British Columbia Hansard — Thursday, March 11, 2021 p.m. — Number 28 (HTML) (42nd Parliament, 1st Session) (20210311pm-Hansard-n28)
20210311pm-Hansard-n28
British Columbia — Debates (Hansard)
First Session, 42nd Parliament
(2021) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, March 11, 2021
Afternoon Sitting
Issue No. 28
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day
Committee of the Whole House
Bill 6 — Home Owner Grant Amendment Act, 2021 (continued)
Hon. S. Robinson
M. Bernier
S. Furstenau
Report and Third Reading of Bills
Bill 6 — Home Owner Grant Amendment Act, 2021
Committee of the Whole House
Bill 9 — Local Elections Statutes Amendment Act, 2021
D. Ashton
Hon. J. Osborne
Report and Third Reading of Bills
Bill 9 — Local Elections Statutes Amendment Act, 2021
Committee of the Whole House
Bill 5 — Insurance Corporation Amendment Act, 2021 (continued)
Hon. M. Farnworth
M. Morris
M. Lee
S. Furstenau
THURSDAY, MARCH 11, 2021
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: I call continued committee stage on Bill 6.
Committee of the Whole House
BILL 6 — HOME OWNER GRANT
AMENDMENT
ACT, 2021
(continued)
The House in Committee of the Whole on Bill 6; N. Letnick in
the chair.
The committee met at 1:33 p.m.
On clause 24 (continued) .
Hon. S. Robinson: Over the break, I had a little chance to reflect on my previous
response. I just want to provide a bit more clarity. I don’t know if it
was as clear as it could have been.
collecting information and the purpose for the collection. I want to
clarify that, while we might share aggregate data to help us understand
in terms of policy development, we cannot share personal information
that we collect without the legal authority to do so. The amendments in
Bill 6 do not change authority for sharing information. I want to make
sure that the member understood that.
M. Bernier: Thank you. I almost understand it. But the personal information
the minister is referring to, is that…? Before lunch, we were talking
about the sharing of data in two different categories. One was within
the ministry itself — within different branches of the Ministry of
Finance. Then the other area was between the ministry and the
municipalities. Can she just clarify for me which one she was referring
to?
[1:35 p.m.]
Hon. S. Robinson: Within the ministry itself.
M. Bernier: Just before we move off this section, I’m trying to get a couple
of things clarified here. Are municipalities still applying for the
grants? If the municipalities are applying for the grants as a whole, is
the administration actually fully centralized?
I guess where I’m going with this is…. We have been starting to
hear from a few municipalities — I even heard from one over lunch, as
well — with some of the concerns around a couple of different avenues.
The government is taking on a big portion of it through the application
process. But there are still some administration components that are
required within the municipalities themselves. So it’s not fully
centralized. One of them, and I’ll get to it a little later, is even
around the collection of penalties.
We talked about that a bit. But again, the application process is
through the government now. If there’s a penalty applied, is that going
to be the responsibility of the municipality themselves to be following
up, or the administrator, under this act?
Hon. S. Robinson: There are no penalties that are under this act.
M. Bernier: Where I’m referring to, then, is more…. I guess it’s not so much
penalties. It would be the absence of somebody applying for the act.
They don’t meet the deadline for the grant. They do or they
don’t.
Let me just explain it to you this way. Let’s go into the process,
then, if the minister can help me with this, for people that are out
there. I’ll use simplistic numbers, not actual grant numbers. Somebody
has received a tax notice from their community for $4,000 for property
taxes for the calendar year of 2021. They’re eligible as a homeowner
for, we’ll say, a $1,000 grant. When they go into city hall, what cheque
are they writing to city hall on July 1? We both know the answer, but we
want to make sure this is clear.
When we assume somebody has applied now for the homeowner’s grant
— the $1,000 that we’ll say they’re eligible for — are they going into
city hall and writing a cheque for $3,000, or are they writing a cheque
for $4,000 and getting rebated back $1,000?
Hon. S. Robinson: They would write the cheque for $3,000.
M. Bernier: If they’re writing the cheque for $3,000…. Again, I’m making this
simplistic, I hope. At the time, they’re writing the cheque for $3,000.
In essence, the $1,000 grant that they applied for to the government….
The government will be sending a cheque, a transfer, to the municipality
for that $1,000, correct?
Hon. S. Robinson: Correct.
M. Bernier: Thank you. I appreciate the minister indulging me here as we’re
just trying to make sure this is somewhat simplified, I guess, using
rounded numbers.
I guess the concern, then, for a municipality would be: what if,
as I think this through, somebody comes in two days before the deadline
and says that they applied for the homeowner’s grant, so they write a
cheque for $3,000 to the municipality, and then it’s found out
afterwards that they actually applied incorrectly or didn’t apply at
all, and there was some confusion in this?
I used the wrong term earlier when I said penalty. Who, then, goes
after the homeowner to say: “Actually, you still owe $1,000”? Is it
going to be the municipality now responsible to go after the
homeowner to claim that money — my assumption is — or is it going to be
the government?
[1:40 p.m.]
Hon. S. Robinson: Again, nothing has changed here, so just as has always been the
case, the municipality would be having to connect with the homeowner to
collect on the taxes that they still owe.
M. Bernier: This goes back to, I guess, where I was going with the penalty
portion of it, because if you pay your taxes late, past the deadline of
July 2, there is a penalty imposed by the municipality. I’m assuming the
minister will say, then, if somebody accidentally filled out their
homeowner’s grant incorrectly and there was still a sum, whatever that
sum being, that’s owed to the municipality, then there could be a
penalty imposed to the outstanding sum. Now that’s the municipality’s
role to collect that penalty and the additional sum, since it might not
have been caught by the ministry — incorrectly applying for the
homeowner’s grant.
Hon. S. Robinson: We, as the ones responsible for the homeowner grant, communicate
with the municipality when the homeowner grant application was made, to
make sure that that is accurate information. So if the homeowner applied
for it on June 30, then certainly the municipality would…. We would
communicate with the municipality that the grant application was made in
a timely fashion and no penalties should be applied.
If the homeowner makes an error, then certainly, as a province, we
would work with the homeowner to make sure that their grant application
is accurate and communicate that with them. But just like now, if
somebody makes a homeowner grant application that they’re not eligible
for and, subsequently, they’re late paying their taxes, then that is up
to the municipality about whether or not to pursue the penalty fees that
are related with the late tax remittance.
M. Bernier: One of the concerns along this line that I’m hearing from
municipalities is…. Human nature being the way it is, and although the
minister acknowledged yesterday by reading out, numerous times, the
website — that people can go on now…. And no, I have not yet, even
though she offered the opportunity for me to do. The majority of people,
for whatever reasons, go in, in the last couple of days prior to a
deadline. So there’s where municipalities have mentioned to me those
concerns around: who is the one truly going to be put in the position
now to go after people for something that may or may not have been done
inaccurately — by accident? So just using that example in the past
again….
I know in my riding, too, that we’d have some seniors that would
come in one or two days before the deadline. They’d go to the counter
with their piece of paper that has the little tab at the bottom. They
check off the two or three things in order to qualify for the
homeowner’s grant while they’re at the counter. It gets stamped, and
then they pay their taxes, at which point somebody is right there
telling them: “Actually, you filled out the wrong one. You should have
filled out here.”
[1:45 p.m.]
Now it’s going to be online. So one of the concerns that I’m
hearing not only from some of these people — again, municipalities — is
if somebody does walk in a day or two before and says, “Well, I just
filled it out online yesterday,” we’re now taking their word for it. I’m
assuming — and Minister, correct me if I’m wrong — this is not going to
be as real time as we would hope. If I apply this morning, the
municipality is not getting notified that afternoon that I applied for
the homeowner’s grant, correctly or incorrectly.
Therein lie some of the challenges. I canvassed that a little
earlier during the debate, around the flexibility within the ministry
and the municipality in the first year. Obviously, we hope this…. I
mean, I think we’re supporting the centralization idea, but I think it
is fair to acknowledge and say that there are some people who have
concerns in this first year. That doesn’t necessarily mean they will act
on those and work earlier to apply for the homeowner’s grant.
Then there are municipalities, as well, that are saying: “Well, if
this is truly centralized, now all of a sudden we’re in the position
where we have to ask the people, when they come to the counter: ‘Did you
apply for your homeowner’s grant, yes or no? Did you do it correctly?’ I
guess we’re taking their word for it.” Now all of a sudden if they find
out it was wrong, the municipality is the one that’s put in the
position, with staff, to now go after people — whether it’s for
penalties, on titles and that. That’s just one of the things that I flag
on that.
Again, I guess, to the minister. The municipalities are still put
in the front, dealing with the people. I believe I heard the answer, a
couple of days ago, that there’s not going to be much flexibility in
year one. Is it fair to say, then, that the municipalities are still,
really, at the front, dealing with this issue?
Hon. S. Robinson: Well, this is a property tax program. This is how municipalities
get their revenues. It’s their main source of revenue. This is a tax for
them to do their operating budgets and their capital budgets. It is
based on that, and they have been collecting it. They will always, I
would imagine, continue to be the face of it.
As I was listening to the member’s question, I was thinking:
“Well, you know, in my community in Coquitlam, a lot of people are….
It’s a lot online now.” Many municipalities are already doing this
online. So a lot of folks are very much familiar with an online
process.
Also, there are some that do…. We have a quick mail drop in the
underground parking in Coquitlam, where you can just drop in, instead of
having to stand by the desk and get the stamp. Because people would wait
for hours, which was inefficient and problematic — to wait for hours in
front of a counter. You can drop off your taxes and tick off all the
boxes.
Like the member suggested, there are those — not me — that do it
last minute. God bless you for living life on the edge. They would drop
it off July 1, because they’d make it by the deadline of July 2. By the
time that gets processed, days have passed as well. You know, there is
recognition about what comes in at what time. Then there’s the process
that happens in order to reconcile all the pieces. That’s certainly
going to happen, going forward, as well — this idea of
reconciling.
Certainly, in our consultations with local governments and in our
consultation with UBCM, which the member knows full well, they are very
supportive of this. It’s seen as a release, by local governments, from a
piece of administration that they’ve had to do for many years. I didn’t
hear anyone screaming that they wanted to hang on to this very important
program. We know that local governments will continue to work with us to
make sure that it rolls out seamlessly.
We have everything in place. There has been lots of work that has
gone on in order to put this together so that it can meet the needs of
citizens as easily and as seamlessly as possible.
Clauses 24 to 27 inclusive approved.
On clause 28.
M. Bernier: Again, some of this stuff is just technicalities, I guess, in some
ways, but it’s an opportunity, also, to put a few things out there —
more for information as well. And I apologize. On
section 28, I’ll have
a question, but I just want to go to the minister’s last comments, and
then give her an opportunity as well.
[1:50 p.m.]
Maybe I’ll do this. One of the other concerns — again, I know
it’ll be an easy answer for the minister to do this — is people who have
their taxes paid for through their financial institution. We haven’t
really covered that one off yet, so for clarity, I’ll give the minister
an opportunity to explain that, the way the municipality notifies a
financial institution.
Some people that I’ve been hearing from are worried that now this
is another example. The bank is going to pay the whole thing owing, and
then they have to figure out how to get a rebate on the homeowner’s
grant. I’m pretty sure the minister knows the answer to it. It’ll give
her an answer to put on the record.
Hon. S. Robinson: These amendments before us don’t make any change to any of that
process.
M. Bernier: Just for clarity for those watching at home. Things haven’t
changed, so maybe I’ll just mention…. That means that the bank will be
notified of the taxes owing minus the homeowner’s grant. If the person
has already applied and the municipality has been notified, the bank
will be notified accordingly of owings. Is that correct?
Hon. S. Robinson: I think it’s important to recognize that each financial
institution will have their own process, so to list that all out here is
probably not going to be particularly helpful. There’s nothing here with
these amendments that changes any of that portion of how people pay
their taxes. This is really just around where the application is made
for the grant. It’s made to the province, and the province communicates
to the municipality. That’s where the reconciling will happen. The way
people pay their taxes doesn’t change at all.
M. Bernier: I appreciate that. I might have worded my points maybe a little
bit confusingly, but that was the gist of where we were trying to go, I
think, just for people who had concerns out there of how this was going
to happen. As you know, so many people out there might just have
monetary amounts deducted and put into an account and then paid for by
the bank. But it is still their responsibility, we all acknowledge, to
apply for whatever grants they’re entitled to under the present system,
as the minister was saying, which is not changing.
Section 28, if I’m understanding this also, is amending language
to enable for municipalities to pay a grant amount. Can the minister
give an example of when a municipality is paying the grant
amount? I’m trying to reconcile that.
[1:55 p.m.]
Hon. S. Robinson: I appreciate the legalese that is used to write these is really
not always as straightforward, so I appreciate the member asking for an
example, because I think that helps everybody and all of those that are
absolutely riveted by what is occurring here today. They are also really
excited to find out what this looks like.
When the province approves a homeowner grant, it communicates to
the municipality that it’s been approved, and it gets applied to
the property taxes. But if there’s a credit on the balance, this
provision allows…. The municipality may refund the owner if they have
overpaid their taxes.
M. Bernier: Just to follow that train of thought, to help here, then.
Obviously, we live in a different world sometimes than what’s happening
out there for everybody else. When the grant has been applied for, the
government.… Now, I don’t want to say owes. But that monetary payment
then goes to the municipality.
When does that get transferred? And does the minister have an
approximation, let’s just say in last year’s budget or something…? What
is the cost to government to run this program?
Hon. S. Robinson: I want to, I guess, speak to the fact that the homeowner grant
really, operationally, counts as a reduction in the school tax payment.
It reduces the burden that municipalities have to pay to the province.
It’s sort of just a shift.
[2:00 p.m.]
I also want to recognize — and I want to recognize staff for
recognizing — the opportunity to leverage the processes that we already
use for rural taxes. The system is already set up. It’s already there.
It already works well. It’s just really expanding it to the other
municipalities, so the systems that support doing this already exist. I
look forward to conversation or questions in estimates when we get to
it, if the member is looking for specific details.
Clauses 28 to 31 inclusive approved.
On clause 32.
The Chair: Thank you to the folks on the screen for showing your white
cards — appreciate that too.
M. Bernier: It just goes to show how riveting this is, and that our colleagues
are all paying attention. That’s great to see.
On clause 32, this is really around the auditing, repayments,
reviews. So I’m just kind of curious, if the minister can let me know:
with this expansion, are there going to be more FTEs, full-time staff,
that are going to be hired to help with auditing and through this
process?
Hon. S. Robinson: As I had said before, there had certainly been audits previously.
So we are leveraging an existing system. I look forward to budget debate
and to the estimates debate. I am keeping track of all of the questions
that I’m expecting from the member opposite, so that I have some really
good, robust answers for him.
M. Bernier: Well, I’m looking forward to those answers. It’s unfortunate it’s
about two months later than normal. But I am looking forward to those
answers, as we get to the budget process.
During the process with this, the minister has said that this is
going to relieve a lot of…. Maybe burden is the wrong word. But from a
local government perspective, it should free up some time. It’s taking
it out of local government, putting it into the provincial
government.
The UBCM, as the minister has rightfully said, has been, as an
organization, supportive, even though there’s some municipalities that
are questioning it at this time. But we’ll go through that process. In
those discussions, was there any…? Since we’re talking about the benefit
to local government, were there any specifics that were highlighted by
the UBCM around what this will actually save local governments, or any
monetary assistance that this actually has to local
governments?
Hon. S. Robinson: With 162 different municipalities, I know that the member can
appreciate that some really rely heavily on walk-in — you know, walking
to the front counter, as the member has been talking about. Others
relied more heavily on mail-in, yet others had already streamlined to
online. So it’s really hard to compare and say: “Globally, this is what
the impacts were to local governments.”
Some will benefit, certainly, more than others. But overall, there
was considerable support for doing this — recognition that it makes life
within local governments a little bit easier, removes a burden from them
in terms of tracking and monitoring.
[2:05 p.m.]
There was certainly support from UBCM, as the organization…. As
well as many of the local governments, of course, that see this as a
relief of some burden that they have been operating under for many
years.
M. Bernier: I know it’s not necessarily within, obviously, the purview of the
minister or the government for that. I was just more canvassing on the
conversational aspect that the minister might have had with the UBCM or
other local governments, to give an idea more for those listening or
taxpayers, that they can say: “Yes, I see the benefit to
this.”
The minister has said that there are no more full-time employees
at this time, for the administration part. So it was more saying: “Look,
this is not just a convenience to you. But is it going to be a savings
to taxpayers?” Obviously, we’ll leave that up to local government and
the UBCM to discuss that any further if they so wish.
Under this section, as well, we’re talking about the audits and
the audit power and stuff that is coming in. What prompted the need,
I’ll say then, for government to expand a review of its auditing
authority, or more reviews to take place?
Hon. S. Robinson: The only expansion here that is in this legislation is the ability
to provide a refund if the homeowner is entitled to receive the
additional grant and making sure that they’re eligible for
that.
M. Bernier: Well, in 2018, the government did…. I’m trying to remember the
actual name of it. The B.C. government contracted a review around the
homeowner’s grant, if I remember correctly, in 2018. It sought, like for
audit grants and paid, looking at the program, from what I remember….
Was there work done within the ministry at that time, then, that helped
frame, as well, the ideas around putting this bill forward?
Hon. S. Robinson: I’m wondering if the member could clarify which review he’s
referring to. I’m not 100 percent sure which one he’s talking
about.
M. Bernier: Through the reading I’ve done, it’s my understanding that the B.C.
government contracted a review of the homeowner’s grant program that
sought, around the audits, specifically audit grants paid. I’m not sure
if that gives enough information to the minister for her staff, because
if a review is done around the auditing process, like under this
section
for grants, I’m just asking, if that is the case, if that work was done.
If so, was that part of the information to put this bill together? If
I’m incorrect, the minister can tell me so.
[2:10 p.m.]
Hon. S. Robinson: The member is correct. There was a small, short-term contract to
analyze the data for the homeowner grant. If the member recalls, the
other day we were talking about, you know, was there a percentage of
grants where we were seeing, as part of an audit, whether or not it was
hitting the mark. There was 3 percent — sort of the best estimate at the
time that came out of that work. It prompted government to say we need
to find a better way to deliver this grant program for homeowners that
would better hit the mark. So it was based on that analysis.
Clause 32 approved.
On clause 33.
M. Bernier: So we’re still talking about a lot of the audits and repayments
and that they’re built in within this bill. Under this
section 33,
though, one of my concerns, or questions, I guess I should say, is….
Well, first, will there be a new office established to handle,
specifically, the audit process? Or is that going to all be done within
the ministry as well?
Hon. S. Robinson: There is no new office. It is all being done within the
ministry.
M. Bernier: Presumably under the property taxation branch. We’ll be taking
part of that.
Can the minister confirm if all applicants for the grant — they’re
required to repay the grants — must also pay interest on that grant?
I’ll leave it at that for now.
Hon. S. Robinson: Yes, they would have to pay interest. And that’s not new. That’s
always been the case.
M. Bernier: Is there interest charged if the error was incorrect through
administration here within government, now that it’s going to be brought
in here?
[2:15 p.m.]
Hon. S. Robinson: If government denied a grant in error, then we certainly have the
ability to fix that as well.
M. Bernier: What’s the process for an individual homeowner around appeal,
then, if there is a discrepancy between the government, through the
grant process, and the homeowner? Mistakes might happen. Either a
homeowner applies for the grant. The government challenges that. There’s
an appeal process on what the eligibility is. Where does somebody
appeal? How will that process work?
Hon. S. Robinson: The appeal process hasn’t changed. It’s the same. So they can
always make the appeal, which is to the minister.
Clause 33 approved.
On clause 34.
M. Bernier: I can just try to flip to 34, because I’m sure I’ll come up with
some questions there. So this is around the recovery of amounts owing.
What is the rate? What’s the anticipation?
We talked about fraud earlier. The minister talked about 3
percent. Possibly 33,000, we were just saying. We know that’s just an
estimate, through a small audit. I’m just curious, though, on the
recovery of outstanding moneys or penalties. What kind of rate of
disentitlement is there out there or non-compliance with this? What’s
the work that will need to be done or the money that, through the
ministry, will have to be sought after?
Hon. S. Robinson: So if a homeowner is disentitled…. And this is how it works right
now with rural homeowners, so it’s not a new system per se. It’s just
that it’s new in applying to those that live in municipalities. It’s
been a system that exists currently.
If someone is disentitled, they receive a notice of
disentitlement. They have 30 days to pay. If they don’t pay, then the
tax amount gets added back onto the tax roll of the municipality. So the
municipality is provided with notice, and it gets added on
there.
[2:20 p.m.]
M. Bernier: Was this a huge issue, and has it happened quite regularly, then?
Obviously, we talked about these audits that are being done. Is that
what also led to government wanting to have more say, centralizing of
this?
Hon. S. Robinson: The very question that the member asks is the very essence of why
we’re centralizing. We’ve not been able to identify if people were
ineligible, because it was 162-plus different systems. It was hard to
identify where people were ineligible. This will help us to understand
and help us to correct information, if we need, to make sure people
understand their eligibility requirements. We’ll certainly be keeping
track of how often and what the challenges are going forward, but we
expect that centralizing will help make sure that entitlements are used
appropriately.
M. Bernier: The minister said if there was a disentitlement, the homeowner is
given notice and 30 days to pay it back. What happens if they
don’t?
Hon. S. Robinson: The municipality is informed of this, that they haven’t paid it
back, and it gets applied to the tax roll going forward.
M. Bernier: It goes into the tax roll. Now that means it goes back, again,
like we were saying, to the municipality. But under this section,
there’s a whole
section now around liens and liens on properties. Is
that new? Is that something that’s been added? Or was that in the
previous act?
Hon. S. Robinson: The lien is a new provision. When notice of disentitlement is not
recognized and we don’t receive payment in 30 days and it goes on the
tax roll, if the house has been sold, for example, in the interim, we
would need to use tools for collection. That’s consistent with other
modernized statutes, and that’s what this does here.
M. Bernier: This one here came to me from a few different bodies, of course,
because it is a new
section in the act, and it’s quite a large piece
that’s been added in around giving extra powers, it looks like, around
liens and putting liens on property. How frequently does the minister
anticipate that that might actually be needed?
Hon. S. Robinson: My preference is that it wouldn’t be needed at all.
[2:25 p.m.]
M. Bernier: Well, I assume that would be in a perfect world, but obviously,
the government doesn’t feel that way. In order to add a lot of legalese
and a lot of wording into the act to give them this extra power to be
able to do that…. I assume the minister thinks that these extra powers
are obviously needed and justified for different reasons.
Can the minister just explain then…? Maybe it’s an unfair
question. If the ministry actually has to put a lien on a property, we
go back to the whole appeal process. But under this, what I read is that
there really is no appeal process. If you’ve gone through, you’ve been
notified, and you don’t pay…. Tax rolls. Now there’s a lien on a
property for whatever reason. It can create a huge issue around sale of
a property or change of a property if there are liens, as the minister
would probably acknowledge. What would the process be, then, for
somebody to remove that lien once it has been administered by the
province?
Hon. S. Robinson: Like I’ve mentioned before, the notice of disentitlement signals
to the homeowner that they are not, in fact, eligible for the grant and
that now there are moneys owing, and they have 30 days. If they
disagree, then they can certainly appeal to the minister and demonstrate
that in fact, they are entitled. A decision, of course, would be
rendered based on information and evidence that suggests that they are
in fact entitled.
There is an appeal mechanism, and if that’s still not recognized,
in terms of not recognizing the notice of disentitlement, and a lien is
subsequently put on the property, the way to get out of the lien is to
pay the amounts owing.
M. Bernier: Is that the same process for the speculation and vacancy tax? If
somebody doesn’t agree with the ruling, they just write to the
minister?
Hon. S. Robinson: Under both instances, there’s absolutely a right to
appeal.
M. Bernier: I’m not sure what advice she was just given by staff, but when the
right to appeal…. I’m not trying to be creating an issue on this. This
is just more for clarity, because we have a lot of people right now
under the speculation and vacancy tax who don’t agree with the
definition or ruling that the ministry has applied on them. They seem to
be sent in circles all the time, and that’s why things come to us in
opposition of: “Where do we send this?” If the minister is saying it’s
the same process, I appreciate that. This is more just so people know
where…. Under the homeowner’s grant, if there’s disentitlement and a
review or a speculation, does it just go to the minister and then she
deals with it appropriately?
Hon. S. Robinson: As the member is recognizing, in both these instances, there’s
legislation that governs, that determines what the rules are and what
the thresholds are. That is written in the legislation and adopted by
this House.
[2:30 p.m.]
People do have a right to appeal if they believe that they don’t
meet that threshold or that they’re somehow captured in something that
isn’t in the legislation. There is that opportunity for that. It’s right
there for both of these taxes, in the same manner, which is to appeal to
the minister.
[S. Chandra Herbert in the chair.]
The Chair: Member.
M. Bernier: Thank you, Chair. Welcome to the chair.
Also in this section, it talks about collection. We’ve talked
about the different processes in order to gain the grant funds that have
maybe been applied for incorrectly and that are owed. In here, it also
talks about going to collections.
Somewhere in there through that process — before it would be a
lien, I assume — it goes to a collections process. What I’m curious
about…. I didn’t see it in here, and the minister can point it out for
me. If somebody is sent to collections, is there interest applied, or is
the collections just to the outstanding amount that was incorrectly in
the grant?
The Chair: Minister.
Hon. S. Robinson: Thank you. Welcome to the chair.
Just like I had said earlier, interest is applied.
M. Bernier: Aside from the interest, does the minister know of any other
penalties that could or would be applied in a situation like
this?
Hon. S. Robinson: No, there are no other penalties.
Clauses 34 and 35 approved.
On clause 36.
S. Furstenau: I hope the minister will be understanding. This is the
section
that says “General,” and I have some general questions. I only have a
few.
Filing for the grant occurs in May after property tax assessments
have been completed. The eligible threshold for the year was set, for
example, on January 5, 2021 — this year — at $1.625 million. Home prices
in British Columbia are rising rapidly. Vancouver has just seen a 2.6
percent increase in their price index over the span of a
month.
Home prices are expected to increase in the absence of government
intervention, so could the minister maybe speak to how this grant will
work to account for rapid shifts in market when the eligible threshold
is determined months ahead of the filing date?
Hon. S. Robinson: I appreciate the member’s question. Welcome to this riveting
discussion that we’re having here. It’s the place to be this
afternoon.
I want to remind the member and all the members of the House that
assessed values are determined on July 1 of the previous year, and the
threshold is based on that. So it’s always looking backward, and that’s
the value. The threshold is set on that value, not on the market value
in the moment, on the date. It’s a bit of a look behind, and that’s
where it’s based out of.
[2:35 p.m.]
S. Furstenau: That’s very helpful.
My second question is about the implications for data collection
at the provincial level, something that we’re always quite interested
in, and how much this approach is going to improve tracking of home
ownership and tax compliance and how it will connect to the speculation
tax and auditing people’s declarations.
Hon. S. Robinson: Again, I appreciate the member’s question about data collection.
This will certainly help us very much in collecting data for the
homeowner grant. We don’t have that data, and that’s part of what this
piece of legislation is about, making sure that we understand who is
getting the grant and for what. As we canvassed earlier, the estimation
of about 3 percent of the grants are being given to ineligible folks. So
we want to make sure, just from a fairness perspective.
Right now, as it stands in legislation, it can be used for audits
for purpose of the speculation and vacancy tax, and that provision
already exists.
S. Furstenau: I’m actually heartened that the minister struggles with the same
challenge that I have. Is it “daa-ta”; is it “day-ta”? It depends on the
day; it depends on which sentence. I’m in the same boat. I haven’t
landed.
Perhaps maybe the Chair could settle it for us.
The Chair: It could be “datum,” more than one potential
source.
S. Furstenau: Now the Chair is simply confusing the matter.
Final question to the minister, and this is more of a
philosophical political question. Is it fair to assume that in making
this change, government is not contemplating any substantive revisions
to the homeowner grant, despite some expert appointed panels — the MSP
Task Force, the basic income panel — recommending restructuring the
homeowners’ grant to make it income-based and more targeted? Are we to
assume that this isn’t going to happen under this government?
Hon. S. Robinson: We are not contemplating any changes to the homeowner
grant.
Clauses 36 to 58 inclusive approved.
Title approved.
Hon. S. Robinson: I want to thank the two members opposite for their really
thoughtful questions. I think we got to have a very good discussion — I
keep wanting to say riveting discussion — about “day-ta” and “daa-ta”
and “datum.”
I want to thank them for the time that they’ve taken to read
through the bill and be prepared to ask, I think, really good questions
to help us, and all British Columbians, understand what we’re trying to
accomplish here.
I move that the committee rise and report the bill complete
without amendment.
Motion approved.
The committee rose at 2:40 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 6 — HOME OWNER GRANT
AMENDMENT ACT,
Bill 6, Home Owner Grant Amendment Act, 2021, reported complete
without amendment, read a third time and passed.
Hon. L. Beare: I call Committee of the Whole on Bill 9.
Committee of the Whole House
BILL 9 — LOCAL ELECTIONS STATUTES
AMENDMENT ACT,
The House in Committee of the Whole on Bill 9;
S. Chandra Herbert in the chair.
The committee met at 2:44 p.m.
On clause 1.
The Chair: I see the member for Penticton, who I believe to be the critic
on this bill for the opposition. I will recognize the member for
Penticton on clause 1.
[2:45 p.m.]
D. Ashton: First of all, I would like to thank the minister for the
opportunity to speak to this, and my peers in the House also. I would
also, once again, congratulate the minister on her election and her
appointment. I’d encourage her — as I know she has done before, through
being a municipal electee — to ensure that she, the government and,
actually, all of us in the House do the best for all the citizens of
British Columbia and do our best to help those that are elected
alongside of us, whether they’re at the regional district, the school
boards or municipalities and townships. So thank you.
A first question on
section 1. As mentioned first of all by the
minister in her comments when she introduced the bill, the amendments in
this bill “respond to issues identified following the 2018 general local
elections,” and the amendments will “closely align the campaign
financing rules for local elections with those established for
provincial elections in the Election Act.”
Let me just ask the minister and her staff…. Again, I would like
to welcome her staff. May I ask the minister and her staff: how are
these issues identified, first of all, before we actually get to
section
1 exactly?
Hon. J. Osborne: Mr. Chair, it’s a pleasure to be here and a pleasure to undertake
my first time in committee. Thank you to the House for your patience
today.
I’d like to introduce the staff that are on the line with me
today. They are assistant deputy minister in the local government
division, Tara Faganello; Kara Woodward, who is the executive director
of the policy, research and legislation branch; and Patrick Glanc, who
is the senior policy analyst in the policy, research and legislation
branch. I thank the member opposite for the kind words in the
introduction there, and let’s take this away.
The issues that these amendments address are issues that arise in
a review of the 2018 local elections that took place and the Elections
B.C. report, as well as from ministry staff who monitor the media and
identify issues that come forward. These are the underpinning of the
amendments that we are bringing forward today.
D. Ashton: Of the issues that were identified — I have the elections
officials’ report in front of me — and of the recommendations for
changes, which ones have not been acted upon, or not brought into
alignment with the ministry with this bill? May I ask why they have not
been brought forward?
[2:50 p.m.]
Hon. J. Osborne: Thank you again for the question. There were 11 recommendations
that came forward from the Elections B.C. report, and six of these are
fully implemented in the amendments being brought forth today. One
recommendation was partially implemented.
The recommendations that were not proceeded with, or not fully
proceeded with, include around campaign account requirements,
investigative tools beyond what are being proposed today,
confidentiality of information obtained through the course of
duties, general order-making powers of the Chief Electoral Officer and
third-party-sponsor independence from candidates and electoral
organizations. As I said, not all of the recommendations were followed
through, for two general reasons.
The first is that the recommendation to align requirements in
LECFA with the requirements in the Election Act was not always possible
due to the unique nature of local elections and that it would require a
significant shift in policy from how LECFA administers campaign
financing for local elections.
Second, the amendments proposed to LECFA would create a fallout —
all of them — and would create new authorities for the Chief Electoral
Officer that don’t yet exist under the Election Act. Since LECFA
typically mirrors the authorities that are established under the
Election Act, it doesn’t implement them first. That is why.
D. Ashton: Thank you, Minister. I do note, regarding LECFA, that the Chief
Electoral Officer has stated that the officer has such authority for
provincial elections under the Election Act. It would give him a greater
ability and more administrative fairness. Is he stating, may I ask, that
he disagrees with what you have proposed, as of what you just stated? Or
am I not able to catch up to exactly — and I apologize — what you have
said, the reasons why you haven’t included his recommendation for
LECFA?
[2:55 p.m.]
Hon. J. Osborne: Yes. I’ll note that the recommendation for general order-making
authority is not consistent with similar powers vested in the minister
and the Lieutenant-Governor-in-Council under LECFA.
I will say that, at this point, the recommendation is there, and
we are always going to keep open to considering and working with our
partners in improving the Local Elections Campaign Financing Act,
improving the administration of local elections and, again, just
ensuring the kind of transparency and accountability that we know
British Columbians are looking for. I look forward to working with the
member opposite, and with other partners, in this.
D. Ashton: To the minister, thank you for that comment. I do look forward to
working together. As I said in my brief summation at the front, I think
we have to represent all of the citizens of British Columbia, especially
with the rules that are changing on a continual basis.
One of the other ones that he made note of specifically was
cyberthreats and electoral integrity. Having just come through a
provincial election, we’re all exposed to tweets and chat boxes and
things on Facebook — some stretching the truth in more ways than one.
Plus, where everything else happens today — I’m not that
computer-literate — I know there are a lot of things that are flying
around on the Internet these days.
Can I ask, Mr. Chair, why the minister and ministry did not look
at, maybe, some more effective administration to address some of these
issues that have taken place, not only provincially but also municipally
and through school boards?
Hon. J. Osborne: Thank you again for the question. The report that the member
opposite refers to is the May 2020 report that came forward. The
recommendations were directed towards the Attorney General, my colleague
sitting to the left of me here, and to changes that are required in the
Election Act as well. Since LECFA follows the Election Act, we are still
actively considering this. I will be working with my colleague on this
in the months to come. I very much look forward to that.
Also, I just want to recognize that the member is making the
inference, too, about how technology is changing rapidly in this world.
Indeed, that is the case, and it is incumbent on us to consider that.
One of the changes that we are bringing forward today, in the
amendments, is around the role that digital communications play. One of
the amendments we are bringing forward is allowing Elections B.C. to
compel online platforms to produce records on advertising — a small but
important step towards the acknowledgment of that changing technological
world.
D. Ashton: I would just like to thank the minister for those comments. To
herself and to the Attorney General, I do hope we keep an eye on it. As
the use of technology and the use of a lot of these online functions
increases, I can assure everybody that there will be more and more
issues being brought forward, especially at election time.
Just on
section 1, my last question. It’s actually the only
question, really, on
section 1.
[3:00 p.m.]
Election advertising during the campaign period is partly defined
in 1(a)(
i) as “a communication that promotes or opposes, directly or
indirectly, the election of a candidate or an elector organization that
is endorsing a candidate, including a communication that takes a
position on an issue with which the candidate or elector organization is
associated.”
The definition of election advertising during the pre-campaign
period is partly defined in (1)(b)(
i) as “a communication that promotes
or opposes, directly or indirectly, the election of a candidate or an
elector organization that is endorsing a candidate.”
My question is: why does the pre-campaign definition not include
“including a communication that takes a position on an issue with which
the candidate or electoral organization is associated”?
Hon. J. Osborne: This question relates to issues advertising, I believe. In this
case, we remain consistent. The amendments do not address this because
they remain consistent with the Election Act. We don’t regulate this
with consideration to freedom-of-expression issues.
D. Ashton: That’s all on
section 1.
Clause 1 approved.
On clause 2.
D. Ashton: On
section 2, can the minister elaborate on what is meant by “on a
commercial basis”?
Hon. J. Osborne: In this case, we refer to advertising undertaken on a commercial
basis, meaning that a person is paid to undertake activities such as
canvassing or mailing — non-volunteer, a person that is paid.
D. Ashton: Does election advertising on a commercial basis also include text
messaging?
Hon. J. Osborne: Texting is a venue or a method of transmission, so if a person is
paid to do this, then yes, it is captured.
D. Ashton: The reason I asked that was that it says in the act,
section
7(2)(
d) is explaining that election advertising does not include “the
transmission of an expression by an individual, on a non-commercial
basis on the internet, by telephone or by text messaging, of his or her
personal views.”
[3:05 p.m.]
Again I come back. There seem to be so many opportunities these
days online that I would just ask again that government does keep an eye
on this. This is changing on a continual basis.
I have nothing further on sections 2 or 3.
Clauses 2 and 3 approved.
On clause 4.
D. Ashton: Similar to my clarification in
section 2, does election
advertising for assent voting on a commercial basis also include text
messaging, under
section 4?
Hon. J. Osborne: Yes. The rules are consistent for assent voting, as they are in
regular local elections.
D. Ashton: That’s all on
section 4. We could jump to
section 16.
Clauses 4 to 15 inclusive approved.
On clause 16.
D. Ashton: For the purposes of requiring at least 50 electors of a
jurisdiction as part of the registration process, can an elector be a
member of one or more electoral organizations?
Hon. J. Osborne: The rule regarding 50 members of an electoral organization already
exists under the Local Government Act, and yes, you may be a member of
more than one electoral organization.
D. Ashton: How can an electoral organization be deregistered if it promotes
candidates or values that are contrary to those accepted by British
Columbians?
[3:10 p.m.]
Hon. J. Osborne: The act doesn’t have provisions to deregister an electoral
organization based on an issue or on its platform. This would be a
freedom of expression consideration.
D. Ashton: Then who has the authority, or is there authority, to deregister
an electoral organization?
Hon. J. Osborne: Elections B.C. has the authority to deregister an electoral
organization based on the requirements of the act.
D. Ashton: Chair, I’m fine until
section 22.
Clauses 16 to 21 inclusive approved.
On clause 22.
D. Ashton: I think, Minister, it comes underneath this section, but the
amount applicable that is allowed for a donation…. Could you just tell
me what that is at this point in time, please?
Hon. J. Osborne: The sponsorship contribution limit is $1,200.
D. Ashton: Minister, does that align with provincial amounts at this point in
time, for maximum amounts?
Hon. J. Osborne: Yes.
[3:15 p.m.]
D. Ashton: If memory serves me correctly, though, I thought — with the cost
of inflation, from the last election — it was $1,254, or something like
that. That’s what I was just curious about — if both the totals would be
the same for the maximum contribution.
Hon. J. Osborne: Yes, it is $1,200 and an inflationary adjustment. We can get back
to the member with the exact figure.
D. Ashton: That is fine for
section 22 at this time. But a question on
Clause 22 approved.
On clause 23.
D. Ashton: It’s regarding advertising through an individual or organization
basis. I think it will fit underneath this. Sometimes individuals take
out advertising as an individual supporting a campaign candidate or not
supporting a campaign candidate. Does that fit underneath here, and who
controls that at this point in time with the changes that are taking
place underneath this election act?
Hon. J. Osborne: Could I ask the member to please repeat the question?
D. Ashton: My question was for individuals. It’s happened in the past
where an individual takes upon the liberty themselves to put an
advertisement out either supporting or not supporting a candidate. Does
that fit underneath this section? Who is the authority over doing that?
I’m assuming it’s Elections B.C., but I’m not positive. Just for my
knowledge.
[3:20 p.m.]
Hon. J. Osborne: We’re still looking into the answer on the question there. But I
will read into the record that the sponsorship contribution or campaign
contribution limit for 2021 is $1,239.18.
D. Ashton: That’s all on 23. I have questions on 24.
Clause 23 approved.
On clause 24.
D. Ashton: As this
section adds up an annual financial reporting requirement
of electoral organizations, why hasn’t a similar requirement been made
of independent candidates, as it would aid voters to know what donations
have been made or have not been made to a particular candidate before
election day?
Hon. J. Osborne: With respect to why electoral organizations…. The requirement for
annual reporting doesn’t apply to large independent campaigns. I’ll
start off, maybe, by saying how these amendments all together are
creating greater transparency and accountability of the financial
activities of elector organizations in between elections.
[3:25 p.m.]
The amendments do focus on the transparency of elector
organizations, and they aren’t going to apply to independent campaigns.
But in these cases, the existing rules still apply. So for all
candidates, the rules around source contributions, around contribution
limits, still apply, as does the requirement to disclose expenses and
contributions after the election is over.
The rules that we’re proposing are different from what they were
previously. It is an amendment. There are a number of changes, which if
the member opposite would like me to go into, I certainly
can.
Perhaps I will close by saying one of the reasons why independent
campaigns are not being considered at this time is because there are
over 1,600 different independent elections that take place during a
local election. The amount of administration and requirements for that
would be challenging. That’s one of the reasons why they aren’t
considered at this time.
D. Ashton: A question, a follow-up. Why didn’t the minister and her staff
include a provision for real-time donation disclosures for both elector
organizations and independent candidates?
Hon. J. Osborne: Again, I think this is really recognizing a capacity challenge,
with over 1,600 different elections taking place, with over 3,000
candidates at one time in a general local election. Recognizing those
capacity challenges means it’s not considered in these amendments at
this time.
D. Ashton: To the minister, I can understand that. Especially with the
numbers and the capacity that maybe Elections B.C. has. Just a point is
that there are a lot of changes taking place here. Real-time
information, these days, is of the essence in a lot of situations. So
just a point — and maybe for future consideration.
As part of the proposed new
section being added to the act, which
section 45.1(2)(b), it indicates an annual financial report include
“information respecting identification of significant contributors.” May
I ask what the dollar value is for “significant contributors” in this
instance?
[3:30 p.m.]
[N. Letnick in the chair.]
Hon. J. Osborne: The definition of a “significant contributor” is contained in the
definitions of the act. In relation to campaign contributions, I
paraphrase here. I’m not directly quoting the definition. But it is
essentially an eligible individual who makes a campaign contribution of
$100 or more or multiple contributions to a candidate and/or an
electoral organization that total $100 or more.
The Chair: Member for Penticton, I’ll just assume you want to speak after
the minister is done. Would that be correct?
D. Ashton: Yes, thank you. Just a follow-up, Mr. Chair, through yourself, and
welcome to the chair.
Minister, now with the reporting being required over the period of
time between elections, that would include those amounts also? Or that
would include…. If a person regularly made a contribution, it would be
reportable as a significant contributor if it’s $100 or more over the
period of time between the elections on a yearly basis. That’s a
question. Sorry.
Hon. J. Osborne: Yes, that’s on an annual basis, the $100 figure.
D. Ashton:
Section 45 is my next questions.
Clauses 24 to 44 inclusive approved.
On clause 45.
D. Ashton: Why have the monetary penalties been updated to allow for the
discretion of the B.C. electoral officer?
Hon. J. Osborne: These amendments contain a suite of administrative monetary
penalties that are all aligned and to be used at the discretion of the
Chief Electoral Officer. We did consult with Elections B.C. on this, and
they are supportive of it. I would note that what it does is allow the
Chief Electoral Officer to look on a case-by-case basis at the specific
considerations at hand and ensure that high penalties are applied when
it is appropriate to do so.
D. Ashton: The discretion is at the Chief Electoral Officer.
The appeal process. Is there one, and if so, where is that
through?
Hon. J. Osborne: One can apply to the court for relief from a penalty.
[3:35 p.m.]
D. Ashton: So now that is to the court. It is the B.C. Provincial Court, I’m
assuming. Is there not any appeal process to the Chief Electoral
Officer, who has assessed the penalty?
Hon. J. Osborne: This is an existing process in the act. A person who applies for a
remedy does so to the B.C. Supreme Court.
Clauses 45 to 50 inclusive approved.
On clause 51.
D. Ashton: The
section adds penalties for third-party sponsorship, including
up to a $5,000 penalty for an individual, or up to a $10,000 penalty for
an organization, for failing to comply with independence requirements,
failing to register as a third-party sponsor or failing to include
sponsorship information. Are these $5,000 and $10,000 penalty limits
high enough, especially for our larger cities like Vancouver, which are
traditionally known to involve individuals or organizations that have,
as I guess I’ll frame it, deep pockets?
Hon. J. Osborne: Those penalty amounts are consistent with the offence penalty
amounts already in LECFA. We would monitor this through the next
election to ensure that it is an effective deterrent.
D. Ashton: The minister and I basically come from smaller areas where I
haven’t seen, successfully, slates that have ever really been put
forward and organizations that are behind the scenes.
When I say “organizations,” it can be those with interests in who
retains a seat on council or school board or regional district, or
organizations that are out there promoting politics in British Columbia
or promoting opportunities for elected officials and/or individuals who
would like to become an elected official. One that comes to mind is the
Columbia Institute. It’s well known for putting their views forward to
individuals who would like to attain a higher office or attain an
elected office.
[3:40 p.m.]
Are institutions and entities like that organization I just
mentioned and, I’ll say, unions and people that have an expressed
interest in putting somebody forward…? How are they going to be
monitored in the process of an election to ensure that all rules are
followed?
Hon. J. Osborne: Thanks for the question. Elections B.C. retains the responsibility
to monitor organizations throughout the campaign period and throughout
the campaign, throughout elections. If an organization is behaving as a
third-party sponsor and they should be registering as a third-party
sponsor, Elections B.C. will monitor that.
I’ll take the opportunity, too, to point out that the amendments
we’re bringing forward today do introduce new administrative monetary
penalties and new investigative tools for Elections B.C. This adds to
that oversight and monitoring framework that ensures that people and
organizations are playing by the rules.
D. Ashton: Is there a complaint process through Elections B.C. that you or
your staff know of if an issue was to come up and a complaint was put
forward so that new form of investigation that you just mentioned could
take place?
Hon. J. Osborne: Anybody can contact Elections B.C., and on their website, there is
a process outlined for how to do so.
D. Ashton: Thank you to the minister. I’m fine with
section 51, Mr. Chair,
and on 52, I have questions.
Clause 51 approved.
On clause 52.
D. Ashton: Similar to my previous question to the minister regarding penalty
limits for third-party sponsors, is the $5,000 penalty for an elector
organization entering into a financing arrangement before it is
registered? Or has the registration suspended been high
enough?
[3:45 p.m.]
Hon. J. Osborne: Like my previous answer, I think this is another case where these
amounts are already in LECFA. We will monitor the next elections to
ensure that they are an effective deterrent and set at the appropriate
level.
D. Ashton: Monitoring it. Not only is the government monitoring it, but
Elections B.C. will monitor it. With the new rules in place, the
opportunity to address those issues will also be in place,
correct?
Hon. J. Osborne: Yes. Absolutely. A good opportunity to point out, again, just how
important it is to monitor the local elections, to work with our
partners like Elections B.C., to hear directly from local governments,
to have our staff monitoring the media to make amendments and bring
forward improvements on a regular basis.
The whole point of this is to improve the transparency and
accountability of elections and ensure that people remain at the heart
of good decision-making, so thank you to the member opposite for the
question.
Clauses 52 to 56 inclusive approved.
On clause 57.
D. Ashton: As part of the proposed new sections being added to the act…. The
new subsection 76.3(2)(
a) indicates: “(
a) if known by the advertiser,
the name of the individual or organization that sponsored the election
advertising communication.” In what instance would an advertiser not
know the name of an individual or organization that sponsored election
advertising communications? Just a question, please.
Hon. J. Osborne: The way that this is written is to ensure that we capture whether
it is a known or unknown advertiser. That is for
completeness.
D. Ashton: Minister, why not make it mandatory that advertisers must collect
the name of an individual or organization that is sponsoring election
advertising communication before the advertisers agree to place the
advertisement?
[3:50 p.m.]
I just think about individual sections that I have talked about
before where this has come up, where you have entities out there that
may or may not be supportive of a candidate or are supportive of a
candidate on an individual basis.
Hon. J. Osborne: Could I please ask the member to repeat the question? Thank
you.
D. Ashton: Absolutely, sure. It was: why not make it mandatory that
advertisers must collect the name of an individual or an organization
that is sponsoring the advertising communications before the
advertiser puts the advertisement in place? Again, it’s a registration
process that I’m thinking of.
Hon. J. Osborne: In this case, this was brought over from the Election Act to make
LECFA consistent with it. It really is directed at the platforms that
host advertising, be it radio or television or Facebook, say. To go
further and add those requirements might be seen as an overreach into
telling them how to conduct their business and was not
considered.
D. Ashton: Thank you to the minister. But I know that electronically, like on
Facebook and on Twitter, the registration process can be arduous and
take a while for approval. So I’m just curious. I guess maybe I’m
throwing a line to the Elections B.C. organization to say: “Maybe if you
made this a mandatory rule….” I know, as an elected official, that we
have to ensure that we have all our ducks in a row before we put our
advertising in place. Quite often that involves pre-payment of
advertisement dollars to be put up front and/or fixed rates.
I’m just thinking out loud that this may be more of a benefit to
the new rule changes that are taking place to help Elections B.C. ensure
there’s not a little bit of skullduggery. So I’ll leave that.
Clauses 57 to 65 inclusive approved.
On clause 66.
[3:55 p.m.]
D. Ashton: Maybe to jump back — and I know it’s passed. It’s just that in the
addition to 76.4(3), it indicated: “A court may make an order under this
section without notice to any person.” Just for staff’s and for the
minister’s notice, what purpose would this serve of no notice being
served? I apologize. We scooted by it. I missed my own question on it.
Just something for the future to maybe think about what is transpiring
in that
section again.
Under 66…. So 66 allows for sponsorship contribution limits to be
made by regulation on it. Is there an annual look at contributions
through Elections B.C., other than the cost of living? Is there an
opportunity to review all requirements? Since we’re changing and going
to a four-year basis where everything has to be accounted, will there be
an opportunity to come forward if things are not working the way that
government thought?
Hon. J. Osborne: These limits were chosen to be consistent with Elections B.C., and
we will continue to monitor them, as we will monitor a number of things,
in the coming next set of general elections. I’ll point out, too, that
Elections B.C. does establish the inflationary component, and if they
have feedback on the base amount itself, they will provide that to
us.
Clauses 66 to 70 inclusive approved.
On clause 71.
D. Ashton: The elimination of the 30-day local residency. May I ask for an
explanation of why this is transpiring?
[4:00 p.m.]
Hon. J. Osborne: The issue of the 30-day residency requirement was something that
we heard from local governments after the last general local elections,
especially from those communities that have more transient populations,
people moving in and out. What we heard about was the
disenfranchisement, essentially, of those individuals who had moved from
one community to another in the 30 days preceding an
election.
In the spirit of ensuring that everybody has an opportunity to
participate in democracy, this was an amendment that we decided to bring
forward to remove that disenfranchisement.
D. Ashton: Thank you for that. I would concur that we want to ensure that
democracy takes place. But listen. We are probably talking about a
handful of people throughout the province, excluding students going back
to university and/or college.
I just think, personally, that when you’re in a new community and
you don’t know the individuals that are running or you don’t know your
school board officials or you don’t know your regional district
officials or you don’t know your council officials, it gives you an
opportunity to be a little bit proactive and start asking the
questions.
I don’t condemn it or condone it. I’m just curious about why this
would come in. Believe me. To establish a residency, to ensure that an
individual or an individual’s family is present and to really understand
about the dynamics of the new community that they’ve moved
into….
I will leave it at this point in time.
Thank you, Mr. Chair. Up to 77, no questions at this point in
time.
Clauses 71 to 76 inclusive approved.
On clause 77.
D. Ashton: I’m actually fine with 77. It’ll be 78.
Clause 77 approved.
On clause 78.
D. Ashton: So 78 to 92 allow for canvassing in co-op, strata and rental
properties. As many of us know, where we’ve been out door-knocking, you
do come to a strata complex and have the unequal opportunity, especially
in some of the more urban areas, of gaining access to tall buildings and
strata opportunities there, and rental properties.
May I ask…? It allows it. But has the province or Elections B.C.
thought about how access can be gained to individual sites like that? If
a posting is put in place where “no soliciting” is specifically stated,
what takes precedence, the no soliciting or the Election Act allowing an
individual to campaign in those areas?
[4:05 p.m.]
Hon. J. Osborne: Yes. It has increasingly become important for people to be able to
access strata properties, apartment buildings, those kinds of buildings,
in order to conduct their campaigning activities. So these amendments
will allow canvassing in strata properties.
The way this will work is that canvassers will need to meet
certain conditions. For example, while canvassing voters or distributing
candidate information, the candidate or their authorized representative
would be required to carry government-issued identification and either
proof of candidacy or information indicating that they are authorized by
the candidate to canvass. Additionally, there are limited hours under
which this activity could occur: from 9 a.m. until 9 p.m.
These changes were recently made for provincial elections after
review of the 2017 provincial election. So this aligns LECFA with the
provincial requirements.
D. Ashton: So this supersedes a co-op and/or a strata if there is a posting
of no solicitation. That would still allow an individual or an entity,
along with campaign individuals, to go forward and knock on the doors
and gain access to a large tower apartment block or a strata block or a
condo block in a major city — or any city, I would say.
Hon. J. Osborne: Once again, the intention here is to prohibit strata or similar
buildings from being able to prevent unreasonable access…. So in the
case of a “no solicitation” sign, this applies to candidates or their
authorized representatives for the purposes of campaigning or
distributing information.
D. Ashton: To the minister, well, I think that maybe in the next election,
I’m going to ask for somebody from Elections B.C. to come with me when I
knock on that strata door and see what the response will be. But I
understand.
Mr. Chair, I have no further questions, other than a quick comment
at the end, after adoption.
The Chair: If you have a quick comment, you might want to make it now
before I go through the rest of the clauses, member for
Penticton.
D. Ashton: Okay. Thank you, Mr. Chair.
I would like to thank the minister and, especially, thank her
staff, who I’ve had the pleasure of working with over my tenure as an
elected official in Victoria. To me…. I just hope that these new rules
and regulations take into account those outside of the Lower Mainland
that may or may not run on slates.
There are an awful lot of communities in British Columbia where
everybody knows everybody. I just hope the rules and regulations don’t
become too overbearing. Other than provincial politics…. My campaigns
were run off the kitchen table.
[4:10 p.m.]
I really think it’s important that we continue to remember that
there are large municipalities in British Columbia where slates are
prevalent and large organizations are prevalent. There is a vast area in
British Columbia where individuals run for elected office, and they
don’t have anybody other than themselves or maybe their family. I really
think that needs to be taken into consideration, not only by the
government but also by Elections B.C.
The minister, on several occasions, has mentioned
democracy, and democracy is incredibly important. Democracy, in
my opinion, encompasses everybody, whether you run with a slate and you
have a huge organization behind you or whether you have your kids
stuffing envelopes to get into the mail.
Once again, I would really, really like to thank the minister. I
look forward to working with her, for all the citizens of British
Columbia, on this file that she has. I would really like to thank her
staff that have done an admirable job of bringing this
forward.
I look forward to ensuring that the next election that the new
rules are in place with is run fairly and is run without too many
obstacles through regulation so that “democracy” can take place all
through British Columbia.
Thank you, Mr. Chair.
Thanks, again, to the minister.
Clauses 78 to 102 inclusive approved.
Title approved.
Hon. J. Osborne: I move that the committee rise and report the bill complete
without amendment.
Motion approved.
The committee rose at 4:12 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 9 — LOCAL ELECTIONS STATUTES
AMENDMENT ACT,
Bill 9, Local Elections Statutes Amendment Act, 2021, reported
complete without amendment, read a third time and passed.
Hon. L. Beare: I’d like to request a ten-minute recess.
Mr. Speaker: This House will be in recess for ten minutes.
The House recessed from 4:14 p.m. to 4:24 p.m.
[Mr. Speaker in the chair.]
Hon. M. Farnworth: I call continued committee stage of Bill 5.
Committee of the Whole House
BILL 5 — INSURANCE CORPORATION
AMENDMENT ACT, 2021
(continued)
The House in Committee of the Whole on Bill 5; N. Letnick in
the chair.
The committee met at 4:25 p.m.
On clause 2.
Hon. M. Farnworth: Because this is a three-clause bill, and we’ve dealt with clause 1
and clause 3 is on commencement, the bulk of it — well, everything else
— is based in clause 2. We’ve been having an easy way to sort of deal
with the questions as they come up because they kind of bounce around
within that section.
Anyway, in our discussions yesterday, we were talking about
tabling reports that had been public and having access. I indicated
that, yes, of course, the reports would be public and, yes, they’ll be
tabled by ICBC. But I also said that I expect, as minister, to be
tabling those reports in the House.
I want to make it clear that that is something that will take
place, and therefore, I have shared with my colleague across the way an
amendment that will make absolutely clear that that is what is to
happen. So I would move the amendment that I have provided to do just
that.
[ CLAUSE 2, in the proposed sections 59 to 61, by deleting
the text shown as struck out and adding the underlined text as
shown:
Report to corporation
(1) The fairness officer
must submit, on a prescribed basis, a report to the minister and
the corporation that includes the following information:
(
a) the number of fairness complaints
received;
(
b) the number of fairness complaints heard by the
fairness officer;
(
c) any other prescribed information.
(2) As soon as practicable on the receipt of the report
submitted under subsection (1), the minister must either, as
applicable,
(
a) lay the report before the Legislative Assembly, if
it is in session, or
(
b) file the report with the Clerk of the Legislative
Assembly, if the Legislative Assembly is not sitting.
Publication of information
60 The fairness officer must publish, on
a publicly accessible website maintained by or on behalf of the fairness
officer,
(
a) the rules made under
section 58, and
(
b) as soon as practicable after the minister has
complied with
section 59 (2), the report submitted to
the corporation under
referred to in
section 59 (1) .
Corporation report
(1) The corporation must, no
later than August 31 in each year, submit to the minister an annual
report.
(2) An annual report submitted under subsection (1) must
include
(
a) a
summary of the corporation’s responses in the
previous fiscal year to the fairness officer’s recommendations, if any,
and
(
b) any other prescribed matter.
(2.1) As soon as practicable on the receipt of the
report submitted under subsection (1), the minister must either, as
applicable,
(
a) lay the report before the Legislative Assembly, if
it is in session, or
(
b) file the report with the Clerk of the Legislative
Assembly, if the Legislative Assembly is not sitting.
(3) The corporation must publish the annual report, as soon
as practicable after submitting the report to the
minister has complied with subsection (2.1) , on a publicly
accessible website maintained by or on behalf of the
corporation.]
The Chair: We’ll take a moment while the amendment is
circulated.
On the amendment.
Hon. M. Farnworth: The proposed amendments to sections 59, 60 and 61 in
part 3 relate
to the reporting duties of the fairness officer and the corporation and
submission of specified reports to the minister and the Legislative
Assembly.
Section 59 will provide that the fairness officer must submit a
report to the board of ICBC regarding the number of complaints that were
filed, the number of complaints heard by the fairness officer and any
other prescribed information. The proposed amendment requires that the
fairness officer must also submit that report to the minister and that
the minister must lay that report before the Legislative Assembly if it
is in session or file the report with the Clerk if the Legislative
Assembly is not in session.
Section 60 requires the fairness officer to publish the rules made
under
section 58 and the report submitted under
section 59 on a publicly
accessible website maintained by or on behalf of the fairness officer.
The proposed amendment continues to require the fairness officer to
publish the rules under
section 58 and to publish the report
under
section 59, but the report under
section 59 is only published
after the requirement to table the report with the Legislature has been
met.
[4:30 p.m.]
Section 61 requires the corporation to submit an annual report to
the minister no later than August 31 in each year which includes a
summary of ICBC’s responses to any recommendations of the
fairness officer in the previous fiscal year and any other prescribed
matters. The annual report must be published on a publicly accessible
website. The proposed amendment adds a requirement for the minister to
lay ICBC’s report before the Legislative Assembly if it is in session or
file a report with the Clerk if the Legislative Assembly is not in
session. It also requires the report to be published on a publicly
accessible website only after the minister has tabled the report with
the Legislature.
This proposed amendment provides for even further accountability
and transparency by putting the fairness of the officer’s report and
ICBC’s responses in front of the House. I think it makes it clear —
yesterday, when I committed to the House that that would take place —
that, in fact, this will happen.
M. Morris: I very much appreciate the minister listening to our comments
yesterday and providing the amendment here today. We’re in favour of
that.
[S. Chandra Herbert in the chair.]
Amendment approved.
On clause 2 as amended.
M. Morris: As I spoke about in our discussion in second reading, the whole
purpose of the fairness officer, and the impetus behind the government
presenting this bill, was transparency and fairness within
ICBC.
I guess I’m a little bit confused by the transparency part. I’m
just wondering. In
section 55(3), under clause 2, if government’s
intention is to truly have an independent fairness officer, why have the
officer?
Hon. M. Farnworth: The fairness officer is going to be working within ICBC. They’re
going to be working, obviously, closely with the board to ensure that
ICBC’s processes are fair.
They will be responsible for providing the resources necessary for
the officer to fulfil their mandate. It is appropriate, given the rest
and, in particular, remuneration.
That being said, they are both…. Because this is a
Lieutenant-Governor-in-Council appointment, they are also subject to my
approval. They will set the terms, but then I also am the one that has
to approve them. It’s not just dependent on ICBC. It also has to meet
with the approval of myself as minister.
M. Lee: I appreciate the minister’s response in terms of the interaction….
remuneration are subject to the approval of the minister.
Does the government consider, then, that the fairness officer is
independent from ICBC?
[4:35 p.m.]
Hon. M. Farnworth: The answer to that question would be yes. There is a significantly
greater degree of independence of the new position than the old
position.
M. Lee: Thank you to the minister for that response.
It is a relative test of independence that the government is
proposing that we consider here in this House, meaning the fairness
officer is more independent than the current office that’s in place. Is
that correct?
Hon. M. Farnworth: The answer to your question, hon. Member, would be yes. Just in
terms of how that takes place, the fairness officer will have a greater
degree of independence from ICBC. In part (1), it’s appointed by
the approval of myself as minister. The fairness officer’s mandate will
be in legislation.
In terms of the budget, a process will be laid out in the
regulations where, if there’s a disagreement between the officer and the
board on what is necessary for the officer to fulfil their mandate, the
officer can submit a special report to the minister regarding the
budget. This will provide the minister with the opportunity to bring a
resolution to any dispute on the budget that the officer requires and if
there’s a potential dispute with the board.
The goal is not to create an additional independent office similar
to the Ombudsperson, who still has the ability to look at issues as
well. That’s why I make the point that it is more independent in answer
to your question.
M. Lee: There are a couple of ways to come at the response of the
government here. In this particular provision of clause 2, then, why
fairness officer? If the objective of the government is to achieve
greater independence for the fairness officer, why have this provision
set out this way and in this manner?
Hon. M. Farnworth: I’ll just reiterate, I guess, the points I made a moment
ago.
[4:40 p.m.]
That is that the officer works within ICBC. They will work within
that structure. They work closely with the board, which has remuneration
policies in place with ICBC. At the same time, it is an LGIC, a
Lieutenant-Governor in Council, appointment, so I will, as minister,
have to approve any remuneration package that is put in
place.
At the same time, in terms of the independence, as I said a moment
ago, if the fairness officer believes that the budget is not adequate —
or there’s an issue with the budget that’s required for them to be able
to do their job — there will be a mechanism where I, as minister, have
the ability to resolve any issues on that basis. I think that by
legislating this in terms of the mandate, we have made it clear that
this is an officer who has a mandate and has significantly greater
independence than the previous position.
M. Lee: Just because…. The minister, in his response — perhaps for the
second or third time, certainly for the second time — referred to this
relative measure: that this fairness officer has greater independence
than in the current set-up. This, again, the member for Prince
George–Mackenzie had questioned quite a bit in his second reading
speech, in terms of the current arrangement.
We know, of course, that in the context of the no-fault regime,
there’s a greater onus on this fairness officer, at least in the way the
government has positioned this office. It was supposed to give peace of
mind, in the words of the Attorney General, regarding individual
circumstances of injured British Columbians. That is not a procedural,
systemic issue. That’s a specific issue relating to a specific
individual dealing with ICBC.
Certainly in terms of peace of mind, if that was the test or the
positioning that the government wants to put on this new regime, on the
fairness officer and in the way that this officer is positioned within
this regime, you’d think that the officer would be independent — not
just more independent than the current office is, but independent. When
the remuneration and the budget, that adds an additional layer of
influence by the board.
We know that in many instances, in terms of…. You know, when I was
the acting corporate secretary of B.C. Hydro, for close to a year in my
legal practice, I know the interaction between a Crown corporation, the
deputy minister, the minister’s office, the minister, the board and the
CEO of a Crown corporation. We know the function and the level of
reporting and accountability.
Unless the minister is prepared to have a direct hand on the board
of ICBC for the decisions and the interactions that they would have with
the fairness officer and unless I’m hearing from the minister or anyone
who serves in his capacity in the future that they’re going to have that
hands-on oversight of the board of ICBC to ensure that the independence
of the fairness office and the officer, him-or herself — I’m not seeing
that in this bill. I don’t see that.
I appreciate that the minister did listen to our concerns relating
to ensuring that the report is publicly available and that he made that
adjustment to the bill. But I dare say that there are other adjustments
that are necessary for this bill to at least clarify the independence of
the fairness officer.
[4:45 p.m.]
Let me ask this to the minister. The minister did refer to the
Ombudsperson and not wanting to replicate the function of the
Ombudsperson here. If we consider that comment, if there was no fairness
officer in place at all, is that possible? Does the minister see any
challenge with just merely having the Ombudsperson take care of any
fairness complaints within ICBC?
Hon. M. Farnworth: I understand what the member is trying to say, and I’ll make this
clear. We have said that this fairness officer is independent. Their
mandate is legislated. They will be dealing with the processes and the
procedures of ICBC and how they do things. They will be reporting. They
will be making recommendations. That report will be public.
I indicated that that report would be tabled in this House. We
have been abundantly clear on that. I will also now be abundantly clear
on this. This individual’s role is ICBC, its procedures, its practices,
its policies, 365 days a year. Not an issue of a complaint that somebody
has, and then they say: “Oh, I’ve got to go to the Ombudsperson’s office
and then join that queue.”
This is specific to give peace of mind, as we said at
second reading, to people, to know that there is an individual
that is dedicated, completely and totally, to what takes place at ICBC.
That is the right way to go. It is the way that government is moving.
That is the appropriate way to go. That’s why this legislation is here
before you. I would trust and hope that you would support it.
M. Lee: I most certainly appreciate the last response from the minister in
terms of the confirmation about the difference between the Ombudsperson
as an officer of this Legislative Assembly, duly appointed with the
Ombudsperson’s own separate act, versus a fairness officer that is
appointment and remuneration and budget determined or set by the board,
subject to the approval of the minister.
As the minister just said, it’s 365 days of the year. I understand
that. That is the way, again, the government positioned when the
Attorney General stood here in this House, and in front of the media,
and announced the fundamental change to the insurance system of our
province. The fairness office was a key component. As I discussed in my
second reading speech, the civil resolution tribunal was another key
component. But as we learned from the chief justice of our province last
week, it was ruled unconstitutional. That’s the reason why we’re
spending this amount of time on the fairness officer.
It’s because we see already that under this fundamental change,
this insurance regime that this government has put on to this province,
the ways in which injured British Columbians can seek redress to get
their rights addressed through the courts has been taken away. It was
replaced with the CRT. Again, that’s been ruled unconstitutional in
terms of its jurisdiction. It was limited in terms of the evidence
rules, in terms of how many experts one could deploy. That was, again,
ruled unconstitutional in the Attorney General’s first attempt to do
that.
[4:50 p.m.]
There are further challenges here. Now we have the fairness
officer, and this is presented as an independent fairness officer. This
is how this minister continues to communicate that.
I would say that as much as the Attorney General and this minister
would suggest that the fairness officer will provide — this is to
directly quote the Attorney General — “peace of mind that they will be
treated fairly after they’ve been injured in a crash….” After they’ve
been injured in a crash. We will get to that point in a moment in the
latter sections of this particular clause, but the peace of mind is
supposed to be coming from the fairness officer. And this fairness
officer, who is providing that peace of mind, should be independent of
ICBC. But that officer is not. Unless the minister is going to do the
kind of oversight that a board would typically do, it’s the board that
the fairness officer is effectively reporting to. This is a function of
ICBC and their board. This is not a separate function like the
Ombudsperson is.
We just heard from the minister why that is. Because this
government wants to have a fairness officer that is functioning 365 days
a year. Well, let that person function. Why is this person subject to
the undue influence of the ICBC board? I’m using those words
deliberately, because the way the government is defining “independence”
is not independence. It may be relative; it’s more independence than the
current function of the fairness office. But that was the old system.
That was the system that they got rid of because they have a promise of
a utopia where everybody will be taken care of. Everyone will be subject
to ICBC rule.
The 108 pages that they put out last Friday of a definition of
what you will get if you’re injured. If you lose a limb, lose a finger,
lose an eye. Who is taking care of injured British Columbians? Well, the
fairness officer. But that fairness officer is not independent. So I
fail to see how this government can stand here and present this fairness
officer in truly the way that will provide peace of mind to British
Columbians.
I’ll just ask the minister to have one more opportunity to talk
about, again…. Does the minister see his role in respect of the fairness
office as providing greater oversight to the ICBC board?
Hon. M. Farnworth: I hear what the member is saying, and I fundamentally have to
disagree with his assertion that the board will have undue influence. In
fact, I disagree with that quite strongly, because the fairness officer
will be mandated to hear complaints. Mandated.
They will, on their own initiative, be able to identify areas of
process, for example, that may lead to an unfair decision in the future
or in the way someone has been treated now. They will be empowered to
make recommendations to the board. Empowered. They don’t have to ask
permission of the board to go and do their work. They are
empowered.
That report is tabled here in this chamber. It is made public. So
it is not even a question of: does the minister have oversight? With
that report being tabled, and even if it was not tabled in this House….
I said yesterday in my remarks that I committed to doing that. I made it
clear through the amendment that it would be tabled, that the questions
around those recommendations will obviously be asked, both publicly
outside and in here, in terms of what the fairness commissioner is
doing, how they are doing it, and the response to their recommendations
and their findings.
[4:55 p.m.]
That, in my view, is pretty transparent. It’s pretty accountable
in terms of accountability. It’s a legislative…. It’s not a board
appointment. It is a Lieutenant-Governor-in-Council appointment. There
is a significance. It is independent. They will be able to do their job.
Their mandate is legislated.
I have every confidence that the person who is appointed to do
this job will do this job in the way that the legislation intends and
the way that the public would expect.
M. Lee: I believe my colleague the member for Prince George–Mackenzie will
have an amendment that we’d like to propose to this section,
particularly as we’ve had this discussion and debate. I just wanted to
make two comments in terms of the minister’s response.
I think we’ve already had the exchange of views here. But just,
certainly, acknowledge — as we did in dealing with the amendment, as we
came back onto this bill in this committee stage — that the minister
heard the suggestion that we ought to introduce greater transparency to
the reporting mechanisms. That was what we dealt with in terms of the
amendments that the minister brought forward in this committee stage. So
acknowledge that.
The minister made reference to, certainly, an area of concern that
I know the Leader of the Third Party and ourselves here will have some
question about further. But I just wanted to stop on it because, again,
I’m not talking about greater transparency. We dealt with that, so
thanks very much. I’m talking about independence.
Why am I talking about independence? Because the minister, in his
response, just said something that is a point of contention, which is:
yes, the fairness officer can look at recommendations for what happens
in the future. But he also suggested…. He used these words, which I ask
him to reflect on in future responses to us. He said: “As to how people
would be treated now.” I just stop on the words “treated
now.”
Well, we will get into this. But, again, the reason why it’s
important that the fairness officer has true independence is because, as
we see in subsection 57(1): “The fairness officer may not comment on or
make recommendations respecting (
a) an amount payable by the
corporation, or (
b) the extent, as determined by the corporation, that a
person is responsible for an accident.”
When we talk about how an individual is treated by ICBC now, when
they have a complaint with ICBC now, when they want peace of mind in
terms of what a fairness officer can provide to them now, they’re
talking about: how much am I getting in benefits and compensation? And
who is responsible? The fault determination.
When the member from Richmond south spoke in his second reading
speech, he talked about an unfortunate accident that he was involved in
where he was found at fault. He said: “Really happy to see this fairness
officer come into place, because I wish they had that back when I was
dealing with my injury.” I think he needs to, with respect, read the
bill, because, specifically, fault cannot be commented on or even
recommended on by the fairness officer.
There is no peace of mind for the member from Richmond south, nor
any other British Columbian. That’s why what we’re left with is the
future. We’ll talk about what that future looks like in an ICBC no-fault
way. But that’s the reason why we are spending the time talking about
the independence of the fairness office.
So having made that comment in response, I just invite the member
for Prince George–Mackenzie to move the amendment that we wish to
propose. Unless there’s other comment here.
Hon. M. Farnworth: I respond to the member’s comments. I’ve made it clear. The
fairness officer is mandated. That’s independence.
[5:00 p.m.]
I understand where the opposition is coming from. I understand
where the member is coming from. They don’t like the transition. They
don’t like the move that will take place on May 1. I understand that,
but let’s be clear. This is about a fairness officer that will be
independent, that is mandated with a job to do and functions to do. They
don’t have to ask the board for permission. I think it’s important to
stress that point. As of May 1, and when the new fairness officer is
appointed, they will be doing just that by legislation, by mandate, by
reporting to this Legislature.
The member says transparency. They all go together. They’re not
separate. Each one complements the other. So the idea that somehow we’re
not wanting him to be independent, not wanting him to do his job —
because that’s the impression — or that they are not going to be able to
do their job is simply wrong. It’s something that I do not
accept.
We have had discussion on this. I look forward to seeing what the
amendment is that is being put forward, but I just have to reiterate
that. They have a mandate, and they will be doing and fulfilling that
mandate.
S. Furstenau: I’m finding the discussion and the debate very interesting. In my
second reading speech, I talked about other Crown corporations that have
some measure of oversight, which is perhaps what might be what we’re
describing this fairness officer’s role as, an oversight role. We have
ministries with independent offices that operate — for example, the
Representative for Children and Youth operating as an independent
officer but looking at the operations of Ministry for Children and
Families.
I think that the concern that is being expressed around the
independence but also the effectiveness of this role stems, in some
part, from the fact that we see other roles, other oversight bodies,
that maybe aren’t as effective as we’d like them to be, then also
stepping back to the fact that we now need these oversight roles or
these fairness officers for Crown corporations that are supposed to be
serving the public and that are failing to do that in some way, shape or
form. Therefore, we’re putting in this next layer. We’re layering up,
instead of possibly dismantling.
The issue around the fairness officer that I think we have some
concerns around is that, for example, the fairness officer cannot
comment or make recommendations respecting an amount payable or the
extent, as determined by the corporation, that a person is responsible.
I think this is where the point was being made. The member from Richmond
south…. Most people would think: “Oh, there’s a fairness officer. I
don’t like what happened. I can go to that person, and they can help
out.” But that’s not really what this is. When we look at the act,
that’s not going to be the role of this person.
I guess I’ll just put the question to the minister on this, which
is: can he explain to the public exactly…? I’ve heard the minister talk
about the mandate and the role and the independence, but what can the
public exactly expect from this person if they find themselves in an
accident? ICBC makes a determination on a settlement for this person.
They’re not satisfied with what has happened. What exactly would the
fairness officer be able to do in that circumstance?
[5:05 p.m.]
Hon. M. Farnworth: I appreciate the member’s question. The fairness officer…. Let’s
say yourself, for example. You are not happy with the benefits that you
felt that you should be receiving. You would be able to go to the
fairness officer and make your complaint.
While it’s absolutely correct that the fairness officer does not
comment on the benefits that you are paid, they have every authority and
ability to investigate the procedures and the processes that were used
to determine your benefits that you received and to make a
recommendation to ICBC about what they found in terms of those processes
and procedures, with a recommendation on changes that would need to
happen. So ICBC would potentially, depending on what the fairness
commissioner said, reengage.
S. Furstenau: But just to be clear, the fairness officer would look at the
procedures and the process but would not be able to comment or make any
recommendation on the outcome, as in the payment or benefit that has
been conferred to the person?
Hon. M. Farnworth: That is correct, and that has been clear from the beginning in the
legislation and in the second reading of the bill.
M. Morris: I’ll wait just for a second before I introduce the amendments, as
we’re on the topic of fairness now. That was one of the issues that I
wanted to speak about.
I guess I ask the question: what is fairness? How is fairness
defined? Because it’s a very…. It could tend to be a very subjective
term.
[5:10 p.m.]
Hon. M. Farnworth: First, I want to make one of the key issues around the fairness
commissioner, and whoever occupies that position, clear. They are,
obviously, going to have to have considerable skills, in essence, in
natural justice, an understanding of how process and procedures are
supposed to be followed and take place and an understanding of how that
happens.
Fairness is ensuring…. ICBC has a mandate to deliver service. It
has a mandate to deliver and ensure that an individual is getting and
receiving the care that they need to recover. That’s why there is not a
cap on the benefits that you can receive.
The fairness commissioner will be making sure that those
procedures and those policies are, in fact, followed and, in doing so,
ensure fairness — and, in doing so, by an individual who has that skill
set and understanding of how these things have to happen. A critical
component is that sense of natural justice.
M. Morris: What is the standard of review for the fairness officer? The
fairness officer would be looking at…. Most review boards or authorities
would be using a standard of reasonableness or correctness. So I’m just
curious as to how the fairness officer would be looking at his files,
the complaints that he has to review.
Hon. M. Farnworth: Again, as I said a few moments ago, it comes back to the skill set
of the individual so that they understand that process of natural
justice and fairness, so that the processes and the procedures of ICBC
are in place and are being followed properly, so that people have the
ability to be heard and to be listened to. It puts in place that they
have been treated fairly not just by ICBC. But its processes and
procedures that are in place are designed to ensure that people are
treated fairly.
[5:15 p.m.]
The fairness commissioner will have the ability to ensure
that that is, in fact, what is taking place. If they feel it is not
taking place, then they can make recommendations. Those recommendations
have to be responded to. Those recommendations and those responses come
back and are made public, both at ICBC and in this chamber.
M. Morris: The fairness officer is tasked with investigating and making
decisions on whatever the results of his or her investigations are. What
I don’t see outlined in this particular bill is the…. Where is the
procedural fairness that is built into the act? Also, what does the
fairness officer base his decisions on? Is it reasonableness, or is it
correctness in the process?
Hon. M. Farnworth: This position is about ensuring fairness and that people have been
treated properly.
The fairness commissioner is not a judicial position. They’re not
a judge. What they are is there to ensure that if individuals have a
complaint or concern, that that complaint is investigated, that people
are treated fairly. They ensure that the proper procedures and processes
were followed in the determination of whatever the complaint, as my
colleague the Leader of the Third Party said, about what benefits they
were to receive or how they were treated in the determination of those
benefits and will make recommendations.
I think that is crucial. The fact that this position is being
legislated and mandated in the way that it is says to ICBC that this is
a critical component in terms of what happens on May 1 and how people
can expect to be treated in terms of receiving the care that they need
for as long as they need it. There is a mechanism, if they have a
concern, that will ensure that they have been treated fairly.
It comes back to, as I said at the start of this discussion, this
exchange on these particular questions…. The individual occupying this
position, clearly as their skill set, will have very strong skills in
this area in terms of how fairness and natural justice are dealt with.
That is a key component.
M. Morris: We have a fairness officer who is appointed through an
order-in-council but who doesn’t have any decision-making powers or
decision-making ability under this particular bill. He’ll listen to
somebody’s concern, and he’ll make a recommendation to somebody, but he
makes no decision that can be reviewed. Basically, he’s a….
I’m not sure exactly what he is or what that position might be. If
they don’t make decisions pertaining to the complaints that they
receive, what else does they do?
[5:20 p.m.]
Hon. M. Farnworth: Again I’ll repeat that the ability to make recommendations is
significant. It is important, because those recommendations cannot be
ignored. They have to be responded to. They are made public. As I said a
number of times now, they also come back to this chamber.
The fairness commissioner, and I’ll repeat it again, has a
significant mandate to fulfil that is legislated, that gives them
independence and that they will be able to: fulfil that role in a way
that will ensure that people are heard, that they are treated fairly,
and that the processes, policies and procedures that were used in making
determinations were in fact done in a correct and fair
manner.
M. Morris: Does the fairness commissioner make decisions?
Hon. M. Farnworth: As I say, there seems to be some issue with the opposition on the
fairness officer — what power they have. I’ll just repeat again. I think
it’s pretty significant power, which is to make a recommendation, to
make an assessment of what took place — what policies, what processes,
how they were followed. Were they followed in the appropriate way? Then,
from that work, they will make a recommendation.
A recommendation is pretty powerful, particularly when that
recommendation is made public, particularly when the board has to
respond to that recommendation. That’s pretty significant. I think that
it will be a very effective way of ensuring that ICBC, on May 1, works
the way that it is intended to and that people expect it to.
[5:25 p.m.]
M. Morris: Seems to be a significantly elaborate process to appoint somebody
who appears to be merely a customer service representative dealing with
the customer complaints that may come in. There doesn’t appear to be any
decision-making authority granted to this particular position.
Therefore….
He may make recommendations. It’s a pretty elaborate process to
have somebody make recommendations to somebody as to what they should be
doing or what they shouldn’t be doing. I find the lack of
decision-making authority that lies within this position to be
problematic.
I guess part of it is the fact that there’s no real procedural
process involved in this. If somebody makes a complaint, and the
fairness officer comes back and says, “Yeah. No, it looked fair to me,”
where does that individual go next to have his or her concerns
addressed, redressed? What is the process here? Go to the fairness
officer. He arrives at his recommendation, and if the customer that is
making that complaint is not happy, where does he or she go?
Hon. M. Farnworth: I’ll make a couple of points. First, I think it’s unfortunate that
my colleague refers to the position as though it’s some sort of
glorified customer service clerk. That is simply incorrect, and it’s
simply not the case.
The individual occupying this position will have to have a
considerable skill set, in terms of fairness, administrative fairness,
natural justice, an understanding of the procedure and process that are
used in making a determination of a benefit, for example. They will be
making recommendations that are public, that will be scrutinized, that
will have to be responded to.
This is a considerable senior position. As I have said, I have
every expectation that the person in that position will do that job to
the absolute best of their ability. I just want to make that clear. This
idea of, in essence, a diminishment of the role, I reject.
[5:30 p.m.]
If an individual is not happy, for example, they would be able
to…. If they felt the process was not fair, that they were not happy
with the recommendation of the fairness officer, they would also be able
to access the Ombudsperson, and they would be able to use that avenue as
well. That would not be denied them in the least.
But as I said earlier, my full expectation, and why this fairness
officer position is here, is that this is an individual and their staff
who will be dealing with ICBC 365 days a year. It’s not another
compartment that they have to deal with. It is their total focus, and it
is their total obligation and duty that they will have.
M. Morris: So my understanding is correct. The fairness officer makes a
recommendation that somebody is not happy with, and that individual can
take that to the Ombudsperson’s office for review.
Now, are they reviewing the recommendation from the fairness
officer, or are they ultimately reviewing the decision that was made and
that led to the fairness complaint in the first place? What would be
reviewed in this particular case? I’m concerned about the procedural
fairness here as well, but I’m also concerned about the standard of
review that somebody, at the end of the day, has to level upon whatever
that complaint is.
Hon. M. Farnworth: What I will do for the member is get clarification on the specific
aspect of the Ombudsperson Act as to how it would relate, if that would
assist the member in his question.
[5:35 p.m.]
M. Lee: Just recognizing the time that we’re at right now, with a few more
minutes left in this proceeding on this day, I would ask that the
minister consider the question that the member for Prince
George–Mackenzie asked two questions ago. I think it would be helpful,
in the further committee process on this bill, to get a clearer
understanding of this.
When an individual has a complaint or a concern as to how they
have been treated with ICBC, what is that complaint process? That is
effectively what my colleague from Prince George–Mackenzie asked — a
straightforward question. My understanding, which I’d like the minister
to confirm or at least provide us with some further explanation of —
that can certainly happen now or when we reconvene — is that that
individual of course talks to the adjuster, or the individual…. I don’t
know what the new terminology might be under the new regime. Or that
adjuster’s manager. Presumably, the fairness office is another point of
call.
I’d like the minister also to respond to the nature of the
decision of last week, in terms of the chief justice’s decision ruling
that the CRT does not have jurisdiction. What is the impact on the
no-fault regime? I expect that the CRT, as we looked at the bill last
summer as part of this as well….
In terms of the nature of what the fairness officer needs to
consider, there is a provision that the minister has been speaking
around, which is subsection 56(2)(a), which is: “…the fairness officer
(
a) may make recommendations to the corporation to resolve fairness
complaints.”
In the absence of decision-making power, as the member for Prince
George–Mackenzie has demonstrated in a number of questions and responses
from the minister, in the absence of the ability of the fairness officer
to comment on or make any recommendations respecting the amount payable
by the corporation or the extent that the person is responsible for the
accident, how will the fairness officer resolve fairness complaints?
What is the nature of the fairness complaints that the fairness officer
is able to make recommendations on in order to resolve? That’s my
question.
[5:40 p.m.]
Hon. M. Farnworth: I know that there were a number of questions in the member’s
question. In terms of the procedure — the member asked about the
procedure — that’s in
section 58. It authorizes the fairness officer to
make rules regarding the practices and procedures to be followed in
submitting or withdrawing a complaint and the practice and procedures to
be followed by the parties involved in an investigation.
It will be the fairness officer that has the ability and the
authority to set, and subsequently change if warranted, the procedures
related to filing or withdrawing of a fairness complaint and, as I just
said, what is expected of the complainant, what is expected of the
fairness officer and what is expected by ICBC during the investigation
process. It will be the fairness officer that sets what those procedures
are. It will not be, for example, ICBC that sets those.
M. Lee: Well, I think that the minister, perhaps, was addressing another
question from the member for Prince George–Mackenzie. I think that’s
helpful. I think we can certainly review that further, in terms of the
practices and procedures to be followed by the fairness
officer.
I did ask two other questions. I can restate the questions and see
how much time we have left at this juncture. Again, I’m asking what is
the complaint process that an individual will be following if they have
a complaint about ICBC and they have a dispute? Perhaps I should use
that word because I think that triggered a different response here.
Let’s just focus on the word “dispute.” There’s a disagreement with ICBC
in terms of how they’re being treated. The fairness officer is only one
venue for review, I expect. That’s my understanding, when we looked at
the no-fault regime.
I’m asking the minister to confirm what the other alternatives are
to which an individual who has a dispute, a disagreement, with ICBC will
look to get relief. I’ve named a number of them: the supervisor for the
adjuster, the CRT, the courts, under very high thresholds that the
Attorney General and I had discussion about. I’m asking the minister to
describe that so that we can properly situate this role of the fairness
officer.
My second question relates to subclause 56(2)(a), where it says
that the fairness officer “may make recommendations to the corporation
to resolve fairness complaints.”
[5:45 p.m.]
I’m asking, in light of subclauses 57(1)(
a) and (b), given the
limitations that “the fairness officer may not comment on or make
recommendations” on the amount payable or the extent that an individual
is found responsible for an accident, what kind of fairness complaints
is the fairness officer authorized to resolve if it doesn’t include
anything to do with the amount that is payable by ICBC or the fault
determination?
Hon. M. Farnworth: In answer to your second question, that’s laid out in
section 54.
It’s laid out on a question that I in fact dealt with yesterday with my
critic.
The individual, the fairness officer, is able to deal with the
issues that are laid out in
section 54. They involve the administration
of insurance plans under 7(b); the repairing of insured property under
section 7(c); the provision of medical and hospital services to an
insured person; the carrying out of powers and duties related to the
Motor Vehicle Act, Commercial Transport Act and the Off-Road Vehicle
Act; the receiving, holding, managing and collecting of fines, penalties
and sales taxes, for example. Those are a number of the areas that the
fairness commissioner is able to deal with.
Noting the hour, I move the committee rise, report progress and
ask leave to sit again.
Motion approved.
The committee rose at 5:48 p.m.
The House resumed; Mr. Speaker in the chair.
The Committee of the Whole, having reported progress, was granted
leave to sit again.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. Monday
morning.
The House adjourned at 5:49 p.m.
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