By Terrance S. Carter and Adriel N. Clayton

Ontario Bill 10, Protect Ontario Through Safer Streets and Stronger Communities Act, 2025

Charities and not-for-profits (NFPs) that provide supportive, transitional, or other affordable housing services may soon be impacted by new legislation in Ontario. The new legislation, the Measures Respecting Premises with Illegal Drug Activity Act, 2025 (the “Act”), which is contained in Schedule 8 of Bill 10, Protect Ontario Through Safer Streets and Stronger Communities Act, 2025, received Royal Assent on June 5, 2025, and will be brought into force on a day to be named by order of the Lieutenant Governor in Council.

The Act permits the Lieutenant Governor in Council to make regulations prescribing offences relating to the production or trafficking of a controlled substance or precursor, or of cannabis. However, of note, the Act also prohibits landlords, which would include charities and NFPs, from knowingly permitting their premises to be used for any such prescribed drug offences. It further prohibits knowingly possessing proceeds of such offences which, for landlords, could potentially include rent. Enforcement mechanisms include, among other things, property closure.

Critically for charities and NFPs, the Act defines “landlord” broadly as including any person leasing or subleasing premises, whether for residential or commercial purposes. Of note, the Act explicitly extends liability to directors and officers of corporations that permit prescribed offences, with fines of up to $250,000 or imprisonment for individuals who contravene the Act, and up to $1,000,000 for corporations that contravene the Act. The Act will be of serious concern for charities that work in providing shelter and residential accommodation for homeless and other vulnerable individuals.

Ontario Bill 25, Emergency Management Modernization Act, 2025

The Government of Ontario is proposing amendments to the province’s emergency management framework to allow the government to, among other things, issue certain enforceable directives to certain prescribed entities, including some that receive government funding for community and social services. Bill 25, Emergency Management Modernization Act, 2025 was introduced and passed First Reading on May 26, 2025, and proposes to amend both the Emergency Management and Civil Protection Act and the Ministry of Community and Social Services Act. Given the majority position of the Ontario Government, it is presumed that this Bill will become law during the fall sittings of the Ontario Legislature, subject to any amendments that might occur at committee stage.

Of note, Bill 25 proposes to amend the Ministry of Community and Social Services Act to allow the Minister to “issue directives to entities prescribed by the regulations made under this Act that receive funding from the Minister to provide community and social services with respect to any extraordinary matters prescribed by those regulations and the provision of those community and social services.”

Simply put, the Minister would be able to issue directives directly to certain provincially funded organizations (which would include charities and not-for-profits) regarding specific “extraordinary matters”, as prescribed in future regulations. Non-compliance with these directives potentially leading to the issuance of compliance orders and/or reductions or elimination of funding. As well, entities, as well as their directors and officers, who knowingly contravene a compliance order can be held personally liable and subject to monetary fines.

Ontario Bill 33, Supporting Children and Students Act, 2025

On May 29, 2025, the Ontario government tabled Bill 33, Supporting Children and Students Act, 2025. The Bill has progressed to Second Reading as of June 5, 2025. Schedule 1 focuses on the Child, Youth and Family Services Act, 2017 (CYFSA), introducing new transparency and accountability measures for children's aid societies. Key amendments under Schedule 1 of the Bill include enhanced and expanded obligations for children’s aid societies and licensees licensed under Part IX of the CYFSA to provide clear and accessible information about the Ombudsman to children and young persons, including situations where persons are entering into a continued care and support agreement under section 124 of the Act. Bill 33 would also require disclosure to be made using language that is suitable to the child or young person’s understanding.

Additionally, children's aid societies will be required to regularly review their by-laws, update them based on these reviews, and publicly disclose the results. Specific standards for these reviews and disclosure procedures will be detailed through future regulations. Moreover, children’s aid societies must seek Ministerial approval before engaging in financial transactions or arrangements deemed by regulation “to impact on a society’s ability to operate within its approved budget allocation.”

Finally, maternity homes would also be included within the definition of "institution," expanding oversight and regulation to these entities.

Schedule 2 proposes amendments to the Education Act to expand ministerial oversight of school boards regarding “matters of public interest”, which is defined to include “whether boards, board members and directors of education are carrying out their duties under this Act in an appropriate manner”. Bill 33 identifies these “duties” as including, among other things, the delivery of education programs, student achievement and wellbeing, financial management, board governance, and parent and stakeholder engagement. It authorizes the Minister of Education to initiate investigations if concerns arise about such matters, to issue binding directions to boards to address specific public interest concerns, and to assume direct control over a school board's administration if it fails to comply with directives.

Schedule 3 proposes amendments to the Ministry of Training, Colleges and Universities Act, mandating publicly assisted universities and colleges to assess applicants primarily based on merit. Institutions would also be required to publish and make publicly accessible clear and transparent admission criteria and procedures. This proposed amendment will affect college and university admissions practices, and could potentially influence policies previously aimed at promoting diversity, equity, and inclusion (DEI) within Ontario's post-secondary institutions.

​Read the June 2025 Charity & NFP Law Update