Act
Red Tape Reduction- Northern Services Boards Act (NSBA) Modernization
Regulation Number(s):
Act
Instrument Type:
Act
Bill or Act:
Northern Services Boards Act, R.S.O 1990, Chapter L.28
Summary of Decision:
Through Bill 227, the Cutting Red Tape, Building Ontario Act, 2024, the Ministry of Northern Development (MND) has made amendments to the Northern Services Boards Act (NSBA) to modernize and better align the NSBA with partner ministry legislation, improve clarity, reduce administrative costs for Local Services Boards (LSBs), increase efficiency and consistency, provide greater flexibility to LSBs, and improve accountability.
The amendments align with the purpose of the NSBA which is to establish local services boards to facilitate the delivery of basic community services to residents in unincorporated areas of Northern Ontario. The amendments include allowing LSBs to provide fire services outside of their geographical boundaries, allowing closed meetings in certain circumstances with Ombudsman Ontario oversight, extending the term of office, increasing flexibility with financial reporting, and updating language to better align with other legislation. The legislative amendments to the NSBA and consequential amendments to the Ombudsman Act will come into effect on August 1, 2025, to align with the October 1-September 30 LSB fiscal year.
For further information on the decision details please go to Bill 227 An Act to amend various Act Schedule 18.
The amendments align with the purpose of the NSBA which is to establish local services boards to facilitate the delivery of basic community services to residents in unincorporated areas of Northern Ontario. The amendments include allowing LSBs to provide fire services outside of their geographical boundaries, allowing closed meetings in certain circumstances with Ombudsman Ontario oversight, extending the term of office, increasing flexibility with financial reporting, and updating language to better align with other legislation. The legislative amendments to the NSBA and consequential amendments to the Ombudsman Act will come into effect on August 1, 2025, to align with the October 1-September 30 LSB fiscal year.
For further information on the decision details please go to Bill 227 An Act to amend various Act Schedule 18.
Analysis of Regulatory Impact:
The NSBA facilitates the delivery of basic community services in areas without municipal organization in Northern Ontario through LSBs. MND proposed legislative amendments to modernize the NSBA and address feedback from LSBs, reduce burden, and enhance alignment with other legislation.
As a part of its obligations under the Modernizing Ontario for People and Businesses Act, 2020 (MOPBA), MND conducted a Regulatory Impact Analysis (RIA) of the proposed amendments. A RIA is a process of identifying and assessing the incremental benefits and costs of amending legislation or regulations.
The legislative amendments to the NSBA align with Ontario's commitment to cut red tape and support the objective of the MOPBA. No cost increases or adverse impacts are expected from the amendments. They are intended to provide cost savings, reduce the administrative burden on LSBs, reflect the unique needs of LSBs and northerners, streamline business processes, and support the MND mandate to promote northern economic and community development.
The amendments are expected to result in a total annual cost savings of approximately $18,900, and a time savings of 900 hours across LSBs. The annual cost savings of $18,900 is achieved through the savings of the 45 LSBs switching from a full annual financial audit to an annual financial review engagement. Calculations are based on the average value of annual audits conducted by LSBs and the average time taken by LSBs to prepare the audits.
The proposed changes are anticipated to positively impact the following stakeholders / partners: LSBs, the public (including inhabitants of LSBs), Indigenous communities, the municipalities, universities, school boards and hospitals (MUSH) sector, public safety organizations, Local Roads Boards, local not-for-profit associations, and local small businesses.
As a part of its obligations under the Modernizing Ontario for People and Businesses Act, 2020 (MOPBA), MND conducted a Regulatory Impact Analysis (RIA) of the proposed amendments. A RIA is a process of identifying and assessing the incremental benefits and costs of amending legislation or regulations.
The legislative amendments to the NSBA align with Ontario's commitment to cut red tape and support the objective of the MOPBA. No cost increases or adverse impacts are expected from the amendments. They are intended to provide cost savings, reduce the administrative burden on LSBs, reflect the unique needs of LSBs and northerners, streamline business processes, and support the MND mandate to promote northern economic and community development.
The amendments are expected to result in a total annual cost savings of approximately $18,900, and a time savings of 900 hours across LSBs. The annual cost savings of $18,900 is achieved through the savings of the 45 LSBs switching from a full annual financial audit to an annual financial review engagement. Calculations are based on the average value of annual audits conducted by LSBs and the average time taken by LSBs to prepare the audits.
The proposed changes are anticipated to positively impact the following stakeholders / partners: LSBs, the public (including inhabitants of LSBs), Indigenous communities, the municipalities, universities, school boards and hospitals (MUSH) sector, public safety organizations, Local Roads Boards, local not-for-profit associations, and local small businesses.
Further Information:
Bill 227 an Act to amend various Act Schedule 18
Proposal Number:
24-ENDM013
Posting Date:
November 20, 2024
Summary of Proposal:
Local Services Boards (LSBs) are established under the Northern Services Boards Act (NSBA) to facilitate the delivery of basic community services in Northern Ontario areas without municipal organization. LSBs are established by order of the Minister for specific geographic areas and may exercise the powers designated by the Minister's order. LSBs are voluntary organizations that currently have the authority to deliver any combination of nine (9) approved powers (services), including water supply, fire protection, garbage collection, sewage, street or area lighting, recreation, roads, public library services, and emergency telecommunications.
MND is proposing legislative amendments to the NSBA to modernize and better align the Act with partner ministry legislation, improve clarity, reduce administrative costs for LSBs, increase efficiency and consistency, provide greater flexibility to LSBs, and improve accountability.
The proposed amendments are as follows:
•Allow LSBs to provide fire protection services outside of their geographical boundaries.
•Require LSBs to undertake an annual financial review engagement rather than an annual financial audit.
•Extend the LSB Board term from one year to three years.
•Allow or require LSBs to hold closed Board meetings in certain circumstances (e.g., for confidential legal matters).
•Allow the Ontario Ombudsman oversight over LSBs' compliance with the proposed new closed meeting provisions in the NSBA.
•Remove the power of roads under the NSBA.
•Allow LSBs to contract out for one or more of the collection, removal, and disposal of garbage (instead of requiring all three) and include recycling and composting in the power of garbage collection.
•Remove occurrences of "area services boards" in the NSBA.
•Modify NSBA language to align with updated Ministry of Finance requirements for tax bills.
In order to implement the amendment related to the Ontario Ombudsman's oversight over LSB compliance with the proposed new closed meeting provisions in the NSBA, certain consequential amendments to the Ombudsman Act will be required. To date, the Ontario Ombudsman has not had jurisdiction over LSBs.
The proposed legislative amendments align with Ontario's commitment to cut red
tape and support the objectives of the Modernizing Ontario for People and
Businesses Act, 2020 (MOPBA). The amendments would, if passed, result in burden reduction for LSBs and members of the public through the delivery of cost
savings, reduced administrative burden for LSBs, and increased alignment
across partner ministry legislation by:
•Allowing LSBs to provide fire protection services outside their geographical boundaries: Currently, the NSBA does not allow LSBs to provide fire protection services outside their geographic boundaries. The proposed amendment would also incorporate the definition of "fire protection services" from the Fire Protection and Prevention Act, 1997 (FPPA), better aligning the NSBA with this legislation. This amendment, if passed, would serve to reduce confusion in the administration of LSB affairs.
•Requiring LSBs to undertake an annual financial review engagement rather than an annual financial audit: Annual audit costs are significant and have been a financial burden to LSBs for many years. Replacing the annual audit requirement with an annual review engagement would be less costly to LSBs, while still providing a certain level of scrutiny in the administration of finances. MND would retain the ability to require an audit (at the LSB's expense) at any time.
•Extending the LSB Board term from one year to three years: This amendment would, if passed, support a more sustainable LSB administration by providing consistency and longevity in Board member retention and greater certainty for long-term project planning and completion, as the Board composition would not turn over every year. Elections would be held every three years and by-elections would take place if a Board position were to become vacant within the three-year term.
•Allowing or requiring LSBs to hold closed Board meetings in certain circumstances (e.g., for confidential legal matters): A part of a Board meeting would be required to be closed to the public if the subject matter being considered is a request made under the Municipal Freedom of Information and Protection of Privacy Act, or an ongoing investigation undertaken by the Ontario Ombudsman appointed under the Ombudsman Act. A Board would also have the ability to close part of a meeting to the public (if it wishes) if the subject matter being considered at that part of the meeting involves specific matters, including personal matters, litigation, solicitor-client privileged advice, information provided in confidence to the Board by a government or Crown agency, or negotiations undertaken by the Board. The Board would be required to keep minutes of all closed meetings for internal purposes. This would allow LSBs the flexibility to conduct business in private, when appropriate. The proposed amendments would also align the NSBA with certain aspects of the closed meeting process available to municipalities under the Municipal Act, 2001.
•Allowing the Ontario Ombudsman oversight over LSBs' compliance with the new proposed closed meeting provisions in the NSBA: The Ontario Ombudsman would have the authority under the NSBA to investigate complaints regarding LSB compliance with the proposed closed meeting process thereby providing LSB inhabitants with accountability by ensuring that appropriate processes are followed.
•Removing the power of roads under the NSBA: The power of roads is currently one of nine powers under the NSBA. None of the 45 LSBs exercise the power of roads due to the Local Roads Boards program, administered by the Ministry of Transportation. The repeal of this power would reduce potential conflicts and duplication of services.
•Clarifying the power of garbage collection: This would include allowing LSBs to contract out for one or more of the collection, removal, and disposal of garbage (instead of requiring all three) and adding recycling and composting to the power of garbage collection. Amending the current definition of the power of garbage collection would provide LSBs with more flexibility in administering the service.
•Removing occurrences of "area services boards" in the NSBA: References to area services boards are no longer relevant. Other references to area services boards were removed from the NSBA in previous amendments.
•Modifying NSBA language to align with updated Ministry of Finance requirements for tax bills.
The proposed legislative amendments are proposed to come into force (if passed) on August 1, 2025, to align with the October 1-September 30 LSB fiscal year.
MND is proposing legislative amendments to the NSBA to modernize and better align the Act with partner ministry legislation, improve clarity, reduce administrative costs for LSBs, increase efficiency and consistency, provide greater flexibility to LSBs, and improve accountability.
The proposed amendments are as follows:
•Allow LSBs to provide fire protection services outside of their geographical boundaries.
•Require LSBs to undertake an annual financial review engagement rather than an annual financial audit.
•Extend the LSB Board term from one year to three years.
•Allow or require LSBs to hold closed Board meetings in certain circumstances (e.g., for confidential legal matters).
•Allow the Ontario Ombudsman oversight over LSBs' compliance with the proposed new closed meeting provisions in the NSBA.
•Remove the power of roads under the NSBA.
•Allow LSBs to contract out for one or more of the collection, removal, and disposal of garbage (instead of requiring all three) and include recycling and composting in the power of garbage collection.
•Remove occurrences of "area services boards" in the NSBA.
•Modify NSBA language to align with updated Ministry of Finance requirements for tax bills.
In order to implement the amendment related to the Ontario Ombudsman's oversight over LSB compliance with the proposed new closed meeting provisions in the NSBA, certain consequential amendments to the Ombudsman Act will be required. To date, the Ontario Ombudsman has not had jurisdiction over LSBs.
The proposed legislative amendments align with Ontario's commitment to cut red
tape and support the objectives of the Modernizing Ontario for People and
Businesses Act, 2020 (MOPBA). The amendments would, if passed, result in burden reduction for LSBs and members of the public through the delivery of cost
savings, reduced administrative burden for LSBs, and increased alignment
across partner ministry legislation by:
•Allowing LSBs to provide fire protection services outside their geographical boundaries: Currently, the NSBA does not allow LSBs to provide fire protection services outside their geographic boundaries. The proposed amendment would also incorporate the definition of "fire protection services" from the Fire Protection and Prevention Act, 1997 (FPPA), better aligning the NSBA with this legislation. This amendment, if passed, would serve to reduce confusion in the administration of LSB affairs.
•Requiring LSBs to undertake an annual financial review engagement rather than an annual financial audit: Annual audit costs are significant and have been a financial burden to LSBs for many years. Replacing the annual audit requirement with an annual review engagement would be less costly to LSBs, while still providing a certain level of scrutiny in the administration of finances. MND would retain the ability to require an audit (at the LSB's expense) at any time.
•Extending the LSB Board term from one year to three years: This amendment would, if passed, support a more sustainable LSB administration by providing consistency and longevity in Board member retention and greater certainty for long-term project planning and completion, as the Board composition would not turn over every year. Elections would be held every three years and by-elections would take place if a Board position were to become vacant within the three-year term.
•Allowing or requiring LSBs to hold closed Board meetings in certain circumstances (e.g., for confidential legal matters): A part of a Board meeting would be required to be closed to the public if the subject matter being considered is a request made under the Municipal Freedom of Information and Protection of Privacy Act, or an ongoing investigation undertaken by the Ontario Ombudsman appointed under the Ombudsman Act. A Board would also have the ability to close part of a meeting to the public (if it wishes) if the subject matter being considered at that part of the meeting involves specific matters, including personal matters, litigation, solicitor-client privileged advice, information provided in confidence to the Board by a government or Crown agency, or negotiations undertaken by the Board. The Board would be required to keep minutes of all closed meetings for internal purposes. This would allow LSBs the flexibility to conduct business in private, when appropriate. The proposed amendments would also align the NSBA with certain aspects of the closed meeting process available to municipalities under the Municipal Act, 2001.
•Allowing the Ontario Ombudsman oversight over LSBs' compliance with the new proposed closed meeting provisions in the NSBA: The Ontario Ombudsman would have the authority under the NSBA to investigate complaints regarding LSB compliance with the proposed closed meeting process thereby providing LSB inhabitants with accountability by ensuring that appropriate processes are followed.
•Removing the power of roads under the NSBA: The power of roads is currently one of nine powers under the NSBA. None of the 45 LSBs exercise the power of roads due to the Local Roads Boards program, administered by the Ministry of Transportation. The repeal of this power would reduce potential conflicts and duplication of services.
•Clarifying the power of garbage collection: This would include allowing LSBs to contract out for one or more of the collection, removal, and disposal of garbage (instead of requiring all three) and adding recycling and composting to the power of garbage collection. Amending the current definition of the power of garbage collection would provide LSBs with more flexibility in administering the service.
•Removing occurrences of "area services boards" in the NSBA: References to area services boards are no longer relevant. Other references to area services boards were removed from the NSBA in previous amendments.
•Modifying NSBA language to align with updated Ministry of Finance requirements for tax bills.
The proposed legislative amendments are proposed to come into force (if passed) on August 1, 2025, to align with the October 1-September 30 LSB fiscal year.
Contact Address:
Office name: Ministry of Northern Development, Roberta Bondar Pl.
Street address: 70 Foster Dr, Suite 700
City/Township Postal code: Sault Ste Marie, Ontario P6A 6V8
Phone: 1-866-711-8304
Street address: 70 Foster Dr, Suite 700
City/Township Postal code: Sault Ste Marie, Ontario P6A 6V8
Phone: 1-866-711-8304
Royal Assent Date:
January 8, 2025
Decision:
Approved