Regulation - Minister
Foreign Cultural Objects Immunity from Seizure Act, 2019: Minister's Regulation - General
Regulation Number(s):
N/A
Instrument Type:
Regulation - Minister
Bill or Act:
Foreign Cultural Objects Immunity From Seizure Act, 2019
Summary of Proposal:
The Ontario government is in the process of repealing and replacing the Foreign Cultural Objects Immunity from Seizure Act with modern legislation. Once proclaimed, the Act will authorize the Minister of Heritage, Sport, Tourism and Culture Industries to designate Ontario institutions and provide immunity from seizure for foreign works of art or other cultural objects on temporary exhibition or display administered, operated or sponsored by these institutions, where requirements for immunity are met.
The current process requires that Ontario's cultural institutions such as the Art Gallery of Ontario, the Royal Ontario Museum and the National Gallery of Canada apply to the Ministry each time they wish to seek immunity from seizure for foreign works of art or other cultural objects brought into Ontario. While this is an important process, it has created costly and long lead-times for applicants and lenders of the artwork and cultural objects.
With the new Act and accompanying application process, the Ministry aims to create an efficient and transparent process whereby institutions will need to apply only once to become "designated". This will result in cost savings for cultural institutions, simplify their business requirements and ensure they continue to demonstrate that they maintain effective due diligence policies and procedures when borrowing foreign artwork. The criteria for designating institutions will be set out in a guidance document.
To support implementation of the new Act and process to apply for designation, the Ministry is proposing a Minister's regulation that outlines requirements designated institutions must meet in order for the works of art or other cultural objects they borrow from foreign lenders for temporary exhibition to be immune from seizure while in Ontario.
Publishing and Reporting Requirements:
The proposed Minister's regulation requires that designated institutions must publish details of the work of art or other cultural object being borrowed. This information must be accessible to the public on the institution's website. These details must be published for a minimum of four consecutive weeks during the six-month period before the object is brought into Ontario and for a minimum of twelve consecutive weeks after the object enters Ontario or until the end of the temporary exhibition, whichever is longer.
The Minister's regulation also includes obligations for designated institutions to provide the following reports to the Ministry to enhance transparency and accountability:
i. an annual report that contains copies of information published on foreign works of art or other cultural objects brought into Ontario for temporary exhibition during that period; and
ii. a report required every five years to demonstrate continued implementation of due diligence procedures for establishing the provenance and ownership of foreign works of art or other cultural objects borrowed for temporary exhibition.
Designated Institutions:
The institutions approved for designation will be listed in the proposed Minister's regulation, which will be amended on an ongoing basis as new institutions become approved to be designated.
Transition:
There will be a transition provision in the regulation to enable immunity from seizure protection for foreign works of art or other cultural objects under the current Foreign Cultural Objects Immunity from Seizure Act to continue when the new Act comes into force.
The current process requires that Ontario's cultural institutions such as the Art Gallery of Ontario, the Royal Ontario Museum and the National Gallery of Canada apply to the Ministry each time they wish to seek immunity from seizure for foreign works of art or other cultural objects brought into Ontario. While this is an important process, it has created costly and long lead-times for applicants and lenders of the artwork and cultural objects.
With the new Act and accompanying application process, the Ministry aims to create an efficient and transparent process whereby institutions will need to apply only once to become "designated". This will result in cost savings for cultural institutions, simplify their business requirements and ensure they continue to demonstrate that they maintain effective due diligence policies and procedures when borrowing foreign artwork. The criteria for designating institutions will be set out in a guidance document.
To support implementation of the new Act and process to apply for designation, the Ministry is proposing a Minister's regulation that outlines requirements designated institutions must meet in order for the works of art or other cultural objects they borrow from foreign lenders for temporary exhibition to be immune from seizure while in Ontario.
Publishing and Reporting Requirements:
The proposed Minister's regulation requires that designated institutions must publish details of the work of art or other cultural object being borrowed. This information must be accessible to the public on the institution's website. These details must be published for a minimum of four consecutive weeks during the six-month period before the object is brought into Ontario and for a minimum of twelve consecutive weeks after the object enters Ontario or until the end of the temporary exhibition, whichever is longer.
The Minister's regulation also includes obligations for designated institutions to provide the following reports to the Ministry to enhance transparency and accountability:
i. an annual report that contains copies of information published on foreign works of art or other cultural objects brought into Ontario for temporary exhibition during that period; and
ii. a report required every five years to demonstrate continued implementation of due diligence procedures for establishing the provenance and ownership of foreign works of art or other cultural objects borrowed for temporary exhibition.
Designated Institutions:
The institutions approved for designation will be listed in the proposed Minister's regulation, which will be amended on an ongoing basis as new institutions become approved to be designated.
Transition:
There will be a transition provision in the regulation to enable immunity from seizure protection for foreign works of art or other cultural objects under the current Foreign Cultural Objects Immunity from Seizure Act to continue when the new Act comes into force.
Analysis of Regulatory Impact:
The ministry does not anticipate any negative business impacts related to the proposed Minister's regulation.
The Ontario government and cultural institutions are expected to realize long-term efficiencies and costs savings. Each time an institution prepares an application it incurs costs (approximately $40,000). Approximately 10 applications are processed each year by the Ministry. By moving to a one-time application process (i.e. for designation and not for each work or object that comes into Ontario), it is expected that institutions will benefit from significant cost savings over time.
Within the Ministry, additional savings will also be realized in the long-term through an internally streamlined application process.
The Ontario government and cultural institutions are expected to realize long-term efficiencies and costs savings. Each time an institution prepares an application it incurs costs (approximately $40,000). Approximately 10 applications are processed each year by the Ministry. By moving to a one-time application process (i.e. for designation and not for each work or object that comes into Ontario), it is expected that institutions will benefit from significant cost savings over time.
Within the Ministry, additional savings will also be realized in the long-term through an internally streamlined application process.
Further Information:
Foreign Cultural Objects Immunity from Seizure Act, 2019: Minister’s Regulation - General
(Download Adobe Reader)
Foreign Cultural Objects Immunity from Seizure Act, 2019, S.O. 2019, c. 14, Sched. 1
Proposal Number:
21-MHSTCI002
Posting Date:
September 16, 2021
Comments Due Date:
November 1, 2021
Contact Address:
Ministry of Heritage, Sport, Tourism and Culture Industries
400 University Avenue, 5th Floor
Toronto
Ontario
M5G 1S7
416-314-4728
400 University Avenue, 5th Floor
Toronto
Ontario
M5G 1S7
416-314-4728