O. Reg. 365/10: Restricted Purpose Revenues


Published: 2010-09-15

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ontario regulation 365/10

made under the

Education Act

Made: September 14, 2010
Filed: September 15, 2010
Published on e-Laws: September 17, 2010
Printed in The Ontario Gazette: October 2, 2010


Amending O. Reg. 193/10

(Restricted Purpose Revenues)

1. (1) Subsection 5 (1) of Ontario Regulation 193/10 is amended by striking out “subsection (2)” and substituting “subsections (1.1) and (2).

(2) Section 5 of the Regulation is amended by adding the following subsection:

(1.1) A board shall not use the amount described in subsection (1) for the purpose of programs provided by the board under an agreement with any of the following facilities:

1. A psychiatric facility.

2. An agency approved under subsection 8 (1) of the Child and Family Services Act.

3. A facility designated under the Developmental Services Act.

4. A place of temporary detention, open custody or secure custody continued or established under section 89 of the Child and Family Services Act.

5. A home for special care licensed under the Homes for Special Care Act.

6. A hospital approved by the Minister.

7. A correctional institution as defined in the Ministry of Correctional Services Act.

8. A place of temporary detention and a youth custody facility under the Youth Criminal Justice Act (Canada).

9. A long-term care home as defined in subsection 2 (1) of the Long-Term Care Homes Act, 2007.

10. An intensive support residence and a supported group living residence within the meaning of subsection 4 (2) of the Services and Supports to Promote the Social Inclusion of Persons with Developmental Disabilities Act, 2008.

2. The Regulation is amended by adding the following sections:

Education Development Charges

6.1 If a district school board sells, leases or otherwise disposes of real property that was acquired, in whole or in part, by the board or by another person, with funds withdrawn from an education development charge account, and the property was not used to provide accommodation for pupils, the board shall use the net proceeds (as described under subsection 6.2 (7)) of the sale, lease or other disposition, up to the amount withdrawn for the property’s acquisition, in accordance with the following rules:

1. If the board has an education development charge by-law that applies to the area in which the property is located, the proceeds shall be allocated to the education development charge account established in respect of that by-law and used for the purposes set out in subsection 16 (2) of Ontario Regulation 20/98 (Education Development Charges — General) made under the Act.

2. If paragraph 1 does not apply but the board has an education development charge account established under subsection 23 (4) of Ontario Regulation 20/98 from which money may be used to acquire land or an interest in land in the area in which the property is located, the proceeds shall be allocated to that account and used for the purposes set out in subsection 23 (6) or (6.0.1) of that regulation, as the case may be.

3. If paragraphs 1 and 2 do not apply but the board has one or more education development charge accounts from which money may be used to acquire land or an interest in land in any part of the region prescribed under clause 257.101 (1) (d) of the Act in which the property is located, the proceeds shall be allocated to those accounts and used for the purposes set out in subsection 16 (2), 23 (6) or (6.0.1) of Ontario Regulation 20/98, as the case may be.

4. If paragraphs 1, 2 and 3 do not apply, the proceeds shall be allocated to the education development charge accounts established under section 16.1 of Ontario Regulation 20/98 and used for the purposes set out in subsection 16.1 (2) of that regulation.

Dispositions of real property

6.2 (1) Subject to subsection (5), a district school board shall use all proceeds of sales, leases and other dispositions of real property only for the purposes of,

(a) acquiring by lease the things listed in subsection (2);

(b) acquiring by purchase or otherwise the things listed in subsection (2) to be used by the board for school renewal; or

(c) subject to subsections (6) to (8), acquiring, by purchase, lease or otherwise, real property to be used by the board for board administration purposes, and additions, alterations, renovations or major repairs to real property used by the board for those purposes.

(2) The following are the things referred to in clauses (1) (a) and (b), but only if the things meet the criteria described in subsection (3):

1. School sites that provide or are capable of providing pupil accommodation, and additions or improvements to such school sites.

2. School buildings, fixtures of school buildings, fixtures of school properties, and additions, alterations, renovations or major repairs to school buildings, fixtures of school buildings or fixtures of school properties.

3. Furniture and equipment to be used in school buildings.

4. Library materials for the initial equipping of libraries in school buildings.

5. Installations on school properties to supply school buildings on the properties with water, sewer, septic, electrical, heating, cooling, natural gas, telephone or cable services, and alterations, replacements or major repairs to those installations.

6. Changes to the level, drainage or surface of school properties.

(3) The things must meet the criteria for capitalizing a tangible capital asset set out in the document entitled “School Board and School Authority Tangible Capital Assets: Provincial Accounting Policies and Implementation Guide”, revised April 2010, which is available for public inspection at the offices of the Education Finance Branch of the Ministry of Education and on the Ministry’s website.

(4) Subject to subsection (5), every district school board shall use all proceeds of insurance on property of a kind referred to in subsection (2) only for the purposes referred to in subsection (1).

(5) Subsections (1) and (4) do not apply to,

(a) proceeds that the board is required to use in accordance with section 6.1;

(b) proceeds that the board is required to pay another board under an agreement approved by the former Education Improvement Commission; or

(c) proceeds that the board is required to pay to the Crown in right of Canada pursuant to an agreement under subsection 188 (3) of the Act.

(6) The amount that a district school board may use from the proceeds referred to in subsections (1) and (4) for the purpose described in clause (1) (c) shall not exceed the total of the board’s net proceeds from sales, leases and other dispositions of real property that, immediately before January 1, 1998, included buildings that were used by an old board for board administration purposes.

(7) Subject to subsection (8), for the purpose of subsection (6), the net proceeds from a sale, lease or other disposition is equal to the proceeds from the sale, lease or other disposition, less the expenses incurred for commissions, legal fees, appraisal fees, registration fees and adjustments to tax and utility accounts in respect of the sale, lease or other disposition.

(8) For the purpose of subsection (6), if more than two hectares of land are included in property that is sold, leased or otherwise disposed of, the net proceeds from the sale, lease or other disposition shall be determined in accordance with the following formula:

A × (B ÷ C)

where,

A = the net proceeds from the sale, lease or other disposition, determined in accordance with subsection (7),

B = the fair market value, at the time of the sale, lease or other disposition, of a part of the property, not exceeding two hectares in area, that includes,

(a) the land on which the buildings used by the old board for board administration purposes were situated, and

(b) any other part of the property that was required to permit those buildings to be used by the old board for board administration purposes,

C = the fair market value, at the time of the sale, lease or other disposition, of all the property.

(9) A district school board shall not use the proceeds referred to in subsection (1) for the purpose described in clause (1) (c) unless the following requirements have been met:

1. The board must publish the following on a publicly accessible website or in a newspaper that, in the opinion of the secretary of the board, is of general circulation in the board’s area of jurisdiction:

i. Notice of the board’s proposal to use proceeds for the purpose described in clause (1) (c).

ii. Sufficient information to permit the board’s supporters to understand generally the board’s reasons for the proposed use of proceeds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition.

iii. Sufficient information to permit the board’s supporters to understand generally the board’s plans respecting use of the proceeds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition.

iv. Notice of the time and place of a meeting of the board’s supporters at which the board’s proposal will be discussed.

v. Notice that the board’s supporters will be given the opportunity to make representations at the meeting.

2. The board must hold the meeting referred to in subparagraph iv of paragraph 1 on a day that is at least 21 days after the requirements of paragraph 1 have been met and must provide the opportunity to make representations referred to in subparagraph v of paragraph 1.

3. Within the period that begins three months after the meeting referred to in subparagraph iv of paragraph 1 and ends one year after that meeting, the board must pass a resolution that,

i. is consistent with the notices and information provided under paragraph 1, and

ii. directs the application of the proceeds referred to in subsection (1) for the purpose described in clause (1) (c).

3. This Regulation comes into force on the later of September 1, 2010 and the day this Regulation is filed.

Made by:
Pris par :

La ministre de l’Éducation,

Leona Dombrowsky

Minister of Education

Date made: September 14, 2010.
Pris le : 14 septembre 2010.

 

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