British Columbia Committee Hansard (Blues) — Committee C Blues — Thursday, October 26, 2023, p.m. (42nd Parliament, 4th Session)
20231026pm-CommitteeC-Blues
British Columbia — Debates (Hansard)
Hansard Blues
Committee of the Whole –
Section C
Draft Report of Debates
The Honourable Raj Chouhan, Speaker
4th Session, 42nd Parliament
Thursday, October
26, 2023
Afternoon Sitting
Draft Transcript — Terms of Use
PROCEEDINGS IN THE
BIRCH ROOM
Committee of the Whole House
BILL 33 — PENSION BENEFITS STANDARDS
AMENDMENT ACT, 2023
(continued)
The House in Committee of the Whole (Section
C) on Bill 33; H. Yao in the chair.
The committee met at 1:11 p.m.
On clause 10 (continued) .
The Chair: Good afternoon, Members. I call Committee of the Whole on Bill 33, Pension Benefits
Standards Amendment Act, 2023, to order. We are on clause 10.
P. Milobar: I just want to briefly thank the minister and her staff for clarifying which version
we were on. I own that error. I sent off a very quick message to my staff asking for
a copy, thinking I had included my research team in it as well, and I had only included
somebody that just started a week ago in this building. So the
interpretation got
lost on what I was looking for, but we've figured it out.
The good news is, I guess, that in the 2012 version I was reading, I did find the
same and/or that the ministry found in 2014 had changed. So that's a good thing, I
guess. Also, fundamentally — just so the minister knows — there wasn't a whole lot
of difference between the two bills where I had questions So it really wasn't too
bad over lunchtime to make sure I was back up to speed on the correct version.
That's all I have for 10.
Clauses 10 and 11 approved.
On clause 12.
P. Milobar: Clause 12 is adding the variable life benefits to the act, if I read this correctly.
My understanding is that UBC might have the only variable life act currently — a pension
currently in B.C. that was a holdover from 1988 when the rules changed federally.
Is that the case? And is this enabling others to have the same type of pension that
exists at UBC?
Hon. K. Conroy: Actually, the University of Victoria also has a combination plan. So it's UBC and
University of Victoria, and yes, this will allow other pension plans to follow suit.
P. Milobar: Typically, annuities can run the risk of inflation, obviously. Presumably variable
life benefits run the same risk of losing value in an economic downturn.
What safeguards, if any, are in place to protect people's retirement funds?
Hon. K. Conroy: The plan can offer up to a 2 percent indexing if they choose. It is up to the plan
to determine if they're going to choose to do that.
P. Milobar: Okay. So I guess…. There are a lot of economists that are forecasting an economic
downturn in B.C., including the B.C. Business Council. Would that downturn impact
those that opt in, or is the minister saying that the 2 percent is kind of the floor
of the opt in?
[1:15 p.m.]
Hon. K. Conroy: The 2 percent is the maximum permitted under the federal income tax legislation. So
it's not up to the province.
Clause 12 approved.
On clause 13.
P. Milobar: As I read it, this clause is clarifying the existing requirements for spousal waivers,
including that waivers can be signed outside of the presence of the member.
Is there a notification process if that, indeed, happens — where a spouse is signing
and the member is not present?
Hon. K. Conroy: This already exists in the act. It's not being changed. It says that the spouse must
confirm that the spouse has the right to receive the member's benefits and the pension
plan after the member's death unless the spouse waives the right by signing the form.
The form must be signed and witnessed in the absence of the member and before the
member's death.
Clause 13 approved.
On clause 14.
P. Milobar: This appears to be amending
section 79 but referring back to 89 — this is where sometimes
these bills get a little confusing — "subject to
section 89 (1) or (2)."
I'm just confirming…. Later on, there's talk of
section 89(2), in particular, in clause
20 and then
section 89(1) and (2) in clause 21.
So any changes made there would also be the changes that are now referred to in 14(a).
Does that make sense?
Hon. K. Conroy: Yes, the member is correct.
Clause 14 approved.
On clause 15.
P. Milobar: Just a general question around the use of a waiver versus a statement, I guess. It
seems that it's changed a couple of places in this new bill.
Why the change from a statement to a waiver? What's the significance of needing to
make that change?
[1:20 p.m.]
Hon. K. Conroy: This is a technical correction that results in consistent wording, consistent terminology,
throughout the entire act and regulation.
Clauses 15 and 16 approved.
On clause 17.
P. Milobar: If I read this correctly, it's stating that variable life benefits are non-transferable
once payments start. What is the scenario, then, if the payment started and then there's
a death? Does the decision on the transfer of the payments have to be done in advance
of that? What happens if it's an unexpected death — or am I reading this wrong, which
is entirely possible?
Hon. K. Conroy: This clause is if you're working and you leave your job, you can take your pension
and lock it into an RRSP. This is before variable life benefits take effect.
Clauses 17 and 18 approved.
On clause 19.
P. Milobar: I just want to confirm that this clause does include surviving spouses in the annuity
purchase procedures for defined benefit pension members.
Hon. K. Conroy:
Section 89 is about defined contribution provisions and is limited to that.
Clause 19 approved.
On clause 20.
P. Milobar: Just a couple of questions. It's kind of difficult to do without involving clause
21 as well. Clause 20 is amending 89(2) by striking out a
section and substituting
in language, which I get. But then immediately after, in 21, you're repealing all
of 89.1(1) and (2) and resubstituting in.
[1:25 p.m.]
I'm just wondering the relevance of clause 20, I guess on more the legalese side —
why you need to amend and substitute language in a clause that you're literally repealing
and redoing completely in the very next step.
Hon. K. Conroy: Now I'm going to get really technical. This clause amends
section 89, and in 21, which
you referred to, it amends clause 89.1.
Clauses 20 and 21 approved.
On clause 22.
P. Milobar: Okay. This is where it gets very complicated, just because it's amending
section 116, which
deals with
section 110 but also
section 113, from
section 118. So bear with me.
I guess I'm wondering how, in
section 110(3)(b), there's…. How is it any different,
I guess, given that there's no timeline stipulated in terms of "within the period
stipulated in a notice served under
section 110 (3) (b)." There's no actual indication
of what that period is that would be stipulated in a notice being served under there.
Hon. K. Conroy: It's
section 110(3)(b). It provides that an authorized person may demand, by written
notice served on a person, that the person provide records of information within a
reasonable period stipulated in the notice. So that person that is the authorized
person would stipulate what the reasonable period of time would be.
P. Milobar: So there's no current regulation or hard-and-fast timeline of what a reasonable period
of time is?
Hon. K. Conroy: No.
Clause 22 approved.
On clause 23.
P. Milobar: This is for
section 118(1)(a). It's amended by striking out "section 113 (1),
(2) or (3)" and substituting "section 113 (1) or (2)."
That's how it's referring back to…. When you read
section 118, it's referring you
back to
section 113. So when you go back to 113, (3) is still in existence and hasn't
been removed by this bill in front of us today.
[1:30 p.m.]
I'm wondering why the amendment no longer refers to (3), yet (3) is still within the
existing legislation.
Hon. K. Conroy: It's a technical correction of a drafting area, and the reference to
section 113(3)
is redundant. So if
section 113(1) and 113(2) apply,
section 113(3) also applies,
but it's redundant.
P. Milobar: I appreciate it gets technical. It's going to get real confusing here now. I'm going
to try my best to walk through this slowly.
So this would amend
section 118(1)(a), which right now says: "This
section applies
if, as a result of an inspection under
section 110, the superintendent (
a) takes an
action under
section 113 (1), (2) or (3)."
So then you go: "Okay, so this applies to
section 110." You go to
section 110. I won't
read all of
section 110, but it's around inspection and production of documents.
Then you go to
section 113, which gets triggered by this as well — the amendment,
in terms of (1), (2) or (3).
There's also a (4), though, on
section 113, and
section 113(4) is: "On an application
under subsection (3), the court may make any order it considers appropriate."
It just seems by not including section (3) as in the previous language by specifically
removing it, (4) is the only connection around "a court may order anything it considers
appropriate." It doesn't say that on an application under subsection (2) or subsection
(1). It's only under subsection (3).
So does this not create an unintended consequence where it effectively removes an
avenue in terms of engaging the courts, if one side or the other would choose to?
[1:35 p.m.]
Hon. K. Conroy:
Section 118 provides that if, as a result of an inspection, the superintendent issues
a direction for compliance or an administrative penalty, the superintendent may, by
order, require the person on whom an action is taken to pay part or all of the costs
associated with the inspection that led to the direction or the penalty.
It ensures that people pay what they're supposed to pay. And once that's done, if
it doesn't happen, then (4) has the ability to take people to court.
P. Milobar: I understand that (4) has the ability to take somebody to court. But (4) only actually
refers to subsection (3), and subsection (3) has now been removed from 118. That's
why I'm just wondering, does that not create a gap because (4) doesn't refer to
(1) or (2), which is left in the amended bill?
It's (3) that's actually being removed. That's the only thing that (4) actually refers
to.
Hon. K. Conroy: No, it doesn't create a gap.
Clause 23 approved.
On clause 24.
P. Milobar: In (
a) of this, where it's repealing section (2)(
a) and substituting it with the following,
I'm just wondering what is the substantive difference between the existing…?
I recognize this is the federal tax act, income tax regulations. But it currently
has a referencing subsection 8500(3) of the Income Tax Act, and it's inserting in
85154 (
a) or (
b) or both of the income tax regulations.
What would be the substantive difference between those acts that the federal government
has changed?
[1:40 p.m.]
Hon. K. Conroy: So 8500(3) defines what a connected person is within the income tax regulations of
Canada. These are a category of specified individuals within the meaning of
section
8515(4) of the regulation.
So for instance, a connected person. Plans are typically small plans where the members
are significant shareholders in the company or that sponsor the plan. The second one
is like high-earning employees, who are employees who earn 2.5 times the year's maximum
pensionable earnings.
So in 2023, 2.5 times $63,600, so that's there, and also under 8515(4).
Clauses 24 to 30 inclusive approved.
Hon. K. Conroy: I move the amendment to add clauses 30.1 and 30.2 standing in my name on the orders
of the day.
[ CLAUSES 30.1 AND 30.2, by adding the following heading and clauses before the “Pooled Registered Pension Plans Act” heading:
Family Maintenance Enforcement Act
30.1 Sections 15 (9), 16 (10) and 24 (10) of the Family Maintenance Enforcement Act, R.S.B.C. 1996, c. 127, are amended in the definition of “benefit”
(
a) in paragraph (
b) by striking out “ or ”,
(
b) by adding the following paragraph:
(b.1) a variable life payment under the Pooled Registered Pension Plans Act , or ,
(
c) in paragraph (
c) by striking out “ a pooled registered pension plan account withdrawn under ”,
(
d) in paragraph (c) (
i) by adding “ a pooled registered pension plan account withdrawn under ” before “ a provision ”, and
(
e) in paragraph (c) (ii) by adding “ a pooled registered pension plan withdrawn under ” before “ the regulations ”.
30.2
Section 25 is amended
(
a) in subsection (1) in the definition of “ money ” by adding the following paragraph:
(a.21) a variable life payment under the Pooled Registered Pension Plans Act , ,
(
b) in subsection (1) in the definition of “ money ” by repealing paragraph (a.3) and substituting the following:
(a.3) funds from a pooled registered pension plan account withdrawn under a provision,
authorized by
section 47 (2) of the applied Act, of a pooled registered pension plan,
(a.4) funds from a pooled registered pension plan withdrawn under the regulations
under the Pooled Registered Pension Plans Act , or , and
(
c) in subsection (2) (
b) by adding “ , variable life payment ” after “ or any variable payment ”. ]
The Chair: We will call a recess to distribute the amendment, and we will be back in five minutes.
The committee recessed from 1:43 p.m. to 1:44 p.m.
[H. Yao in the chair.]
The Chair: I now call the committee back to order.
Amendment approved.
Clauses 30.1 and 30.2 approved.
Clauses 31 and 32 approved.
On clause 33.
[1:45 p.m.]
Hon. K. Conroy: I move the amendments to clause 33 standing in my name on the order paper be moved.
[ CLAUSE 33, by deleting clause 33 (
e) and substituting the following:
(
e) in subsection (4) by striking out “ subsection (1) (b), (
c) and (e) ” and substituting “ subsection (1) (b), (b.1), (
c) and (e) ”,
(e.1) in subsection (4) by adding the following paragraph:
(a.1) a variable life payment, ,
(e.2) in subsection (4) (
c) by striking out “account”, and . ]
On the amendment.
P. Milobar: I just want to make sure that there wasn't an accidental reversing on the wording
in the amendment.
The amendment says for (e), in subsection (4), by striking out subsection (1)(b),
(c), (
d) and (
e) and substituting subsection (1)(b), (b.1), (
c) and (e). But when
I read Bill 33, the wording in Bill 33 that this is supposed to be amending of the
amendment is subsection 1(b), (b.1), (
c) and (e).
The wording in (4) appears to be already what you're saying you're substituting in
with this amendment. I'm just making sure it's not reversed on the amendment paper
or the Orders of the Day — that in fact, it should be amending by striking out subsections 1(b), (b.1), (
c) and (
e) and adding in subsection 1(b), (
c) and (e).
If not, I don't see why we need this amendment, given that the wording is the exact
same as what's in the bill.
Hon. K. Conroy: The amendments to clause 33 don't represent a change in policy. After the amendments,
clause 33 will make the same change to
section 9(4) of the Pooled Registered Pension
Plans Act to add variable life payments to the list of payments or withdrawals in
that provision.
The amendments to clause 33 are needed because clause 33 doesn't reflect a previous
amendment to
section 9(4) of the Pooled Registered Pension Plans Act that was made
by Bill 4, 2023, in this session of the Legislative Assembly.
P. Milobar: Well, I'm still a little confused because when I'm reading Bill 33, which is amending
existing legislation, and I get that, Bill 33 says: "subsection 1(b), (b.1), (
c) and
(e)…." So that's what the government originally wanted to do with Bill 33.
Then the government brought in an amendment on the order paper saying that they needed
to correct what's in Bill 33. They said what's in Bill 33 is reading subsection 1(b),
(
c) and (e), and it should actually read subsection 1(b), (b.1), (
c) and (e). But
what the government is saying they want to amend is actually how it's worded in Bill
I don't see why either we need this amendment, because it's already taken care of
in clause 33 if it's worded properly, or the amendment is actually in reverse of what
it should be getting amended.
[1:50 p.m.]
Hon. K. Conroy: Bill 33 replaces and repeals sub 9(4), which leaves out wording added by Bill 4 in
this session. The amendment to clause 33 ensures the amendment made by Bill 4 is retained.
P. Milobar: Well, again, that…. Frankly, it doesn't make any sense. Bill 33, I agree, is changing
section 9 of the Pooled Registered Pension Plans Act, in clause 33. We all agree on
that.
The submission to make that change in Bill 33 says: "Despite subsection (1) (b), (b.1),
(
c) and (e), any of the following may be…." And then it goes on.
The government, the minister then put on the order paper, after tabling Bill 33, an
amendment to that clause. The amendment the government is proposing results in the
exact same wording as what is currently in Bill 33. The amendment says: "…in subsection
(4) by striking out 'subsection (1) (b), (
c) and (e)' and substituting 'subsection
(1) (b), (b.1), (
c) and (e).'" That's exactly what the language is in clause 33 of
Bill 33.
I'm simply wanting to clarify and make sure that the government didn't accidentally,
by way of cut and paste or some other error like that, actually mean to be amending
subsection (1)(b), (b.1), (
c) and (e) — that's what's supposed to be getting struck
out of Bill 33 — and inserting in subsection (1)(b), (
c) and (e), because that would
actually be an amendment to Bill 33. What is proposed right now is not amending anything
that's actually in Bill 33.
[1:55 p.m.]
Hon. K. Conroy: The amendment doesn't change the list — that's correct — of (1)(b), (b.1), (
c) and
(e). The amendment to clause 33 corrects an error where the list of Securities Act
orders that are currently in
section 9(4) remain in the provision. It was an error.
So the amendment corrects the amendment.
[2:00 p.m.]
Hon. K. Conroy: Yes.
P. Milobar: Can the minister point me to the difference in wording in the amendment in (
e) versus
the difference in wording in Bill 33?
Hon. K. Conroy: Referring to what the member has, which is in (e)(4)(c), there's a change there where
the word "account" is going to be crossed out.
So it will say, "funds from a pooled registered pension plan withdrawn" under the
regulations. You take out the word "account" And: ".…may be attached by a notice of
attachment under
section 15…of the Family Maintenance Enforcement Act , an order of garnishment under
section 18 (2)…of that Act or an attachment order
under
section 24…of that Act" a preservation order or a forfeiture order under
part
18.1 of the Securities Act or in furtherance of any process to enforce an order under the Securities Act.
We didn't want to lose that out of the Pooled Registered Pension Plans Act.
P. Milobar: So the minister is saying then, essentially, all of what is pretty much written in
(
e) on Bill 33 is no longer relevant. That has been taken off the table because now
it's just deleting that clause 33 completely with this amendment 33(e).
Interjection.
P. Milobar: No, no. When I read the amendment, the amendment is to clause 33, by deleting clause
33(e).
[2:05 p.m.]
This would mean all of (
e) gets removed, which I then understand — just making simple
substitutions into the existing areas of the Pooled Registered Pension Plans Act,
section 9, versus the wholesale wording changes that are currently in Bill 33. Is
that correct?
Hon. K. Conroy: Yes.
Amendment approved.
Clause 33 as amended approved.
Clause 31 approved.
Clause 34 approved.
On clause 35.
P. Milobar: I always love asking questions around the commencement chart.
Just wondering. The vast majority of this bill is being left to take effect by regulation,
OICs and the like. Is there a rough timeline that the minister is targeting to have
any of the regulatory changes that this bill will require done and through the orders-in-council?
Hon. K. Conroy: The provisions that are to come into force by regulation require time for one or more
of the following to take place before commencement: we need for regulations to be
made; for pension plans to prepare for compliance with the amendments, such as registering
amendments to plan text documents; and for the B.C. Financial Services Authority to
prepare for the administration and enforcement of the PBSA as amended.
For the variable life benefits to be implemented, they'll be implemented in jurisdictions
that enact enabling legislation after regulations have been developed. To date, enabling
legislation has been enacted in Quebec, Saskatchewan and the federal government and
is being considered by Ontario and Alberta as well.
Regulations will be developed in 2024, in consultation with Finance Canada and provinces
that participate in the development of a harmonized policy framework for variable
life benefits.
Clause 35 approved.
Title approved.
Hon. K. Conroy: I move that the committee rise and report the bill complete with amendments.
Motion approved.
The committee rose at 2:08 p.m.
Committee of the Whole House
BILL 28 — MOTOR VEHICLE
AMENDMENT ACT (NO. 2), 2023
The House in Committee of the Whole (Section
C) on Bill 28; S. Chant in the chair.
The committee met at 2:37 p.m.
On clause 1.
The Chair: Good afternoon, Members. I call Committee of the Whole on Bill 28, Motor Vehicle Amendment
Act (No. 2), 2023 to order.
Minister, would you like to say a few words?
Hon. M. Farnworth: We can begin. I know that the member opposite has identified a number of sections
that we will focus on, and then the others we'll be able to move through in blocks.
I know that we'll be looking, in particular, at sections 1, 3, 36 to 42 and 47. The
rest can move.
The Chair: Very nice; thank you.
T. Halford: Just to start, a couple of general questions. If we can talk about who was consulted
in preparation for the amendments to the bill.
Hon. M. Farnworth: I thank the member for the question. Consultations took place with representative
associations, major leasing and financing companies and other lessors, Autoplan brokers,
the Insurance Bureau of Canada, other insurance stakeholders, taxi companies, the
B.C. Trucking Association and the motion picture industry.
T. Halford: The minister indicated — I think it was during second reading — that we are the last
jurisdiction in Canada to make this change. So just a comment from the minister on
what the timing was for that.
Hon. M. Farnworth: This has been a long-standing issue, and it's something that ICBC had been working
on with enhanced care in place. This was one of those issues that…. "Hey, let's get
this up and get it moving."
When I took over, this was identified as a priority for us. That's why it's coming
forward now.
T. Halford: In clause 1, the definition of a "leased vehicle" is added. It's to mean "a vehicle
that is leased or rented under a written agreement for a period of not less than one
month."
[2:40 p.m.]
It was during the second reading that the minister clarified this: "The proposed changes
apply only to leased vehicles. At this time, there are no changes proposed for rented
vehicles. Owners of rented vehicles continue to have the obligation to license and
insure the vehicles."
I'm just going to ask if the minister can clarify the difference between a leased
vehicle and a rented vehicle and if both under a written agreement for more than a
month.
Hon. M. Farnworth: The difference is that the lessee is named in the registration. Under short-term rentals,
they're not named. That's the difference.
T. Halford: Would these amendments, basically, apply to a contractor that rents a cube van for
work for, let's say, six months, for example? Would that apply?
Hon. M. Farnworth: In the scenario the member just outlined…. If I was the individual who was renting
it from you, I should be named. If I'm not, there's no penalty. The owner is, then,
the one who is responsible for all the paperwork and everything that goes along with
that.
T. Halford: Thank you to the minister for that. How will it work for a leased vehicle? How will
it be treated if it's a leased vehicle rented for less than a month, then?
Hon. M. Farnworth: For less than a month, the owner has the obligation to license, register and insure.
T. Halford: Is the minister at all concerned…? If you did a lease…. I guess it would be primarily
a rental for less than a month. That could open up a possible loophole.
Does the minister have any concerns? Have staff looked at that, potentially, being
a loophole in this?
Hon. M. Farnworth: No. It doesn't become a loophole. It is the status quo right now. It is, in fact,
a practice right across the country.
Clauses 1 and 2 approved.
On clause 3.
T. Halford: With the addition of the new subsection (4.01), there's a reference…. It's a reference
to the prescribed fees that the lessee would have to pay. These fees would remain
the same for a lessee as what they are currently for an….
Basically, would the fees remain the same for a lessee as what they are currently
for an owner?
Hon. M. Farnworth: The prescribed fees don't change. The insurance premium doesn't change. But the taxes
are the responsibility of the owner of the vehicle.
[2:45 p.m.]
T. Halford: Thank you to the minister for that. The lessee should not expect any additional expenses
or fees as a result of these amendments whatsoever.
Hon. M. Farnworth: There should be no change. What they pay today is what they will pay tomorrow.
Clauses 3 to 35 inclusive approved.
On clause 36.
[The bells were rung.]
The Chair: A division has been called. We are in recess until three o'clock, please.
The committee recessed from 2:45 p.m. to 3:10 p.m.
[S. Chant in the chair.]
The Chair: I call Committee of the Whole on Bill 28, Motor Vehicle Amendment Act (No. 2), 2023,
back to order.
We are on clause 36.
On clause 36 (continued) .
T. Halford: Do any of the amendments made to
part 9, specifically the motor vehicle impoundment,
make it easier in any way to impound a leased vehicle or trailer that could be used
to, say, for example, commit a crime?
Hon. M. Farnworth: The answer is no.
Clauses 36 to 46 inclusive approved.
On clause 47.
T. Halford: With the addition of the new subsection (4.1), there's a reference to prescribed fees
that the lessee would have to pay. So would these fees remain the same for the lessee
as they are currently for an owner?
Hon. M. Farnworth: Everything is the same.
T. Halford: Thank you to the minister for that response.
I'm assuming I'm going to know what the answer is, but I'll ask it anyway, because
it's similar to a previous
section that I asked on. It's: can the lessees expect any
additional expenses, fees, as a result of these amendments that they didn't have before,
specific to (4.1)?
Hon. M. Farnworth: If you take the 14th letter of the alphabet and the 15th letter of the alphabet, that
is your answer. It is no.
Clauses 47 to 74 inclusive approved.
On clause 75.
T. Halford: I think the minister just made another contribution to No Context BC, but we'll wait
for that to come out.
So just in general, when does the minister anticipate this act will come into force?
Hon. M. Farnworth: We anticipate the act will come into force with the regulations in the summer of 2024.
T. Halford: With the changes in this bill, how…? I think the minister talked about consultation
and the lists that had been done prior to tabling this legislation. But how will this
be communicated to individuals, companies, industries?
[3:15 p.m.]
Specifically, is it done through an awareness campaign? If the minister can list how
that work will occur, that would be helpful.
Hon. M. Farnworth: After royal assent has been given, ICBC will be re-engaging with the stakeholders
in terms of the change management and the implementation. So the people who are consulted….
We'll be going back in terms of "Okay, we're going to roll it out," and make sure
that they're consulted and they know how it's going to roll out.
Clause 75 approved.
Title approved.
Hon. M. Farnworth: I move the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 3:16 p.m.
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