Act
Centralization of Broader Real Estate Authority (CBREA) Proposed New Minister's Regulation
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023 (formerly Bill 69) which received Royal Assent in May 2023
Summary of Proposal:
The Ontario Government's real estate portfolio is one of the largest in Canada. Accountability is highly distributed across numerous entities and ministries. The government is working towards a holistic approach for real-estate management.
A holistic approach would allow the Province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would also reduce duplication and help identify real estate that could be used for projects that people in Ontario need the most, such as affordable housing and long-term care projects.
Phase 1 of the CBREA initiative focuses on 14 entities that primarily hold and/or use office space that can leverage the Ministry of Infrastructure's existing model to use office space more efficiently. The 14 CBREA Phase 1 entities are represented by eight oversight ministries
Item Ministry Entity
1. EDU Education Quality and Accountability Office
2. MOF Financial Services Regulatory Authority of Ontario
3. MOF Ontario Financing Authority
4. MOF Ontario Securities Commission
5. MAG Human Rights Legal Support Centre
6. MCU Higher Education Quality Council of Ontario
7. MCU Intellectual Property Ontario
8. MLITSD Skilled Trades Ontario
9. MTCS Province of Ontario Council for the Arts (also known as the Ontario Arts Council)
10. MTCS Ontario Media Development Corporation (also known as Ontario Creates)
11. MTCS Ontario Tourism Marketing Partnership Corporation (also known as Destination Ontario)
12. MTCS Ontario Trillium Foundation
13. OMAFRA Agricorp
14. SOLGEN Fire Marshal's Public Fire Safety Council
The proposed Minister's regulation is intended to be made under recent amendments to the Ministry of Infrastructure Act, 2011. These amendments, and related changes to other legislation, would come into force with the proclamation of Schedule 2 of the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023 (formerly Bill 69).
The Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, received Royal Assent on May 18, 2023. Schedule 2 of the Act, if proclaimed into force, would, amongst other things, prohibit entities prescribed by the Minister of Infrastructure for the purposes of section 11.0.1 of the Ministry of Infrastructure Act, 2011 from holding, controlling or acquiring: any land, building or structures; any interests in land, buildings or structures; or any fixtures or interests in fixtures installed or placed in or used in connection with land, buildings or structures. Any such interests that belong to an entity immediately before it is prescribed are deemed to vest in the Crown and to be under the control of the Minister of Infrastructure on the day on which a regulation prescribing the entity comes into force, subject to any prescribed exceptions etc.
MOI has worked and continues to work with the impacted ministries and entities on the proposed Minister's regulation to define the proposed exceptions, limitations, etc., from the application of section 11.0.1 for the draft regulation.
The proposed exemptions seek to
(1) allow the prescribed entities to hold, control or acquire trade fixtures and leasehold improvements;
(2) ensure that s. 11.0.1 would not prevent the Ontario Securities Commission or Financial Services Regulatory Authority of Ontario from making or enforcing regulatory requirements under laws currently administered by those entities; and
(3) ensure that s. 11.0.1 would not prevent the Ontario Financing Authority from investing in real property as part of its mandate.
The proposed Minister's regulation prescribing 14 entities and certain exceptions, limitations, etc. would reflect the intended outcomes of the CBREA initiative. It would support the government in acting and directing more as one holistic organization to manage real estate.
In addition, CBREA Phase 1 would address the Auditor General's recommendations and other third-party reports that have identified opportunities for the Province to deliver the real estate portfolio more efficiently through several initiatives, including centralizing realty authority and decision-making.
A holistic approach would allow the Province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would also reduce duplication and help identify real estate that could be used for projects that people in Ontario need the most, such as affordable housing and long-term care projects.
Phase 1 of the CBREA initiative focuses on 14 entities that primarily hold and/or use office space that can leverage the Ministry of Infrastructure's existing model to use office space more efficiently. The 14 CBREA Phase 1 entities are represented by eight oversight ministries
Item Ministry Entity
1. EDU Education Quality and Accountability Office
2. MOF Financial Services Regulatory Authority of Ontario
3. MOF Ontario Financing Authority
4. MOF Ontario Securities Commission
5. MAG Human Rights Legal Support Centre
6. MCU Higher Education Quality Council of Ontario
7. MCU Intellectual Property Ontario
8. MLITSD Skilled Trades Ontario
9. MTCS Province of Ontario Council for the Arts (also known as the Ontario Arts Council)
10. MTCS Ontario Media Development Corporation (also known as Ontario Creates)
11. MTCS Ontario Tourism Marketing Partnership Corporation (also known as Destination Ontario)
12. MTCS Ontario Trillium Foundation
13. OMAFRA Agricorp
14. SOLGEN Fire Marshal's Public Fire Safety Council
The proposed Minister's regulation is intended to be made under recent amendments to the Ministry of Infrastructure Act, 2011. These amendments, and related changes to other legislation, would come into force with the proclamation of Schedule 2 of the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023 (formerly Bill 69).
The Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, received Royal Assent on May 18, 2023. Schedule 2 of the Act, if proclaimed into force, would, amongst other things, prohibit entities prescribed by the Minister of Infrastructure for the purposes of section 11.0.1 of the Ministry of Infrastructure Act, 2011 from holding, controlling or acquiring: any land, building or structures; any interests in land, buildings or structures; or any fixtures or interests in fixtures installed or placed in or used in connection with land, buildings or structures. Any such interests that belong to an entity immediately before it is prescribed are deemed to vest in the Crown and to be under the control of the Minister of Infrastructure on the day on which a regulation prescribing the entity comes into force, subject to any prescribed exceptions etc.
MOI has worked and continues to work with the impacted ministries and entities on the proposed Minister's regulation to define the proposed exceptions, limitations, etc., from the application of section 11.0.1 for the draft regulation.
The proposed exemptions seek to
(1) allow the prescribed entities to hold, control or acquire trade fixtures and leasehold improvements;
(2) ensure that s. 11.0.1 would not prevent the Ontario Securities Commission or Financial Services Regulatory Authority of Ontario from making or enforcing regulatory requirements under laws currently administered by those entities; and
(3) ensure that s. 11.0.1 would not prevent the Ontario Financing Authority from investing in real property as part of its mandate.
The proposed Minister's regulation prescribing 14 entities and certain exceptions, limitations, etc. would reflect the intended outcomes of the CBREA initiative. It would support the government in acting and directing more as one holistic organization to manage real estate.
In addition, CBREA Phase 1 would address the Auditor General's recommendations and other third-party reports that have identified opportunities for the Province to deliver the real estate portfolio more efficiently through several initiatives, including centralizing realty authority and decision-making.
Analysis of Regulatory Impact:
If the legislative changes under Schedule 2 of the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023 are proclaimed into force and the Minister makes a regulation prescribing entities for the purposes of section 11.0.1 of the Ministry of Infrastructure Act, 2011, on the day on which a regulation prescribing entities comes into force, any interests in land etc. that previously belonged to these entities are deemed to vest in the Crown and be under the control of the Minister of Infrastructure, subject to any prescribed exceptions, conditions, limitations or restrictions in connection with section 11.0.1.The proposed regulation would impose any new additional compliance or administrative burden on regulated entities, including for-profit businesses (i.e., third-party landlords).
Further Information:
Proposal Number:
24-MOI005
Posting Date:
March 15, 2024
Comments Due Date:
March 21, 2024
Contact Address:
Ministry of Infrastructure, Realty Policy Branch, 777 Bay Street, 2nd Floor, Toronto, Ontario, M7A 2J3