Act

Proposed amendments to the Municipal Act, 2001, and the City of Toronto Act, 2006 to standardize and strengthen the municipal code of conduct and integrity commissioner framework

Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Municipal Act, 2001, and the City of Toronto Act, 2006
Summary of Proposal:
The Municipal Act, 2001 and City of Toronto Act, 2006 require municipalities to establish codes of conduct that apply to members of council and certain local boards.

The Ministry of Municipal Affairs and Housing (the Ministry) is proposing to amend the Municipal Act, 2001 and City of Toronto Act, 2006 to strengthen the municipal code of conduct and integrity commissioner framework based on recommendations provided by the Integrity Commissioner of Ontario and strengthen the penalty framework for serious code of conduct violations.

Specifically, the Ministry is proposing legislative amendments to:
1. Enable the creation of one standardized code of conduct for all municipalities, that would also include training requirements for members of council and certain local boards.
2. Enable the creation of standardized investigation processes for municipal integrity commissioners (i.e., including complaint procedures, timelines, reporting requirements and authority to dismiss frivolous and vexatious complaints).
3. Create a role for the Integrity Commissioner of Ontario to:
A) Provide training to municipal integrity commissioners regarding the standard municipal code of conduct and related processes and inform the municipality on whether the training has been completed.
B) Provide advice to municipalities regarding the independence of a person who may be appointed as the municipal integrity commissioner.
C) conduct inquiries upon the municipal integrity commissioner's recommendation that a member be considered for removal from office (see below).
4. Create a mechanism for municipal councils to remove from office and disqualify for four years members of council and certain local boards for certain serious violations of the code of conduct upon:
A) the recommendation of the municipal integrity commissioner;
B) A concurring recommendation from the Integrity Commissioner of Ontario; and
C) a unanimous vote of the council with all members whose absence is not authorized by council and who do not have a conflict of interest.

The legislation would provide that the municipal integrity commissioners and the Integrity Commissioner of Ontario would only be able to consider and recommend removal and disqualification, if they determine that ALL four of the following criteria are met:
1. The member has contravened the code of conduct;
2. The contravention is of a serious nature;
3. The member's conduct that is the subject of the inquiry has resulted in harm to the health, safety or well-being of persons; and
4. The existing penalties are insufficient to address the contravention or ensure that the contravention is not repeated.

The legislation would provide that when conducting an inquiry, the Integrity Commissioner of Ontario may also consider, among other matters, whether the contravention negatively impacts public confidence in the ability of the:
1. Member to discharge their duties; and
2. Council or local board to fulfil its role, including by meeting its statutory obligations.

Following completion of an inquiry, the Integrity Commissioner of Ontario would:
• If the Integrity Commissioner of Ontario determines that the criteria for removal have been met, make a report to council recommending that the member be removed from office; or
• If the Integrity Commissioner of Ontario determines that the criteria for removal have not been met, refer the matter back to the integrity commissioner.

The proposed amendments would provide that all members of the municipal council would be required to vote in favour of the Integrity Commissioner of Ontario's recommendation in order to remove a member.

Only the member(s) who is/are the subject of the Integrity Commissioner of Ontario report, members with approved absences or members who have a conflict of interest would be exempt from the vote.

The proposed amendments would provide that if the Integrity Commissioner of Ontario recommends removal of a member from office but all of council does not vote unanimously in favour of this recommendation, then no penalty would be applied, and council could not impose other penalties.

The proposed amendments would provide that, if the Integrity Commissioner of Ontario refers the matter back to the municipal integrity commissioner, the municipal integrity commissioner may continue the local process and consider whether to recommend a reprimand or suspension of pay. The municipal council or local board could then impose either of those penalties.

The proposed amendments would limit the ability of the integrity commissioner to submit a recommendation to the Integrity Commissioner of Ontario after the sixth anniversary of the contravention and between nomination day and voting day during a regular municipal election year. The Integrity Commissioner of Ontario would be able to restart the inquiry only if the integrity commissioner makes a request within six weeks of voting day.

It is proposed that any changes to the code of conduct and integrity commissioner framework come into force in November 2026 in order to provide time to develop associated regulations, training and guidance materials and to align with the start of the next municipal term of office.

As part of this proposal, the Ministry of Municipal Affairs and Housing will consult with the municipal sector and the Integrity Commissioner of Ontario on:
1. The development of supporting regulations (e.g., standard code of conduct and municipal integrity commissioner processes).
2. How to improve access to municipal integrity commissioner services in small, rural and northern municipalities, including whether there is a role for the Integrity Commissioner of Ontario to provide integrity commissioner services in certain municipalities.
3. Whether limitations need to be set up to help maintain municipal integrity commissioner independence (e.g., limit being employed in another capacity at a municipality).
4. Requirements related to annual financial disclosures for members of council.

The proposed amendments would also provide confidentiality requirements for Integrity Commissioner of Ontario, exceptions from these requirements, and the applicability of the Freedom of Information and Protection of Privacy Act.
Analysis of Regulatory Impact:
The proposal would enable the creation of a standardized municipal code of conduct and integrity commissioner framework that would promote safer municipal workplaces for all 444 municipalities in Ontario. The impacts of the proposal are contingent on local circumstances (i.e., code of conduct complaints), and no direct cost impacts are anticipated.

No increased ongoing costs to municipalities are anticipated.

Indirect costs to municipalities may include time required for municipal councils and certain local boards as well as the municipal integrity commissioners to learn about and implement a standardized code of conduct, investigative processes and the changes allowing removal and disqualification from office of a member who has been found to have violated the code of conduct.

Benefits to municipalities and municipal integrity commissioners would include having access to Integrity Commissioner of Ontario advice and training about the code of conduct framework. Standard code of conduct and investigation processes may further reduce costs and burden to municipalities through consistent application of the framework throughout the province, including consistent training requirements province-wide.
Further Information:
Proposal Number:
24-MMAH025
Posting Date:
December 12, 2024
Comments Due Date:
February 10, 2025
Contact Address:
Ministry of Municipal Affairs and Housing
Local Government Policy Branch
777 Bay St., 13th Floor
Toronto, ON, M7A 2J3
Comment on this proposal via email