Bill 224 (Legislature 24, Session 2)

L24 S2 1027

Alberta — Bills

1998 BILL 224 Second Session, 24th Legislature, 47 Elizabeth II TH E LEG ISLATIVE ASSEM BLY O F ALBERTA BILL 224 CONFLICTS OF INTEREST AMENDMENT ACT, 1998 (NO. 2) M RS. SO ETAERT First Reading Second Reading Committee of the Whole Third Reading Royal Assent

Bill 224 M rs. Soetaert BILL 224 1998 CONFLICTS OF INTEREST AMENDMENT ACT, 1998 (NO. 2) (Assented to , 1998 ) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Am ends SA 1991 cC -22.1 1 The C o n flicts o f In terest A ct is amended by this Act 2 The title and

chapter number of the Act are repealed and the following is substituted: INTEGRITY IN GOVERNMENT AND POLITICS ACT

CHAPTER I - 6.1 3

Section 1 is amended (

a) in subsection (1) (

i) by adding the following after clause (a): (a.1) "former Leader" means a person who has ceased to be the Leader; (ii) by adding the following after clause (b): (b.1) "Leader" means the Leader of Her Majesty's loyal opposition; (iii) by adding the following after clause (h): (h.1) "public office holder" means 1

Explanatory Notes 1 Amends

chapter C-22.1 of the Statutes of Alberta, 1991. 2 New title and

chapter number. 3(a)

Section 1(1) presently reads: 1(1) In this Act, (a) "Crown" m eans the Crown in right of Alberta and includes a Provincial agency; (b) "form er M inister" m eans a person who has ceased to be a m em ber of the Executive Council; (c) “M em ber" m eans a M em ber of the Legislative Assem bly and includes a M inister whether or not the M inister is a M em ber of the Legislative Assem bly; (d) "M inister" m eans a m em ber of the Executive Council; (e) “m inor child" includes a m inor to whom a M em ber has 1 Explanatory Notes

(

i) a Member, (ii) a public official appointed by the Crown or the Legislative Assembly and having a classification of executive manager or higher, or (iii) an executive assistant of a Member or a Minister or other staff member of a Member or a Minister directly appointed by the Member or the Minister; 2

dem onstrated a settled intention to treat as a child of his fam ily; (f) “private corporation" m eans a corporation none of whose shares are publicly-traded securities; (g) “private interest" does not include the following; (

i) an interest in a m atter (

A) that is of general application, (

B) that affects a person as one of a broad class of the public, or (

C) that concerns the rem uneration and benefits of a M em ber; (ii) an interest that is trivial; (iii) an interest of a M em ber relating to publicly-traded securities in the M em ber's blind trust; (h) "Provincial agency" m eans a Provincial agency as defined in the Financial Adm inistration Act but does not include a corporation enum erated in

section 2(5) of that Act; (i) “publicly-traded securities” m eans (

i) securities of a corporation that are listed or posted for trading on a recognized stock exchange, or (ii) securities of a corporation that has m ore than 15 shareholders and any of whose issued securities were part of a distribution to the public; (j) “securities" m eans (

i) shares of any class or series of shares of a corporation, or (ii) bonds, debentures, notes or other evidence of indebtedness or guarantees of a corporation, whether secured or unsecured, but does not include shares or units in a m utual fund; (k) “senior officer" m eans, with reference to a corporation, (

i) the president, vice-president, secretary, com ptroller, 2 Explanatory Notes

(

b) in subsection (7) by repealing clause (

c) and substituting the following: (

c) the terms of the trust, in the opinion of the Ethics Commissioner, (

i) give the trustee sole power over investment decisions, (ii) preclude the public office holder from having any knowledge of the specific investments in the trust at any time after a deposit in the trust, (iii) requires the trustee to give the public office holder a written report stating the value, but not the nature, of the assets in the trust, (iv) requires the trustee to give the public office holder sufficient information to permit the Member to submit returns as required by the Incom e Tax Act (Canada) and to give the same information to Revenue Canada, (

v) requires the trustee to give the Ethics Commissioner copies of all information and reports given to the public office holder, and (vi) permits the public office holder, at any time, to instruct the trustee to liquidate all or part of 3

treasurer or general m anager of the corporation, or (ii) any other person who perform s functions for the corporation sim ilar to those norm ally perform ed by persons holding the offices referred to in subclause (i); (l) "spouse" includes a party to a relationship between a m an and a wom an who are living together on a bona fide dom estic basis but does not include a spouse who is living apart from the M em ber if the M em ber and spouse have separated pursuant to a written separation agreem ent or if their support obligations and fam ily property have been dealt with by a court order; (m ) “Standing Com m ittee" m eans the Standing Com m ittee on Legislative O ffices. (b)

Section 1(7) presently reads: (7 ) For the purposes of this Act, a trust is a "blind trust" if it m eets the following criteria: (

a) a M em ber is the settlor of the trust; (

b) the trustee is approved as trustee by the Ethics Com m issioner after the Ethics Com m issioner is satisfied that there is no relationship between the M em ber and the trustee that would affect or would appear to affect the discharge of the trustee’s duties; (

c) the term s of the trust, in the opinion of the Ethics Com m issioner, (

i) give the trustee sole power over investm ent decisions, (ii) preclude the M em ber from having any knowledge of the specific investm ents in the trust at any tim e after a deposit in the trust, (iii) require that the M em ber m ay deposit in the trust only securities verified by the Ethics Com m issioner as being publicly-traded securities, and (iv) require the trustee to invest only in publicly-traded securities or in certificates of deposit, deposit receipts or other evidence of indebtedness given by a bank, trust com pany, credit union or treasury branch in 3 Explanatory Notes

the trust and pay over the proceeds to the public office holder. 4 The following is added after

Part 1:

PART 1.1 OBJECT AND PRINCIPLES O bject 1.1 The object of this Act is to enhance public confidence in the integrity of public office holders and the decision making process in government (

a) while encouraging experienced and competent persons to seek and accept public office, (

b) while facilitating interchange between the private and the public sector, (

c) by establishing clear rules of conduct respecting conflict of interest for all public office holders, and (

d) by minimizing the possibility of conflicts arising between the private interests and public duties of public office holders and providing for the resolution of such conflicts in the public interest should they arise. Principles 1.2 Every public office holder shall conform to the following principles: (

a) public office holders shall act with honesty and uphold the highest ethical standards so that public confidence and trust in the integrity, objectivity and impartiality of government are conserved and enhanced; (

b) public office holders have an obligation to perform their official duties and arrange their private affairs in a manner that will bear the closest public scrutiny, an obligation that is not fully discharged by simply acting within the law; 4

consideration of a deposit m ade with the bank, trust com pany, credit union or treasury branch. 4 Objects and principles of the Act. 4 Explanatory Notes

(

c) public office holders, in fulfilling their official duties and responsibilities, shall make decisions in the public interest and with regard to the merits of each case; (

d) public office holders shall not have private interests, other than those permitted pursuant to this Act, that would be affected particularly or significantly by government actions in which they participate; (

e) on appointment to office, and thereafter, public office holders shall arrange their private affairs in a manner that will prevent real, potential or apparent conflicts of interest from arising, but if such conflict does arise between the private interests of a public office holder and the official duties and responsibilities of that public office holder, the conflict shall be resolved in favour of the public interest; (

f) public office holders shall not solicit or accept transfers of economic benefit, other than incidental gifts, customary hospitality, or other benefits of nominal value, unless the transfer is pursuant to an enforceable contract or property right of the public office holder; (

g) public office holders shall not step out of their official roles to assist private entities or persons in their dealings with the government where this would result in preferential treatment to any person; (

h) public office holders shall not knowingly take advantage of, or benefit from, information that is obtained in the course of their official duties and responsibilities and that is not generally available to the public; (

i) public office holders shall not directly or indirectly use, or allow the use of, government property of any kind, including property leased to the government, for anything other than officially approved activities; (

j) public office holders shall not act, after they leave 5

5 Explanatory Notes

public office, in such a manner as to take improper advantage of their previous office. 5

Section 2 is repealed and the following is substituted: D ecisions furthering private interests 2(1) A public office holder breaches this Act if the public office holder takes

part in a decision in the course of carrying out the public office holder's office or powers knowing that the decision might further a private interest of (

a) the public office holder, (

b) a person directly associated with the public office holder, (

c) the public office holder's minor child, or (

d) except in the performance of public duties, any other person.

(2) A public office holder who has reasonable grounds to believe that the public office holder, the public office holder's minor child or a person directly associated with the public office holder has a private interest in a matter that is before the Executive Council, a committee of the Executive Council, the Legislative Assembly or a committee appointed by a resolution of the Legislative Assembly, shall, if present at a meeting considering the matter (

a) disclose the general nature of the interest, and (

b) withdraw from the meeting without voting or participating in the consideration of the matter.

(3) Where a public office holder has complied with subsection (2), the Clerk of the Legislative Assembly or the secretary of the meeting shall record (

a) the disclosure, (

b) the general nature of the conflict of interest disclosed, and (

c) the withdrawal of the public office holder from the meeting. 6

Section 2 presently reads: 2(1) A M em ber breaches this Act if the M em ber takes

part in a decision in the course of carrying out the M em ber’s office or powers knowing that the decision m ight further a private interest of the M em ber, a person directly associated with the M em ber or the M em ber’s m inor child.

(2) W here a m atter for decision in which a M em ber has reasonable grounds to believe that the M em ber, the M em ber’s m inor child or a person directly associated with the M em ber has a private interest is before a m eeting of the Executive Council or a com m ittee of the Executive Council or the Legislative Assem bly or a com m ittee appointed by resolution of the Legislative Assem bly, the M em ber m ust declare that interest and m ust withdraw from the m eeting without voting on or participating in the consideration of the m atter. (3 ) A M em ber who fails to com ply with subsection (2) breaches this Act.

(4) If a m atter referred to in subsection (1) requires a decision of a M inister, the M inister m ay request another M inister to act in the M inister’s stead in connection with the decision and the M inister to whom it is referred m ay act in the m atter for the period of tim e necessary. 6 Explanatory Notes

(4) The Clerk of the Legislative Assembly or the secretary of the meeting shall file the information recorded under subsection (3) with the Ethics Commissioner (

a) in the case of a meeting of the Legislative Assembly or a committee of the Legislative Assembly, as soon as practicable, and (

b) in the case of a meeting of the Executive Council or a committee of the Executive Council, as soon as practicable after the Executive Council's decision on the matter which has been the subject of the disclosure is made public.

(5) The Ethics Commissioner shall keep all information filed under subsection (4) in a central record kept for that purpose and shall (

a) make the central record available for inspection by any person without charge during normal business hours, and (

b) on request by any person provide a copy of the record or portion of it on payment of a reasonable copying charge.

(6) A public office holder who fails to comply with subsection (2) breaches this Act.

(7) If a matter referred to in subsection (1) requires a decision of a Minister, the Minister may request another Minister to act in the Minister's stead in connection with the decision and the Minister to whom it is referred may act in the matter for the period of time necessary. 6

Section 3 is repealed and the following is substituted: Influence 3 A public office holder breaches this Act if the public office holder uses the public office holder's office or powers to influence or seek to influence a decision to be made by or on behalf of the Crown to further a private interest of (

a) the public office holder, (

b) a person directly associated with the public office holder, 7

Section 3 presently reads: 3 A M em ber breaches this Act if the M em ber uses the M em ber's office or powers to influence or to seek to influence a decision to be m ade by or on behalf of the Crown to further a private interest of the M em ber, a person directly associated with the M em ber or the M em ber’s m inor child. 7 Explanatory Notes

(

c) the public office holder's minor child, or (

d) except in the performance of public duties, any other person. 7

Section 4 is repealed and the following is substituted: Insider inform ation 4 A public office holder breaches this Act if the public office holder uses or communicates information not available to the general public that was gained by the public office holder in the course of carrying out the public office holder's office or powers to further or to seek to further a private interest of (

a) the public office holder, (

b) a person directly associated with the public office holder, (

c) the public office holder's minor child, or (

d) except in the performance of public duties, any other person. 8

Section 9(2) is repealed and the following is substituted:

(2) A public office holder or a person directly associated with a public office holder may accept a payment of public money from the Crown or a person acting on behalf of the Crown if (

a) in the case of a Member, the payment is made to the Member pursuant to

Part 3 or 4 of the Legislative Assem bly Act or otherwise in the Member's capacity as a Member of the Legislative Assembly, as a member of the Executive Council or as the holder of an office to which the Member is elected by the Legislative Assembly or appointed by or at the nomination of the Lieutenant Governor in Council or a Minister of the Crown in right of Alberta, and the payment is authorized by or pursuant to (

i) the Legislative Assem bly Act or any other enactment, 8

Section 4 presently reads: 4 A M em ber breaches this Act if the M em ber uses or com m unicates inform ation not available to the general public that was gained by the M em ber in the course of carrying out the M em ber’s office or powers to further or seek to further a private interest of the M em ber, a person directly associated with the M em ber or the M em ber’s m inor child. 8

Section 9(2) presently reads: 9(2) A M em ber or a person directly associated with the M em ber m ay accept a paym ent of public m oney from the Crown or a person acting on behalf of the Crown if (

a) the paym ent is m ade to the M em ber pursuant to

Part 3 or 4 of the Legislative Assem bly Act or otherwise in the M em ber’s capacity as a M em ber of the Legislative Assem bly, as a m em ber of the Executive Council or as the holder of an office to which the M em ber is elected by the Legislative Assem bly or appointed by or at the nom ination of the Lieutenant G overnor in Council or a M inister of the Crown in right of Alberta, and the paym ent is authorized by or pursuant to (

i) the Legislative Assem bly Act or any other enactm ent, (ii) a resolution or order of the Legislative Assem bly, or (iii) a supply vote, (

b) the recipient is, according to the enactm ent authorizing the 8 Explanatory Notes

(ii) a resolution or order of the Legislative Assembly, or (iii) a supply vote or Heritage Fund vote as defined in the Financial Adm inistration Act, (

b) in the case of a public office holder other than a Member, the payment is made to the public office holder pursuant to the Public Service Act or any other enactment, (

c) the recipient is, according to the enactment authorizing the payment, entitled to the payment as a matter of right or subject only to compliance with the requirements of that enactment that are conditions precedent to the payment, (

d) the recipient of the payment (

i) is, according to the enactment under which the payment is authorized, eligible to apply for the payment and complies with the requirements of that enactment that are conditions precedent to the payment, (ii) in respect of the recipient's application is given no preference not available to others, and (iii) receives no special benefit in relation to the recipient's application or the payment, or (

e) the payment is made under a contract that may be entered into without the public office holder being in breach of

section 8. 9

Section 11(1) is repealed and the following is substituted: D isclosure statem ents 11(1) Every public office holder shall file with the Ethics Commissioner a disclosure statement in the form provided by the Ethics Commissioner (

a) in the case of a Member, 9

paym ent, entitled to the paym ent as a m atter of right or subject only to com pliance with the requirem ents of that enactm ent that are conditions precedent to the paym ent, (

c) the recipient of the paym ent (

i) is, according to the enactm ent under which the paym ent is authorized, eligible to apply for the paym ent and com plies with the requirem ents of that enactm ent that are conditions precedent to the paym ent, (ii) in respect of the recipient's application is given no preference not available to others, and (iii) receives no special benefit in relation to the recipient's application or the paym ent, or (

d) the paym ent is m ade under a contract that m ay be entered into without the M em ber being in breach of

section 8 . 9

Section 11(1) presently reads: 11(1) Every M em ber shall file with the Ethics Com m issioner a disclosure statem ent in the form provided by the Ethics Com m issioner (

a) within 60 days after becom ing a M em ber of the Legislative Assem bly, (

b) within 60 days after being appointed to the Executive 9 Explanatory Notes

(

i) within 60 days of becoming a Member of the Legislative Assembly, and (ii) within 60 days of being appointed to the Executive Council if the Member has not filed a current disclosure statement as a Member of the Legislative Assembly, (

b) in the case of a public office holder other than a Member, within 60 days of becoming a public office holder, and (

c) in the case of all public office holders, in each subsequent year at the time specified by the Ethics Commissioner. 10

Section 12 is amended (

a) by repealing clause (

a) and substituting the following: (

a) shall include a statement, as of a date determined by the Ethics Commissioner, of the assets, liabilities and financial interests of the public office holder, so far as known to the public office holder after the public office holder has made reasonable efforts to discover them, of (

i) the public office holder's spouse and minor children, and (ii) any private corporation controlled by the public office holder and the public office holder's spouse and minor children, or any one or more of them, but not including investments in a blind trust, (

b) by striking out "and" after clause (c), by adding "and" at the end of clause (

d) and by adding the following after clause (d): (

e) shall include a list of all fees, gifts and benefits received from a person in a calendar year that exceed $200. 10

Council if the M em ber has not filed a current disclosure statem ent as a M em ber of the Legislative Assem bly, and (

c) in each subsequent year at the tim e specified by the Ethics Com m issioner. 10

Section 12 presently reads: 12 A disclosure statem ent (

a) shall include a statem ent, as of a date determ ined by the Ethics Com m issioner, of the assets, liabilities and financial interests of the M em ber and, so far as known to the M em ber, of (

i) the M em ber’s spouse and m inor children, and (ii) any private corporation controlled by the M em ber and the M em ber’s spouse and m inor children, or any one or m ore of them , but not including investm ents in a blind trust, (

b) need not include obligations being incurred for ordinary living expenses that will be discharged in the ordinary course of the M em ber’s affairs, (

c) shall include a statem ent of the incom e that the M em ber and, so far as known to the M em ber, any other person m entioned in clause (a), has received in the preceding 12 m onths or expects to receive in the next 12 m onths and, to the extent required by the Ethics Com m issioner, the sources of the incom e, and (

d) shall include a list of all fees, gifts and benefits approved for retention under

section 7 (2)(b). 10 Explanatory Notes

Section 14 is amended (

a) in clause (3) by striking out "and" after clause (a), by adding "and" at the end of clause (

b) and by adding the following after clause (b): (

c) the fees, gifts and benefits disclosed pursuant to

section 12(e), (

b) in subsection (4) by striking out clause (e). 12

Section 15(4) is repealed and the following is substituted:

(4) Where a person ceases to be a public office holder (

a) that person shall, within 30 days after ceasing to be a public office holder, furnish a return to the Ethics Commissioner showing (

i) the name and address of each person with whom the person became directly associated or with whom that person ceased to be directly associated on or after the date of that person's last return under this section, and (ii) the date on which the direct association began or terminated, as the case may be, and (

b) if that person again becomes a public office holder, that person shall, within 60 days after again becoming a public office holder, furnish a return to the Ethics Commissioner showing (

i) the name and address of each person with whom the public office holder became directly associated or with whom the public office holder ceased to be directly associated in the intervening period, and (ii) the date on which the direct association 11

Section 14(3) presently reads: (3 ) Except as provided in this section, a public disclosure statem ent shall identify (

a) the assets, liabilities, financial interests and sources of incom e, and (

b) the fees, gifts or benefits approved for retention under

section 7 (2)(b), as disclosed in the M em ber’s disclosure statem ent, but shall not state the am ount or value of them . 12

Section 15(4) presently reads: 15(4) W here a person ceases to be a M em ber by reason of dissolution of the Legislature or otherwise, (

a) that person shall, within 3 0 days after ceasing to be a M em ber, furnish a return to the Ethics Com m issioner showing (

i) the nam e and address of each person with whom the person becam e directly associated or with whom that person ceased to be directly associated on or after the date of that person's last return under this section, and (ii) the date on which the direct association began or term inated, as the case m ay be, and (

b) if that person again becom es a M em ber in the succeeding general election or by-election, as the case m ay be, that person shall, within 60 days after again becom ing a M em ber, furnish a return to the Ethics Com m issioner showing (

i) the nam e and address of each person with whom the M em ber becam e directly associated or with whom the M em ber ceased to be directly associated in the intervening period, and (ii) the date on which the direct association began or term inated, as the case m ay be. 11 Explanatory Notes

began or terminated, as the case may be. 13

Section 16(4) is amended by (

a) repealing clause (

a) and substituting the following: (

a) in the case of Members, payments made to or on behalf of the Member pursuant to

Part 3 of the Legislative Assem bly Act, (

b) by adding the following after clause (a): (a.1) in the case of public office holders other than Members, payments made to or on behalf of a public office holder pursuant to the Public Service Act, 14

Part 4 is repealed and the following is substituted: 12

Section 16(4) presently reads: 16(4) A report prepared under subsection (1) shall not include (

a) paym ents m ade to or on behalf of the M em ber pursuant to

Part 3 or 4 of the Legislative Assem bly Act, (

b) paym ents required to be included in a report under

section 43 of the Legislative Assem bly Act, (

c) paym ents of benefits under the Alberta H ealth Care Insurance Act, (

d) paym ents of social allowances or handicap benefits under the Social D evelopm ent Act, (

e) paym ents of handicap benefits under the Assured Incom e for the Severely H andicapped Act, (

f) paym ents under the Seniors Benefit Act, (

g) pensions under the W idows ’ Pension Act, (

h) com pensation paid under the W orkers’ Com pensation Act or Blind W orkers ’ Com pensation Act, (

i) paym ents m ade by way of student financial assistance under the Students Finance Act, (

j) senior citizen renter assistance grants under the Property Tax Reduction Act, (

k) paym ents m ade by way of refunds, or (

l) any other class of paym ents by the Crown if the disclosure in the report of the identity of the recipients would contravene any law in force in Alberta that contains confidentiality requirem ents in respect of that class of paym ents. 14

Part 4 presently reads: 12 Explanatory Notes

PART 4 MEMBERS OF THE EXECUTIVE COUNCIL AND THE LEADER OF HER MAJESTY’S OFFICIAL OPPOSITION R estriction on holdings 19(1) In this Part, (a) “Chair” means a Member appointed by the Lieutenant Governor in Council or a Minister as a chair of a Provincial agency; (b) “commodity” means, whether in the original or a processed state, any agricultural or forest product, mineral, metal, hydrocarbon fuel, currency or other

article of trade; (c) “futures contract” means a futures contract as defined in the Securities Act, and includes a contract to make or to take delivery of a specified quantity, quality, grade or size of a commodity.

(2) A Minister, the Leader or a Chair breaches this Act if the Minister, the Leader or the Chair after the expiration of the relevant period referred to in

section 21, holds or trades in publicly-traded securities, futures contracts or commodities. (3) Subsection (2) does not apply to publicly-traded securities, futures contracts or commodities held or traded by a Minister, the Leader or a Chair, as the case may be, in a blind trust in accordance with this Act. Em ploym ent restrictions 20(1) A Minister, the Leader or a Chair breaches this Act if the Minister, the Leader or the Chair, after the expiration of the period referred to in

section 21, (

a) engages in employment or in the practice of a profession, (

b) carries on a business, or (

c) holds an office or directorship other than in a social club, religious organization or political party, 13

PART 4 MEMBERS OF THE EXECUTIVE COUNCIL 19(1) A M inister breaches this Act if the M inister, after the expiration of the relevant period referred to in

section 21, owns or has a beneficial interest in publicly-traded securities. (2) Subsection (1) does not apply to publicly-traded securities held in the M inister’s blind trust in accordance with this Act. (3 ) A M inister does not breach subsection (1) if (

a) the M inister acquires ownership of or a beneficial interest in publicly-traded securities with the prior approval of the Ethics Com m issioner, or (

b) the M inister (

i) applies, prior to the expiration of the relevant period referred to in

section 21, to the Ethics Com m issioner for approval to retain ownership of or a beneficial interest in publicly-traded securities, and (ii) either obtains the Ethics Com m issioner's approval or, if the approval is refused, takes such steps as the Ethics Com m issioner directs with respect to the disposition of the ownership or beneficial interest.

(4) The Ethics Com m issioner m ay (

a) give an approval in respect of any publicly-traded securities under subsection (3 )(

a) or (

b) if the Ethics Com m issioner is of the opinion that they are securities of a corporation the interests of which are not likely to be affected by decisions of the G overnm ent, or (

b) give an approval in respect of any publicly-traded securities under subsection (3 )(

b) if the Ethics Com m issioner is of the opinion that disposition of the securities will cause financial loss to the M inister and the public interest does not require disposition by the M inister.

(5) An approval or direction given by the Ethics Com m issioner under subsection (3 ) m ay be subject to any conditions prescribed by the Ethics Com m issioner. 20(1) A M inister breaches this Act if the M inister, after the expiration of the period referred to in

section 21, 13 Explanatory Notes

that creates or appears to create a conflict between a private interest of the Minister, the Leader or the Chair and the Minister's, the Leader's or the Chair’s public duty.

(2) A Minister, the Leader or a Chair may carry on an activity referred to in subsection (1) in a way approved by the Ethics Commissioner if (

a) the Minister, the Leader or the Chair has disclosed the facts to the Ethics Commissioner, and (

b) the Ethics Commissioner is satisfied that the activity, if carried on in a way approved by the Ethics Commissioner, will not create or appear to create a conflict between a private interest of the Minister, the Leader or the Chair and the Minister's, the Leader's or the Chair’s public duty.

(3) For the purpose of this section, the management of routine personal financial interests does not constitute carrying on a business. Tim e for com pliance 21(1) For the purposes of sections 19(2) and 20(1), (

a) with respect to a person who becomes a Minister after this

Part comes into force, the period is 60 days after being appointed to the Executive Council, (

b) with respect to a person who is a Minister on the coming into force of this Part, the period is 60 days after the coming into force of this Part, (

c) with respect to a person who becomes the Leader after this

Part comes into force, the period is 60 days after becoming the Leader, (

d) with respect to a person who is the Leader on the coming into force of this Part, the period is 60 days after the coming into force of this Part, (

e) with respect to a person who becomes a Chair after this

Part comes into force, the period is 60 days after becoming a Chair, and 14

(

a) engages in em ploym ent or in the practice of a profession, (

b) carries on a business, or (

c) holds an office or directorship other than in a social club, religious organization or political party, that creates or appears to create a conflict between a private interest of the M inister and the M inister's public duty.

(2) A M inister m ay carry on an activity referred to in subsection (1) in a way approved by the Ethics Com m issioner if (

a) the M inister has disclosed the m aterial facts to the Ethics Com m issioner, and (

b) the Ethics Com m issioner is satisfied that the activity, if carried on in a way approved by the Ethics Com m issioner, will not create or appear to create a conflict between a private interest of the M inister and the M inister’s public duty. (3 ) For the purposes of this section, the m anagem ent of routine personal financial interests does not constitute carrying on a business. 21(1) For the purposes of sections 19(1) and 20(1), (

a) with respect to a person who becom es a M inister after this

Part com es into force, the period is 60 days after being appointed to the Executive Council, and (

b) with respect to a person who is a M inister on the com ing into force of this Part, the period is 60 days after the com ing into force of this Part, or such longer period as m ay be prescribed by the Ethics Com m issioner.

(2) For the purposes of

section 19(1), with respect to a M inister who acquires ownership of or a beneficial interest in publicly-traded securities by gift or inheritance, the period is 60 days after receiving the gift or inheritance or such longer period as m ay be prescribed by the Ethics Com m issioner. 14 Explanatory Notes

(

f) with respect to a person who is a Chair on the coming into force of this Part, the period is 60 days after the coming into force of this Part, or such longer period as may be prescribed by the Ethics Commissioner.

(2) For the purposes of

section 19(2), with respect to a Minister or the Leader who acquires ownership of or a beneficial interest in publicly-traded securities, futures contracts or commodities by gift or inheritance, the period is 60 days after receiving the gift or inheritance or such longer period as may be prescribed by the Ethics Commissioner. 15

Section 23 is repealed and the following is substituted: Investigation and inquiry 23(1) On receiving a request under

section 22 or where the Ethics Commissioner has reason to believe that a public office holder has acted or is acting in contravention of advice, recommendations or directions or any conditions of any approval or exemption given by the Ethics Commissioner to the public office holder under this Act, and on giving the public office holder concerned reasonable notice, the Ethics Commissioner may (

a) order a preliminary investigation to be conducted into the facts alleged, or (

b) order that a formal hearing be conducted.

(2) Upon receipt of the report of a preliminary investigation, the Ethics Commissioner may order a formal hearing to be conducted.

(3) The Ethics Commissioner may (

a) retain an investigator to conduct a preliminary investigation, (

b) retain a hearing officer to conduct a formal hearing, (

c) appoint a member of the Ethics Commissioner staff to conduct a preliminary investigation, or 15

Section 23 presently reads: 23

(1) O n receiving a request under

section 22 or where the Ethics Com m issioner has reason to believe that a M em ber has acted or is acting in contravention of advice, recom m endations or directions or any conditions of any approval or exem ption given by the Ethics Com m issioner to the M em ber under this Act, and on giving the M em ber concerned reasonable notice, the Ethics Com m issioner m ay conduct an investigation with or without conducting an inquiry.

(2) W hen conducting an inquiry under this section, the Ethics Com m issioner has the powers, privileges and im m unities of a com m issioner under the Public Inquiries Act. (3 ) If an inquiry is held, it shall be held in public unless the Ethics Com m issioner, in the interests of justice, decides that it is to be held in private.

(4) The Ethics Com m issioner m ay refuse to investigate or m ay cease to investigate an alleged breach under this Act if the Ethics Com m issioner is of the opinion that (

a) the request is frivolous or vexatious or was not m ade in good faith, or (

b) there are no or insufficient grounds to warrant an investigation or the continuation of an investigation.

(5) If the Ethics Com m issioner refuses to investigate or ceases to investigate an alleged breach, the Ethics Com m issioner shall so inform (

a) the M em ber against whom the allegation was m ade, and 15 Explanatory Notes

(

d) act as a hearing officer to conduct a formal hearing.

(4) When conducting a formal hearing under this section, the hearing officer has the powers, privileges and immunities of a commissioner under the Public Inquiries Act.

(5) If a formal hearing is held, it shall be held in public unless the Ethics Commissioner decides, in the interest of justice, that it is to be held in private.

(6) The Ethics Commissioner may refuse to order a preliminary investigation or a formal hearing of an alleged breach under this Act if the Ethics Commissioner is of the opinion that (

a) the request is frivolous or vexatious or was not made in good faith, or (

b) there are no or insufficient grounds to warrant a preliminary investigation or a formal hearing or the continuation of a preliminary investigation or a formal hearing.

(7) If the Ethics Commissioner refuses to order a preliminary investigation or a formal hearing, the Ethics Commissioner shall so inform (

a) the public office holder against whom the allegation was made, and (

b) the Speaker of the Legislative Assembly, the President of the Executive Council or the person who made the request under

section 22, as the case may be.

(8) Where the request is made under

section 22, the Ethics Commissioner shall report his findings (

a) in the case of allegations against a public office holder who is a Member, to the Speaker of the Legislative Assembly, (

b) in the case of allegations against a public office holder who is an executive assistant or other staff member of the Leader, to the Leader, and 16

(

b) the Speaker of the Legislative Assem bly, the President of the Executive Council or the person who m ade the request under

section 22, as the case m ay be,

(6) W here the request is m ade under

section 22(1), (3 ) or (4), the Ethics Com m issioner shall report his findings to the Speaker of the Legislative Assem bly. (7 ) The Ethics Com m issioner m ay, before reporting his findings to the Speaker of the Legislative Assem bly under subsection (6), provide a copy of the report (

a) to the M em ber against whom the allegation was m ade, and (

b) to the leader in the Legislative Assem bly of the political party to which the M em ber belongs. (8 ) W here the request is m ade under

section 22(5), the Ethics Com m issioner shall report his findings to the President of the Executive Council.

(9) If the Ethics Com m issioner is of the opinion (

a) that a request m ade by a M em ber under

section 22(1) was frivolous or vexatious or was not m ade in good faith, or (

b) that a request was m ade under

section 22(1) by a person at the request of a M em ber and that the request was frivolous or vexatious or was not m ade in good faith, the Ethics Com m issioner m ay state that in a report to the Speaker of the Legislative Assem bly.

(10) The Speaker of the Legislative Assem bly shall lay the report referred to in subsection (9) before the Legislative Assem bly and the Legislative Assem bly, after considering the report, m ay (

a) find the M em ber referred to in subsection (9) in contem pt of the Legislative Assem bly pursuant to

section 10 of the Legislative Assem bly Act, or (

b) order the M em ber referred to in subsection (9) to pay to the M em ber against whom the allegation was m ade the costs of the proceeding incurred by the M em ber against whom the allegation was m ade, or both. 16 Explanatory Notes

(

c) in the case of all other public office holders, to the President of the Executive Council.

(9) The Ethics Commissioner may, before reporting his findings to the Speaker of the Legislative Assembly under subsection (8)(a), to the Leader under subsection 8(b), or to the President of the Executive Council under subsection (8)(c), provide a copy of the report to (

a) the public office holder against whom the allegation was made, and (

b) in the case of a Member, to the leader in the Legislative Assembly of the political party to which the Member belongs.

(10) If the Ethics Commissioner is of the opinion that a request made by a public office holder, or by a person at the request of the public office holder, under

section 22(1) was frivolous or vexatious or was not made in good faith, the Ethics Commissioner may (

a) in the case of a public office holder who is a Member, state that in a report to the Speaker of the Legislative Assembly, (

b) in the case of a public office holder who is an executive assistant or other staff member of the Leader, state that in a report to the Leader, or (

c) in the case of a public office holder other than a Member, state that in a report to the President of the Executive Council.

(11) Where the Speaker of the Legislative Assembly receives a report from the Ethics Commissioner pursuant to subsection (10), the Speaker shall lay the report before the Legislative Assembly and the Legislative Assembly may, after considering the report, (

a) find the Member referred to in subsection (10) in contempt of the Legislative Assembly pursuant to

section 10 of the Legislative Assem bly Act, or (

b) order the Member referred to in subsection (10) to pay to the Member against whom the allegation was made the costs of the proceeding incurred by 17

17 Explanatory Notes

the Member against whom the allegation was made, or both.

(12) Where the President of the Executive Council receives a report from the Ethics Commissioner pursuant to subsection (10), the President of the Executive Council may take such appropriate measures as may be determined by the President of the Executive Council including, where applicable, discharge or termination of appointment. 16

Section 25(1) and (2) are repealed and the following is substituted: Ethics C om m issioner’s report 25(1) A report by the Ethics Commissioner to the Speaker of the Legislative Assembly under

section 23(8)(a), to the Leader under

section 23(8)(

b) or to the President of the Executive Council under

section 23(8)(

c) shall set out (

a) the facts found by the Ethics Commissioner, and (

b) in the case of a Member, the Ethics Commissioner's recommendation for the sanction, if any, that the Legislative Assembly may impose on the Member for the breach.

(2) In the case of a Member, the Ethics Commissioner may recommend any one of the following sanctions: (

a) that the Member be reprimanded; (

b) that a penalty be imposed on the Member in an amount recommended by the Ethics Commissioner; (

c) that the Member's right to sit and vote in the Legislative Assembly be suspended for a stated period or until the fulfilment of a condition; (

d) that the Member be expelled from membership of the Legislative Assembly; and may also recommend the alternative of a lesser sanction or no sanction if the Member carries out recommendations in the report for the rectification of 18

Section 25 reads in part: 25(1) A report by the Ethics Com m issioner to the Speaker of the Legislative Assem bly under

section 23 (6) shall set out (

a) the facts found by the Ethics Com m issioner, and (

b) the Ethics Com m issioner’s findings as to whether or not the M em ber has breached this Act and, if so, (

i) the nature of the breach, and (ii) the Ethics Com m issioner’s recom m endation for the sanction, if any, that the Legislative Assem bly m ay im pose on the M em ber for the breach.

(2) The Ethics Com m issioner m ay recom m end any one of the following sanctions: (

a) that the M em ber be reprim anded; (

b) that a penalty be im posed on the M em ber in an am ount recom m ended by the Ethics Com m issioner; (

c) that the M em ber’s right to sit and vote in the Legislative Assem bly be suspended for a stated period or until the fulfilm ent of a condition; (

d) that the M em ber be expelled from m em bership of the Legislative Assem bly; and m ay also recom m end the alternative of a lesser sanction or no sanction if the M em ber carries out recom m endations in the report for the rectification of the breach. 18 Explanatory Notes

the breach. 17

Section 26 is repealed and the following is substituted: Tabling of report 26(1) On receiving a report from the Ethics Commissioner under

section 23(8)(a), the Speaker of the Legislative Assembly shall lay the report before the Legislative Assembly if it is then sitting or, if it is then not sitting, within 15 days after the commencement of the next sitting.

(2) If the Legislative Assembly is not sitting when the Ethics Commissioner reports his findings to the Speaker of the Legislative Assembly under

section 23(8)(a), the Speaker shall make copies of the report available to the public.

(3) The Legislative Assembly shall deal with a report of the Ethics Commissioner within 30 days after the tabling of the report, or such other period determined by resolution of the Legislative Assembly. 18

Part 6 is repealed and the following is substituted:

PART 6 FORMER MINISTERS AND FORMER LEADERS D ealings w ith G overnm ent by form er M inisters and Leaders 29(1) Except in accordance with subsection (3), a former Minister or a former Leader shall not, for a period of 1 year after ceasing to be a Minister or a Leader (

a) accept or solicit (

i) on behalf of himself or any other person, a contract or benefit from a department or a Provincial agency, or (ii) employment with a person or entity, or appointment to the board of directors or equivalent body of an entity with which the former Minister or former Leader had significant official dealings during the former 19

Section 26 presently reads: 26(1) O n receiving a report from the Ethics Com m issioner under

section 23 (6), the Speaker of the Legislative Assem bly shall lay the report before the Legislative Assem bly if it is then sitting or, if it is not then sitting, within 15 days after the com m encem ent of the next sitting.

(2) If the Legislative Assem bly is not sitting when the Ethics Com m issioner reports his findings to the Speaker of the Legislative Assem bly under

section 23 (6), the Speaker shall m ake copies of the report available to the public. (3 ) The Legislative Assem bly shall deal with a report of the Ethics Com m issioner within 60 days after the tabling of the report, or such other period determ ined by a resolution of the Legislative Assem bly. 18

Part 6 presently reads:

PART 6 FORMER MINISTERS 29(1) Except in accordance with subsection (3 ), a form er M inister shall not, for a period of 6 m onths after ceasing to be a m em ber of the Executive Council, (

a) on behalf of him self or any other person, solicit or accept a contract or benefit from a departm ent of the public service or a Provincial agency with which the form er M inister had significant official dealings during the form er M inister’s last year of service as a M inister, (

b) accept em ploym ent with a person or entity, or appointm ent to the board of directors or equivalent body of an entity, with which the form er M inister had significant official dealings during the form er M inister’s last year of service as a M inister, or (

c) act on a com m ercial basis in connection with any ongoing m atter in connection with which the form er M inister, while in office, directly acted for or advised a departm ent of the public service or a Provincial agency involved in the 19 Explanatory Notes

Minister's or former Leader's last year of service as a Minister or a Leader, as the case may be, or (

b) act on a commercial basis in connection with any ongoing matter in connection with which the former Minister or the former Leader, while in office, directly acted for or advised a department of the public service or a Provincial agency involved in the matter.

(2) For the purposes of subsection (1), a former Minister or a former Leader has had significant official dealings with a department of the public service, Provincial agency, person or entity if the former Minister or former Leader, while in office, was directly and substantively involved with the department, Provincial agency, person or entity in an important matter. (3) Subsection (1) does not apply (

a) to any contract with or benefit from the Crown if the conditions on which and the manner in which the contract or benefit is awarded, approved or given are the same for all persons similarly entitled, or if the award, approval or grant results from an impartially administered process open to a significant class of persons, or (

b) to an activity, contract or benefit if the Ethics Commissioner has exempted the activity, contract or benefit from the operation of subsection (1) and the former Minister or the former Leader observes and performs any conditions on which the Ethics Commissioner has granted the exemption.

(4) A former Minister or a former Leader who contravenes this

section and who at the time of the contravention is a Member of the Legislative Assembly breaches this Act.

(5) A former Minister or a former Leader who contravenes this

section and who at the time of the contravention is not a Member of the Legislative Assembly is guilty of an offence and liable on

summary conviction to a fine not exceeding $20 000. 20

m atter.

(2) For the purposes of subsection (1), a form er M inister has had significant official dealings with a departm ent of the public service, Provincial agency, person or entity if the form er M inister, while in office, was directly and substantively involved with the departm ent, Provincial agency, person or entity in an im portant m atter. (3 ) Subsection (1) does not apply (

a) to any contract with or benefit from the Crown if the conditions on which and the m anner in which the contract or benefit is awarded, approved or given are the sam e for all persons sim ilarly entitled, or if the award, approval or grant results from an im partially adm inistered process open to a significant class of persons, or (

b) to an activity, contract or benefit if the Ethics Com m issioner has exem pted the activity, contract or benefit from the operation of subsection (1) and the form er M inister observes and perform s any conditions on which the Ethics Com m issioner has granted the exem ption.

(4) A form er M inister who contravenes this

section and who at the tim e of the contravention is a M em ber of the Legislative Assem bly breaches this Act.

(5) A form er M inister who contravenes this

section and who at the tim e of the contravention is not a M em ber of the Legislative Assem bly is guilty of an offence and liable on sum m ary conviction to a fine not exceeding $20 000. 3 0 A M inister breaches this Act if the M inister knowingly awards or approves a contract or gives a benefit to a form er M inister who is acting in contravention of

section 29. 20 Explanatory Notes

Breach for aw arding contracts 30 A Minister breaches this Act if the Minister knowingly awards or approves a contract or gives a benefit to a former Minister or a former Leader who is acting in contravention of

section 29. 19

Section 31(2) is repealed and the following is substituted: (2) the Ethics Commissioner may not be (

a) a Member of the Legislative Assembly, or (

b) hold any office or engage in any occupation or business that might cause a conflict with the Ethics Commissioner's duties. 20 Except in the following provisions, "Member" is struck out wherever it occurs and "public office holder" is substituted:

Section 1(1)(

b) and 1(1)(c);

Section 5;

Section 6;

Section 10. 21 This Act comes into force on Proclamation. 21

Section 31 (2) presently reads: 31(2) The Ethics Commissioner may not be a Member of the Legislative Assembly. 20 Consequential amendments. 21 Coming into force. 21 Explanatory Notes Title: 1998 (24th, 2nd) Bill 224, Conflicts of Interest Amendment Act, 1998 (No. 2)

Document details

Collection	Alberta — Bills
Citation	L24 S2 1027
Type	bill
Volume / chapter	L24 S2 1027
Language	en
Format	json
Source	PROVINCIAL
Identifier	6447cc9277226ba443bcaf36d38255b1dea079ae

Source file is stored in the law ingest library (json).