May 2018 Charity & NFP Law Update
Ontario Bill 31, Plan for Care and Opportunity Act (Budget Measures), 2018>
On May 8, 2018, Ontario Bill 31, Plan for Care and Opportunity Act (Budget Measures), 2018 (“Bill 31”) received Royal Assent. As discussed in the March 2018 Charity & NFP Law Update, Bill 31 implements amendments to the Assessment Act introduced in the 2018 Ontario Budget to extend the property tax-exempt status available to public schools, places of worship, municipal town halls, and other community centres, to non-profit child care centres located in the same property tax-exempt land.
Child, Youth and Family Services Act, 2017 Proclaimed>
On April 30, 2018, sections 1-280, 294, and 333-349 of Ontario’s Child, Youth and Family Services Act, 2017 (“CYFSA”) and four of its supporting regulations came into force by proclamation. Similarly, January 1, 2020 was named by proclamation as the day on which sections 281-293 and 295-332 of the CYFSA, as well as additional regulations, will come into force. As discussed in the August 2017 Charity & NFP Law Update, as well as the January 2017 Charity & NFP Law Update, the CYFSA replaces the Child and Family Services Act, which has been repealed.
Ontario Bill 3, Pay Transparency Act, 2018 Receives Royal Assent>
On May 7, 2018, Ontario Bill 3, Pay Transparency Act, 2018 (“Bill 3”) received Royal Assent and, in accordance with subsection 22(1), it will come into force on January 1, 2019. As reported in the March 2018 Charity and NFP Law Update, Bill 3 establishes a number of provisions regarding compensation-related information for employees and prospective employees, such as requiring all publicly advertised job postings to include a salary rate or range, prohibiting employers from asking a job candidate about their past compensation, prohibiting reprisals against employees who discuss or disclose compensation, and establishing a framework to require employers with 100 or more employees to track and report compensation gaps based on gender and other diversity characteristics, as prescribed.
Smoke-Free Ontario Act, 2017 and Regulations coming into force July 1, 2018>
The new Smoke-Free Ontario Act, 2017 and accompanying regulation O Reg 268/18 will come into force in Ontario on July 1, 2018, repealing the previous Smoke-Free Ontario Act and regulation. A number of provisions of the new Smoke-Free Ontario Act, 2017 adapt the previous legislation to include medical cannabis, such as the exemption available to long-term care homes, retirement homes, and others. Of particular interest to charities and not-for-profits is a provision in the new regulation prescribing an expanded perimeter outside schools, as well as including community recreational facilities as places or areas where smoking, use, or consumption of tobacco, medical cannabis or other prescribed products is prohibited. Community recreational facilities are defined in the regulation as enclosed public places owned or operated by a corporation incorporated under Part III of the Corporations Act (“OCA”) or under the Canada Not-for-profit Corporations Act (“CNCA”) or a predecessor of that Act, an organization that is a registered charity under the Income Tax Act (Canada) (“ITA”), or the Province or a municipality (or an agent thereof), where the place is primarily used for the purposes of providing athletic or recreational programs or services to the local community, and the place is open to the public whether or a not a fee is charged for entry.
New O. Reg. 232/18 Inclusionary Zoning under Planning Act>
On April 12, 2018, a number of provisions on the Promoting Affordable Housing Act, 2016 were proclaimed in force, including new subsection 16(4) of the Planning Act, which requires the official plan of municipalities prescribed under the Planning Act to contain policies that authorize inclusionary zoning with regard to affordable housing. Although the Planning Act and its Regulations do not define “inclusionary zoning,” the Ontario Ministry of Municipal Affairs describes it as “a land-use planning tool that a municipality may use to require affordable housing units (IZ units) to be included in residential developments of 10 units or more.” New regulation O Reg 232/18 also came into force on the same day and it provides an exemption from inclusionary zoning by-laws to, among others, developments proposed by or, under certain conditions, in partnership with “non-profit housing providers”. The regulation defines non-profit housing providers to include, generally, corporations without share capital under the OCA or the Ontario Not-for-Profit Corporations Act, 2010 whose primary object is to provide housing, as well as registered charities and non-profit organizations within the meaning of paragraph 149(1)(l) of the ITA whose land is owned by the organization and to be used at least partially as affordable housing.
Regulations under Child Care and Early Years Act, 2014 Amended>
On March 1, 2018 a number of amendments to Ontario Regulations 137/15 and 138/15 under the Child Care and Early Years Act, 2014 came into force, with several amendments coming into force on July 1, 2018. Following the consultation process of Proposal 17-EDU004 from October 2, 2017, the amendments include the revocation of Schedule 2, dealing with age group ranges and the ratio of employees to children, as well as changes to the emergency contact information for parents, financial records, and extends the obligation not to permit the prohibited practices in section 48 of regulation 137/15, such as corporal punishment of a child, to individuals other than licensees.
Quebec Bill 175, An Act to amend the Taxation Act, the Act respecting the Québec sales tax and other legislative provisions>
On May 9, 2018, Bill 175, An Act to amend the Taxation Act, the Act respecting the Québec sales tax and other legislative provisions (“Bill 175”) was introduced in the Quebec National Assembly. Bill 175 makes amendments similar to those made to the ITA and the Excise Tax Act (Canada) by federal bills assented to in 2016 and 2017, including changes to the rules relating to donations to charities with regard to the taxable supply of property or a service that is included in determining the amount of an advantage to a donor.
Saskatchewan Bill 128, The Provincial Sales Tax Amendment Act, 2018>
On May 30, 2018, Saskatchewan Bill 128, The Provincial Sales Tax Amendment Act, 2018 (“Bill 128”) received Royal Assent. Bill 128 adds a new exemption from Provincial Sales Tax (“PST”) for “prepared food and beverages sold by charitable or non-profit organizations at a community concession in the circumstances prescribed in the regulations.” The regulations under The Provincial Sales Tax Act are currently silent on this matter. This change follows Information Notice IN 2017-21 (the “Information Notice”), issued December 2017 by the Government of Saskatchewan’s Ministry of Finance, clarifying how the exemption from PST for charitable and non-profit organizations included sales of food and beverages at a community concession, subject to a number of conditions listed in the Information Notice.