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3rd Session, 42nd Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 74

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2021


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE FUEL TAX ACT

C.C.S.M. c. F192 amended

1

The Fuel Tax Act is amended by this Part.

2

Subsection 6(2.2) is repealed.

PART 2

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

C.C.S.M. c. H24 amended

3

The Health and Post Secondary Education Tax Levy Act is amended by this Part.

4(1)

Subsection 3(3.10) is amended in the formula in clause (a), and in clauses (c) and (f), by striking out "$1,500,000" and substituting "$1,750,000".

4(2)

Subsection 3(3.12) is amended by striking out "$1,500,000" and substituting "$1,750,000".

4(3)

Subsection 3(3.14) is amended

(a) by striking out "$1,500,000" wherever it occurs and substituting "$1,750,000"; and

(b) by striking out "$3,000,000" and substituting "$3,500,000".

4(4)

Subsection 3(3.16) is amended in the formula in clause (a), and in clauses (b) and (f), by striking out "$1,500,000" and substituting "$1,750,000".

5(1)

Subsection 3.2(2) is amended

(a) in the section heading and in the part before the formula, by striking out "$3,000,000" and substituting "$3,500,000"; and

(b) in the formula, by striking out "$1,500,000" and substituting "$1,750,000".

5(2)

Subsection 3.2(3) is amended, in the section heading and in the part before clause (a), by striking out "$3,000,000" and substituting "$3,500,000".

PART 3

THE INCOME TAX ACT

C.C.S.M. c. I10 amended

6

The Income Tax Act is amended by this Part.

7

The following is added after clause 5(1)(h):

(i) the individual's teaching expense tax credit, if any, determined under section 5.15.

8

The following is added after section 5.14:

Teaching Expense Tax Credit

Eligibility for tax credit

5.15(1)

For a taxation year after 2020, an individual is eligible for a teaching expense tax credit if the individual is entitled to a refundable credit under subsection 122.9(2) of the federal Act for the year.

Teaching expense tax credit

5.15(2)

The teaching expense tax credit of an eligible individual for a taxation year is the lesser of the following amounts:

(a) $150;

(b) 15% of the total of all amounts each of which is an eligible supplies expense of the individual, as determined under subsection 122.9(1) of the federal Act, that was incurred and paid for in the taxation year with respect to supplies used in Manitoba.

9

The following is added after subsection 7.6(5):

Calculating period to qualify for frequent filming bonus

7.6(5.1)

A two-year period referred to in clause (c) of the description of B in the formula in subsection 7.6(2) that includes March 31, 2020, is suspended on that day until the earlier of

(a) the first day after March 31, 2020, that principal photography of an eligible film of the principal owner took place; and

(b) March 31, 2022.

The period of the suspension is not included in determining the two-year period.

10(1)

Clause 10.4(1)(b) is replaced with the following:

(b) 15% of the publisher's eligible printing costs for the taxation year.

10(2)

Subsection 10.4(3) is amended

(a) by repealing clauses (a) and (b) of the definition "eligible book";

(b) by repealing clause (b) of the definition "eligible printing costs"; and

(c) by replacing the definition "book publishing labour costs" with the following:

"book publishing labour costs" of a publisher for a taxation year means the total of

(a) the amounts paid by the publisher in that taxation year as salary or wages to its employees who were resident in Manitoba on December 31 of that taxation year; and

(b) 65% of the amounts paid by the publisher in that taxation year as fees to an individual who is resident in Manitoba and not an employee of the publisher, or to a corporation with a permanent establishment in Manitoba;

to the extent that the amounts are

(c) reasonable in the circumstances;

(d) related to the publication of hardcover books, paperback books or electronic books; and

(e) not related to the marketing or promotion of books. (« coûts en main-d'œuvre d'édition »)

11(1)

Subsection 10.4.1(1) is amended in the descriptions of L and R2 in the formula by striking out "2022" and substituting "2025".

11(2)

Subsection 10.4.1(3) is amended in clause (b) of the definition "eligible printing revenue" by striking out "2022" wherever it occurs and substituting "2025".

12(1)

Subsection 10.5(2) is replaced with the following:

Claim for credit

10.5(2)

No credit may be claimed under this section for a taxation year after the filing-due date for the taxation year.

12(2)

Subclause 10.5(2.3)(b)(ii) is replaced with the following:

(ii) has not been repaid by the corporation, and

12(3)

Subsection 10.5(4) is amended

(a) by adding the following definitions:

"add-on", in relation to an interactive digital media product, means, subject to the regulations, either of the following when developed or provided to maintain or enhance the user's experience when using the product:

(a) data management and analysis;

(b) product enhancements and updates, including additional content for the product. (« complément »)

"commercial use" means, subject to the regulations, use for the purpose of generating revenue from any of the following:

(a) the sale or licensing of an interactive digital media product or add-on by a corporation to one or more persons most of whom deal at arm's length with the corporation;

(b) the sale or licensing of an interactive digital media product or add-on by a corporation to a person who does not deal with the corporation at arm's length for resale or licensing by the person to one or more other persons most of whom deal at arm's length with the person and the corporation;

(c) the sale or licensing of goods or services from within an interactive digital media product to users of the product, commonly known as "in-app purchases";

(d) third party advertising displayed to users while they are using the interactive digital media product.

It includes, in relation to an add-on to an interactive digital media product, the continuing use of the product, with the add-on, to generate revenue in any manner described in clauses (a) to (d). (« usage commercial »)

(b) in the definition "labour expense", in the part before clause (a), by striking out "and before 2023";

(c) in the definition "marketing and distribution expense",

(i) by replacing clause (b) with the following:

(b) is incurred and paid by the corporation after the project's commencement date;

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

(b.1) does not relate to advertising, promoting or distributing an add-on;

(d) by replacing the definitions "eligible product" and "eligible project" with the following:

"eligible product" means an interactive digital media product developed as an eligible project. (« produit admissible »)

"eligible project" means a project of a corporation, certified by the minister to be an eligible project of the corporation,

(a) to develop an interactive digital media product primarily for commercial use; or

(b) to develop or provide, primarily for commercial use, one or more add-ons for an interactive digital media product that, with the inclusion of the add-ons, continues to qualify as an interactive digital media product. (« projet admissible »)

12(4)

Subsection 10.5(6) is amended

(a) in the part before clause (a), by striking out everything after "an interactive digital media product" and substituting "or to develop or provide one or more add-ons for an interactive digital media product, the minister may issue to the corporation a certificate that";

(b) by repealing clause (b); and

(c) by striking out "and" at the end of clause (c) and adding the following after clause (c):

(c.1) sets out the period for which labour expenses may be claimed in respect of the project;

(c.2) sets out the period for which marketing and distribution expenses, if any, may be claimed in respect of the project; and

12(5)

Subsection 10.5(7) is amended

(a) in clause (b), by adding "or the add-on to be developed or provided" at the end;

(b) in clause (c),

(i) by adding ", or the add-on is to be developed or provided," after "product is to be developed", and

(ii) by striking out "purchaser" wherever it occurs and substituting "person";

(c) in clause (d),

(i) by striking out "purchaser" and substituting "person", and

(ii) by adding "or the add-on" at the end;

(d) by replacing clause (e) with the following:

(e) an estimate of the corporation's eligible labour expenses for the project, the date by which it expects those expenses to be incurred and any government assistance to be received in relation to those expenses;

(e.1) if applicable, an estimate of the corporation's eligible marketing and distribution expenses for the project, the date by which it expects those expenses to be incurred and any government assistance to be received in relation to those expenses;

(e) in clause (f), by striking out "and an estimated completion date for the project".

12(6)

The following is added after subsection 10.5(7):

Transitional

10.5(7.1)

For the purpose of applying subsection (7) to a project with a commencement date after April 6, 2021, and before January 1, 2022, subsection (7) is to be read without reference to

(a) "and before the commencement date of the project," in the part before clause (a); and

(b) "proposed" in clause (f).

Amended certificate of eligibility

10.5(7.2)

Upon application by a corporation that holds a certificate of eligibility issued under subsection (6), the minister may amend the certificate with respect to any of the following:

(a) the estimate of the tax credit;

(b) a period or periods to be covered by the certificate;

(c) any other information that the minister considers appropriate or necessary.

Application for amended certificate

10.5(7.3)

A corporation's application for an amended certificate of eligibility under subsection (7.2) must be made in a form approved by the minister and must include

(a) any changes to the information provided by the corporation under subsection (7) that is no longer accurate;

(b) any new information relevant to an extension of a period to be covered by the certificate; and

(c) any other information requested by the minister.

12(7)

Subsection 10.5(8) is replaced with the following:

Tax credit certificate

10.5(8)

The minister,

(a) upon application by a corporation in accordance with subsection (9), and

(b) upon being satisfied that the corporation qualifies for a tax credit under this section for an eligible project for a period covered by a certificate of eligibility;

must issue a tax credit certificate.

Content of tax credit certificate

10.5(8.1)

A tax credit certificate issued by the minister under subsection (8) must set out

(a) the name, address and business number of the corporation and the identifier of the project;

(b) the amount of the tax credit;

(c) the taxation year to which the tax credit applies; and

(d) any other information that the minister considers appropriate or necessary.

12(8)

Subsection 10.5(9) is amended

(a) in clause (b), by adding ", or amended certificate of eligibility," after "certificate of eligibility";

(b) in clause (c), by striking out everything after "commencement date";

(c) by replacing subclause (d)(ii) with the following:

(ii) if applicable, the corporation's marketing and distribution expenses;

(d) in clause (e),

(i) in subclause (i), by striking out everything after "wishes to claim" and substituting "a credit under this section,", and

(ii) in subclause (ii), by striking out "has been completed and".

12(9)

Subsection 10.5(10) is amended

(a) in clause (a), by striking out "of eligibility or a tax credit certificate"; and

(b) by replacing clause (b) with the following:

(b) revoke a certificate of eligibility, or amended certificate of eligibility, for a project if it is not carried out as proposed or ceases to meet the requirements for certification as an eligible project.

12(10)

Subsection 10.5(13) is amended

(a) by adding the following after clause (a.1):

(a.2) extending or limiting the meaning of "add-on" or "commercial use" as defined in subsection (4);

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

(e.1) establishing an additional credit not exceeding the amount, if any, which a corporation's credit has been reduced by subsection (2.3) and the method by which the additional credit may be claimed;

13

Paragraph 11.8(2)(b)(i)(A) and subsection 11.8(2.1) are amended by striking out "2022" and substituting "2023".

14(1)

Subsection 11.13(3) is amended

(a) in the part before clause (a),

(i) by striking out "June 11, 2014" and substituting "April 6, 2021", and

(ii) by striking out "$67,500" and substituting "$120,000";

(b) in subclauses (b)(i) and (ii), by striking out "before 2023" and substituting "before April 7, 2021";

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

(b.1) the lesser of $225,000 and 45% of the total of all amounts each of which is

(i) the cost to the investor of an eligible investment issued to the investor in the taxation year, after April 6, 2021, and before 2023, or

(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year, after April 6, 2021, and before 2023;

(d) by replacing subclause (c)(i) with the following:

(i) the total of all amounts each of which is the amount determined under clause (a) or (b) for any of the 10 immediately preceding taxation years or the amount determined under clause (b.1) for any of the 10 immediately preceding taxation years or the 3 immediately following taxation years,

(e) in paragraphs (c)(ii)(A) and (B), by striking out "$67,500" and substituting "$120,000"; and

(f) by striking out everything after clause (c).

14(2)

Subsection 11.13(4) is amended

(a) by repealing clause (b); and

(b) by adding the following as clause (c):

(c) the references in paragraphs (3)(c)(ii)(A) and (B) to "$120,000" are to be read as

(i) "$45,000" in relation to each preceding taxation year that ended before June 12, 2014, and

(ii) "$67,500" in relation to each preceding taxation year that ended after June 11, 2014, and before April 7, 2021.

15

Subsection 14(1) is amended by striking out "subsections 153(1) to (3)" and substituting "subsections 153(1), (1.01) and (1.1) to (3)".

PART 4

THE INSURANCE CORPORATIONS TAX ACT

C.C.S.M. c. I50 amended

16

The Insurance Corporations Tax Act is amended by this Part.

17

Subsection 4(2) is amended, in the part before clause (a),

(a) by striking out "after 2017" and substituting "after 2020"; and

(b) by striking out "1.25%" and substituting "1%".

PART 5

THE RETAIL SALES TAX ACT

C.C.S.M. c. R130 amended

18

The Retail Sales Tax Act is amended by this Part.

19(1)

Subsection 1(1) is amended

(a) by adding the following definitions:

"online accommodation platform" means, subject to the regulations, an online marketplace that enables or facilitates

(a) retail sales of lodging located in Manitoba, and

(b) the collection of payment on behalf of the person providing the lodging; (« plateforme d'hébergement en ligne »)

"online sales platform" means, subject to the regulations, an online marketplace that enables or facilitates

(a) retail sales in the province of tangible personal property, and

(b) the collection of payment on behalf of the online seller; (« plateforme de vente en ligne »)

"online seller" means a person who, by means of an online sales platform, makes retail sales in the province of the following:

(a) tangible personal property,

(b) any taxable service or insurance contract related to the property; (« vendeur en ligne »)

(b) in the definition "off-road vehicle", in the part before clause (a), by striking out ", except in section 2.2,";

(c) in the French version of the definition "promotion publicitaire"

(i) in clause (b), by striking out "de logements" and substituting "d'hébergement", and

(ii) in clause (c), by striking out "des logements" and substituting "de l'hébergement";

(d) in the definition ""purchase price" or "sale price"", by adding the following after clause (a):

(a.1) any charge or fee paid in connection with the purchase of lodging by means of an online accommodation platform, whether paid to the person providing the lodging or the operator of the platform, if the lodging cannot be purchased without paying the charge or fee,

(a.2) any charge or fee paid in connection with the purchase, by means of an online sales platform, of tangible personal property and any taxable service or insurance contract related to the property, whether paid to the online seller or the operator of the platform if the property, service or contract cannot be purchased without paying the charge or fee,

(e) in the definition "vendor", by adding the following after clause (a):

(a.1) a person who operates an online accommodation platform or online sales platform,

(f) by replacing the definition "seller" with the following:

"seller" includes

(a) a lessor,

(b) a person from whom any right, title or interest in tangible personal property passes under a sale,

(c) a person who renders a taxable service under a sale, and

(d) a person who operates an online accommodation platform or an online sales platform; (« vendeur »)

19(2)

Subsection 1(1.2) is amended in the part before clause (a) by striking out "the definition" and substituting "the definitions "online sales platform", "purchaser" and".

20

Clause 2(1.2)(a) of the French version is amended

(a) in the part before subclause (i), by striking out "d'un logement" and substituting "d'une résidence"; and

(b) in subclause (i), by striking out "lequel" and substituting "laquelle".

21(1)

Subsection 2.2(1) is amended

(a) in the definition "average wholesale price", in the part before clause (a), by striking out "other than a motorcycle" and substituting "or off-road vehicle";

(b) in the definition "motor vehicle", by striking out everything after "The Highway Traffic Act"; and

(c) by repealing the definitions "current resale value" and "off-road vehicle".

21(2)

Subsection 2.2(2) is replaced with the following:

Application

2.2(2)

This section applies to the purchase or other acquisition of a motor vehicle, trailer or off-road vehicle only if

(a) the motor vehicle, trailer or off-road vehicle is required to be registered under The Drivers and Vehicles Act; and

(b) tax in respect of the purchase or other acquisition has not been paid to a registered vehicle dealer.

This section does not relieve a registered vehicle dealer of the vendor's duty under subsection 9(2) to collect and remit the tax payable on the purchase of the vehicle.

21(3)

Subsection 2.2(5) is amended

(a) in the part of clause (a) before subclause (i), by striking out ", other than a motorcycle," and substituting "or off-road vehicle"; and

(b) by striking out "and" at the end of clause (a) and repealing clause (b).

21(4)

Clause 2.2(10)(d) is amended

(a) by replacing subclause (i) with the following:

(i) in the case of a motor vehicle, its average wholesale price when it was sold, if that amount is greater than the actual selling price and the person selling the vehicle, at the time that they purchased it, paid tax on its average wholesale price in accordance with this section,

(b) by repealing subclause (ii).

22

Clause 3(36)(a) of the French version is amended by striking out "d'un logement dans lequel" and substituting "d'une résidence dans laquelle".

23(1)

Subsection 4(1) is amended

(a) by replacing clause (a) with the following:

(a) the provision of lodging, whether or not a membership is required;

(b) in subclause (b)(iii),

(i) by striking out "a transmitter" and substituting "an electronic device", and

(ii) by striking out "that transmitter" and substituting "that electronic device";

(c) in subclause (b)(iii.1),

(i) in paragraph (A), by striking out "a transmitter" and substituting "an electronic device", and

(ii) in paragraph (B), by striking out "that transmitter" and substituting "that electronic device";

(d) by striking out "or" at the end of subclause (b)(iv), adding "or" at the end of subclause (v) and adding the following after subclause (v):

(vi) that is described in clause (d) of the definition "telecommunication service" in subsection (3) and the purchaser of the service is ordinarily resident in the province;

(e) by repealing clause (j); and

(f) by adding the following as clause (k):

(k) a tanning service that uses a device to produce ultraviolet radiation.

23(2)

The following is added after subsection 4(1):

When lodging not taxable

4(1.0.1)

The provision of lodging is not a taxable service in any of the following circumstances:

(a) the lodging is provided for a continuous period of at least one month;

(b) the lodging

(i) is not purchased by means of an online accommodation platform, and

(ii) is provided in an establishment that has three or fewer rooms with sleeping accommodation for tenants;

(c) the lodging is provided by a charitable or non-profit organization in its facilities during the course of operating a recreational camp program primarily for children 17 years of age or under, or for underprivileged or disabled persons.

23(3)

Subsection 4(1.1) is amended

(a) in the part before clause (a),

(i) by striking out "clause 4(1)(a)" and substituting "clause (1.0.1)(a)", and

(ii) in the French version, by striking out "un logement est réputé être un logement" and substituting "l'hébergement est réputé être"; and

(b) in clause (c) of the French version, by striking out "du logement" and substituting "de l'hébergement".

23(4)

Subsection 4(3) is amended

(a) by adding the following definition:

"electronic device" means a device or facility by means of which a purchaser of a telecommunication service may

(a) send, receive, download or view a telecommunication under that service, or

(b) use software; (« dispositif électronique »)

(b) in the definition "line" in clause (a), by striking out "transmitters" and substituting "electronic devices";

(c) in the definition "telecommunication service", by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and adding the following after clause (c):

(d) a right, whether exercised or not, to download, view or access, by means of an electronic device, one or more of the following telecommunications:

(i) an audio program,

(ii) music,

(iii) a ring tone,

(iv) a television program, motion picture or other video.

(d) by replacing the definition "telecommunication" with the following:

"telecommunication" means a message consisting of signs, signals, words, images, symbols, sounds or intelligence of any kind emitted or sent by means of a wire, cable, radio, optical or other similar technical system; (« télécommunication »)

(e) by repealing the definition "transmitter".

23(5)

Subsection 4(13) is amended

(a) in clause (a), by striking out "a transmitter" wherever it occurs and substituting "an electronic device"; and

(b) in clause (b) of the French version, by striking out "d'un gîte" and substituting "d'hébergement".

24

Subsection 5(7) is amended by striking out "subsection 9(2.3), (2.4) or (2.6) or 21(5) or section 21.1" and substituting "subsection 9(2.3), (2.3.2), (2.4) or (2.6) or 21(5) or section 21.1 or 21.2".

25(1)

Clauses 9(2)(c) and (d) are replaced with the following:

(c) remit the tax proceeds to the minister in accordance with section 4.2 of The Tax Administration and Miscellaneous Taxes Act and the regulations under this Act; and

(d) file returns with the director in accordance with section 4.2 of The Tax Administration and Miscellaneous Taxes Act and the regulations under this Act.

25(2)

Subsection 9(2.3) is amended, in the part before clause (a),

(a) by adding "but subject to subsection (2.3.1)" after "Despite subsection (2)";

(b) in the English version, by striking out "his or her" and substituting "their"; and

(c) in the English version, by striking out "he or she acquires" and substituting "they acquire".

25(3)

The following is added after subsection 9(2.3):

Sales made by means of platform

9(2.3.1)

Subsection (2.3) does not apply

(a) to the operator of an online accommodation platform or online sales platform; or

(b) in respect of sales made by means of an online accommodation platform or an online sales platform.

Exception for leases of motor vehicles

9(2.3.2)

The operator of an online sales platform is not required to remit tax in respect of the lease of a vehicle, and any taxable service or insurance contract related to the lease, made by means of that platform if the tax is remitted by the online seller.

25(4)

Clause 9(2.6)(c) of the French version is amended by striking out "au gîte" and substituting "à l'hébergement".

25(5)

Subsection 9(2.7) of the French version is amended

(a) in the section heading, by striking out "de services";

(b) by striking out "de services"; and

(c) by striking out "ces services" and substituting "l'hébergement".

26

Section 21.1 is replaced with the following:

Vendor not required to file return or remit tax

21.1

Despite subsection 9(2), if a vendor has remitted the amount to be remitted on account of the tax payable in respect of a transaction, no other vendor is required to file a return or remit any tax payable in respect of the transaction.

27

The following is added after section 21.1:

Provider of lodging not required to be registered or remit tax

21.2(1)

A provider of lodging sold only by means of an online accommodation platform is not required to be registered as a vendor or to remit tax in respect of those sales if the tax is remitted by the operator of the platform.

Online seller not required to be registered or remit tax

21.2(2)

An online seller who makes retail sales in the province only by means of an online sales platform is not required to be registered as a vendor or to remit tax in respect of those sales if the tax is remitted by the operator of the platform.

28(1)

Subsection 26(8.1) is amended

(a) in clause (a), by striking out ", "current resale value"";

(b) in subclause (b)(i), by striking out "other than a motorcycle" and substituting "or off-road vehicle"; and

(c) by striking out "and" at the end of subclause (b)(i) and repealing subclause (ii).

28(2)

Clause 26(15)(a) is replaced with the following:

(a) the purchaser of a motor vehicle or off-road vehicle that is required to be registered under The Drivers and Vehicles Act, within 60 days after registering the vehicle under that Act, obtains an appraisal report prepared and certified, in approved form, by

(i) a registered vehicle dealer as defined in subsection 2.2(1) who regularly deals in that type of vehicle, or

(ii) an employee of an appraisal firm who is qualified to appraise that type of vehicle; and

29

The following is added after clause 29(1)(g):

(g.1) clarifying, extending or limiting the meaning of "online accommodation platform","online sales platform" or "online seller";

PART 6

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

30

The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

31

Clause 4.2(2)(e) is amended by striking out "with an RST number".

32

Subsection 40(2) is amended by replacing everything before clause (a) with the following:

Annual report to minister

40(2)

Within 90 days after the end of the government's fiscal year, the director must provide the minister with a written report setting out, for each waiver or commission given or allowed under subsection (1) in that year,

33

Clause 42(2)(a) is amended by striking out "subsection 39(2) (failure to pay or remit tax) or (4)" and substituting "subsection 39(4)".

PART 7

THE FINANCIAL ADMINISTRATION ACT

C.C.S.M. c. F55 amended

34

The Financial Administration Act is amended by this Part.

35

Section 5 is replaced with the following:

Authority of Treasury Board

5

In addition to matters specifically assigned to it under this or any other Act of the Legislature, Treasury Board is responsible for

(a) preparing the estimates;

(b) management practices and systems for the government reporting entity;

(c) fiscal management and control of the government reporting entity, including the management and control of expenditures and revenues;

(d) evaluating programs of the government reporting entity;

(e) approving the internal structure of a government department and the staffing complement and spending levels required for the delivery of government programs;

(f) ensuring accountability of the government to the Legislative Assembly for the delivery of programs by the government reporting entity;

(g) establishing an audit committee to oversee the internal audit system for the government reporting entity; and

(h) other matters assigned to it by the Lieutenant Governor in Council.

36

Subsection 6(4) is amended by adding the following after clause (m):

(n) respecting the establishment of a subsidiary organization, or the acquisition or holding of an interest in such an organization, by a reporting organization;

(o) restricting or prohibiting the direct or indirect investment or participation by a reporting organization in any other organization that does or fails to do anything, or in an arrangement under which anything is done or not done, that,

(i) if done or not done directly by the reporting organization would be contrary to this Act or a regulation or directive that applies to the reporting organization, and

(ii) has or would have a direct or indirect impact on the financial position of the reporting organization.

37

Clause 9(b) is repealed.

38

The following is added after subsection 12(5):

Term of delegation

12(6)

An authorization expires three years after the day it was given unless the authorization specifies a different term that must not exceed five years.

Transitional

12(7)

An authorization given under subsection (1) before the day that subsection (6) comes into force expires one year after that day unless it was given for a specified term not exceeding five years.

39

The following is added after section 12:

Shared services

12.1(1)

The following definitions apply in this section.

"provide", in relation to shared services, means to do any act or thing required, permitted or authorized to be done by a minister, including the Minister of Finance, under this or any other Act of the Legislature. (« fournir des services partagés »)

"shared services" means one or both of the following services:

(a) services in respect of fiscal management and control, including budgeting and administering accounts payable and accounts receivable;

(b) services in respect of administering capital programs, including purchasing and contract management. (« services partagés »)

Delegation of Minister of Finance's powers

12.1(2)

The Minister of Finance may authorize, in writing,

(a) an employee of the Department of Finance to provide shared services to one or more other government departments; or

(b) an employee of any other government department to provide shared services to the employee's department and one or more other departments.

Delegation of other minister's powers

12.1(3)

The minister responsible for a government department may authorize, in writing, an employee of the government to provide shared services to the minister's department if the employee is authorized to do so by the Minister of Finance.

Scope of authorization

12.1(4)

The authorization given to an employee under subsection (2) or (3) may be general or specific. But the authorization must set out the title or classification of the position of the employee and the shared services to be provided by that employee to each government department.

Term of delegation

12.1(5)

An authorization expires three years after the day it was given unless the authorization specifies a different term that must not exceed five years.

Effect of authorization

12.1(6)

The provision of authorized shared services has the same effect as if the services were provided by the Minister of Finance or responsible minister, as the case may be.

Regulations

12.1(7)

Treasury Board may, with the approval of the Lieutenant Governor in Council, make regulations specifying the terms and conditions for the provision of shared services.

40(1)

Subsection 13(2) is amended

(a) in the part before clause (a), by striking out "In addition to matters specifically assigned to him or her under this or any other Act of the Legislature," and substituting "Reporting to Treasury Board,";

(b) in clause (a),

(i) by striking out "central", and

(ii) by adding "reporting entity" at the end;

(c) by repealing clause (d);

(d) in clause (e), by striking out "throughout the government" and substituting "used or to be used by any organization within the government reporting entity"; and

(e) in clause (f) of the English version, by striking out "to him or her".

40(2)

Subsection 13(3) is amended

(a) by replacing clause (a) with the following:

(a) shall at all times be given access to the premises and the records of every government department and every reporting organization;

(b) by replacing clause (b) with the following:

(b) may issue directives to government departments or reporting organizations about

(i) the method by which their accounts are to be kept,

(ii) the reporting of financial matters, and

(iii) how the Comptroller's responsibilities are to be discharged by their senior officials;

(c) in clause (c), by adding "or a reporting organization" after "government";

(d) in clause (d), by adding "or a reporting organization" after "department";

(e) by adding "and" at the end of clause (f);

(f) in clause (g),

(i) by adding "or reporting organization" after "government department", and

(ii) in the English version, by striking out "his or her" and substituting "the Comptroller's"; and

(g) by repealing clause (h).

41

The following is added after section 13:

Responsibility for internal audit system

13.1(1)

The Minister of Finance may designate an employee of the Department of Finance as the employee responsible for maintaining an internal audit system for the government reporting entity.

Powers

13.1(2)

For the purpose of subsection (1), the employee responsible for maintaining the internal audit system

(a) must at all times be given access to the premises and the records of every government department and every reporting organization;

(b) may require from any officer or employee of the government or a reporting organization the information and explanations necessary for an audit or for the proper maintenance of the internal audit system;

(c) may examine and report on the operations of a government department or the operations or governance of a reporting organization; and

(d) may station a person employed or engaged by the Department of Finance in a government department or reporting organization to carry out internal audit activities.

42

Section 14 is replaced with the following:

Officers stationed in departments or organizations

14

The government department or reporting organization in which a person employed or engaged by the Department of Finance is stationed under clause 13(3)(g) or 13.1(3)(d) must provide the person with the necessary office accommodation, and the person must comply with any security requirements that apply to persons employed by that department or organization.

43

The following heading is added before section 75:

PART 9

MISCELLANEOUS

44

The heading after section 76.2 is repealed and the following is added after that section:

Subsidiary of reporting organization

76.3

Subject to any regulation or directive made or issued under subsection 6(4), no reporting organization may, without the prior approval of Treasury Board,

(a) establish a subsidiary organization including a corporation, partnership or trust; or

(b) directly or indirectly acquire an interest in, or make a material investment in, such an organization.

PART 8

THE FUNERAL DIRECTORS AND EMBALMERS ACT

C.C.S.M. c. F195 amended

45

The Funeral Directors and Embalmers Act is amended by this Part.

46

Section 1 is amended

(a) in the definition "register", by striking out "board" and substituting "director";

(b) by adding the following definitions:

"director" means the director of the Consumer Protection Office designated under The Consumer Protection Act, and includes a deputy of the director; (« directeur »)

"prescribed" means prescribed by regulation under this Act; (Version anglaise seulement)

(c) by replacing the definition "funeral director" with the following:

"funeral director" means a person who operates, for themselves or for another individual, partnership, firm or corporation, a business for the purpose of providing funeral supplies and services to the public; (« entrepreneur de pompes funèbres »)

(d) by repealing the definitions "approved school" and "board".

47

Sections 2 to 7 are repealed.

48

Subsections 8(1) and (2) are replaced with the following:

Funeral director's licence required

8(1)

A person must not hold themselves out to be a funeral director unless the person is a licensed funeral director or the holder of a permit.

Embalmer's licence or permit required

8(2)

A person must not embalm a dead human body unless the person is a licensed embalmer or the holder of a permit.

49

Subsection 9(1) is amended

(a) in the part before clause (a), by striking out "board" and substituting "director"; and

(b) in the French version of clause (a), by striking out "détient un" and substituting "est titulaire d'un".

50

Section 10 is amended

(a) by striking out "board" wherever it occurs and substituting "director"; and

(b) in subsection (2) of the French version, in the section heading and the subsection, by striking out "et conditions".

51(1)

Subsection 11(1) is replaced with the following:

Certificate of qualification

11(1)

The director may issue a certificate of qualification to a person who

(a) makes application in the manner approved by the director;

(b) pays the prescribed fee;

(c) meets the prescribed eligibility requirements, or has the prescribed experience, for being issued the certificate; and

(d) satisfies the director that they are a fit and proper person to hold the certificate.

51(2)

Subsection 11(1.1) is amended

(a) by striking out "board" and substituting "director"; and

(b) by striking out "board's" and substituting "director's".

51(3)

Subsection 11(2) is amended by striking out "board" and substituting "director".

52(1)

Subsection 12(1) is replaced with the following:

Disciplinary actions by director

12(1)

The director may, for any prescribed cause,

(a) in respect of the holder of a licence or permit, do one or more of the following:

(i) cancel the holder's licence or permit,

(ii) suspend the holder's licence or permit,

(iii) issue a reprimand to the holder,

(iv) order the holder to pay to the government a monetary penalty of not more than $10,000; or

(b) in respect of the holder of a certificate of qualification, revoke the certificate.

52(2)

Subsection 12(1.1) is repealed.

52(3)

Subsection 12(1.2) is replaced with the following:

Imposing conditions on a licence

12(1.2)

The director may, when taking any action under subclauses (1)(a)(ii) to (iv), impose conditions in accordance with the regulations on the holder's licence or permit for the period determined by the director.

52(4)

Subsection 12(2) is repealed.

52(5)

Subsections 12(3) and (3.1) are replaced with the following:

Hearing

12(3)

Before taking an action under subsection (1), the director must notify the holder in writing that the director intends to take the action. The director must also provide the director's reasons for doing so and give the holder an opportunity to present evidence and make representations to the director at a hearing.

Temporary suspension to protect public

12(3.1)

Despite subsection (3), if the director considers that the immediate suspension of a holder's licence or permit is necessary to protect the public, the director may temporarily suspend the holder's licence or permit.

Duration of temporary suspension

12(3.2)

A temporary suspension is effective on written notice being given to the holder and remains in effect until notice of a final decision is given to the holder under subsection (3.3).

Written decision

12(3.3)

Within 60 days after a hearing is completed, the director must

(a) make a written decision on the matter, consisting of a statement of the decision made and the reasons for it; and

(b) give a copy of the decision to the holder.

Content of decision

12(3.4)

In making a decision, the director may do the following:

(a) in respect of a holder of a licence or permit,

(i) take any of the actions under clause (1)(a), and

(ii) impose conditions on the holder's licence or permit for the period determined by the director;

(b) in respect of a holder of a certificate of qualification, revoke the certificate.

Effect of director's decision

12(3.5)

A decision of the director takes effect on the date that a copy of the decision is given to the holder, or on the date specified in the decision, whichever is later.

52(6)

Subsections 12(4) to (4.2) are repealed.

52(7)

Subsection 12(5) is amended

(a) by striking out "pay a fine or costs" and substituting "pay a monetary penalty";

(b) by striking out "board" wherever it occurs and substituting "director"; and

(c) in the English version, by striking out "as he deems proper, and his decision is final" and substituting "as the judge considers proper, and the decision is final".

52(8)

Subsection 12(6) is amended, in the part before clause (a), by striking out "board" and substituting "director".

53(1)

Subsection 12.1(1) is replaced with the following:

Failure to pay

12.1(1)

If a person is ordered to pay a monetary penalty and fails to do so within the time ordered, the director may suspend the person's licence or permit until the payment is made without a hearing under section 12.

53(2)

Subsection 12.1(2) is amended by striking out "board may file an order to pay a fine or costs" and substituting "director may file an order to pay a monetary penalty".

54

Section 13 is amended by striking out "board" wherever it occurs and substituting "director".

55

Section 14 is replaced with the following:

Reissue of certificate of qualification

14

If a person's certificate of qualification has been revoked, the director may reissue such a certificate to the person if the person

(a) satisfies the director that they are a fit and proper person to hold the certificate; and

(b) pays the prescribed fees.

56

Section 15 is amended

(a) in subsection (1), by striking out "board" and substituting "director"; and

(b) in the English version of subsections (6) and (7), by striking out "his or her" and substituting "their".

57

Section 15.0.2 is amended by striking out "board" wherever it occurs and substituting "director".

58

Section 15.1 is amended

(a) in the section heading of the English version, by striking out "Board" and substituting "Director"; and

(b) by striking out "board" and substituting "director".

59

Section 16 is replaced with the following:

Approved schools

16

The director may approve a school or college that provides instruction in embalming and general preparation for and burial of the dead human body if the director is satisfied that the school or college meets the prescribed standards.

60

Subsection 16.1(1) is amended by striking out "The board" and substituting "The minister, in consultation with the director and any other persons the minister considers necessary,".

61

Section 16.3 is amended by striking out "board" wherever it occurs and substituting "director".

62

The following is added after section 16.3:

Service of documents

16.4(1)

A notice, order or other document under this Act is sufficiently given or served if it is

(a) delivered personally; or

(b) sent by registered mail, fax, e-mail or any other method by which the sender can obtain confirmation of delivery to the intended recipient.

Deemed receipt

16.4(2)

A notice, order or other document sent by registered mail or other method that provides confirmation of delivery is deemed to be given or served five days after the day it was sent.

63

Section 17 is amended

(a) in the part before clause (a), by striking out "Subject to the approval of the Lieutenant Governor in Council, the board" and substituting "The Lieutenant Governor in Council";

(b) in clause (e), by striking out "board" and substituting "director";

(c) by repealing clause (g);

(d) by adding the following before clause (h):

(g.1) respecting eligibility or experience requirements, or both, for being issued a certificate of qualification;

(g.2) respecting continuing education requirements for renewing a licence;

(e) in clause (h), by striking out "providing for" and substituting "respecting";

(f) by replacing clause (m) with the following:

(m) governing the imposition of conditions on licences or permits;

(m.1) specifying rules of practice and procedure, including time limits and rules of evidence, for the purpose of a hearing under section 12;

(g) in clause (n), by striking out "board" and substituting "director";

(h) by repealing clause (p);

(i) in clause (q.1), by striking out "board" and substituting "director"; and

(j) by adding the following after clause (q.2):

(q.3) prescribing anything referred to in this Act as being prescribed;

64

Section 18 is repealed.

65(1)

Clause 19(1)(a) is amended by striking out "board" and substituting "director".

65(2)

Subsection 19(2) is amended

(a) in the English version, by striking out "he" and substituting "the person"; and

(b) by striking out "board" and substituting "director".

66

Subsection 20(1) of the English version is amended

(a) by striking out "holds himself out" wherever it occurs and substituting "holds themselves out"; and

(b) by striking out "implying that he is" wherever it occurs and substituting "implying that they are".

67

Section 21 is repealed.

68

Section 22 is amended

(a) by striking out "against any member of the board or any person acting on behalf of the board" and substituting "against the minister or the director, or any person acting on behalf of or under the direction of either of them,"; and

(b) by adding ", The Prearranged Funeral Services Act" after "The Cemeteries Act".

DISSOLUTION OF FUNERAL BOARD OF
MANITOBA

Funeral Board of Manitoba dissolved

69(1)

On the coming into force of this section,

(a) the Funeral Board of Manitoba is dissolved;

(b) the appointment of each member of the Funeral Board of Manitoba is revoked;

(c) the rights and property of the Funeral Board of Manitoba are vested in the government;

(d) all liabilities and obligations of the Funeral Board of Manitoba are assumed by the government; and

(e) a reference to the Funeral Board of Manitoba in an enactment, by-law, contract, agreement, instrument, or other document or record is deemed to be a reference to the government as represented by the director of the Consumer Protection Office designated under The Consumer Protection Act.

Employees

69(2)

Every employee of the Funeral Board of Manitoba on the day before the coming into force of this section is deemed to be an employee of the government.

Moneys and securities

69(3)

On the coming into force of this section,

(a) all moneys received or held by the Funeral Board of Manitoba are transferred to the Consolidated Fund; and

(b) all securities and surety bonds filed with the Funeral Board of Manitoba under The Prearranged Funeral Services Act shall be held by the director of the Consumer Protection Office designated under The Consumer Protection Act, and may be dealt with by the director as provided for in that Act.

Definition of "former Act"

70(1)

In this section, "former Act" means The Funeral Directors and Embalmers Act as it read immediately before the coming into force of this section.

Transition — licences, permits and certificates

70(2)

If, on the coming into force of this section, a person holds a valid licence, permit or certificate of qualification issued under the former Act, that licence, permit or certificate

(a) is deemed to have been issued by the director under The Funeral Directors and Embalmers Act as amended by this Part; and

(b) continues to be valid until it expires, unless it is cancelled, suspended or revoked beforehand.

Terms and conditions continue

70(3)

A condition imposed on a permit under subsection 10(2) of the former Act, or on a licence or permit under section 12 of the former Act, that was in effect immediately before the coming into force of this section is deemed to be a term or condition that applies to the applicable licence or permit under The Funeral Directors and Embalmers Act as amended by this Part.

Approved schools

70(4)

A school or college that was approved by the board under section 16 of the former Act is deemed to have been approved under The Funeral Directors and Embalmers Act as amended by this Part.

Regulations

70(5)

The Lieutenant Governor in Council may make regulations to remedy any difficulty, inconsistency or impossibility resulting from the dissolution of the Funeral Board of Manitoba.

RELATED AND CONSEQUENTIAL AMENDMENTS

C.C.S.M. c. C30 amended

71(1)

The Cemeteries Act is amended by this section.

71(2)

Section 1 is amended

(a) by repealing the definition "board"; and

(b) by adding the following definition:

"director" means the director of the Consumer Protection Office designated under The Consumer Protection Act, and includes a deputy of the director; (« directeur »)

71(3)

Section 2.1 is replaced with the following:

Powers of director

2.1

The director has, in respect of any matter coming before the director under this Act, all the powers given to the director under The Funeral Directors and Embalmers Act in respect of matters coming before the director under that Act.

71(4)

In the English version of the following provisions, "he" is struck out and "the owner" is substituted:

(a) subsection 5(2);

(b) section 6;

(c) section 7.

71(5)

Subsection 8(1) of the English version is amended by striking out "him" and substituting "the person".

71(6)

Subsection 13(1) of the English version is amended by striking out "his" and substituting "their".

71(7)

Subsection 13(2) of the English version is amended by striking out "his" and substituting "the".

71(8)

Section 16 of the English version is amended by striking out "his" and substituting "their".

71(9)

Section 19 is amended

(a) in clause (1)(a), by striking out "board" and substituting "director";

(b) in subsection (2) of the English version, by striking out "he is" and substituting "they are";

(c) in subsection (5), by striking out "board" and substituting "director";

(d) in subsection (6),

(i) in the part before clause (a), by striking out "board" and substituting "director", and

(ii) in clauses (a) and (b) of the English version, by striking out "it" and substituting "the director"; and

(e) in subsection (7),

(i) in the part before clause (a), by striking out "board" and substituting "director",

(ii) in clause (a) of the English version, by striking out "it" and substituting "the director", and

(iii) in clause (b) of the English version, by striking out "it" where it first occurs and substituting "the director".

71(10)

Subsections 20(2) to (5) are repealed.

71(11)

The following is added after section 20:

Suspension, cancellation or refusal to renew licence

20.1(1)

The director may suspend, cancel or refuse to renew a licence issued under section 19 if the director is satisfied that the licensee has failed to comply with this Act or the regulations.

Hearing

20.1(2)

Before the director suspends, cancels or refuses to renew a licence under subsection (1), the director must notify the applicant or licensee of that fact, in writing, and give the licensee an opportunity to present evidence and make representations to the director at a hearing.

Written decision

20.1(3)

Within 60 days after a hearing is completed, the director must

(a) make a written decision on the matter, consisting of a statement of the decision made and the reasons for it; and

(b) send a copy of the decision to the applicant or licensee by registered mail.

71(12)

Subsection 21(2) of the English version is amended, in the part after clause (b), by striking out "he" and substituting "the person".

71(13)

Subsection 25(1) of the English version is amended

(a) by striking out "he holds" and substituting "the person holds"; and

(b) by striking out "him" and substituting "them".

71(14)

Subsection 25(2) of the English version is amended by striking out everything after "owned by" and substituting "them, unless the person or corporation holds a valid and subsisting licence for the purpose issued under this Part.".

71(15)

Subsection 25(3) of the English version is amended

(a) by striking out "he holds" and substituting "they hold"; and

(b) by striking out "to him" and substituting "to them".

71(16)

Section 26 is amended

(a) by striking out "board" wherever it occurs and substituting "director"; and

(b) in subsection (3) of the English version, by striking out "by it".

71(17)

Section 27 is amended by striking out "board" and substituting "director".

71(18)

Subsection 28(2) of the English version is amended

(a) by striking out "he has deducted" and substituting "the owner has deducted"; and

(b) by striking out "he has paid" and substituting "they have paid".

71(19)

Sections 29 and 30 are amended by striking out "board" wherever it occurs and substituting "director".

71(20)

Section 31 is amended

(a) by striking out "board" with necessary grammatical changes wherever it occurs and substituting "director", with necessary grammatical changes; and

(b) in clause (8)(c) of the English version, by striking out "its" and substituting "their".

71(21)

Section 34 of the English version is amended

(a) by striking out "in his or its hands" and substituting "in their hands";

(b) by striking out "they are applicable" and substituting "those provisions apply"; and

(c) by striking out "in his hands" and substituting "in the trustee's hands".

71(22)

Subsection 34.1(1) is amended, in the part before clause (a), by striking out "board" and substituting "director".

71(23)

Subsection 36(1) of the English version is amended by striking out "his" and substituting "the".

Transition — licences

71(24)

If, on the coming into force of this section, a person has a valid licence issued under subsection 19(5) or section 26 of The Cemeteries Act, as that Act read immediately before the coming into force of this section, that licence

(a) is deemed to have been issued by the director under The Cemeteries Act as amended by this Part; and

(b) continues to be valid until it expires, unless it is suspended or cancelled beforehand.

C.C.S.M. c. F200 amended

72(1)

The Prearranged Funeral Services Act is amended by this section.

72(2)

Section 1 is amended

(a) by repealing the definition "board"; and

(b) by adding the following definition:

"director" means the director of the Consumer Protection Office designated under The Consumer Protection Act, and includes a deputy of the director; (« directeur »)

72(3)

Subsection 2(2) of the English version is amended, in the part before clause (a), by striking out "he is" and substituting "they are".

72(4)

Subsection 2(3) is amended

(a) by striking out "board" wherever it occurs and substituting "director";

(b) in the English version, by striking out "salesman" wherever it occurs and substituting "salesperson";

(c) in the English version of the part before clause (a),

(i) by striking out "his agent" and substituting "their agent", and

(ii) by striking out "he" and substituting "that person"; and

(d) in the English version of clause (a), by striking out "him" and substituting "the person".

72(5)

Subsection 2(5) of the English version is amended by striking out "salesman" wherever it occurs and substituting "salesperson".

72(6)

Section 3 is amended

(a) in subsection (1), by striking out "board" and substituting "director";

(b) in subsection (2),

(i) by striking out "board" wherever it occurs and substituting "director", and

(ii) in the French version, by striking out "et qu'il a" and substituting "et a";

(c) by replacing subsection (3) with the following:

Terms and conditions of licence

3(3)

The director, if the director considers it in the public interest to do so, may impose terms or conditions on a licence at the time of issuing or renewing the licence. A licence is also subject to any terms or conditions imposed by regulation.

(d) by replacing subsection (6) with the following:

Director may impose terms

3(6)

The director may, if the director considers it in the public interest to do so, after notice in writing to and hearing the licensee or their representative, vary, add to, or revoke part or all of the terms, conditions or restrictions.

72(7)

Clause 4(1)(b) of the English version is amended by striking out "his" and substituting "their".

72(8)

Section 5 is amended

(a) in subsection (2) of the English version, by striking out "his behalf" and substituting "their behalf"; and

(b) in subsection (3), by striking out "board" and substituting "director".

72(9)

Section 6 is amended

(a) by replacing clause (1)(a) with the following:

(a) to the purchaser or the purchaser's personal representative, upon the joint authorization of the licensee and the purchaser or personal representative, or if the licensee is not available or refuses to authorize repayment, upon the direction of the director; or

(b) by replacing clause (3)(b) with the following:

(b) a provision that where a purchaser dies before making all payments required under a prearranged funeral plan, the purchaser's personal representative may, at the personal representative's option, pay any unpaid balance payable by the purchaser to the licensee under the plan.

72(10)

Section 7 is amended

(a) by striking out "board" wherever it occurs and substituting "director";

(b) in the English version of subsection (1), by striking out "he" and substituting "they"; and

(c) in the French version of subsection (1), by striking out "époques" and substituting "périodes".

72(11)

Section 9 is amended by striking out "mutual benefit society or a".

72(12)

Subsection 10(3) is amended by striking out "board" and substituting "director".

72(13)

Section 11 is amended

(a) in subsection (1), by striking out "board, it" and substituting "director, the director"; and

(b) in subsection (2),

(i) by striking out "board" wherever it occurs and substituting "director", and

(ii) in the English version, by striking out "his" and substituting "their".

72(14)

Section 13 of the English version is amended by striking out "his" and substituting "the purchaser's".

72(15)

Section 15 is amended by striking out "board" and substituting "director".

Transition — licences

72(16)

If, on the coming into force of this section, a person holds a valid licence issued under subsection 3(2) of The Prearranged Funeral Services Act, as that Act read immediately before the coming into force of this section, that licence

(a) is deemed to have been issued by the director under The Prearranged Funeral Services Act as amended by this Part; and

(b) continues to be valid until it expires, unless it is suspended or cancelled beforehand.

Repeal of unproclaimed Act

73(1)

The Prearranged Funeral Services Amendment Act, S.M. 1989-90, c. 58, is repealed.

Unproclaimed provisions repealed

73(2)

The following provisions of The Grieving Families Protection Act (Various Acts Amended), as enacted by S.M. 2011, c. 29, are repealed:

(a) section 17;

(b) clause 18(a) insofar as it enacts the definitions "funeral director", funeral services" and "prearranged funeral plan";

(c) clause 18(c) insofar as it enacts the definition "insurer";

(d) sections 19 to 35.

73(3)

Section 10 of The Statutes Correction and Minor Amendments Act, 2014, S.M. 2014, c. 32, is repealed.

PART 9

OTHER AMENDMENTS

DIVISION 1

THE EDUCATION ADMINISTRATION ACT

C.C.S.M. c. E10 amended

74

The Education Administration Act is amended by this Division.

75

The definition "learning resource centre" in section 1 is repealed.

76

Clause 4(1)(n) is repealed.

77

Section 9 and the centred heading before it is repealed.

Manitoba Leaning Resource Centre dissolved

78(1)

On the coming into force of this section,

(a) the Manitoba Learning Resource Centre is dissolved;

(b) the rights and property of the Manitoba Learning Resource Centre are vested in the government;

(c) all liabilities and obligations of the Manitoba Learning Resource Centre are assumed by the government; and

(d) a reference to the Manitoba Learning Resource Centre in an enactment, by-law, contract, agreement, instrument or other document or record is deemed to be a reference to the government as represented by the minister responsible for The Education Administration Act.

Transitional

78(2)

Any money in the Manitoba Learning Resource Centre Account on the day before this section comes into force continues to be held in the Consolidated Fund but is no longer held in a separate account on the day this section comes into force.

DIVISION 2

INVEST MANITOBA

Invest Manitoba Act enacted

79

The Invest Manitoba Act set out in the Schedule to this Act is hereby enacted.

DIVISION 3

MISCELLANEOUS

S.M. 2020, c. 21 amended

80

Subsection 12(3) of the French version of The Budget Implementation and Tax Statutes Amendment Act, 2020 is replaced with the following:

12(3)

Le passage introductif du paragraphe 5(3) est modifié par substitution, à « lui remette », de « remette, en conformité avec l'article 4.2 de la Loi sur l'administration des impôts et des taxes et divers impôts et taxes et ».

C.C.S.M. c. F87 amended

81

The Fish and Wildlife Enhancement Fund Act is amended in subsection 2.1(1) by striking out "Each year" and substituting "Each fiscal year".

PART 10

COMING INTO FORCE

Coming into force

82(1)

Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1 — Fuel Tax

82(2)

Part 1 comes into force on December 1, 2021.

Part 2 — Health and Post Secondary Education Tax Levy

82(3)

Part 2 comes into force on January 1, 2022.

Part 3 — Income Tax

82(4)

Section 9 is deemed to have come into force on April 1, 2020.

82(5)

Section 12 is deemed to have come into force on April 7, 2021, but subclause (3)(c)(i) does not apply to an eligible project with a completion date that occurred more than 12 months before that day.

82(6)

Section 15 is deemed to have come into force on March 18, 2020.

Part 5 — Retail Sales Tax

82(7)

The following provisions come into force on December 1, 2021:

(a) clause 19(1)(a);

(b) clauses 19(1)(c) to (f);

(c) subsection 19(2);

(d) section 20;

(e) sections 22 to 24;

(f) subsections 25(2) to (5);

(g) sections 26 and 27;

(h) section 29.

Part 8 — Funeral Directors and Embalmers

82(8)

Part 8 comes into force on a day to be fixed by proclamation.

Part 9 — Other Amendments

82(9)

Section 80 is deemed to have come into force on November 6, 2020.

82(10)

Section 81 is deemed to have come into force on March 31, 2021.

Schedule

82(11)

The Schedule to this Act comes into force as provided in the coming into force section at the end of the Schedule.


SCHEDULE

THE INVEST MANITOBA ACT

TABLE OF CONTENTS

Section

1    Definitions

ESTABLISHMENT, MANDATE AND POWERS OF CORPORATION

2    Corporation established

3    Corporation's mandate

4    Corporation's powers

BOARD OF DIRECTORS

5    Duties

6    Composition of board

7    Board expertise

8    Cultural diversity and regional representation

9    Ineligibility for appointment

10    Nominations

11    Transitional — appointment of first nominee directors

12    Board may appoint additional directors

13    Vacancy in nominee director position

14    Term of office

15    Remuneration of directors

16    Removal of directors

17    Quorum

18    Chair and vice-chair

19    Committees

20    By-laws

FINANCIAL AND BUSINESS MATTERS

21    Financial records and systems

22    Fiscal year

23    Annual budget

24    Three-year business plan

25    Auditor

26    Annual report

REGULATIONS

27    Regulations

C.C.S.M. REFERENCE AND COMING INTO FORCE

28    C.C.S.M. reference

29    Coming into force


THE INVEST MANITOBA ACT

Definitions

1

The following definitions apply in this Act.

"board" means the board of directors of the corporation. (« conseil »)

"corporation" means Invest Manitoba established under subsection 2(1). (« Société »)

"eligible" in relation to a nominee for the position of a director means an individual who meets the requirement of clause 7(a) and is eligible to be appointed as a director. (« admissible »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)

"nominating organization" means an organization listed in subsection 10(1). (« organisme parrain »)

"nominee director" means a director who was nominated for the position by a nominating organization. (« administrateur désigné »)

ESTABLISHMENT, MANDATE AND POWERS OF CORPORATION

Corporation established

2(1)

Invest Manitoba is hereby established as a corporation without share capital, consisting of the members of the board.

Corporations Act not applicable

2(2)

Except as otherwise provided in this Act or the regulations, The Corporations Act does not apply to the corporation.

Not Crown agent

2(3)

The corporation is not an agent of the Crown.

Corporation's mandate

3(1)

The mandate of the corporation is

(a) to facilitate and encourage economic development in Manitoba as follows:

(i) by co-ordinating the provision of services and supports for proposed economic development projects,

(ii) by developing and providing market and competitive intelligence and analyses, customer and company lists, investment capital options and regulatory information to stakeholders,

(iii) by collecting and analysing labour market and economic data for all regions of Manitoba and making the data and analyses available to businesses, communities and other stakeholders to support data-based decision-making and policy development,

(iv) by leading business expansion and retention projects and investment attraction projects for all business sectors, including province-wide, regional and local projects,

(v) by participating in trade development and promotion to enhance trade and export opportunities for Manitoba businesses,

(vi) by acting as a point of contact for potential investors in economic development in Manitoba and facilitating connections between Manitoba businesses and the investment community,

(vii) by developing tools and initiatives to support trade development and business expansion and retention across all business sectors,

(viii) by developing a Manitoba brand for use in marketing for business and investment opportunities, consistent with the tourism branding developed by Travel Manitoba; and

(b) to provide advice to the minister about policy development and government incentives for economic development projects in Manitoba.

Department's role

3(2)

The minister's department is to be the corporation's single point of contact with the government in all matters relating to the corporation's mandate.

Powers of the corporation

4(1)

Subject to this Act, for the purpose of carrying out its mandate, the corporation has the capacity and powers of a natural person and any additional powers prescribed by regulation.

General powers

4(2)

Subject to the regulations, the corporation

(a) may establish and operate one or more offices in Manitoba and, for that purpose, may lease real property;

(b) may not, without the prior approval of the Lieutenant Governor in Council, acquire any other interest in real property or establish or operate an office outside Manitoba;

(c) may acquire and hold any interest in personal property, and sell, lease or otherwise deal with or dispose of any interest in personal property;

(d) may receive, expend, loan and invest money; and

(e) may borrow money and give security for the repayment of money borrowed.

BOARD OF DIRECTORS

Duty of board

5(1)

The board is responsible for managing, or supervising the management of, the business and affairs of the corporation in accordance with its mandate.

Duties of directors

5(2)

Each director must

(a) act honestly and in good faith with a view to the best interests of the corporation; and

(b) exercise the care, diligence and skill that a reasonable and prudent person should exercise in comparable circumstances.

Composition of board

6

The board is to consist of

(a) four nominee directors;

(b) one director appointed by the minister; and

(c) up to four additional directors appointed by the board under section 12.

Board expertise

7

To ensure that the board has the necessary skills to carry out the corporation's mandate,

(a) each director must be knowledgeable about at least one of the following:

(i) economic or business development,

(ii) investment attraction,

(iii) international business,

(iv) any other subject area relevant to the corporation's mandate or its governance; and

(b) the board may engage experts as advisers in any subject area relevant to the corporation's mandate.

Cultural diversity and regional representation

8(1)

When nominating or appointing a director, regard must be had to the need for Indigenous representation on the board and for the board to be representative of Manitoba's cultural diversity and its urban, rural and regional interests.

Residency

8(2)

A majority of the directors must be Manitoba residents.

Ineligibility for appointment — all directors

9(1)

The following persons are not eligible to be appointed or remain in office as a director:

(a) an elected official of a municipality;

(b) a member of the Legislative Assembly of Manitoba or of the Senate or House of Commons of Canada;

(c) a person who is under the age of 18 or is an undischarged bankrupt.

Ineligibility for appointment — section 12 directors

9(2)

The following persons are not eligible for appointment under section 12 or to remain in office as a director appointed under that section:

(a) an employee of the government;

(b) a board member, officer or employee of a reporting organization as defined in The Financial Administration Act.

Nominating organizations

10(1)

Each of the following is a nominating organization:

(a) Business Council of Manitoba;

(b) The City of Winnipeg;

(c) Rural Manitoba Economic Development Corporation;

(d) The Manitoba Chambers of Commerce.

One nominee director for each nominating organization

10(2)

Subject to this Act, each nominating organization is entitled to have one of its nominees appointed as a nominee director.

Transitional — appointment of first nominee directors

11(1)

As soon as practicable after this Act comes into force, the first nominee directors are to be appointed by a selection committee consisting of one member appointed by each of the nominating organizations and one member appointed by the minister.

Each organization to submit two nominations

11(2)

Each nominating organization must nominate two eligible candidates as nominee directors, one of whom may be the organization's appointee to the selection committee. The selection committee is to select and appoint one of the two nominees as a director.

Failure to appoint committee member

11(3)

If a nominating organization has not appointed a person to the selection committee within 90 days after this Act comes into force, the other members appointed to the committee may appoint their own nominee to fill the vacancy.

Failure to nominate eligible candidates

11(4)

If a nominating organization has not nominated two eligible candidates as nominee directors within 90 days after this Act comes into force, the selection committee may appoint its own nominee as the nominee director for that organization.

Board may appoint additional directors

12

Subject to this Act and the corporation's by-laws, the board may appoint up to four directors in addition to the nominee directors.

Vacancy in nominee director position

13(1)

When a nominee director position becomes vacant, the board must

(a) request the nominating organization whose nominee ceased to be a director to nominate two eligible candidates to fill the vacancy; and

(b) upon receipt of the nominations, select and appoint one of the eligible nominees to fill the vacancy.

Failure to nominate

13(2)

The board may appoint its own nominee to fill the vacancy if, in its opinion, the nominating organization has not nominated two eligible candidates within 90 days after being requested to do so.

Capacity of board during vacancy

13(3)

Despite section 6, a vacancy in the membership of the board does not impair the capacity of the remaining directors

(a) to appoint someone in accordance with this section and the by-laws to fill the vacancy and to act as they consider necessary in an emergency; and

(b) to act in relation to any other matter if there are at least five remaining directors.

Term of office

14(1)

A director is to be appointed for a term of no more than three years, and no director may serve more than three successive terms.

Appointment continues

14(2)

A director continues to hold office until they are re-appointed, the appointment is revoked or a successor is appointed.

Remuneration of directors

15

The directors are to be paid such remuneration and expenses as the board determines by by-law.

Removal of director

16

A director may be removed from office by

(a) a written notice to the board from

(i) the nominating organization for that director, or

(ii) the minister, in the case of the director appointed by the minister; or

(b) a unanimous vote of the other members of the board.

Quorum

17

A majority of the directors on the board, or any greater number determined by by-law, constitutes a quorum for the transaction of business at any meeting of the directors.

Board to appoint chair and vice-chair

18(1)

The board must appoint one of its members as chair and another as vice-chair of the board.

Function of vice-chair

18(2)

The vice-chair has the authority of the chair when the chair is absent or unable to act, or when authorized by the chair.

Chair has tie-breaking vote

18(3)

If there is a tie vote on a matter put to a vote of the board, the chair may cast a second deciding vote.

Committees

19(1)

The board may establish any committee it considers necessary or advisable.

Appointing experts as committee members

19(2)

The board may appoint to any committee of the board one or more persons who are not directors but have the necessary expertise to assist the committee in performing its functions and may fix the remuneration for those committee members.

By-laws

20

The board may make by-laws respecting the conduct and management of the corporation's business and affairs, including, without limitation,

(a) by-laws establishing a code of ethics and a conflict of interest policy for the corporation's directors, officers and employees;

(b) by-laws providing for the indemnification of the corporation's directors and officers in accordance with section 119 of The Corporations Act.

FINANCIAL AND BUSINESS MATTERS

Financial records and systems

21

The corporation must

(a) maintain its financial records at its head office in Manitoba; and

(b) establish financial, management and information systems to enable it to prepare financial statements in accordance with generally accepted accounting principles.

Fiscal year

22

The fiscal year of the corporation ends on March 31 of each year.

Annual budget

23(1)

Before the beginning of each fiscal year, the board must adopt a budget for the year that sets out

(a) the corporation's anticipated revenue for the year and any accumulated surplus from previous years; and

(b) the corporation's anticipated operating expenses for the year and any accumulated deficit from the preceding year.

Draft budget to be submitted for review

23(2)

The board must submit its draft budget for a fiscal year to the minister for review.

Three-year business plan updated each year

24(1)

Before July 1 of each year, the board must prepare and adopt a business plan that includes

(a) a report on the activities of the corporation of the previous fiscal year;

(b) a copy of its final budget for the current fiscal year; and

(c) a description of its business objectives for the current fiscal year and for each of the next three fiscal years.

Consultation with minister

24(2)

When developing the business plan, the chair of the board must consult with the minister with a view to aligning the business plan with the government's economic development policies.

Nominating organization entitled to copy of plan

24(3)

The corporation must provide a copy of the business plan to the minister and to each nominating organization without delay after it has been adopted by the board.

Auditor

25

The board must appoint an independent auditor to audit the records, accounts and financial transactions of the corporation for each fiscal year.

Annual report

26(1)

Within six months after the end of each fiscal year, the corporation must prepare an annual report on its activities and operations during that fiscal year. The report must include the corporation's audited financial statements for the year.

Publication of annual report

26(2)

Without delay after its annual report is prepared, the corporation must

(a) provide a copy of the report to the minister and to each nominating organization; and

(b) make the report available to the public.

REGULATIONS

Regulations

27

The Lieutenant Governor in Council may make regulations

(a) respecting the extent to which The Corporations Act applies to the corporation;

(b) for the purpose of section 4, prescribing additional powers or restricting the powers of the corporation.

C.C.S.M. REFERENCE AND COMING INTO FORCE

C.C.S.M. reference

28

This Act may be referred to as chapter I99 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

29

This Act comes into force on a day to be fixed by proclamation.

Explanatory Note

This Bill implements various tax and other measures announced in the 2021 Manitoba Budget. Additional amendments implement and support the summary budget and make various amendments to tax legislation.

Amendments to tax statutes

The changes to tax statutes include the following:

Fuel Tax (Part 1)

removing the temporary suspension of the requirement that a carrier not licensed under the International Fuel Tax Agreement pay a tax and obtain a permit upon entering Manitoba [s. 1 and 2]

Health and Post Secondary Education Tax Levy (Part 2)

increasing the threshold for an exemption from the levy to $1,750,000 and the threshold at which the basic tax rate applies to $3,500,000 [s. 3 to 5]

Income Tax (Part 3)

implementing the teaching expense tax credit [s. 7 and 8]

extending the ability to claim the frequent filming bonus of the film and video tax credit for filming interrupted by the COVID-19 pandemic [s. 9]

making the book publishing tax credit permanent [s. 10]

extending

the cultural industries printing tax credit by three years to December 31, 2024 [s. 11]

the community enterprise development tax credit by one year to December 31, 2022 [s. 13]

modifying the interactive digital media tax credit by

making the tax credit permanent [s. 12]

clarifying the range of expenses for which the tax credit may be claimed [s. 12]

modifying the small business venture capital tax credit by

increasing the maximum annual deduction to $120,000 [s. 14]

increasing the maximum investment to $500,000 [s. 14]

updating provisions incorporated from the federal Income Tax Act [s. 15]

Insurance Corporations Tax (Part 4)

reducing the additional tax payable on premiums under certain contracts of property insurance from 1.25% to 1% [s. 16 and 17]

Retail Sales Tax (Part 5)

requiring the operator of an online accommodation platform or online sales platform to collect and remit tax on sales made by means of the platform [s. 19(1)(a), and (c) to (f), 19(2), 20, 22, 23(1)(a), 23(2), (3) and (5), 24, 25(2) to (5), 26, 27 and 29]

making the method used to calculate the value of motorcycles and off-road vehicles consistent with the method used to calculate the value of motor vehicles [s. 19(1)(b), 21 and 28]

clarifying that streaming services are taxable telecommunication services [s. 23(1)(b) to (d), 23(4) and (5)]

eliminating tax on personal services except tanning services that use ultraviolet radiation [s. 23(1)(e) and (f)]

requiring returns to be filed and payments to be made in accordance with The Tax Administration and Miscellaneous Taxes Act [s. 25(1)]

Tax Administration and Miscellaneous Taxes (Part 6)

clarifying obligations with respect to TAXcess [s. 31]

requiring the director to report annually to the minister about waivers of penalties or interest and payments of commissions to vendors making late remittances [s. 32]

allowing additional penalties to be levied without issuing a notice of assessment [s. 33]

Other amendments

The changes to implement budget measures and support increased accountability under the summary budget include the following:

Financial Administration (Part 7)

broadening the responsibility of Treasury Board to include responsibility for the government reporting entity (the government, government agencies and those organizations whose financial results are included in the government's summary financial statements) [s. 35 and 37]

giving Treasury Board additional authority to make regulations and issue directives in relation to the creation of subsidiary organizations or the participation in any organization that is not subject to The Financial Administration Act [s. 36]

clarifying the delegation of ministerial authority in relation to common financial and administrative services provided to one or more government departments and the term length of other delegations [s. 38 and 39]

extending the responsibility and authority of the Comptroller to include reporting organizations [s. 40 and 42]

requiring the Comptroller to report to Treasury Board [s. 40]

shifting responsibility for the internal audit system from the Comptroller to a head of internal audit and requiring Treasury Board to establish an internal audit committee to oversee the system [s. 35, 41 and 42]

requiring Treasury Board approval before a reporting organization establishes or invests in a subsidiary organization, unless it is otherwise permitted by a Treasury Board regulation or directive [s. 43 and 44]

Funeral Directors and Embalmers (Part 8)

dissolving the Funeral Board of Manitoba and transferring its role to the director of the Consumer Protection Office [s. 45 to 73]

making related and consequential amendments to

The Cemeteries Act

The Prearranged Funeral Services Act

The Grieving Families Protection Act (Various Acts Amended)

Other amendments (Part 9)

Education Administration [Division 1]

dissolving the Manitoba Learning Resource Centre and transferring any amounts held in the Manitoba Learning Resource Centre Account to the Consolidated Fund [s. 74 to 78]

Invest Manitoba [Division 2]

enacting The Invest Manitoba Act to establish Invest Manitoba, a corporation led by the private sector to facilitate and encourage economic development in all areas of Manitoba in collaboration with the government [s. 79 and the Schedule]

Miscellaneous [Division 3]

making a minor correction to the French version of The Budget Implementation and Tax Statutes Amendment Act, 2020 [s. 80]

clarifying that payments to the Fish and Wildlife Enhancement Fund are made on the fiscal year [s. 81]