationship with a reporting issuer” in subsection 76 (5) of the Act are repealed and the following substituted:

          (ii)  a person or company that is considering or evaluating whether to make a take-over bid, as defined in Part XX, or that proposes to make a take-over bid, as defined in Part XX, for the securities of the reporting issuer, or

         (iii)  a person or company that is considering or evaluating whether to become a party, or that proposes to become a party, to a reorganization, amalgamation, merger or arrangement or similar business combination with the reporting issuer or to acquire a substantial portion of its property,

   (4)  Clause (b) of the definition of “person or company in a special relationship with a reporting issuer” in subsection 76 (5) of the Act is repealed and the following substituted:

  (b)  a person or company that is engaging in any business or professional activity, that is considering or evaluating whether to engage in any business or professional activity, or that proposes to engage in any business or professional activity if the business or professional activity is,

           (i)  with or on behalf of the reporting issuer, or

          (ii)  with or on behalf of a person or company described in subclause (a) (ii) or (iii),

   (5)  Clause (c) of the definition of “person or company in a special relationship with a reporting issuer” in subsection 76 (5) of the Act is repealed and the following substituted:

   (c)  a person who is a director, officer or employee of,

           (i)  the reporting issuer,

          (ii)  a subsidiary of the reporting issuer,

         (iii)  a person or company that controls, directly or indirectly, the reporting issuer, or

         (iv)  a person or company described in subclause (a) (ii) or (iii) or clause (b),

   3.  Section 126.1 of the Act is amended by adding the following subsection:

Attempts

   (2)  A person or company shall not, directly or indirectly, attempt to engage or participate in any act, practice or course of conduct that is contrary to subsection (1).

   4.  (1)  Subsection 134 (2) of the Act is amended by striking out “and” at the end of clause (b) and by repealing clause (c) and substituting the following:

   (c)  person or company that is considering or evaluating whether to make a take-over bid, as defined in Part XX, or that proposes to make a take-over bid, as defined in Part XX, for the securities of the reporting issuer, and

(c.1) person or company that is considering or evaluating whether to become a party, or that proposes to become a party, to a reorganization, amalgamation, merger or arrangement or similar business combination with the reporting issuer or to acquire a substantial portion of its property,

   (2)  Clause 134 (2) (g) of the Act is repealed and the following substituted:

  (g)  in the case of an action against a person or company described in clause (c) or (c.1), the information was given in the necessary course of business relating to the take-over bid, business combination or acquisition.

Commencement

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

Schedule 14
taxation act, 2007

   1.  Section 103.2 of the Taxation Act, 2007 is amended by adding the following subsection:

Same, 12-month period

   (2.1)  The amount of an individual’s Ontario Trillium Benefit for the 12 months that relate to a particular base taxation year is the sum of all amounts each of which is the individual’s Benefit for a month in that 12-month period.

   2.  (1)  Subsection 103.3 (1) of the Act is repealed and the following substituted:

Payment of Benefit

   (1)  The Ontario Minister may pay an Ontario Trillium Benefit in accordance with this section to an individual who is eligible for the Benefit.

   (2)  Subsection 103.3 (2) of the Act is amended by striking out “If an amount calculated under section 103.8, 103.9, 103.10 or 103.12 for an individual” at the beginning and substituting “If the total amount of an individual’s Ontario Trillium Benefit”.

   (3)  Subsection 103.3 (3) of the Act is repealed and the following substituted:

Payment arrangements

   (3)  For a 12-month period that relates to a base taxation year, the Ontario Trillium Benefit is payable to an individual in the following ways:

    1.  Monthly payment:  The Benefit is payable as a monthly payment during the 12-month period except in the circumstances described in paragraphs 2 and 3.

    2.  Single payment:  The Benefit is payable as a single payment during or after the last month of the 12-month period,

            i.  if the particular base taxation year commences after December 31, 2012,

           ii.  if the total amount of the individual’s Benefit for the 12-month period is greater than $360, or such lesser amount as may be prescribed by the Minister of Finance,

          iii.  if the individual has made a request to receive the Benefit for the 12-month period as a single payment in accordance with subsection (3.1), and

          iv.  if the individual has not revoked his or her request to receive the Benefit for that period as a single payment.

    3.  Other:  The Benefit is payable in the amounts, in the manner and at the times prescribed by the Minister of Finance if the total amount of the individual’s Benefit is at least $2 but not more than $360, or such lesser amount as may be prescribed by the Minister of Finance, for the 12-month period.

Request for single payment

   (3.1)  An individual may make a request to receive the Benefit as a single payment for a 12-month period that relates to a base taxation year in accordance with the following rules:

    1.  The individual must make the request in his or her return of income under this Act for the base taxation year on or before December 31 of the year immediately following the base taxation year, or on or before such other date as may be prescribed by the Minister of Finance.

    2.  The individual may not make the request in an amended return after May 31 of the year immediately following the base taxation year, or after such other date as may be prescribed by the Minister of Finance.

Revocation of request

   (3.2)  An individual may revoke a request to receive the Benefit as a single payment for a 12-month period that relates to a base taxation year,

  (a)  without the Ontario Minister’s consent, if the revocation is made before June 1 of the year immediately following the base taxation year, or before such other date as may be prescribed by the Minister of Finance; or

  (b)  with the Ontario Minister’s consent, if the revocation is made after May 31 of the year immediately following the base taxation year, or after such other date as may be prescribed by the Minister of Finance.

Deemed revocation

   (3.3)  An individual is deemed to have revoked his or her request to receive the Benefit as a single payment for a 12-month period on the day that any of the following events occur during that period:

    1.  The individual becomes bankrupt.

    2.  The individual ceases to be a resident of Ontario.

    3.  The individual dies and does not have a qualified relation at the time of death.

    4.  The individual becomes confined to a prison or similar institution for a period of at least 90 days.

   (4)  Section 103.3 of the Act is amended by adding the following subsection:

Regulations

   (5)  The Minister of Finance may make regulations prescribing any rules that the Minister considers necessary or advisable to facilitate the payment of the Benefit to an individual as a single payment under this section.

   3.  The definition of “A” in subsection 104 (5) of the Act is repealed and the following substituted:

  A”  is,

         (a)  $600 if the month ends before July 1, 2009,

         (b)  $1,100 if the month commences after June 30, 2009 and ends before July 1, 2013,

          (c)  $1,210 if the month commences after June 30, 2013 and ends before July 1, 2014, or

         (d)  $1,310 if the month commences after June 30, 2014,

Commencement

   4.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  If a proclamation under subsection (1) names a day as the day subsection 2 (2) comes into force, subsection 2 (2) is deemed to have come into force on July 1, 2012.

Same

   (3)  If a proclamation under subsection (1) names a day after July 1, 2013 as the day section 3 comes into force, section 3 is deemed to have come into force on July 1, 2013.

 

EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 65 and does not form part of the law.  Bill 65 has been enacted as Chapter 2 of the Statutes of Ontario, 2013.

 

The Bill implements measures contained in the 2013 Ontario Budget and enacts or amends various Acts.  The major elements of the Bill are described below.

schedule 1
automobile insurance rate stabilization act, 2003

Amendments to the Automobile Insurance Rate Stabilization Act, 2003 provide that the Act governs all applications by insurers for approval of their rates and their risk classification system for a specified category of automobile insurance.

A new section 2.1 of the Act establishes an industry-wide target for the reduction of rates that insurers are permitted to charge for the Personal Vehicles — Private Passenger Automobile category of automobile insurance.

Amendments to section 7 of the Act permit the Superintendent to order an insurer to apply for approval of the risk classification system that the insurer intends to use as of a specified date, and the rates that the insurer intends to charge as of that date, for the category of automobile insurance to which the Act applies.

A new section 7.1 of the Act permits the Superintendent to reconsider the approved risk classification system and rates of an insurer.  The authority of the Superintendent is set out.

Section 8 of the Act, as re-enacted, prohibits insurers from charging a rate other than the authorized rate for the category of automobile insurance to which the Act applies.  The expression “authorized rate” is defined in section 1 of the Act.

Several provisions of the current Act that are spent in law are repealed.

schedule 2
Commodity futures act

Section 13 of the Commodity Futures Act is amended to permit the Ontario Securities Commission to make an order without notice authorizing the disclosure of certain information to law enforcement and regulatory agencies listed in the Securities Act.

Section 59.1 of the Act is amended to prohibit attempts at fraud and market manipulation.

schedule 3
dedicated funding for public transportation act, 2013

The Dedicated Funding for Public Transportation Act, 2013 is enacted.  It provides that a specified portion of the tax paid under the Gasoline Tax Act is dedicated to the provision of grants to municipalities for public transportation.

schedule 4
electricity act, 1998

Part VII of the Electricity Act, 1998 governs specified pension plans.  Three amendments are made to Part VII:

    1.   Subsection 102 (4) is repealed.  It provides that the successor employer (a defined expression in Part VII) is the administrator of specified pension plans.

    2.   Subsection 104 (2) is repealed.  It authorizes the successor employer to reduce or suspend contributions to a pension plan in specified circumstances if the plan has a surplus or a prior year credit balance or both.

    3.   Subsection 104.1 (5) is repealed.  It authorizes the successor employer to permit an affiliate to reduce or suspend contributions to a pension plan in specified circumstances if the plan has a surplus or a prior year credit balance or both.

schedule 5
electronic Commerce Act, 2000

The Schedule amends the Electronic Commerce Act, 2000 to make the Act apply to documents, including agreements of purchase and sale, that create or transfer interests in land and require registration to be effective against third parties. It also amends the Act to state, for greater certainty, that the Act’s application to information or a document is not affected by when the information or document was created or came into existence.

Schedule 6
financial services commission of ontario act, 1997

Amendments to the Financial Services Commission of Ontario Act, 1997 are related to amendments to the Insurance Act that establish a service provider’s licence.

The definition of “regulated sector” in section 1 of the Act is amended to add all holders of a service provider’s licence.  An amendment to section 26 of the Act provides that, if the holder of a service provider’s licence does not pay an assessment under the Act, the Superintendent may revoke the licence.

schedule 7
fuel tax act

Currently, subsection 2 (3.1) of the Fuel Tax Act provides an exception to the general requirement to pay fuel tax if the type of fuel placed in the tank of a licensed motor vehicle is biodiesel.  The exception, and the definition of “biodiesel” in subsection 1 (1) of the Act, are repealed.

Schedule 8
Insurance act

Amendments to the Insurance Act relate primarily to two matters: the payment by insurers of certain expenses (called “listed expenses”) for statutory accident benefits that are provided under contracts of automobile insurance; and the regulatory powers of the Superintendent of Financial Services.

Payment of listed expenses by insurers:

Part VI (Automobile Insurance) of the Act is amended in connection with payments by insurers for statutory accident benefits that are provided under contracts of automobile insurance.  Related amendments are made to section 121 of the Act, which authorizes the Lieutenant Governor in Council to make regulations.

Section 288.1 of the Act establishes a category of payments called “listed expenses” in connection with statutory accident benefits.

Section 288.2 of the Act states that insurers are not permitted to make payments for listed expenses directly to a person or entity who does not hold a service provider’s licence.  Exceptions may be prescribed by regulation.  Insurers are permitted to reimburse insured persons for listed expenses.

Under section 288.4 of the Act, holders of a service provider’s licence are required to comply with such standards as may be prescribed by regulation with respect to their business systems and practices in connection with statutory accident benefits, and to comply with such standards as may be prescribed with respect to matters of integrity in the management of the licensee’s operations.  Licensees are also required to submit invoices to the applicable insurer (or to such other person or entity as the insurer directs) for payment of listed expenses.

Sections 288.5 to 288.7 of the Act govern the issuance, amendment, revocation, suspension and surrender of service providers’ licences.

Regulatory powers of the Superintendent:

Amendments are made to several provisions of the Act that govern inquiries, examinations and investigations by the Superintendent.  Generally, these amendments enable the Superintendent to exercise his or her authority with respect to additional classes of persons, including former licensees and persons who, in the Superintendent’s opinion, are or were required to hold a licence under the Act.  Technical amendments are also made to those provisions.

Sections 29 to 32 of the Act are re-enacted as sections 442.1 to 442.4 of the Act.  Some amendments (as described above) are included in the re-enacted sections.

A new section 444.1 of the Act authorizes the Superintendent to issue a summons in specified circumstances.

A new section 446.1 of the Act sets out prohibitions for hindering or obstructing the Superintendent or his or her designate in the performance of their duties under the Act, and for withholding, concealing, altering or destroying anything relevant to an examination.

schedule 9
interim appropriation for 2013-2014 act, 2013

The Schedule enacts the Interim Appropriation for 2013-2014 Act, 2013 which authorizes expenditures for the fiscal year ending on March 31, 2014 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, 2014 that are tabled in the Assembly.

schedule 10
Ontario Loan Act, 2013

The Ontario Loan Act, 2013 is enacted. Subsection 1 (1) of the Act authorizes the Crown to borrow a maximum of $24.4 billion.

schedule 11
pension benefits act

Subsection 115 (6) of the Pension Benefits Act authorizes retroactive regulations to be made with respect to the funding of pension plans that provide defined benefits.  Currently, subsection 115 (6) is to be repealed on June 30, 2013.  The Schedule extends the operation of subsection 115 (6).

SCHEDULE 12
retail sales tax act

Section 6 of the Retail Sales Tax Act requires that vendors disposing of stock through a sale in bulk must obtain a certificate confirming that no taxes were owing under various tax statutes. Currently, section 6 is to be repealed on June 30, 2013. The Schedule extends the operation of section 6.

A technical amendment is made to subsection 18 (3.1). Under that subsection, the Minister is authorized to assess a person’s liability for unpaid taxes if the person buys stock from a vendor without obtaining from the vendor the certificate confirming that no taxes were owing.

schedule 13
Securities act

The Securities Act is amended. Major features of the amendments are the following:

    1.   Section 17 of the Act is amended to permit the Ontario Securities Commission to make an order without notice authorizing the disclosure of certain information to law enforcement and regulatory agencies.

    2.   Currently, the Act contains rules about insider trading and tipping. The Act prohibits persons or companies that are in a special relationship with a reporting issuer from trading or tipping while they have knowledge of undisclosed material information about the reporting issuer. The Schedule amends the definition of “person or company in a special relationship with a reporting issuer” to include, among others, persons or companies that are considering or evaluating whether to make a take-over bid or enter into an arrangement with the reporting issuer.

    3.   Section 126.1 of the Act is amended to prohibit attempts at fraud and market manipulation.

Schedule 14
taxation act, 2007

The Schedule amends the Taxation Act, 2007.  Here are some highlights.

Ontario Trillium Benefit

Part IV.1 of the Act sets out the Ontario Trillium Benefit.  Sections 103.2 and 103.3 of the Act provide rules concerning eligibility for, and the payment of, the Benefit.  Currently, the Ontario Minister is authorized to pay the Benefit on a monthly basis.  Amendments are made to enable individuals to request annually that the Benefit be paid as a single payment rather than as a monthly payment.

The first 12-month benefit period for which individuals may request to receive the Benefit as a single payment is the period from July 2014 to June 2015.

If an individual makes the request, the Benefit will be paid during or after the last month of a particular 12-month benefit period.  For an individual to be able to make this request, the total amount of the individual’s Benefit for a particular 12-month benefit period must be more than $360, or such lesser amount as may be prescribed.  Rules concerning the revocation of a request are provided.  An individual is deemed to have revoked his or her request in specified circumstances.  Regulations may be made to facilitate the payment of the Benefit as a single payment.

A technical change is made to Part IV.1 of the Act.  The Benefit is composed of the Ontario sales tax credit, the Ontario energy and property tax credit and the Northern Ontario energy tax credit.  Subsection 103.3 (2) of the Act currently provides that if any of those components in respect of an individual are not more than $2 for a year, that component is deemed to be nil for the year.  An amendment provides that an individual’s Benefit is deemed to be nil if the total amount of all of those components is not more than $2 for a year.

Ontario child benefit

Currently, section 104 of the Act provides for the payment of a monthly Ontario child benefit to eligible individuals with qualified dependants.  Subsection 104 (5) of the Act is amended to increase the maximum annual Ontario child benefit per qualified dependant with respect to monthly payments commencing after June 30, 2013.  The increase is implemented in two stages.

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