Municipal Conflict of Interest Act

Bills that amended this Act0

No published amendment links yet for this Act.

Sections58

• 1Definitions

  1 In this Act, “child” means a child born within or outside marriage and includes an adopted child and a person whom a parent has demonstrated a settled intention to treat as a child of his or her family; (“enfant”) “controlling interest” means the interest that a person has in a corporation when the person beneficially owns, directly or indirectly, or exercises control or direction over, equity shares of the corporation carrying more than 10 per cent of the voting rights attached to all equity shares of the corporation for the time being outstanding; (“intérêts majoritaires”) “council” means the council of a municipality; (“conseil”) “elector” means, (a) in respect of a municipality, or a local board thereof, other than a school board, a person entitled to vote at a municipal election in the municipality, and (b) in respect of a school board, a person entitled to vote at the election of…

• 1.
• 1.1Principles

  1.1 The Province of Ontario endorses the following principles in relation to the duties of members of councils and of local boards under this Act: 1. The importance of integrity, independence and accountability in local government decision-making. 2. The importance of certainty in reconciling the public duties and pecuniary interests of members. 3. Members are expected to perform their duties of office with integrity and impartiality in a manner that will bear the closest scrutiny. 4. There is a benefit to municipalities and local boards when members have a broad range of knowledge and continue to be active in their own communities, whether in business, in the practice of a profession, in community associations, and otherwise. 2017, c. 10, Sched. 3, s. 1. Section Amendments with date in force (d/m/y) 2017, c. 10, Sched. 3, s. 1 - 01/03/2019

• 2.
• 2Indirect pecuniary interest

  2 For the purposes of this Act, a member has an indirect pecuniary interest in any matter in which the council or local board, as the case may be, is concerned, if, (a) the member or his or her nominee, (i) is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public, (ii) has a controlling interest in or is a director or senior officer of, a corporation that offers its securities to the public, or (iii) is a member of a body, that has a pecuniary interest in the matter; or (b) the member is a partner of a person or is in the employment of a person or body that has a pecuniary interest in the matter. R.S.O. 1990, c. M.50, s. 2.

• 3.
• [s3]
• 3Interest of certain persons deemed that of member

  3 For the purposes of this Act, the pecuniary interest, direct or indirect, of a parent or the spouse or any child of the member shall, if known to the member, be deemed to be also the pecuniary interest of the member. R.S.O. 1990, c. M.50, s. 3; 1999, c. 6, s. 41 (2); 2005, c. 5, s. 45 (3); 2021, c. 4, Sched. 11, s. 23 (4). Section Amendments with date in force (d/m/y) 1999, c. 6, s. 41 (2) - 01/03/2000 2005, c. 5, s. 45 (3) - 13/06/2005 2021, c. 4, Sched. 11, s. 23 (4) - 19/04/2021

• 4.
• [s4]

  Exceptions

• 2021
• 5.
• [s5]
• 4Where ss. 5, 5.2 and 5.3 do not apply

  4 Sections 5, 5.2 and 5.3 do not apply to a pecuniary interest in any matter that a member may have, (a) as a user of any public utility service supplied to the member by the municipality or local board in like manner and subject to the like conditions as are applicable in the case of persons who are not members; (b) by reason of the member being entitled to receive on terms common to other persons any service or commodity or any subsidy, loan or other such benefit offered by the municipality or local board; (c) by reason of the member purchasing or owning a debenture of the municipality or local board; (d) by reason of the member having made a deposit with the municipality or local board, the whole or part of which is or may be returnable to the member in like manner as such a deposit is or may be returnable to all other electors; (e) by reason of having an interest in any property affe…

• 6.
• [s6]

  Duty of Member

• 7.
• [s7]
• 5When present at meeting at which matter considered

  5 (1) Where a member, either on his or her own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter and is present at a meeting of the council or local board at which the matter is the subject of consideration, the member, (a) shall, prior to any consideration of the matter at the meeting, disclose the interest and the general nature thereof; (b) shall not take part in the discussion of, or vote on any question in respect of the matter; and (c) shall not attempt in any way whether before, during or after the meeting to influence the voting on any such question. R.S.O. 1990, c. M.50, s. 5 (1). Where member to leave closed meeting (2) Where the meeting referred to in subsection (1) is not open to the public, in addition to complying with the requirements of that subsection, the member shall forthwith leave the meeting or the…

• 8.
• 5.1Written statement re disclosure

  5.1 At a meeting at which a member discloses an interest under section 5, or as soon as possible afterwards, the member shall file a written statement of the interest and its general nature with the clerk of the municipality or the secretary of the committee or local board, as the case may be. 2017, c. 10, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2017, c. 10, Sched. 3, s. 4 - 01/03/2019

• 9.
• [s9]
• 10.
• 5.2Influence

  5.2 (1) Where a member, either on his or her own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter that is being considered by an officer or employee of the municipality or local board, or by a person or body to which the municipality or local board has delegated a power or duty, the member shall not use his or her office in any way to attempt to influence any decision or recommendation that results from consideration of the matter. 2017, c. 10, Sched. 3, s. 4. Exception (2) However, if a municipality delegates a power to suspend the remuneration paid to a member under subsection 223.4 (5) of the Municipal Act, 2001 or subsection 160 (5) of the City of Toronto Act, 2006 to a person or body, and the person or body is considering exercising that power with respect to a member, subsection (1) of this section does not preve…

• [s10]
• 11.
• 5.3Head of council

  5.3 (1) Where a head of council of a municipality either on their own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter of the municipality and has a power or duty listed in subsection (2) with respect to the matter, the head of council, (a) shall, upon becoming aware of the interest in the matter, disclose the interest by filing a written statement of the interest and its general nature with the clerk of the municipality; (b) shall not use the power or exercise the duty with respect to the matter; and (c) shall not use their office in any way to attempt to influence any decision or recommendation of the municipality that results from consideration of the matter. 2022, c. 18, Sched. 3, s. 2. Same (2) For the purposes of subsection (1), the powers and duties are the powers and duties of a head of council in Part VI.1 of …

• [s11]

  Record of Disclosure

• 12.
• [s12]
• 13.
• 6Disclosure to be recorded in minutes

  6 (1) Every declaration of interest and the general nature thereof made under section 5 shall, where the meeting is open to the public, be recorded in the minutes of the meeting by the clerk of the municipality or secretary of the committee or local board, as the case may be. R.S.O. 1990, c. M.50, s. 6 (1). Idem (2) Every declaration of interest made under section 5, but not the general nature of that interest, shall, where the meeting is not open to the public, be recorded in the minutes of the next meeting that is open to the public. R.S.O. 1990, c. M.50, s. 6 (2).

• [s13]

  Registry

• 14.
• [s14]
• 15.
• 6.1Requirement to establish registry

  6.1 (1) Every municipality and local board shall establish and maintain a registry in which shall be kept, (a) a copy of each statement filed under section 5.1 or 5.3; and (b) a copy of each declaration recorded under section 6. 2017, c. 10, Sched. 3, s. 5; 2022, c. 18, Sched. 3, s. 3. Access to registry (2) The registry shall be available for public inspection in the manner and during the time that the municipality or local board, as the case may be, may determine. 2017, c. 10, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2017, c. 10, Sched. 3, s. 5 - 01/03/2019 2022, c. 18, Sched. 3, s. 3 - 23/11/2022

• [s15]

  Remedy for Lack of Quorum

• [s16]
• 7Quorum deemed constituted

  7 (1) Where the number of members who, by reason of the provisions of this Act, are disabled from participating in a meeting is such that at that meeting the remaining members are not of sufficient number to constitute a quorum, then, despite any other general or special Act, the remaining number of members shall be deemed to constitute a quorum, provided such number is not less than two. R.S.O. 1990, c. M.50, s. 7 (1). Application to judge (2) Where in the circumstances mentioned in subsection (1), the remaining number of members who are not disabled from participating in the meeting is less than two, the council or local board may apply to a judge without notice for an order authorizing the council or local board, as the case may be, to give consideration to, discuss and vote on the matter out of which the interest arises. R.S.O. 1990, c. M.50, s. 7 (2). Power of judge to declare s. 5,…

• [s17]

  Action where Contravention Alleged

• [s18]
• 8Application

  8 (1) An elector, an Integrity Commissioner of a municipality or a person demonstrably acting in the public interest may apply to a judge for a determination of the question of whether, (a) a member has contravened section 5, 5.1, 5.2 or 5.3; or (b) a former member contravened section 5, 5.1, 5.2 or 5.3 while he or she was a member. 2017, c. 10, Sched. 3, s. 7; 2022, c. 18, Sched. 3, s. 4. Six-week period (2) An application may only be made within six weeks after the applicant became aware of the alleged contravention. 2017, c. 10, Sched. 3, s. 7. Exception (3) Despite subsection (2), an application may be made more than six weeks after the applicant became aware of the alleged contravention if all of the following conditions are satisfied: 1. The applicant applied to an Integrity Commissioner for an inquiry under section 223.4.1 of the Municipal Act, 2001 or under section 160.1 of the C…

• 8 #18Application
• 9Power of judge

  9 (1) If the judge determines that the member or former member contravened section 5, 5.1, 5.2 or 5.3, the judge may do any or all of the following: 1. Reprimand the member or former member. 2. Suspend the remuneration paid to the member for a period of up to 90 days. 3. Declare the member’s seat vacant. 4. Disqualify the member or former member from being a member during a period of not more than seven years after the date of the order. 5. If the contravention has resulted in personal financial gain, require the member or former member to make restitution to the party suffering the loss, or, if the party’s identity is not readily ascertainable, to the municipality or local board, as the case may be. 2017, c. 10, Sched. 3, s. 7; 2022, c. 18, Sched. 3, s. 4. Same (2) In exercising his or her discretion under subsection (1) the judge may consider, among other matters, whether the member or…

• 10Repealed

  10 repealed: 2017, c. 10, Sched. 3, s. 7. Section Amendments with date in force (d/m/y) 1997, c. 31, s. 156 (2) - 01/01/1998 2017, c. 10, Sched. 3, s. 7 - 01/03/2019

• 9 #20Power of judge
• 11Appeal to Divisional Court

  11 (1) An appeal lies from any order made under section 9 to the Divisional Court in accordance with the rules of court. R.S.O. 1990, c. M.50, s. 11 (1); 2017, c. 10, Sched. 3, s. 8. Judgment or new trial (2) The Divisional Court may give any judgment that ought to have been pronounced, in which case its decision is final, or the Divisional Court may grant a new trial for the purpose of taking evidence or additional evidence and may remit the case to the trial judge or another judge and, subject to any directions of the Divisional Court, the case shall be proceeded with as if there had been no appeal. R.S.O. 1990, c. M.50, s. 11 (2). Appeal from order or new trial (3) Where the case is remitted to a judge under subsection (2), an appeal lies from the order of the judge to the Divisional Court in accordance with the provisions of this section. R.S.O. 1990, c. M.50, s. 11 (3). Section Amen…

• 12Proceedings not invalidated but voidable

  12 (1) A member’s failure to comply with section 5, 5.1, 5.2 or 5.3 does not invalidate any proceedings in respect of a matter referred to in those sections, but those proceedings are voidable in the circumstances described in subsection (2). 2017, c. 10, Sched. 3, s. 9; 2022, c. 18, Sched. 3, s. 4. Declaring proceedings void (2) Subject to subsection (3), if a member has failed to comply with section 5, 5.1, 5.2 or 5.3 in respect of a matter referred to in those sections, the municipality or local board, as the case may be, may declare the proceedings to be void before the second anniversary of the date of the passing of the by-law or resolution authorizing the matter. 2017, c. 10, Sched. 3, s. 9; 2022, c. 18, Sched. 3, s. 4. Exception (3) Subsection (2) does not apply if declaring the proceedings to be void would adversely affect the rights that any person who acted in good faith and w…

• [s23]
• 13Other proceedings prohibited

  13 (1) A proceeding that relates to a member’s or former member’s alleged conflict of interest and seeks a remedy described in subsection 9 (1) shall be brought only under this Act. 2017, c. 10, Sched. 3, s. 9. Same (2) Subsection (1) does not affect the power of a municipality or a local board to reprimand a member or suspend a member’s remuneration under subsection 223.4 (5) or (6) of the Municipal Act, 2001 or under subsection 160 (5) or (6) of the City of Toronto Act, 2006. 2017, c. 10, Sched. 3, s. 9. Section Amendments with date in force (d/m/y) 2017, c. 10, Sched. 3, s. 9 - 01/03/2019

• [s24]

  General

• 12 #24Proceedings not invalidated but voidable
• 14Insurance

  14 (1) Despite section 279 of the Municipal Act, 2001 or section 218 of the City of Toronto Act, 2006, as the case may be, the council of every municipality may at any time pass by-laws, (a) for contracting for insurance; (b) despite the Insurance Act, to enable the municipality to act as an insurer; and (c) for exchanging with other municipalities in Ontario reciprocal contracts of indemnity or inter-insurance in accordance with Part XIII of the Insurance Act, to protect a member of the council or of any local board thereof who has been found not to have contravened section 5, 5.1, 5.2 or 5.3 against any costs or expenses incurred by the member as a result of a proceeding brought under this Act, and for paying on behalf of or reimbursing the member for any such costs or expenses. R.S.O. 1990, c. M.50, s. 14 (1); 2002, c. 17, Sched. F, Table; 2006, c. 32, Sched. C, s. 33 (2); 2017, c. 10…

• 13 #26Other proceedings prohibited
• 15Conflict with other Acts

  15 In the event of conflict between any provision of this Act and any provision of any general or special Act, the provision of this Act prevails. R.S.O. 1990, c. M.50, s. 15. ______________

• [s27]