The Municipal Council Conflict of Interest Act

Bill 35, The Municipal Conflict of Interest and Campaign Financing Act passed October 2009.
 
This Act included an amendment to The Municipal Council Conflict of Interest Act. The following are answers to questions that have been asked.
 
NEW PUBLIC INSPECTION REQUIREMENTS:
Q. A change to The Municipal Council Conflict of Interest Act was made for Statements of Assets and Interests. What was the change?
A. All members of council and elected Local Urban District committee members are currently required each year to file a Statement of Assets and Interests with your municipality’s CAO, under The Municipal Council Conflict of Interest Act. This is a long-standing requirement that has not changed.
Legislation was changed in October 2009 to require the Statement to be available for public inspection. This change applies to the 2009 Statement and future statements. Statements for 2008 or earlier are not available for public inspection.
Beginning December 1, 2009, any person may ask at the municipal office to inspect a member’s 2009 statement.
Q. Members’ Statements of Assets and Interests will now be available for public inspection. What does this mean?
A. Statements of Assets and Interests will be available for public inspection by any person without charge during your municipality’s normal business hours. An individual may look at any member’s statement, but would not be able to take a copy of it.
If requested, your municipality’s CAO must let a person inspect a member’s Statement.
This is similar to other documents, for example, nomination papers, etc.
EXISTING REQUIREMENTS:
Q. Why do members of council and elected Local Urban District committee members have to file a Statement of Assets and Interests?
A. Statements of Assets and Interests are required under The Municipal Council Conflict of Interest Act. This Act has been in place since the 1980’s.
The purpose of the Act is to ensure elected members of municipal councils and Local Urban District Committees make decisions objectively and without being influenced by members who may have a personal interest in, and may benefit from, the outcome.
The Statement of Assets and Interests is an integral part of conflict of interest legislation. The Act also has rules for members to disclose and not vote on matters where they have a financial interest, and to prohibit members from certain activities that are considered to be a conflict of interest, for example using insider information.
Q. What assets and interests do I have to disclose?
A. The assets and interests that a member must disclose are set out under The Municipal Council Conflict of Interest Act. This has not changed.
You must disclose real estate holdings in the municipality and personal financial interests that you, or your spouse or dependent child have. Only the nature of the financial interest must be disclosed, not the financial details.
The Act also states that certain things do not have to be disclosed. For example, you do not have to disclose your primary residence, personal bank accounts, Canada Savings Bonds, or retirement investment savings plans. Your income, your spouse’s income or your child’s income also does not have to be disclosed – you only need to record the employer’s name.
Q. Is there a special Statement of Assets and Interests form that must be filed?
A. Your CAO will give you the Statement of Assets and Interests form.
A sample form is available in The Municipal Act Procedures Manual, which is available in every municipality. The sample form is simple and easy to use. Only information required by the legislation needs to be included on the form (eg. members do not include their residential address).
Q. If I’m not sure what to disclose, who do I talk to?
A. Typically, the CAO will review requirements of what needs to be included in the Statement of Assets and Interests form with council members, to ensure members understand the rules and their obligations. If a member remains unsure about what should be included, they should ask the CAO.
However, in cases where a member’s assets and interests are complex, it is always advisable to obtain legal advice, to ensure the Statement is filed in accordance with the Act.
Q. What does the CAO do with the Statement?
A. The CAO will examine the Statements to make sure members have completed the form. The CAO does not verify the accuracy of any member’s statement; all council members have an obligation to accurately disclose their assets and interests.
The CAO keep the Statements on file. If any person asks to inspect the Statement, the CAO must ensure the Statement is available for inspection.
Q. When does the Statement of Assets and Interests form have to be filed?
A. The Municipal Council Conflict of Interest Act requires members to file their annual Statements no later than November 30 of each year [Note: the fourth Wednesday in November, or November 25 in 2009]. Each year before November 30, your CAO gives you the Statement form that must be filled out.
The deadline for filing the 2009 Statement is November 30, 2009 (November 25, 2009 for Winnipeg).
The Act requires members to file a new Statement within 30 days, if there are any changes. If you have already filed your 2009 statement, you should ensure it is up to date.
Q. What happens if members don’t file their statement in accordance with the Act?
A. If a council member does not filed in accordance with the Act by the deadline (November 30 for municipalities; November 25, 2009 for Winnipeg) your CAO will immediately follow-up, by sending a written notice. The member must file their Statement within 30 days of receiving the notice.
There are serious penalties for not filing as required. Ultimately, a member who found by the Court to have violated the Act is disqualified from council.
The municipality or any voter could apply to the Court, who would hear the evidence. If the Court determines the council member violated the Act, the member’s council seat will be declared vacant.