Federal Accountability Act

An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

John Baird  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 enacts the Conflict of Interest Act and makes consequential amendments in furtherance of that Act. That Act sets out substantive prohibitions governing public office holders. Compliance with the Act is a deemed term and condition of a public office holder’s appointment or employment. The Act also sets out a detailed regime of compliance measures to ensure conformity with the substantive prohibitions, certain of which apply to all public office holders and others of which apply to reporting public office holders. The Act also provides for a regime of detailed post-employment rules. Finally, the Act establishes a complaints regime, sets out the powers of investigation of the Commissioner and provides for public reporting as well as a regime of administrative monetary penalties.
Amongst other matters, the consequential amendments to the Parliament of Canada Act provide for the appointment and office of the Conflict of Interest and Ethics Commissioner along with his or her tenure, expenses, duties and other administrative matters.
Part 1 also amends the Canada Elections Act to
(a) reduce to $1,000 the amount that an individual may contribute annually to a registered party, and create a distinct $1,000 annual limit on contributions to the registered associations, the nomination contestants and the candidates of a registered party;
(b) reduce to $1,000 the amount that an individual may contribute to an independent candidate or to a leadership contestant;
(c) reduce to $1,000 the amount that a nomination contestant, a candidate or a leadership contestant may contribute to his or her own campaign in addition to the $1,000 limit on individual contributions;
(d) totally ban contributions by corporations, trade unions and associations by repealing the exception that allows them to make an annual contribution of $1,000 to the registered associations, the candidates and the nomination contestants of a registered party and a contribution of $1,000 to an independent candidate during an election period;
(e) ban cash donations of more than $20, and reduce to $20 the amount that may be contributed before a receipt must be issued or, in the case of anonymous contributions following a general solicitation at a meeting, before certain record-keeping requirements must be met; and
(f) increase to 5 years after the day on which the Commissioner of Canada Elections became aware of the facts giving rise to a prosecution, and to 10 years following the commission of an offence, the period within which a prosecution may be instituted.
Other amendments to the Canada Elections Act prohibit candidates from accepting gifts that could reasonably be seen to have been given to influence the candidate in the performance of his or her duties and functions as a member, if elected. The wilful contravention of this prohibition is considered to be a corrupt practice. A new disclosure requirement is introduced to require candidates to report to the Chief Electoral Officer any gifts received with a total value exceeding $500. Exceptions are provided for gifts received from relatives, as well as gifts of courtesy or of protocol. The amendments also prohibit registered parties and registered associations from transferring money to candidates directly from a trust fund.
The amendments to the Lobbyists Registration Act rename the Act and provide for the appointment by the Governor in Council of a Commissioner of Lobbying after approval by resolution of both Houses of Parliament. They broaden the scope for investigations by the Commissioner, extend to 10 years the period in respect of which contraventions may be investigated and prosecuted, and increase the penalties for an offence under the Act. In addition, they empower the Commissioner to prohibit someone who has committed an offence from lobbying for a period of up to two years, prohibit the acceptance and payment of contingency fees and prohibit certain public office holders from lobbying for a period of five years after leaving office. They require lobbyists to report their lobbying activities involving certain public office holders and permit the Commissioner to request those office holders to confirm or correct the information reported by lobbyists.
Amendments to the Parliament of Canada Act prohibit members of the House of Commons from accepting benefits or income from certain trusts and require them to disclose all trusts to the Conflict of Interest and Ethics Commissioner. The amendments also authorize the Conflict of Interest and Ethics Commissioner to issue orders requiring members to terminate most trusts and prohibiting them from using the proceeds from their termination for political purposes. In cases where the trusts are not required to be terminated, the amendments authorize the Conflict of Interest and Ethics Commissioner to make orders prohibiting members from using the trusts for political purposes. An offence is created for members who do not comply with such orders. The amendments also provide that, in the event of a prosecution, a committee of the House of Commons may issue an opinion that is to be provided to the judge before whom the proceedings are held.
Finally, Part 1 amends the Public Service Employment Act to remove the right of employees in ministers’ offices to be appointed without competition to positions in the public service for which the Public Service Commission considers them qualified.
Part 2 harmonizes the appointment and removal provisions relating to certain officers.
Amendments to the Parliament of Canada Act establish within the Library of Parliament a position to be known as the Parliamentary Budget Officer, whose mandate is to provide objective analysis to the Senate and House of Commons about the estimates of the government, the state of the nation’s finances and trends in the national economy, to undertake research into those things when requested to do so by certain Parliamentary committees, and to provide estimates of the costs of proposals contained in Bills introduced by members of Parliament other than in their capacity as ministers of the Crown. The amendments also provide the Parliamentary Budget Officer with a right of access to data that are necessary for the performance of his or her mandate.
Part 3 enacts the Director of Public Prosecutions Act which provides for the appointment of the Director of Public Prosecutions and one or more Deputy Directors. That Act gives the Director the authority to initiate and conduct criminal prosecutions on behalf of the Crown that are under the jurisdiction of the Attorney General of Canada. That Act also provides that the Director has the power to make binding and final decisions as to whether to prosecute, unless the Attorney General of Canada directs otherwise, and that such directives must be in writing and published in the Canada Gazette. The Director holds office for a non-renewable term of seven years during good behaviour and is the Deputy Attorney General of Canada for the purposes of carrying out the work of the office. The Director is given responsibility, in place of the Commissioner of Canada Elections, for prosecutions of offences under the Canada Elections Act.
Part 3 also amends the Access to Information Act to ensure that all parent Crown corporations, and their wholly-owned subsidiaries, within the meaning of section 83 of the Financial Administration Act are encompassed by the definition “government institution” in section 3 of the Access to Information Act and to add five officers, five foundations and the Canadian Wheat Board to Schedule I of that Act. It adjusts some of the exemption provisions accordingly and includes new exemptions or exclusions relating to the added officers and the Crown corporations. It empowers the Governor in Council to prescribe criteria for adding a body or an office to Schedule I and requires Ministers to publish annual reports of all expenses incurred by their offices and paid out of the Consolidated Revenue Fund. It adds any of those same officers and foundations that are not already included in the schedule to the Privacy Act to that schedule, ensures that all of those parent Crown corporations and subsidiaries are encompassed by the definition “government institution” in section 3 of that Act, and makes other consequential amendments to that Act. It amends the Export Development Act to include a provision for the confidentiality of information. It revises certain procedures relating to the processing of requests and handling of complaints and allows for increases to the number of investigators the Information Commissioner may designate to examine records related to defence and national security.
Amendments to the Library and Archives of Canada Act provide for an obligation to send final reports on government public opinion research to the Library and Archives of Canada.
Finally, Part 3 amends the Public Servants Disclosure Protection Act to
(a) establish the Public Servants Disclosure Protection Tribunal and empower it to make remedial orders in favour of victims of reprisal and to order disciplinary action against the person or persons who took the reprisal;
(b) provide for the protection of all Canadians, not only public servants, who report government wrongdoings to the Public Sector Integrity Commissioner;
(c) remove the Governor in Council’s ability to delete the name of Crown corporations and other public bodies from the schedule to the Act;
(d) require the prompt public reporting by chief executives and the Public Sector Integrity Commissioner of cases of wrongdoing; and
(e) permit the Public Sector Integrity Commissioner to provide access to legal advice relating to the Act.
Part 4 amends the Financial Administration Act to create a new schedule that identifies and designates certain officials as accounting officers and, within the framework of their appropriate minister’s responsibilities and accountability to Parliament, sets out the matters for which they are accountable before the appropriate committees of Parliament. A regime for the resolution of issues related to the interpretation or application of a policy, directive or standard issued by the Treasury Board is established along with a requirement that the Treasury Board provide a copy of its decision to the Auditor General of Canada.
Part 4 also amends the Financial Administration Act and the Criminal Code to create indictable offences for fraud with respect to public money or money of a Crown corporation, and makes persons convicted of those offences ineligible to be employed by the Crown or the corporation or to otherwise contract with the Crown.
Other amendments to the Financial Administration Act clarify the authority of the Treasury Board to act on behalf of the Queen’s Privy Council for Canada on matters related to internal audit in the federal public administration. They also set out the deputy head’s responsibility for ensuring that there is an internal audit capacity appropriate to the needs of the department and requires them, subject to directives of the Treasury Board, to establish an audit committee. The Financial Administration Act, the Farm Credit Canada Act and the Public Sector Pension Investment Board Act are amended to require Crown corporations to establish audit committees composed of members who are not officers or employees of the corporation. Other amendments to the Financial Administration Act require, subject to directions of the Treasury Board, that all grant and contribution programs be reviewed at least every five years to ensure their relevance and effectiveness.
Amendments made to the Financial Administration Act and to the constituent legislation of a number of Crown corporations provide for appointments of directors for up to four years from a current maximum of three years.
Part 4 also amends the Canadian Dairy Commission Act, the Enterprise Cape Breton Corporation Act and the National Capital Act to require different individuals to perform the duties of chair of the Board of Directors and chief executive officer of the corporation.
Part 5 amends the Auditor General Act by expanding the class of recipients of grants, contributions and loans into which the Auditor General of Canada may inquire as to the use of funds, whether received from Her Majesty in right of Canada or a Crown corporation. Other amendments provide certain immunities to the Auditor General.
Amendments to the Department of Public Works and Government Services Act provide for the appointment and mandate of a Procurement Auditor.
Part 5 also amends the Financial Administration Act to provide for a government commitment to fairness, openness and transparency in government contract bidding, and a regulation-making power to deem certain clauses to be set out in government contracts in relation to prohibiting the payment of contingency fees and respecting corruption and collusion in the bidding process for procurement contracts, declarations by bidders in respect of specific criminal offences, and the provision of information to the Auditor General of Canada by recipients under funding agreements.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-2s:

C-2 (2021) Law An Act to provide further support in response to COVID-19
C-2 (2020) COVID-19 Economic Recovery Act
C-2 (2019) Law Appropriation Act No. 3, 2019-20
C-2 (2015) Law An Act to amend the Income Tax Act
C-2 (2013) Law Respect for Communities Act
C-2 (2011) Law Fair and Efficient Criminal Trials Act

Votes

Nov. 21, 2006 Passed That the motion be amended by: 1. Deleting from the paragraph commencing with the words “Disagrees with” the following: 67; 2. Inserting in the paragraph commencing with the words “Agrees with”, immediately after the number “158”, the following: “and 67”; and 3. Deleting the paragraph commencing with the words “Senate amendment 67”;.
Nov. 21, 2006 Failed That the motion be amended by: 1. Deleting from the paragraph commencing with the words “Disagrees with” the following: 118, 119; 2. Inserting in the paragraph commencing with the words “Agrees with”, immediately after the number “158”, the following: “and 118 and 119”; and 3. Deleting the paragraph commencing with the words “Amendment 118” and the paragraph commencing with the words “Amendment 119”..
Nov. 21, 2006 Passed That the amendment be amended by deleting paragraphs “A” and “B”.
June 21, 2006 Passed That Bill C-2, in Clause 315, be amended by replacing lines 19 to 25 on page 207 with the following: “provincial government or a municipality, or any of their agencies; ( c.1) a band, as defined in subsection 2(1) of the Indian Act, or an aboriginal body that is party to a self-government agreement given effect by an Act of Parliament, or any of their agencies;”
June 21, 2006 Passed That Bill C-2, in Clause 315, be amended by adding after line 27 on page 206 the following: “( e) requiring the public disclosure of basic information on contracts entered into with Her Majesty for the performance of work, the supply of goods or the rendering of services and having a value in excess of $10,000.”
June 21, 2006 Failed That Bill C-2, in Clause 123, be amended by (a) replacing line 43 on page 105 to line 6 on page 106 with the following: “selected candidate is referred for consideration to a committee of the House of Commons designated or established for that purpose. (5) After the committee considers the question, the Attorney General may recommend to the Governor in Council that the selected candidate be appointed as Director, or may refer to the committee the appoint-” (b) replacing lines 12 and 13 on page 106 with the following: “for cause. The Director”
June 21, 2006 Failed That Bill C-2 be amended by deleting Clause 165.1.
June 21, 2006 Passed That Bill C-2, in Clause 146, be amended by replacing lines 3 to 31 on page 118 with the following: “16.1 (1) The following heads of government institutions shall refuse to disclose any record requested under this Act that contains information that was obtained or created by them or on their behalf in the course of an investigation, examination or audit conducted by them or under their authority: ( a) the Auditor General of Canada; ( b) the Commissioner of Official Languages for Canada; ( c) the Information Commissioner; and ( d) the Privacy Commissioner.(2) However, the head of a government institution referred to in paragraph (1)( c) or (d) shall not refuse under subsection (1) to disclose any record that contains information that was created by or on behalf of the head of the government institution in the course of an investigation or audit conducted by or under the authority of the head of the government institution once the investigation or audit and all related proceedings, if any, are finally concluded.”
June 21, 2006 Passed That Bill C-2, in Clause 78, be amended by deleting lines 4 to 8 on page 80.
June 21, 2006 Passed That Bill C-2, in Clause 2, be amended by replacing line 1 on page 33 with the following: “(2) Subject to subsection 6(2) and sections 21 and 30, nothing in this Act abrogates or dero-”
June 21, 2006 Passed That Bill C-2, in Clause 2, be amended by replacing line 12 on page 6 with the following: “(2) No minister of the Crown, minister of state or parliamentary secretary shall, in his or her capacity as a member of the Senate or the House of Commons, debate or vote on a question that would place him or her in a conflict of interest.”

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:30 p.m.

An hon. member

On division.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:30 p.m.

The Deputy Speaker Bill Blaikie

(Motion No. 21 agreed to)

The next question is on Motion No. 22. Is it the pleasure of the House to adopt the motion?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:30 p.m.

Some hon. members

Agreed.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:30 p.m.

The Deputy Speaker Bill Blaikie

(Motion No. 22 agreed to)

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

Niagara Falls Ontario

Conservative

Rob Nicholson ConservativeLeader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I rise on a point of order. I am pleased to say that there have been consultations between the parties and I would like to move the following motion. I move:

That, notwithstanding any standing order or usual practices of the House, at the conclusion of debate today on the report stage of Bill C-2, an act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability, and for the remainder of time provided for government business, the Speaker shall not receive any quorum calls or dilatory motions; when no member rises to speak today on the report stage of Bill C-2 or at the conclusion of government orders, whichever is earlier, all questions necessary to dispose of the report stage of Bill C-2 shall be put and the votes on any recorded division that is requested shall stand deferred to Wednesday, June 21, 2006, immediately following question period; on Wednesday, June 21, 2006, Bill C-2 may be read a third time; during debate on C-2 on Wednesday, June 21, 2006, the Speaker shall not receive any quorum calls or dilatory motions; and when no member rises to speak to the third reading debate of Bill C-2 or at the end of government orders on Wednesday, June 21, 2006, whichever is earlier, Bill C-2 shall be deemed read a third time and passed on division.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

The Deputy Speaker Bill Blaikie

Does the hon. government House leader have the unanimous consent of the House to move the motion?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

Some hon. members

Agreed.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

The Deputy Speaker Bill Blaikie

The House has heard the terms of the motion. Is it the pleasure of the House to adopt the motion?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

Some hon. members

Agreed.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:35 p.m.

The Deputy Speaker Bill Blaikie

(Motion agreed to)

We will now proceed to debate on the motions in Group No. 3.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:40 p.m.

Ottawa West—Nepean Ontario

Conservative

John Baird ConservativePresident of the Treasury Board

moved:

Motion No. 10

That Bill C-2, in Clause 119, be amended by replacing, in the French version, line 37 on page 97 with the following:

“ce qui touche les prévisions budgétaires et les”

Motion No. 12

That Bill C-2, in Clause 123, be amended by

(a) replacing line 43 on page 105 to line 6 on page 106 with the following:

“selected candidate is referred for consideration to a committee of the House of Commons designated or established for that purpose.

(5) After the committee considers the question, the Attorney General may recommend to the Governor in Council that the selected candidate be appointed as Director, or may refer to the committee the appoint-”

(b) replacing lines 12 and 13 on page 106 with the following:

“for cause. The Director”

Motion No. 16

That Bill C-2, in Clause 150, be amended by replacing, in the French version, line 18 on page 120 with the following:

“les a traités de façon”

Motion No. 23

That Bill C-2, in Clause 210, be amended by

(a) replacing line 9 on page 163 with the following:

“210. (1) Subsection 38(1) of the Act is replaced by the following:

38. (1) Within three months after the end of each financial year, the Commissioner must prepare an annual report in respect of the activities of the Commissioner during that financial year.

(2) Paragraph 38(2)(b) of the Act is” (b) replacing line 15 on page 163 with the following:

“(3) Subsection 38(2) of the Act is amended” (c) replacing lines 21 and 22 on page 163 with the following:

“(4) Subsections 38(3) to (5) of the Act are replaced by the following:

(3) The Commissioner may, at any time, prepare a special report referring to and commenting on any matter within the scope of his or her powers and duties under this Act if, in his or her opinion, the matter is of such urgency or importance that a report on it should not be deferred until the time provided for the submission of the annual report.”

(d) replacing lines 5 to 7 on page 164 with the following:

“(3.3) Within the period referred to in subsection (1) for the annual report and the period referred to in subsection (3.1) for a case report, and at any time for a special report, the Commissioner shall submit the report to the Speaker of the Senate and the”

(e) adding after line 13 on page 164 the following:

“(4) After it is tabled, every report the Commissioner stands referred to the committee of the Senate, the House of Commons or both Houses of Parliament that may be designated or established for the purpose of reviewing the Commissioner’s reports.”

Motion No. 24

That Bill C-2, in Clause 218, be amended by replacing line 29 on page 168 with the following:

“51. Subject to subsections 19.1(4) and 21.8(4), nothing in”

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:40 p.m.

Ottawa West—Nepean Ontario

Conservative

John Baird ConservativePresident of the Treasury Board

He said: Mr. Speaker, I would be remiss if I did not say to all members of the House that there has been a lot of due diligence from the members of the official opposition, the Bloc and the New Democrats on this. Members have certainly tried to do their very best to fulfill their responsibilities. I would be negligent if I did not point that out to the House and, through you, Mr. Speaker, to Canadians who are watching.

I rise to speak to two motions to amend clause 123 of Bill C-2, the federal accountability act, which proposes the enactment of a director of public prosecutions act. This is something that is tremendously important. Clause 123 was amended by the committee examining the bill to confer authority on a parliamentary committee to approve the appointment of a selected candidate to the position of the director of public prosecutions and to require a resolution from the House of Commons to remove the incumbent from office.

It is the government's view that these amendments which were proposed, I believe in good faith by my colleagues in the Bloc Québécois in committee, are beyond the scope and the principle of Bill C-2 as they run counter to the accountability regime that was carefully designed for the position of the director of public prosecutions.

Pursuant to clause 123, the DPP has the rank and status of a deputy head of department, a deputy minister. The DPP is responsible for initiating and conducting prosecutions under and on behalf of the Attorney General of Canada. The DPP is also required to provide an annual report to the Attorney General in respect of the activities of his or her office.

Accountability is inextricably linked to the authority to appoint and remove an office holder. Bill C-2 has introduced and contemplated an accountability framework whereby the DPP would be responsible and accountable to the Attorney General for the exercise of these executive functions. I would underline the executive as apart from the parliamentary or legislative function in this place. A central feature of this accountability framework is the authority to appoint and remove the DPP, which is conferred solely on the governor in council.

In addition, the DPP would be designated an accounting officer under Bill C-2, which prescribes the nature of the accountability of the DPP before the appropriate committees of the House of Commons and the Senate, as well as setting out how this accountability is discharged in appearing before the committee and answering questions. This is a made in Canada regime and this person would have the status of a deputy minister, while the accountability regimes would be blurred through the amendment that was made in committee.

Clause 123 as amended requires parliamentary approval of the appointment and removal of the DPP. It asks that the House of Commons now have a key role to play in the appointment and removal of a public office holder whose functions do form part of the executive branch of government. The Bloc amendment fundamentally changes the nature of the position and confuses the line of accountability of the DPP. This falls outside the principle and scope of the bill as approved by the House of Commons at second reading.

For this reason, I would like to encourage all members, particularly my good friend, the member for Vancouver Quadra, to give serious consideration to reviewing this decision. Is it really an appropriate line of accountability to have someone exercising executive power with the blurred lines of being designated an accounting officer in part of the bill and then being essentially a quasi-agent of Parliament, exercising executive authority? I commend this advice to members of the House.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:45 p.m.

Bloc

Benoît Sauvageau Bloc Repentigny, QC

Mr. Speaker, we are moving quickly ahead and I have a clarification to ask of my friend and colleague, the President of the Treasury Board.

In Group No. 3, Motion No. 11 on the grandfather clause, it seems to me to have obtained unanimous consent a little earlier, but my memory fails me and I do not recall whether this was decided in the House.

Therefore I would like to ask the President of the Treasury Board: when we refer to Group No. 3, is this outside Amendment No. 11? If so, I thank you. If not, does the President of the Treasury Board wish to seek unanimous consent?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Mr. Speaker, my colleague from Repentigny is correct. I had neglected to speak to the official opposition on this issue.

Various members of Parliament have talked about Motion No. 11, as to whether it was intended to remove the Chief Electoral Officer from that list, not to grandfather that incumbent in office. The only part that opened that act with respect to that officer was with respect to the secret ballot. When the secret ballot motion was defeated, we believed we should move it from here.

Having said that, while it would be proper for the legislative framework in our judgment, which is a judgment not a fact, we would be happy to withdraw this amendment if it would provide greater comfort to the opposition.

Would he like some time to think about it? No, so I guess I look to our friend from the New Democratic Party. I have heard representations from her whip on this issue and I would ask for unanimous consent to withdraw Motion No. 11 in my name.