7

 


Fourth  Session, 46th General Assembly

60 Elizabeth II, 2011

BILL 7

AN ACT TO AMEND THE MUNICIPALITIES ACT, 1999

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE KEVIN O'BRIEN

Minister of Municipal Affairs

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Municipalities Act, 1999 to address operational and administrative matters respecting the law governing municipalities and local service districts.

The Bill would

·         allow municipalities to provide a pension plan and group benefits plan to councillors;

·         allow a council to provide a grant for charitable or philanthropic causes;

·         provide that a municipality could, after providing proper notice to mortgagees, judgment creditors and lienholders, convey property free from encumbrances, other than easements and claims of the Crown, when selling property for failure to pay taxes;

·         protect land owned by municipalities from claims of adverse possession; and

·         allow municipalities to impose separate minimum real property tax on vacant land and on land upon which there is no building that is used for residential purposes that exceeds the area established by regulation.

A BILL

AN ACT TO AMEND THE MUNICIPALITIES
ACT, 1999

Analysis


        1.   S.2 Amdt.
Interpretation

        2.   S.63 Amdt.
Departments

        3.   S.64 Rep.
Department heads

        4.   S.72 R&S
Pension scheme

        5.   S.73 R&S
Group insurance

        6.   S.78 R&S
Budget

        7.   S.79 Amdt.
Contents of budget

        8.   S.86 Amdt.
Financial statements

        9.   S.87 Amdt.
Appointment of auditor

      10.   S.91 Amdt.
Auditor's report

      11.   S.94 Amdt.
Long term borrowing

      12.   S.97 Amdt.
Certificate

      13.   S.99 Amdt.
Powers of expenditure

      14.   S.114 R&S
Minimum tax

      15.   S.119 R&S
Supplementary assessment

      16.   S.129 Amdt.
Direct sellers tax

      17.   S.133 R&S
Collection as a civil debt

      18.   S.134 Amdt.
Lien

      19.   S.137 Amdt.
Notice of arrears

      20.   S.140 R&S
Notice

      21.   S.142 Amdt.
Further notice of sale

      22.   S.144 Amdt.
Tax payment from proceeds

      23.   S.147 Amdt.
Vesting of property

      24.   S.162 Amdt.
Compensation for injurious affection

      25.   S.168 Amdt.
Removal of projections

      26.   S.183 Amdt.
Fire department

      27.   S.197 Amdt.
Signs

      28.   S.198 Amdt.
Sales from vehicles and stands

      29.   S.201.1 Added
Sale of property

      30.   S.201.2 Added
Adverse possession abolished

      31.   S.249 R&S
Ministerial direction

      32.   S.395 Amdt.
Fire protection

      33.   S.414 Amdt.
Council regulations

      34.   Commencement



Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL1999 cM-24
as amended

        1. (1) Paragraph 2(1)(s) of the Municipalities Act, 1999 is repealed and the following substituted:

             (s)  "real property" means

                      (i)  land or an interest arising from land, and includes land under water,

                     (ii)  land and buildings, structures, improvements, building service systems and storage facilities and fixtures erected or placed upon, in, over or under land or affixed to land,

                    (iii)  a building that is erected on land under a lease, licence or permit, but does not include the land upon which the building is erected, and

                    (iv)  a mobile home;

             (2)  Subection 2(1) of the Act is amended by adding immediately after paragraph (u.1) the following:

          (u.2)  "remuneration" includes contributions by a municipality to a pension plan for councillors;

 

        2. (1) Subsection 63(1) of the Act is repealed and the following substituted:

Departments

      63. (1) A council may

             (a)  establish departments;

             (b)  appoint for those departments the department heads that are necessary for the effective operation of the council; and

             (c)  set out the roles and responsibilities of those department heads.

             (2)  Subsection 63(3) of the Act is repealed and the following substituted:

             (3)  The council may appoint one person to head 2 or more departments established under paragraph (1)(a). 

 

        3. Section 64 of the Act is repealed.

 

        4. Section 72 of the Act is repealed and the following substituted:

Pension scheme

      72. (1) A council may provide a pension scheme for councillors, full-time employees, regular part-time employees, or a class of those employees, who have worked for a stated period and discontinued their employment or, in the case of a councillor, his or her tenure as a councillor, or have suffered permanent disability before reaching retirement age.

             (2)  A pension scheme provided under subsection (1) shall be a defined contribution plan as defined in the Pension Benefits Act, 1997 unless the minister approves an alternative type of plan.

             (3)  A person who, before becoming a councillor or an employee of the council, was employed by the Government of Canada, the government of a province, a municipality in Canada or of a corporation or institution having a pension plan may have credited to him or her with respect to his or her tenure as a councillor or council employment the whole or part of the pensionable service credited to him or her by that tenure as a councillor or employment.

             (4)  Notwithstanding subsection (3), a council may make an agreement with a body described in that subsection providing for the crediting, on a reciprocal basis, of the whole or part of the pensionable service served by the councillor or employee with that body, as pensionable service with the municipality.

             (5)  A pension scheme entered into under subsection (1) shall be based upon a plan of contributions by the council and its councillors or the council and its employees.

 

        5. Section 73 of the Act is repealed and the following substituted:

Group insurance

      73. (1) A council may arrange to provide a group insurance scheme for its councillors, employees or a class of employees, and for volunteer members of its fire department and for that purpose may enter into arrangements which the council may determine with insurance or other companies or with the Crown.

             (2)  A group insurance scheme entered into under subsection (1) shall be based on a plan of contributions by the council and its councillors or the council and its employees, except for volunteer members of its fire department, where all contributions shall be paid by the council.

 

        6. Section 78 of the Act is repealed and the following substituted:

Budget

      78. In a budget proposed expenditures shall not exceed anticipated revenues.

 

        7. (1) Subsection 79(2) of the Act is amended by deleting the words "subject to the approval of the minister" and the commas immediately before and after the words.

             (2)  Subsection 79(3) of the Act is amended by deleting the words "with the prior written approval of the minister" and the commas immediately before and after the words.

 

        8. Subsection 86(1) of the Act is repealed and the following substituted:

Financial statements

      86. (1) A council shall prepare and adopt, before June 1 of each year, financial statements in a manner consistent with generally accepted accounting principles established periodically by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants.

 

        9. Subsection 87(3) of the Act is repealed.

 

      10. Section 91 of the Act is amended by adding immediately after paragraph (c) the following:

          (c.1)  the extent of insurance carried with respect to all municipal property;

 

      11. Subsection 94(1) of the Act is repealed and the following substituted:

Long term borrowing

      94. (1) Subject to the prior written approval of the minister, a council may

             (a)  borrow money for capital purposes and issue securities for the repayment of money borrowed; and

             (b)  enter into a financing agreement as lessee with respect to the lease of personal or real property where the lease is for a term of 3 years or more.

 

      12. Section 97 of the Act is amended by deleting the words "and Provincial" wherever they occur.

 

      13. (1)  Section 99 of the Act is amended by adding immediately after subsection (1) the following:

          (1.1)  A council may, out of the funds at its disposal, and by a 2/3 vote of councillors in office, provide a grant for charitable or philanthropic causes that it considers appropriate but grants may not be provided to political parties or candidates in municipal, provincial or federal elections.

             (2)  Subsection 99(2) of the Act is repealed and the following substituted:

             (2)  Expenditures made under subsections (1) and (1.1) shall not exceed the total approved budget or revised budget of the council and shall be supported by appropriate documentation.

 

      14. Section 114 of the Act is repealed and the following substituted:

Minimum tax

   114. A council may, by resolution, establish different minimum annual real property taxes in a municipality for

             (a)  residential property;

             (b)  commercial property;

             (c)  vacant land; and

             (d)  land that has upon it a structure which

                      (i)  is not used for residential purposes, and

                     (ii)  does not exceed the square meterage area prescribed by the municipality.

 

      15. Section 119 of the Act is repealed and the following substituted:

Supplementary assessment

   119. (1) The owner of real property that has been made subject to a supplementary assessment under paragraph 24(1)(a) of the Assessment Act, 2006 is liable for the payment of the real property tax on the basis of the supplementary assessment for the remaining portion of the calendar year from the earlier of the date of substantial completion or the date of occupancy of the real property.

             (2)  The owner of real property that has been made subject to a supplementary assessment under paragraphs 24(1)(b) to (f) of the Assessment Act, 2006 is liable for the payment of the real property tax on the basis of the supplementary assessment for the remaining portion of the calendar year from the date of the event that gave rise to that supplementary assessment.

             (3)  Where real property has been made subject to an original or supplementary assessment under the Assessment Act, 2006 and an appeal is taken under that Act against the assessment, the real property tax is, notwithstanding an appeal, payable on the basis of that assessment.

             (4)  The difference between the amount of the tax collected under subsection (3) and the amount payable on the basis of the assessment as later determined on the appeal under the Assessment Act, 2006 shall be paid by the owner or refunded by the council, according to the decision in the appeal.

 

      16. Subsection 129(5) of the Act is amended by deleting the reference to the "Direct Sellers Act" and substituting a reference to the "Consumer Protection and Business Practices Act".

 

      17. Section 133 of the Act is repealed and the following substituted:

Collection as a civil debt

   133. All taxes imposed under this Part, together with interest owing on those taxes and reasonable costs of collection for those taxes may, in addition to all other lawful methods of civil debt collection, be sued for and collected by an action in the name of the council as a civil debt due to the council.

 

      18. Subsection 134(1) of the Act is repealed and the following substituted:

Lien

   134. (1) Taxes fixed, established and imposed in respect of real property, including the real property tax, business tax, where the owner of the business is also the owner of the real property occupied by that business, and water and sewage tax, where the water and sewage system services the real property owned by the person who is taxed for that service, together with interest owing on those taxes, constitute a lien upon that real property except where the real property is sold for tax arrears by the council.

 

      19. Subsection 137(1) of the Act is amended by deleting the words "owner and encumbrancers of" and substituting the words and commas "owner, mortgagee, judgment creditor, lienholder or other person having a charge or encumbrance upon or against".

 

      20. Section 140 of the Act is repealed and the following substituted:

Notice

   140. (1) The clerk shall immediately upon receipt of a copy of the resolution referred to in section 139

             (a)  advertise the real property referred to in the resolution for sale by public auction at a time and place that shall be stated in the advertisement; and

             (b)  provide written notice of the sale of that property to a mortgagee, judgment creditor, lienholder or other person having a charge or encumbrance upon or against the real property.

             (2)  Advertisement under paragraph (1)(a) shall be effected by posting the advertisement in not fewer than 2 conspicuous places in the municipality and publishing in a daily or weekly newspaper in circulation in the municipality by one insertion each week, where there is such a newspaper, at least 30 days immediately before the sale.

             (3)  Notice under paragraph (1)(b) shall be provided through personal service or by mailing a copy of the notice to the last known address of the person and obtaining a signed document acknowledging receipt at least 30 days immediately before the sale.

             (4)  It is sufficient in the notice and the advertisement to put the street and number of the real property, or to put another short reference by which the real property may be identified, together with a statement that a full description may be seen at the office of the clerk.

 

      21. Subsection 142(2) of the Act is repealed and the following substituted:

             (2)  The clerk shall give notice to a person entitled to notice under paragraph 140(1)(b) through personal service or by mailing a copy of the notice to the last known address of the person and obtaining a signed document acknowledging receipt and shall advertise in the paper in which the sale was originally advertised, or where not then in circulation, in another newspaper circulating in the municipality, if there is one, of the time and place to which the sale is adjourned and he or she shall again put up the real property at public auction and may sell the real property for a sum that can be realized.

 

      22. Subsection 144(2) of the Act is repealed and the following substituted:

             (2)  Where there is a balance remaining after making the deductions under subsection (1), the municipality shall

             (a)  where the balance is less that $200, pay the balance to the former property owner; or

             (b)  where the balance is $200 or more, pay the balance to the former property owner unless an application is made to the Trial Division within 90 days of the auction by a person claiming entitlement to the balance and if an application is made, pay the balance to the Registrar of the Supreme Court.

             (3)  Where paragraph 2(b) applies, the municipality shall immediately provide written notice to a person entitled to notice under paragraph 140(1)(b), in the manner set out in subsection 140(3), of the amount of the balance and the requirement to apply to the Trial Division within 90 days of the auction to claim entitlement to the balance or a portion of the balance.

             (4)  Where the former owner of the real property is unknown or cannot be located and there is a balance remaining after making the deductions under subsection (1), the municipality shall pay the balance to the Registrar of the Supreme Court.

             (5)  Payment of the balance to the Registrar of the Supreme Court under subsection (2) or (4) shall have the same effect as payment to the owner, and a judge of the Trial Division, on the application of an interested person, may order the payment out of court of the balance or a portion of the balance to the person entitled to it.

 

      23. Section 147 of the Act is amended by deleting the words "of the municipality" and substituting the words "except a claim of the Crown and an easement".

 

      24. Section 162 of the Act is amended by deleting the words "this Act" and substituting the words "the Urban and Rural Planning Act, 2000".

 

      25. Subsection 168(3) of the Act is amended by deleting the words "this Act" and substituting the words "the Urban and Rural Planning Act, 2000".

 

      26. Section 183 of the Act is amended by deleting the word "minister" and substituting the word "council".

 

      27. Section 197 of the Act is amended by adding the word "written" immediately before the word "permit".

 

      28. Section 198 of the Act is amended by adding the word "written" immediately before the word "permit".

 

      29. The Act is amended by adding immediately after section 201 the following:

Sale of property

201.1 A council may, by resolution, sell real and personal property where

             (a)  the item or lot has a probable market value of more than $500, by public tender or public auction advertised in not fewer that 2 conspicuous places in the municipality and published in a newspaper having general circulation in the municipality, where there is one; and

             (b)  the item or lot has a probable market value of less that $500, or where a public tender or public auction under paragraph (a) did not produce a purchaser, by private sale.

 

      30. The Act is amended by adding immediately after section 201.1 the following:

Adverse possession abolished

201.2 Notwithstanding a law or practice to the contrary, no period of possession of lands that are owned by a municipality counts for the purpose of conferring upon a person an interest in the lands so possessed.

      31. The Act is amended by repealing section 249 and substituting the following:

Ministerial direction

   249. Where the comptroller recommends to the minister, the minister may direct in writing that the council issue a cheque to meet those payments that the minister lists in the direction.

 

      32. Paragraph 395(b) of the Act is repealed and the following substituted:

             (b)  construct, acquire, establish, own and operate a fire hall, fire engines and other apparatus necessary for fire fighting, fire protection and responding to and providing services for other emergencies that may be authorized by the local service district committee, either inside or outside the local service district.

 

      33. Subsection 414(2) of the Act is amended by adding immediately after paragraph (tt) the following:

         (tt.1)  respecting the square meterage area of a non-residential structure for the purpose of paragraph 114(d);

Commencement

      34. Sections 10, 20 to 23 and 27 to 29 come into force on a day or days to be proclaimed by the Lieutenant-Governor in Council.