Apr 2019 Charity & NFP Law Update
Bill C-97, Budget Implementation Act, 2019, No. 1
On April 8, 2019, Bill C-97, Budget Implementation Act, 2019, No. 1 (“Bill C-97”) was introduced in the House of Commons and received first reading. Bill C-97 proposes to implement certain provisions that impact charities and not-for-profits that were introduced in the 2019 Federal Budget (“Budget 2019”). In this regard, Bill C-97 implements legislative amendments to the Income Tax Act and Excise Tax Act that were included in the Notice of Ways and Means Motions in Budget 2019 that include: (1) support for Canadian journalism through qualified donee status, a refundable labour credit, and personal income tax credit for digital subscriptions; (2) legislative amendments to remove the requirement that property be of “national importance” in order to qualify for the enhanced tax incentives for donations of cultural property; and (3) health-related proposals, such as the medical expense tax credit for medical cannabis and tax exemptions for certain biologicals, medical devices and health care services.
Additionally, and as proposed in Budget 2019, Bill C-97 includes draft legislative amendments to strengthen Canada’s anti-money laundering and anti-terrorist financing regime. In this regard, and of interest to charities and not-for-profits, the Criminal Code of Canada will be amended to criminalize concealment of the origin of funds in the case of recklessness. Additionally, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act will be amended to allow the Governor in Council to make regulations defining “virtual currency” and “dealing in virtual currencies”, and to amend disclosure obligations relating to designated information.
Further details on the above proposed changes, as introduced in Budget 2019, are available in Charity & NFP Law Bulletin No. 443.
Proposed Regulatory Amendments under the Child Care and Early Years Act, 2014 and Education Act
On April 4, 2019, the Ontario Regulatory Registry announced a consultation to seek feedback on proposed regulatory amendments under the Child Care and Early Years Act, 2014 (“CCEYA”) and Education Act. The proposed amendments are based on feedback from previous consultations with the child care sector, and are intended to ease compliance for licensees and providers, which may include charities and not-for-profits.
The amendments would reduce administrative burdens by removing duplicative requirements under O Reg 137/15 (General) and O Reg 138/15 (Funding, Cost Sharing and Financial Assistance) under the CCEYA. Further, the amendments would increase the choice and availability of child care services by giving licensees and providers the flexibility to offer programming options that meet their community’s needs through amendments to O Reg 137/15 and O Reg 138/15 under the CCEYA, and O Reg 221/11 (Extended Day Programs) under the Education Act. Finally, the amendments would clarify and align requirements in order to create a consistent standard of care across Ontario for all child care settings through amendments to O Reg 137/15 under the CCEYA and O Reg 221/11 under the Education Act.
Ontario Bill 66, Restoring Ontario’s Competitiveness Act, 2019
On April 3, 2019, Ontario Bill 66, Restoring Ontario’s Competitiveness Act, 2019 was brought into force after receiving Royal Assent. Bill 66 amends the Employment Standards Act, 2000, among other acts, to reduce the regulatory burden on businesses, including charities and not-for-profits, when entering into work hour agreements and averaging agreements with employees, as well as with regard to employment standards educational posters required under the Employment Standards Act, 2000. Further details on the changes introduced through Bill 66 are available in the January 2019 Charity & NFP Law Update.