Protecting Small Business Act, 2020 — Bill 192 (42nd Parliament, 1st Session)

Bill 192, 42-1

Ontario — Bills

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Bill 192, Protecting Small Business Act, 2020

Clark, Hon. Steve Minister of Municipal Affairs and Housing

Royal Assent received. Statutes of Ontario 2020,

chapter 10

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Bill 192 Royal Assent (PDF)

EXPLANATORY

NOTE

This Explanatory Note was written as a reader’s

aid to Bill 192 and does not form part of the law.

Bill 192 has been enacted as

Chapter 10 of the Statutes of Ontario, 2020.

The

Bill amends the Commercial Tenancies Act to

prohibit certain actions by landlords if the landlord is or would be eligible to

receive assistance from the Canada Emergency Commercial Rent Assistance for

small businesses program; however, the rules cease to apply if the landlord is

approved to receive the assistance. Judges are prohibited from ordering a writ

of possession that is effective during the non-enforcement period if the basis

for ordering the writ is an arrears of rent. As well, the amendments prohibit landlords

from exercising a right of re-entry and from seizing any goods or chattels as

a distress for arrears of rent during the non-enforcement period. The

non-enforcement period begins on the day subsection 2 (1) of the Protecting Small Business Act, 2020 comes into force and ends

on September 1, 2020 or on an earlier day to be named by proclamation of the

Lieutenant Governor. If a landlord exercises a right of re-entry between May 1,

2020 and the start of the non-enforcement period, the landlord must restore

possession of the premises to the tenant or, if unable to do so, must

compensate the tenant for damages. Also, if a landlord seizes a tenant’s goods

between May 1, 2020 and the start of the non-enforcement period as a distress

for arrears of rent, the landlord must return any unsold goods to the tenant.

Bill 192 2020

Act to amend the Commercial Tenancies Act

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

(1) The definition of “landlord” in

section 1 of the Commercial Tenancies Act is amended by striking out

“Parts II and III” and substituting “Parts II, III and IV”.

(2) The

definition of “landlord” in

section 1 of the Act, as amended by subsection (1),

is amended by striking out “Parts II, III and IV” and substituting “Parts II

and III”.

(1) The Act is amended by adding the following Part:

Part

Non-enforcement

period

this Part,

“non-enforcement

period” means the period that begins on the day subsection 2 (1) of the Protecting Small Business Act, 2020 comes into force and

ends on the day this

section is repealed.

Application

(1) Subject

to subsection (2), this Part applies to a tenancy in respect of which the

landlord satisfies either of the following criteria:

1. The

landlord is eligible to receive assistance under the Canada Emergency

Commercial Rent Assistance for small businesses program.

2. The

landlord would be eligible to receive assistance under the Canada Emergency

Commercial Rent Assistance for small businesses program if the landlord entered

into a rent reduction agreement with the tenant containing a moratorium on eviction.

Same

(2) If

a landlord described in subsection (1) is approved to receive assistance under

the Canada Emergency Commercial Rent Assistance for small businesses program in

respect of the tenancy, the following paragraphs apply:

Section

81 does not apply in respect of an action or application by the landlord for a

writ of possession, if the action or application was commenced after the

landlord was approved to receive the assistance.

2. Sections

82 and 83 do not apply in respect of an exercise of a right of re-entry by the

landlord, if the right was exercised after the landlord was approved to receive

the assistance.

3. Sections

84 and 85 do not apply in respect of a seizure of goods or chattels as a

distress for arrears of rent by the landlord, if the seizure was done after the

landlord was approved to receive the assistance.

Same

(3) This

Part applies despite any other Part of this Act or any provision in an

agreement or any common law rule.

Eviction

orders for rent arrears not effective during the non-enforcement period

(1) Despite

anything in this or any other Act, a judge shall not order a writ of possession

that is effective during the non-enforcement period in respect of a tenancy

described in

section 80 if the basis for ordering the writ is an arrears of

rent.

Same

(2) Subsection

(1) applies in respect of an action or application that was commenced before,

on or after the day subsection 2 (1) of the Protecting

Small Business Act, 2020 comes into force.

re-entry during the non-enforcement period

landlord shall exercise a right of re-entry during the non-enforcement period.

Restore

possession and compensate for re-entry before the non-enforcement period

(1) If a landlord exercised a right

of re-entry during the period that begins on May 1, 2020 and ends immediately

before the day subsection 2 (1) of the Protecting Small

Business Act, 2020 comes into force, the landlord shall, as soon as

reasonably possible,

(

a) restore

possession of the premises to the tenant unless the tenant declines to accept

possession; or

(

b) if

the landlord is unable to restore possession of the premises to the tenant for

any reason other than the tenant declining to accept possession, compensate the

tenant for all damages sustained by the tenant by reason of the inability to

restore possession.

Tenancy

deemed reinstated

(2) If

a landlord restores possession of a premises to a tenant under subsection (1),

landlord and the tenant agree otherwise.

distress during the non-enforcement period

landlord shall, during the non-enforcement period, seize any goods or chattels

as a distress for arrears of rent.

Return

goods seized before the non-enforcement period

If, during the period that begins on May 1, 2020 and ends

immediately before the day subsection 2 (1) of the Protecting

Small Business Act, 2020 comes into force, a landlord seized any goods

or chattels as a distress for arrears of rent, the landlord shall, as

soon as reasonably possible, return to the tenant all of the seized goods and

chattels that are unsold as of the day subsection 2 (1) of the Protecting Small Business Act, 2020 comes into force.

Liability

for re-entry and seizure of goods

(1) A

landlord who contravenes

section 82 or 84 or who fails to comply with clause 83

(1) (

a) or

section 85 is liable to the person aggrieved for any damages

sustained by the person aggrieved as a result of the contravention or

non-compliance.

Same

(2) For

greater certainty, subsection (1) applies in addition to any other remedy

available by law to the person aggrieved.

(2) Part

IV of the Act, as enacted by subsection (1), is repealed.

Commencement

(1) Subject to subsection (2), this Act comes into force on the day

it receives Royal Assent.

(2) Subsections

1 (2) and 2 (2) come into force on September 1, 2020, or on an earlier day to

be named by proclamation of the Lieutenant Governor.

Short

title

The

short title of this Act is the Protecting Small

Business Act, 2020 .

Bill 192 Original (PDF)