modernized municipal government act, 2016 (bill 21) web viewgeneral overview . following the...

Modernized Municipal Government Act, 2016 (Bill 21)House Amendments

General Overview Following the introduction of the Modernized Municipal Government Act (MMGA) in the Spring 2016 sitting of the Legislature, Municipal Affairs toured the province and hosted 21 engagement sessions in 20 locations to clarify the MMGA’s content and intent. A number of policy shifts and further changes to the Municipal Government Amendment Act, 2015, and the Municipal Government Act (MGA) were identified as a result of feedback received during the summer engagement. Those legislative changes are identified here.

GOVERNANCEElected Official Training

Item Current Proposed Rationale1 Orientation Training

s.16 (MMGA) (new s.201.1(1))This section requires municipalities to offer training to municipal councillors within 90 days of being elected.

This section is being amended to require municipalities to offer training to be held within 90 days after each councillor takes the oath of office.

These amendments are intended to address two aspects: ensures that the training session(s) occur within 90

days (not just scheduled for a future time); and accounts for situations where there might be a delay

between the time a councillor is elected to the time they actually take office (such as for election recounts or controverted elections), to ensure that the clock does not run out before there is reasonable opportunity to hold the training.

2 Orientation Training Topicss. 16 (MMGA) (new s.201.1(2))This subsection lists the topics that must be addressed in the orientation training.

Add the topic of “the municipality’s code of conduct” to the list.

The code of conduct is a vital part of the councillor’s role and responsibilities and should be included in the training.

3 Orientation Trainings.16 (MMGA) (new s.201.1(4) and (5))These subsections provide transition clauses to address scenarios involving the fact that not all municipalities hold their

Subsections (4) and (5) are being deleted and a new transition clause is being proposed to bring this new policy in force as of July 1, 2017.

Stakeholders indicated the proposed transition amendments should be simplified. Replacing them with an in force date of July 1, 2017 will ensure that this new policy is in force for both summer village elections and all other municipal elections in 2017, but will not apply to any by-elections (as by-elections are not held where there is a general election coming up in the next six months).

1Confidential Embargo until Committee of the Whole

Item Current Proposed Rationalegeneral elections on the same date and for the possibility of by-elections. These subsections were drafted due to uncertainty as to when the Bill was going to be proclaimed/in force.

Municipally Controlled Corporations (MCCs)

Item Current Proposed Rationale4 Control of Corporations

s.13 (MMGA) (s.75.1(1))Definitions are provided for “controlled corporation” and “corporation” and requirements are set out that a municipality must comply with before controlling a corporation.

An amendment is being made to this section to add a reference to subsidiaries of MCCs.

Stakeholders questioned whether the requirements set out in this new Division will apply to subsidiaries of MCCs. As that was the intent, an amendment is needed to ensure that subsidiaries are subject to the same requirements.

5 Control of Corporationss.13 (MMGA) (new s.75.1(2))This section lays out the requirements for the establishment of a controlled corporation.

Amend this section to indicate that a council must be satisfied that the legislated purposes of the MCC as outlined in the section have been met.

Add wording that requires that the purpose of the MCC includes that the profits and dividends of the controlled corporation will provide a direct benefit to the residents of the municipality or group of municipalities that controls it.

Currently, the Minister must be satisfied that the legislated purposes of MCCs have been met, which allows some discretionary element to the requirement. This amendment ensures that council must consider and be satisfied that the MCC is going to operate under the legislated purposes but does not open it up to unreasonable scrutiny and judgment as to whether one of the purposes is actually being met.

This wording is taken from the similar provision in section 3(3)(e) of the Control of Corporations Regulation (AR 284/2003), which was intended to be replicated in this new Division 9.

6 Control of Corporationss.13 (MMGA) (new s.75.1(3))

Remove the requirement for a due diligence study, as well as the

Stakeholders indicated the requirement for a due diligence study in addition to a business plan was an


Item Current Proposed RationaleThe MMGA includes a requirement for both a due diligence study and business plan prior to the establishment of a controlled corporation.

accompanying regulation making authority for it in s. 75.5(1)(c).

overly onerous and unnecessary requirement. Any significant elements of the due diligence study that are not captured in the business plan can be made a requirement in the accompanying regulation.

7 Material Changes.13 (MMGA) (new s.75.3)This section requires municipalities to notify residents of a material change to the operation of a controlled corporation and provide them an opportunity to make representations.

Clarify this section to indicate that it is a proposed material change that triggers the requirement to notify and hear representations from residents.

This was a drafting error in the MMGA. The obligation to notify residents and give them an opportunity to make representations would be hollow if the material change had already occurred.

8 Utility Services Provided by Controlled Corporationss.13 (MMGA) (new s.75.4(4))This section prohibits the provision of utility services outside Alberta without Ministerial approval.

Strike out Although the specific restriction on doing so is being removed, the operational decision to do so would be a fundamental part of the business plan for creating an MCC as well as a material change for an existing MCC, which would be presented as part of the business plan or material change proposal that council and residents will consider. As such, the question of whether an MCC should or should not operate outside the province will be left as a local decision for council and the residents to decide.

The regulation under development will specify that operating out of province would have had to be included in the original business plan and if not, would be considered to be a material change.

9 Control of Profit Corporationss.602.09 (MGA)This section specifies that the MGA provisions related to MCCs

Delete the cross-reference to s.73 and add a cross-reference to the new Division 9 of Part 3.

A new Division for MCCs was created in the MMGA (Division 9 of Part 3), and in turn s.73 was repealed. As such, the cross-reference must now be to Division 9 of Part 3.


Item Current Proposed Rationaledo not apply to a regional services commission created under Part 15.1 of the MGA.

Appeal Board Composition

Item Current Proposed Rationale10 Panels of Local Assessment

Review Board (LARB)s.61 (MMGA) (new s.454.11)This section indicates that two members of a three member regional LARB may be councillors.

Amend this section so that there may be only one councillor on a LARB panel hearing a complaint, including regional LARBs, and if the panel consists of only one member it may not be a councillor.

Regionally established appeal boards involve more than one municipality. Concerns have been raised that councillors from different municipalities might have similar interests and predispositions that would create an apprehension of bias if councillors are able to form a majority of the panel. This amendment will ensure that there is only a maximum of one councillor on any given appeal panel even if it is a panel of a regional LARB. This will help promote fairness and impartiality.

11 Panels of Composite Assessment Review Board (CARB)s. 61 (MMGA) (new s.454.21)This section indicates that two members of a three member regional CARB may be councillors.

Similar to the above changes, amend this section so that there may be only one councillor on a CARB panel hearing a complaint, including regional CARBs.

This parallel amendment ensures that there is a maximum of one councillor on a sitting CARB panel, even if it is a panel of a regional CARB.

12 Appeal Board Establisheds.91 (MMGA) (new s.627(3))This subsection stipulates that councillors from a single municipality may not form the majority of a subdivision and development appeal board (SDAB) or a regional SDAB.

Amend this subsection to reflect that only one councillor, regardless of which municipality they come from, may be on an SDAB hearing panel or a regional SDAB hearing panel.

This parallel amendment ensures that there is only a maximum of one councillor on any SDAB panel, even if it is a panel of a regional CARB.

13 Ministerial OrderNEW

Include a provision in each of the above that allows the Minister to

This provision will address concerns that for some municipalities it is very challenging to get panel members


Item Current Proposed Rationaleorder that this new restriction does not apply.

who are not municipal councillors.

It also can be used to deal with hearings that have already begun and are part way through with a majority of councillors sitting on the panel.

Governance – General Clarifying and Technical Amendments

Item Current Proposed Rationale14 Jurisdiction of the Municipal

Government Boards.488(3) (MGA)This section indicates which sections of the Act apply when the Board holds a hearing pursuant to several subsections under s. 488(1).

Amend this section to delete the reference to subsections (g) to (j), thus resulting in the reference being to the whole of subsection (1).

This amendment will ensure that the MGB has the authority to utilize the tools and powers under sections 495 to 498, 501 to 504 and 507 in all proceedings under section 488(1). These powers help the board to control its proceedings in various ways, thereby increasing efficiency.

PLANNINGDecision-Making Timelines

Item Current Proposed Rationale15 Alternative Time Periods for

Applicationss. 98 (MMGA) (new s.640.1), s. 128 (MMGA) (new 694(1)(b.2))

The MMGA provides cities and

Amend the proposed section to include all cities and other municipalities with a population of 15,000 or more.

This amendment better supports the original intent in the MMGA to provide flexibility to those municipalities who deal with high volumes of applications and applications with greater diversity and complexity.


Item Current Proposed Rationalespecialized municipalities that have larger populations with the flexibility to set alternate timelines for the review and approval of subdivision and development permit applications through a bylaw process.

Off-Site Levies

16 Off-Site LeviesPlanning and Development Definitionss.88(MMGA) (new s.616(a.11))

This section defines terms for the planning and development sections of the Act.

Amend the definition for Community Recreation Facility as follows:

Community recreation facility means an indoor municipal facility used primarily by members of the public to participate in recreational activities conducted at the facilities.

Stakeholders requested more clarity around the definition for community recreation facility to differentiate between this type of facility and the recreational use of lands that are collected a municipal reserve.

17 Off-Site LeviesMinimum Benefitting Area Percentages.101(MMGA) (new s.648(2.2))s.102(MMGA)(new s.648.1(1)(a))s.128 (MMGA) (new s.694(4)(c))

Repeal subsection 648(2.2)(b) to remove the requirement that a minimum 30% benefit must be reached before off-site levies can be imposed or collected for community recreation facilities, fire halls, police stations and libraries.

Stakeholders asked for more flexibility and requested that the minimum threshold be removed on the collection of off-site levies for the new infrastructure that was included in the MMGA.

Intermunicipal Collaboration Frameworks

Item Current Proposed Rationale18 Intermunicipal Development

Plans and Municipal Development Plans

Amend these sections to indicate that IDPs and MDPs must be developed by the time an

Intermunicipal Collaboration Frameworks (ICF) must be developed within 2 years (plus an additional year if done by an arbitrator) of the proclamation of the amendments.


Item Current Proposed Rationales.94 (MMGA) (new s.631(3)) and s.95 (MMGA) (new s.632(2.1))These sections require councils to adopt intermunicipal development plans (IDP) and municipal development plans (MDP), indicate what those plans must include, and timelines for having these plans in place.

Intermunicipal Collaboration Framework (ICF) is required to be completed.

ICFs must contain IDPs and MDPs Currently, IDPs are not required to be in place for 5 years after the proclamation and MDPs are to be developed within 3 years after proclamation.

19 Mandatory Intermunicipal Collaboration Frameworkss.131 (MMGA) (new s.708.26)This section indicates that municipalities that share common boundaries must create a framework with each other within 2 years of the coming into force of this section.

Amend this section to include Improvement Districts.

Improvement Districts (ID) are not part of the definition of a municipality; however they operate in a similar manner as municipality with the exception that the Minister is the municipal authority.

20 Mandatory Intermunicipal Collaboration FrameworksNews.131 (MMGA) (new s.708.28 (4), (4.1), (4.2), (4.3), (6))

Add new subsections to clarify that members of a GMB will be exempt from ICFs to the extent that mandatory components of ICFs are addressed by the Board or the Growth Management Plan. In other words, as recreation is not a primary focus for GMBs, inter-municipal recreation agreements are likely still required.

Clarify that while members of GMBs are not required to develop ICFs with

The intent of this provision is to ensure sure all mandatory aspects of ICF’s are addressed by all municipalities, including members of GMBs.


Item Current Proposed Rationaleeach other, they are required to develop ICFs with non-member neighbours.

21 Contents of an Intermunicipal Development Plans.94 (MMGA) (new s.631(2)(a)(iv) & (vii))

Remove the subsections that require that an intermunicipal development plan include proposals for intermunicipal infrastructure, services and facilities.

This amendment ensures that intermunicipal development plans remain high level planning documents and that they do not overlap or duplicate the Intermunicipal Collaboration Framework requirements.

22 Method of Creating an Intermunicipal Development PlanNews.94 (MMGA) (new s.631(5))

Add a new subsection to indicate that Intermunicipal Development Plans should be negotiated in good faith.

The intent of this provision is to encourage collaboration for regional planning and avoid arbitration where possible.

23 Municipalities Must Amend Bylawss. 131 (MMGA) (new s.708.4, s.708.45(2))These sections indicate that where an arbitrator creates a framework, the affected municipalities must amend their bylaws so they are consistent with the framework. It also indicates that a municipality may not amend, repeal or revise its bylaws to be inconsistent with a framework.

Amend these sections to exclude land use bylaws (LUB), but include a provision that indicates land use bylaws cannot be amended, revised or repealed in a manner that is inconsistent with an IDP.

It is common in other jurisdictions that a LUB is not required to be amended on the passage of a new statutory plan, but may not be amended contrary to the new statutory plan. This would ensure that an IDP is implemented and both municipalities adhere to the IDP without onerous changes required of the municipality or landowners. Over time with successive LUB amendments, land uses would conform to the IDP.

24 Binding Dispute Resolution Processs.131 (MMGA)(new s.708.45(2))

Correct an error in Bill 21 by adding the word “any” before “matter”.

This is to fix an error in Bill 21 to provide clarity to the subsection.

Planning – General Clarifying and Technical Amendments


Item Current Proposed Rationale25 Appeal of an Off-site Levy

s. 102 (MMGA) (new s.648.1), s. 128 (MMGA) (new s.694(4))These sections outline the grounds for which an off-site levy appeal may be made.

Amend these sections so it is clear it is the bylaw that is appealable but not the imposition of, or the amount of the levy, unless the calculation or the amount of the levy is incorrect.

The grounds for off-site levy appeals incorrectly stated in the MMGA. The subject matter should be the bylaw under appeal, not the imposition or amount of the levy.

26 Development Applicationss. 122 (MMGA) (new s.683.1(11))This section indicates that a decision of a development authority must indicate where an appeals lies with a SDAB or the Municipal Government Board (MGB).

Amend this section to remove the reference to appeals going to the MGB and indicate that reasons need to be provided for refused applications.

This is an error as development permit appeals do not go to the MGB.

27 Subdivision and Development Appealss. 125 (MMGA) (new. 686(1.1))This section indicates the date of notification of an order, decision or development permit is deemed to be 7 days from the date mailed.

Strike out This amendment was intended ensure that municipalities understood that there is an additional 7 days following the mailing of a development permit notice in which a person can file an appeal (in accordance with the Interpretations Act).

However, development permit decisions can be posted, advertised or mailed, depending on a municipalities land use bylaw.

Maintaining this provision as currently worded would result in mailed notices having a 21-day period for an appeal to be filed, but only 14-days published or advertised notices.

An amendment to adjust this section to make the appeal period the same for mailed, published and advertised notices is out of scope for a house amendment and is therefore intended to be remedied through the proposed discussion paper and a spring bill.


Item Current Proposed Rationale28 Body of Water

s.4 (MMGA) (new s.1.2)

s.11 (MMGA) (new s.60(1)),

s.97 (MMGA) (new s.640(4)(l)(ii),

s. 112(MMGA) (new s.664(1)(c)),

s. 112 (MMGA) (new s.664(1.1)(b) & (c)),

s.118 (MMGA) (new s.678(2)(a)(ii))These sections were revised to use the term “water body” which is defined under section 1(1)(bb.1)

Amend these sections to replace the term water body with body of water.

Repeal section 1(bb.1) and add a new s.1.2 that states:

In this Act, a reference to a body of water is to be interpreted as a reference to

(a) a permanent and naturally occurring water body, or

(b) a naturally occurring river, stream, watercourse or lake.

The term body of water has been used in Municipal Government Act for many years, but has never been defined.

In the MMGA, an amendment was proposed to clarify, for municipal governance purposes, the meaning of body of water.

The proposed solution was to use the term “water body” and define it for municipal governance purposes.

However, stakeholders indicated that the term “water body” is defined in the Water Act and is at odds with its intended municipal governance purposes.

The proposed solution is to revert back to the use of the term body of water, but keep the definition proposed in the MMGA.

The term ‘water body’ as defined in the Water Act, includes any location where water flows or is present, whether or not the flow or the presence of water is continuous, intermittent or occurs only during a flood. In contrast, the term ‘body of water’ means only those water bodies that are permanent and naturally occurring.

ASSESSMENT and TAXATIONCentralization of Industrial Property Assessment

Item Current Proposed Rationale29 Assessment of Property – Amend this section to capture all Stakeholders during the summer engagement were


Item Current Proposed RationaleInterpretation provisionss. 21 (MMGA) (new s.284(1)(f.01)(iv))This section indicates what designated industrial property means and that designated industrial includes any other property designated by the regulations.

property ancillary to a major plant. concerned by the broad, undefined nature of the wording - “…includes any other property designated by the regulations”. This amendment allows for greater transparency with respect to the designation of property as “designated industrial property” for the purpose of centralized industrial assessment. It provides clear guidance for assessing land and other property that support the operation of regulated facilities and major plants. It should end the past controversy regarding what property is and is not to be provincially assessed versus what is and is not to be municipally assessed.

Assessment and Taxation – General Clarifying and Technical Amendments

Item Current Proposed Rationale30 Correction

s.138(3) (MMGA)Correct the spelling of the word “Modernized”.

s.138(3) currently reads,

“Section 55 is deemed to come into force on the date the Bill to enact the Modenized Municipal Government Act received first reading.”

31 Interpretation Provisions for Parts 9 to 12s.21 (MMGA)(new s.284.(1)(r.2)This clause defines “provincial assessor”

Provide a separate amendment section for this clause.

For the purposes of proclamation, the clause needs to have its own amendment section from clause (r.1), which defines “provincial assessment roll”. They are to come into force at different times.

32 Municipal Assessors.22 (MMGA) (new s.284.2(1))This section deals with the appointment of a municipal assessor.

Amend s.284.2(1) to include the words indicated in red:

284.2(1) A municipality must appoint a person having the qualifications set out in the regulations to the position of designated officer to carry out the functions, duties and powers of a

The new wording is required to ensure that an assessor must be appointed to the position of designated officer by council for the purposes of carrying out the duties of an assessor under the Act. The amendment ensures the independence of the assessor is maintained.


Item Current Proposed Rationalemunicipal assessor under this Act.

33 Interpretation Provisions for Parts 9 to 12s.21 (MMGA)(new s.284(1)(n.4)) This clause defines “municipal assessor”

Amend this definition so it aligns with the amendment in s.284.2(1).

The municipal assessor must be a designated officer appointed under section 284.2 to carry out the duties of an assessor for a municipality.

34 Duty to Provide Informations.27 (MMGA) (new s.295(1)) This subsection stipulates taxpayers obligation to provide assessors with information for assessing property and performing other duties under Parts 9-12 of the Act.

Amend this subsection to instruct that any necessary information must be provided for assessors to carry out their duties and responsibilities under Parts 9-12 of the Act and the regulations.

This amendment broadens an assessor’s access to information, ensuring that the assessor can get any information needed to perform the duties of assessors as per the Act or Regulations.

35 Regulationss.47 (MMGA) (s.322(g.1))This clause allows the Minister to make regulations on matters respecting access to information

Amend this clause by removing the reference to section 295(1)(b).

Consequential amendment as a result of the above requested change.

36 Duty to Provide Information s. 27 (MMGA) (new s.295(4)) “…person has failed to provide the information requested…”

Amend the subsection to read “any information” rather than “the information”

The new wording aligns with the broadening of the access to information for assessors in subsection (1).

37 Access to the Municipal Assessment Records. 30 (MMGA) (new s.299(3))This subsection suspends a municipality’s obligation to respond to a request for information until a complaint has been decided, if the request is made after a complaint is

Amend the subsection to ensure that requests made prior to the filing of a complaint are adhered to in accordance with the legislated timelines.

This amendment will ensure that the suspension of the obligation is only for requests made after a complaint has been filed.


Item Current Proposed Rationalefiled.

38 Access to the Provincial Assessment Records.30 (MMGA) (new s.299.1(3))This subsection suspends a provincial assessor’s obligation to respond to a request for information until a complaint has been decided, if the request is made after a complaint is filed.

Amend the subsection to ensure that requests made prior to the filing of a complaint are adhered to in accordance with the legislated timelines.

This amendment will ensure that the suspension of the obligation is only for requests made after a complaint has been filed.

39 Special Provision of Property Tax Bylaws.357(2)This section references s.326(a)(ii).

Amend s.357(2) by striking out “section326(a)(ii)” and replacing it with, “section 326(1)(a)(ii)”.

Bill 20, the Municipal Government Amendment Act, 2015 amended s.326 by renumbering it as section 326(1). Bill 21, the Modernized Municipal Government Act updated the majority of section references but missed this one.

40 Judicial Reviews. 64 (MMGA) (new s.470(1))

Amend this section to reflect the fact that an application for judicial review must first be filed prior to serving it to the assessment review board whose decision is the subject of the application.

This amendment properly reflects the process that an application for judicial review is filed prior to serving. This amendment also helps stakeholders understand the process.

41 Judicial Reviews. 64 (MMGA) (new s.470(4))

Amend this section to provide clarity with respect to the process of serving the assessment review board with a notice of an application for judicial review.

This amendment properly reflects the process and also helps stakeholders understand the process.

42 Judicial Review of a Board Decisionss.80 (MMGA) (new s.508.1(1) and s508.1(4))

See ss.470(1) and 470(4) above. These are parallel amendments for the judicial review amendments to ss. 470(1) and 470(4) required for the Municipal Government Board sections to properly reflect the court process and aid with understanding by stakeholders.

43 Immunity Provide a separate amendment Amendments to ss.483 and 484 are not specifically related


Item Current Proposed Rationales.66(MMGA) (s.484 MGA)This section provides immunity to assessment review board members when exercising their powers in good faith.

section for the amendments relating to s.484 of the MGA.

and also come into force at different times. Consequently, for proclamation purposes they need to be separated.

Transitional Provisions

Item Current Proposed Rationale44 Centralized Assessment

s. 138(MMGA)Sections 21(a)(viii) and 22 come into force on proclamation.

Sections 21(a)(viii) and 22 should come into force on royal assent.

These sections provide for the provincial assessment roll prepared by the provincial assessor and the appointment of a designated officer as a municipal assessor. This amendment is for the applicable transitional provision with respect to the coming into force of these sections.

45 Transitional Regulationss. 138(MMGA)Section 135 (MMGA) comes into force on proclamation.

Section 135 will come into force on royal assent.

Transitional regulations will be required in the fairly short term for the purposes of enabling provincial industrial property assessment in for the 2017 assessment year. Avoids the need to proclaim one section when the first transitional regulation is approved. As this is a regulation-making authority only, immediate coming into force has no operational impact.

46 Judicial Reviewss. 138 (MMGA)Sections 64, 65, 66, 67(h), 79, 80, 82(d) and 134 (MMGA) come into force on proclamation.

Sections 21(a)(viii.1), 64, 65, 66, 67(h), 79, 80, 82(d) and 134 should come into force on January 1, 2017.

The Court of Queen’s Bench has indicated that the current leave to appeal process consumes undue court resources. The new judicial review provisions can stand alone and a January 1, 2017 in force date will allow for alleviating some pressures on the court system on an immediate basis.

Also, the appointment of the provincial assessor needs an immediate coming into force date which will allow for the assessor to be appointed and to begin collecting assessment information and preparing for the assumption of industrial property assessment in 2018.


Item Current Proposed Rationale

This amendment includes applicable transitional provisions for amendments to centralization and judicial review.

47 Bill 20 (2015) amendmentss. 138 (MMGA)Section 137 (MMGA) comes into force on proclamation.

Section 137 should come into force on royal assent.

As these sections are all not yet in force, the amending bill should be amended prior to the coming into force of the sections amended by MMGA s. 137. Four provisions of Bill 20 are amended by this section, including one which is proclaimed to come into effect on January 1, 2017 (Section 41(b) per OC 145/2016). All of these provisions should be amended before they come into force. Otherwise the MGA itself should be amended, not the 2015 amending act.


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