Centralization of Broader Real Estate Authority (CBREA) Phase 2 Proposed Regulatory Amendments
Regulation Number(s):
612/20
Instrument Type:
Regulation - LGIC
Bill or Act:
Supply Chain Management Act (Government, Broader Public Sector and Health Sector Entities), 2019
Summary of Proposal:
The Ontario Government's real estate portfolio is one of the largest in Canada. Accountability is highly distributed across numerous entities and ministries. Through the Centralization of Broader Real Estate Authority (CBREA) initiative, the government is working towards a holistic approach for the management and decision making of real estate.
A holistic approach would allow the Province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would help identify real estate that could be used for projects that people in Ontario need the most.
CBREA is proceeding in phases. As part of CBREA Phase 2a, the Ministry of Infrastructure is proposing an amendment to one (1) regulation, Ontario Regulation 612/20, in relation to the natural person powers of one (1) entity, Centralized Supply Chain Ontario. If approved, the amendment would make this entity's natural person powers subject to section 11.0.1 of the Ministry of Infrastructure Act, 2011 (MOI Act). The Minister of Infrastructure may then prescribe the entity for the purposes of section 11.0.1. That section prohibits prescribed entities from holding, controlling, or acquiring real property interests, subject to any prescribed exceptions or limitations. In addition, subject to any prescribed exceptions or limitations, that section vests the entity's existing real property interests in the Crown under the Minister of Infrastructure's control on the day the regulation prescribing the entity comes into force.
The proposed amendment to Ontario Regulation 612/20 would come into force on the later of the day that the Improving Real Estate Management Act, 2024 is proclaimed into force or the day the amending regulation is filed.
This amendment would align with previous amendments made to legislation governing other entities as part of the CBREA initiative under the Improving Real Estate Management Act, 2023, which received Royal Assent on April 25, 2024.
A holistic approach would allow the Province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would help identify real estate that could be used for projects that people in Ontario need the most.
CBREA is proceeding in phases. As part of CBREA Phase 2a, the Ministry of Infrastructure is proposing an amendment to one (1) regulation, Ontario Regulation 612/20, in relation to the natural person powers of one (1) entity, Centralized Supply Chain Ontario. If approved, the amendment would make this entity's natural person powers subject to section 11.0.1 of the Ministry of Infrastructure Act, 2011 (MOI Act). The Minister of Infrastructure may then prescribe the entity for the purposes of section 11.0.1. That section prohibits prescribed entities from holding, controlling, or acquiring real property interests, subject to any prescribed exceptions or limitations. In addition, subject to any prescribed exceptions or limitations, that section vests the entity's existing real property interests in the Crown under the Minister of Infrastructure's control on the day the regulation prescribing the entity comes into force.
The proposed amendment to Ontario Regulation 612/20 would come into force on the later of the day that the Improving Real Estate Management Act, 2024 is proclaimed into force or the day the amending regulation is filed.
This amendment would align with previous amendments made to legislation governing other entities as part of the CBREA initiative under the Improving Real Estate Management Act, 2023, which received Royal Assent on April 25, 2024.
Analysis of Regulatory Impact:
Centralized Supply Chain Ontario does not fall under the definition of regulated entities under the Modernizing Ontario for People and Business Act, 2020 (MOPBA). However, third-party landlords that are a party the entity's existing leases, as well as associated contractors and sub-tenants would be regarded as "regulated entities" under MOPBA.
If the proposed regulatory amendment is approved and comes into force, and a regulation is later made prescribing Centralized Supply Chain Ontario for the purposes of section 11.0.1 of the MOI Act, this would not place any new burdens or requirements on third-party landlords, contractors or subtenants.
If the proposed regulatory amendment is approved and comes into force, and a regulation is later made prescribing Centralized Supply Chain Ontario for the purposes of section 11.0.1 of the MOI Act, this would not place any new burdens or requirements on third-party landlords, contractors or subtenants.
Further Information:
Proposal Number:
24-MOI008
Posting Date:
October 28, 2024
Comments Due Date:
December 11, 2024
Contact Address:
Ministry of Infrastructure, Realty Policy Branch, 777 Bay Street, 2nd Floor, Toronto, Ontario, M7A 2J3
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