Summary#

Bill 138, the Plan to Build Ontario Together Act, 2019, is an enacted omnibus law: it creates several new Acts and amends or repeals many existing ones. Its stated purpose is to implement budget measures and make other changes to Ontario laws. Some provisions took effect on Royal Assent; others require a later start date or proclamation.

• It continues the Alcohol and Gaming Commission of Ontario and the Liquor Control Board of Ontario under new Acts, and creates the Liquor Licence and Control Act, 2019 to replace two liquor laws.
• It changes Ontario Health Insurance Plan (OHIP) payment, record-keeping and inspection rules, and adds new licensing, inspection and compliance powers for independent health facilities.
• It allows purchases from licensed cannabis stores online or by phone, but requires customers to collect their purchases in person at the store.
• It creates a supply-chain law requiring government, broader public sector and health sector entities to follow future regulations on purchasing, vendor practices and reporting. The government may designate or create an entity to support that work.
• It changes several taxes and authorizes interim spending for two fiscal years. Other changes include new heritage-month and litter-day Acts, and changes to co-operatives, property-tax calculations, health-information privacy and other laws.

What it means for you#

• Patients and health-care providers: Physicians, practitioners and health facilities need a billing number to claim OHIP payments and must keep records showing what services they provided and why they were needed. The General Manager can refuse or reduce some payments and seek repayment. Reviewers can inspect relevant places and records. The General Manager may publish payment information about providers, but not personal health information.
• Independent health facilities: The Minister may call for applications to establish facilities. A licence is not guaranteed even if an applicant meets the stated requirements. The Director may issue compliance orders, and the Minister may refuse, reduce or seek repayment of some payments. A hearing request does not pause certain decisions.
• Cannabis buyers and retailers: Customers may buy online or by phone from a licensed store, but the store must hand over the cannabis in person to the buyer at that store. The bill sets a limit of 30 grams of dried cannabis, or its equivalent, for an in-store visit or an online or phone transaction. Police may refer people under 19 to an approved education or prevention program instead of starting a provincial-offence case; a court may also order program participation as a probation condition after conviction.
• Government-funded organizations and suppliers: Government, broader public sector and health sector entities must follow supply-chain regulations and reporting requirements. If a broader public sector or health sector entity does not comply, the Management Board of Cabinet may require a minister to withhold some or all money payable to it.
• Businesses, co-operatives and aviation-fuel buyers: Eligible aviation fuel used in Northern Ontario is taxed at 2.7 cents per litre rather than 6.7 cents. A co-operative may do at least half its business with non-members if its articles or by-laws allow it. Special rules apply to co-operatives whose main purpose is employing members.
• Municipalities and the public: Toronto and other municipalities must recalculate certain property taxes when permitted land uses change. The Act also declares July Egyptian Heritage Month, March Hellenic Heritage Month, and the second Tuesday in May a Provincial Day of Action on Litter.

Money#

The Act authorizes interim spending up to stated limits; no overall cost estimate for its other changes is available.

• For 2020–21, it authorizes up to $140.16 billion for public-service expenses, $4.56 billion for investments and $286.59 million for Legislative Office expenses, pending regular supply approval.
• For 2019–20, it authorizes additional interim amounts of up to $29.03 billion for public-service expenses, $78.49 million for investments and $96.59 million for Legislative Office expenses. These amounts are in addition to the earlier interim authorization.
• The tax changes include a lower aviation-fuel rate in Northern Ontario, a change to the small-business deduction rate, and a change to the Ontario dividend tax credit. The materials give no estimate of their total revenue effect.
• The Commission may charge fees, and its funding is to come from money appropriated by the Legislature. No staffing or operating-cost estimate is provided.

What is unclear#

• The bill leaves many details to later regulations, including supply-chain rules, provider billing-number applications, facility standards and some licensing restrictions.
• It does not set out all the steps, timelines or oversight rules for the new supply-chain entity, which the government may designate or create.
• The supplied material includes explanatory notes, but not the full parent Acts or current consolidated laws. I could not verify every change against current law.
• Some provisions depend on proclamation or other start dates. The supplied material does not establish that every provision is in force.
• The materials give no total cost estimate or estimate of tax revenue gained or lost.

Case for#

• The bill appears intended to strengthen oversight of health-care payments and independent health facilities through record-keeping, inspections and repayment powers.
• A possible argument for the supply-chain rules is that coordinated purchasing and vendor standards could help public entities manage procurement consistently. The bill states that leveraging their buying power is one of the law’s purposes.
• The aviation-fuel tax reduction is limited to fuel used in Northern Ontario, while the bill also offers clearer routes for some cannabis purchases and co-operative business.

Case against#

• Health-care payment and inspection powers are broad. Some decisions can take effect before a hearing, and the bill places the burden on a facility or other party to show that certain decisions are unlawful.
• Many important supply-chain rules and costs are left to future regulations. Withholding funding for non-compliance could affect an organization’s ability to provide services; the bill says it should try to limit that impact but does not explain how.
• The bill changes many laws at once, and the different start dates and regulation-making powers make it harder to know from the Act alone how some changes will work in practice.