Bill C 292 would amend the Corrections and Conditional Release Act to provide that any monetary amount awarded to an offender pursuant to a legal action or proceeding be paid to victims and other designated beneficiaries.
As regards to this bill, I have doubts as to the federal government's power to pass provisions of this kind. It's important to understand that, according to the division of powers in Canada, property and civil rights fall within provincial jurisdiction. Under that head of power, the provinces have jurisdiction over contracts and all private law, including debt priority ranking. That includes debts owed to creditors, in particular. This is something governed by provincial legislation.
Certain provisions of the Constitution grant specific powers to the federal Parliament with respect to bankruptcy, banks or tax collection. Federal lawmakers can use that power, in keeping with their jurisdiction, to change the priority ranking in cases involving bankruptcies, security, bank collateral, or priority granted Revenue Canada. In this case, the bill applies to inmates—in other words, to offenders. It creates a debt priority ranking that is completely different. The distribution would work as follows: first would be the victims, who would benefit from a restitution order, then beneficiaries of a support award, then beneficiaries of individuals having secured a support award made against the offender, and finally a victims support group.
In other words, this new debt priority ranking cannot be connected back to bankruptcy law, to banks, to tax collection or other areas of federal jurisdiction. It's important to understand that this is an amendment to the Corrections and Conditional Release Act made under the criminal law as well as in relation to the establishment, maintenance and administration of penitentiaries. Changing the debt priority order involves the civil law and not the criminal law. That being the case, I do not see how this bill could be considered to fall within the jurisdiction of the federal Parliament.