This is page numbers 5397 - 5440 of the Hansard for the 19th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was know.

Topics

Bill 66: An Act to Amend the Property Assessment and Taxation Act
Reports Of Committees On The Review Of Bills

Page 5404

Rylund Johnson

Rylund Johnson Yellowknife North

Thank you, Mr. Speaker. Committee would like to report on its consideration on Bill 66, An Act to Amend the Property Assessment and Taxation Act, as ready for consideration in Committee of the Whole. Thank you, Mr. Speaker.

Bill 66: An Act to Amend the Property Assessment and Taxation Act
Reports Of Committees On The Review Of Bills

Page 5404

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Yellowknife North. Reports of committees on the review of bills. Reports of standing and special committees. Member for Kam Lake.

Committee Report 41-19(2): Interim Report on Bill 65, Builders Lien Act
Reports Of Standing And Special Committees

Page 5404

Caitlin Cleveland

Caitlin Cleveland Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, your Standing Committee on Social Development is pleased to provide its interim report on Bill 65, Builders' Lien Act, and commends it to the House.

Introduction

Bill 65, Builders' Lien Act, was referred to the Standing Committee on Social Development for review on November 3rd, 2022. A plain language summary for Bill 65 was tabled on the same day. The sponsoring department for Bill 65 is the Department of Justice. During committee's review and public hearing on Bill 65, inquiries focused on applying the Builders' Lien Act to the Government of the Northwest Territories, Indigenous governments, and municipalities, including questions on how provisions related to lands owned by those entities would work. Committee had already raised concerns and considered amendments to the proposed legislation, particularly concerning types of lands subject to the bill and GNWT's engagement with Indigenous and municipal governments in developing the bill.

During the public hearing on January 18th, 2023, committee expressed concerns regarding the level of consultation done by the department prior to the introduction of Bill 65. During the same hearing, the Minister of Justice committed to working with committee, doing further engagement, and improving the bill.

Following the public hearing, the Government House Leader requested that committee seek an extension of the review period under Rule 8.3(2) to allow the Department time to engage in discussions with Indigenous governments, municipalities, and industry about committee's concerns.

The purpose of Bill 65 is to modernize the Northwest Territories lien legislation as it concerns construction. The existing Mechanics Lien Act has not changed substantially in over 100 years. Since then, practices and contractual arrangements in construction and real property development have changed considerably and continue to evolve. At the core of this legislation lies the intent to ensure that contractors and subcontractors are paid for the work and materials they have provided.

The builders' lien legislation would also regulate the way payments are made in the construction industry and protect the participants in a construction project against the failure of others to pay for the work or materials provided. Several Canadian jurisdictions have also updated their builders' lien legislation, including Ontario in 2019, British Columbia in 2020, and Alberta in 2022.

Bill 65 applies to activities involving the creation, repair, or alteration of an "improvement" to land or alteration of the land itself. This includes buildings and structures above and below ground and could consist of culverts, driveways, utility lines, pipelines, excavations and nearly all active modification of the surface and subsurface of the land, including demolition or removal of structures.

Bill 65 updates the law governing construction in the NWT by clarifying who is entitled to claim a lien (including workers), extending timelines to preserve and perfect a claim, allowing annual and phased holdback amounts, requiring a certificate of substantial performance, providing rights to certain information, and including regulation-making provisions.

COMMITTEE CONSIDERATIONS

Committee reviewed Bill 65 and found there is room for changes or clarification in the following areas:

  • Ensuring the GNWT is bound.
  • Ensuring that Bill 65 treats all governments equally.
  • Ensuring that land, resources and self-government agreements prevail where there is conflict or inconsistency.
  • Exempting three categories of land from sale and seizure: public lands and lands owned by agencies on behalf of the Government of the Northwest Territories, settlement lands, and municipal lands.
  • Considering that lands withdrawn from disposition for the purpose of pending treaties also be exempt from seizure and sale.

In the initial review, committee perceived that GNWT did not give enough consideration to the thought that settlement lands may not be sold. Members found that any sale of lands requires recognition of the land for a heightened sensitivity in the analysis and preparation of legislation.

Committee included Indigenous governments and organizations in the initial review during the engagement period, however, committee did not receive submissions. Members see it as necessary to have communication on Bill 65 going directly to Indigenous governments.

Committee members determined that Indigenous governments and communities as well as industry must have an opportunity to provide input.

Conclusion

Committee decided to wait for the outcome of the department's consultations before taking a final view on any amendments to Bill 65. Committee is willing to work collaboratively with the department and looks forward to considering the results and recommendations from the department's engagement. Thank you, Mr. Speaker.

Committee Report 41-19(2): Interim Report on Bill 65, Builders Lien Act
Reports Of Standing And Special Committees

Page 5405

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Kam Lake. Reports of standing and special committees. Member for Kam Lake.

Committee Report 41-19(2): Interim Report on Bill 65, Builders Lien Act
Reports Of Standing And Special Committees

Page 5405

Caitlin Cleveland

Caitlin Cleveland Kam Lake

Thank you, Mr. Speaker. Mr. Speaker -- I'm talking too fast even for myself.

Motion to receive Committee Report 41-19(2) and move into Committee of the Whole, Carried
Reports Of Standing And Special Committees

February 27th, 2023

Page 5405

Caitlin Cleveland

Caitlin Cleveland Kam Lake

I move, seconded by Member for Inuvik Twin Lakes, that Committee Report 41-19(2), Standing Committee on Social Development Interim Report on the Review of Bill 65, Builders' Lien Act, be received and adopted by the Assembly. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Kam Lake. The motion is in order. To the motion?

Some Hon. Members

Question.

The Speaker

The Speaker Frederick Blake Jr.

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. Bill 65 has been adopted by the Assembly.

---Carried

Reports of standing and special committees. Member for Yellowknife North.

Rylund Johnson

Rylund Johnson Yellowknife North

Thank you, Mr. Speaker. Your Standing Committee on Government Operations is pleased to provide its Report on Bill 66, An Act to Amend the Property Assessment and Taxation Act and commends
it to the House. I have four pages to read today, Mr. Speaker.

Bill 66: An Act to Amend the Property Assessment and Taxation Act received
second reading on November 3rd, 2022 and was referred to the Standing Committee on
Government Operations for review.

Bill 66 makes changes to the Property Assessment and Taxation Act. These changes address known issues specific to the assessment side of the Act, based on suggestions from stakeholders to the Department of Municipal and Community Affairs.

Specifically, Bill 66:

  • Streamlines certain administrative and operational process to make things more
    efficient without changing the overall intent of the act;
  • Clarifies and modernizes terminology; and
  • Ensures that the legislative framework supports a fairer, more effective system.

Bill 66 is the first of two planned pieces of legislation to amend the act. Phase two will
deal with more complex taxation and authorities' issues. Public comments from MACA appear to imply that a second bill will not come forward until the 20th Assembly. Committee is disappointed with this apparent delay as MACA had previously committed to bringing forward a second bill in the life of the 19th Assembly. The act, which has not been comprehensively reviewed since it was first passed in 1988, urgently requires
modernization. Committee hopes MACA will prioritize the second bill and bring it forward
as soon as possible.

Committee considered public input

Committee sought public feedback on Bill 66 with a public notice and targeted engagement letters. Committee received written submissions from:

  • The Northwest Territories Association for Communities; and
  • The Northwest Territories Metis Nation.

All written submissions are included in an appendix to this report.

Committee also held a public review of Bill 66 on January 23rd, 2023. At that meeting, committee heard remarks from Minister of MACA, asked questions to departmental officials, and received oral comments from the NWTAC and the NWTMN. Committee thanks the NWTAC and the NWTMN for their engagement. Their participation helped committee identify amendments to improve the bill and highlighted other key issues for future consideration. Committee also wishes to highlight a concern raised by the NWT Metis Nation. The NWTMN indicated that they have asked for discussions with the Government of the Northwest Territories to amend the act to exempt Indigenous Metis rights-based cabins from taxation. However, the NWTMN reports that discussions have not taken place. Committee strongly encourages the department to engage with all Indigenous governments on the phase two changes to the act.

Committee amended three clauses

Requiring tribunal decisions within three months

Clause 18 of Bill 66 proposed an operational change so appeals would be resolved in a
timelier manner. Specifically, the clause would have required the Assessment Appeals
Tribunal to sit within three months of the Territorial Board of Revision's
decision.

Committee wanted to see this clause go further. While the clause set a time limit for the
Tribunal to sit, it did not set a timeframe for the Tribunal to render a decision. The clause
also falls short of the NWTAC's advocacy on the issue. NWTAC Resolution 21-98-12
urges: "That the tribunal be granted a period of no more than six months from the time of
the deadline of appeals during which it must rule on said appeals."

Committee sought an amendment that would reflect the NWTAC's resolution. MACA
accepted this request, drafting a motion to drop clause 18 of Bill 66 and to add subclause
19.1 to the bill. The new subclause requires the tribunal to make a decision within three
months of receiving a notice of appeal.

Committee was satisfied with the changes and agreed to pass the amending motion at
the clause-by-clause review.

Publishing ministerial orders that vary timelines

Section 112 of the existing Act allows the Minister to vary any deadline with an order. Two
of the new deadlines introduced in the amended Bill 66 are:

  1. The Territorial Board of Revision must give a decision by March 31 on complaints in the previous 12 months; and
  2. The Assessment Appeals Tribunal must give a decision within three months of receiving a notice of appeal.

Committee was concerned that ministerial orders to vary these deadlines may not be
sufficiently transparent to the public. The existing act does not expressly require variation orders to be public - though they are registered and published in the next monthly issue of the Northwest Territories Gazette, which is publicly available.

Committee sought an amendment to require variation orders to be made public without
delay. MACA accepted this request and drafted a corresponding motion. The motion split
section 112 into two subsections: Subsection 112(1) retained the language of the existing
section 112. Subsection 112(2) required any variation order to be published on the
department's website within five days. Committee was satisfied with the amendment and approved the motion at the clause-by-clause review.

Requiring public approval for purchases by municipal council members, officers, and employees

Clause 22 of Bill 66 reverses the current ban on council members, officers, and
employees in the six municipal taxing authorities to purchase taxable property offered for sale at a municipal public auction.

While supporting the intent of clause 22, the NWTAC explained that more detail in the
clause would be beneficial. The NWTAC was concerned that municipalities may have difficulty interpreting the clause as it was drafted.

Committee sought an amendment to clause 22 to specify what it means for the council to
provide "prior approval" for a purchase. Committee wanted to ensure that council's
decision to approve would be made public and that council had more legislative guidance
when granting approval.

MACA accepted committee's request and drafted a motion to amend. The amendment
added subclause 97.81(1.1), which requires council's approval to be made by resolution
and to be recorded in the minutes of the meeting at which the approval was given.

Committee was satisfied that this addition provided sufficient legislative guidance to
municipalities and agreed to pass the motion with the amendment. Committee believes
these requirements for public processes will support municipalities in managing the risk
of potential conflicts of interest.

Further building on the NWTAC's feedback, committee asked that MACA commit to
developing a guidance document covering council approval for purchases by municipal employees. Such a guidance document should include the options and best practices available to municipalities to address the potential for conflict of interest. MACA should consult the NWTAC in this work.

Committee scrutinized board of revision timeline

Clause 15 of Bill 66 would require the Territorial Board of Revision to give a decision by
March 31 on complaints in the previous 12 months. Committee was concerned about
unworkable timelines - for example, if a complaint was made in mid- or late-March, the
Board of Revision would only have a couple of weeks or days to give a decision. Committee considered putting forward an amendment that would define the deadline based on equal wait time.

MACA provided committee with further explanation on the choice for the March 31
deadline. The assessment roll is generally finalized in October; afterwards, there is a
certain amount of time for ratepayers to make complaints, then the roll needs to be
revised. MACA projected that, in the vast majority of cases, the notice of assessment is
provided by February 15th - and in most cases earlier than that. That provides enough
time for the Board of Revision to give a decision by March 31. The Board of Revision also
only meets once per year. MACA wanted to avoid convening multiple meetings. The
March 31 date also ensures complaints are decided on within the same fiscal year, averting an impact on the property taxes a municipality can collect in the next fiscal year. Finally, MACA pointed out that if the March 31st deadline is not workable, section 112 of the existing act allows the Minister to vary the date.

Committee accepted the department's explanation but brought forward and approved an amendment to ensure that, in the rare occasions that the Minister varies the deadline, the order would be made public without delay.

Conclusion

On February 13, 2023, committee held a clause-by-clause review. Committee passed
a motion to report Bill 66, as amended, to the Legislative Assembly as ready for
consideration in Committee of the Whole.

This concludes the Standing Committee on Government Operations' review of Bill 66. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Yellowknife North. Reports of standing and special committees. Member for Yellowknife North.

Rylund Johnson

Rylund Johnson Yellowknife North

Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 42-19(2), Report on Bill 66, An Act to Amend the Property Assessment and Taxation Act, be received by the Assembly and referred to Committee of the Whole. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Yellowknife North. The motion is in order. To the motion?

Some Hon. Members

Question.

The Speaker

The Speaker Frederick Blake Jr.

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. Committee Report 66 has been received and will be moved into Committee of the Whole for further consideration.

---Carried

Reports of standing and special committees. Tabling of documents. Minister responsible for Health and Social Services.

Julie Green

Julie Green Yellowknife Centre

Mr. Speaker, I wish to table the following four documents: Government of the Northwest Territories Response to Committee Report 37-19(2): Report on the Office of the Auditor General's Audit on Prevention and Recovery Services; Addictions Prevention and Recovery Services Work Plan (2022-2024); Follow-up Letter for Oral Question 1319-19(2): Registered Nurses Licensing Process; and, Follow-up Letter for Oral Question 1385-19(2): Midwifery Program. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Tabling of documents. Minister responsible for Justice.

R.J. Simpson

R.J. Simpson Hay River North

Mr. Speaker, I wish to table the following document: Follow-up Letter for Oral Question 1341-19(2): Civil Forfeiture. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Tabling of documents. Minister responsible for Workers' Safety and Compensation Commission.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Mr. Speaker. I wish to table the following two documents: Annual Report 2018 Workers' Advisor Office - Towards Recovery; and, Workers' Advisor Office Northwest Territories and Nunavut 2022 Annual Report. Mahsi, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Tabling of documents. Minister responsible for Environment and Natural Resources

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following three documents: Waste Reduction and Recovery Program 2021-2022 Annual Report; Information for Return to Written Question 55-19(2): Public Access to Forestry
Decisions and Decision-Making; and, Follow-up Letter for Oral Question 1338-19(2): Outfitter Licenses. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Tabling of documents. Minister responsible for Infrastructure.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document: Government of the Northwest Territories Response to Committee Report 33-19(2): Report on the Review of Bill 52, which was the Elevators and Lifts Act. Quyananni, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Tabling of documents. Member for Kam Lake.