SNL2021 CHAPTER M-20.01 - MUNICIPAL CONDUCT ACT

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

1. This Act may be cited as the Municipal Conduct Act.

2021 cM-20.01 s1

Definitions

2. In this Act

(a) "administrator" means an administrator appointed under section 250 of the Municipalities Act, 1999 ;

(b) "business day" means a day that is not a Saturday, Sunday or a holiday;

(i) a manager or acting manager appointed under the Municipalities Act, 1999 ,

(ii) the city manager or acting city manager appointed under the City of Corner Brook Act,

(iii) the city manager or acting city manager appointed under the City of Mount Pearl Act , and

(iv) the city manager or acting city manager appointed under the City of St. John's Act ;

(d) "code of conduct" means a code of conduct established in accordance with section 12 or 18;

(e) "cohabiting partner" means a person with whom a municipal official is living in a conjugal relationship outside of marriage;

(f) "complainant" means a person making a complaint;

(g) "complaint" means a written document alleging that a municipal official acted in a conflict of interest or contravened the code of conduct;

(h) "council" means a council of a municipality;

(i) "councillor" means a member of a council;

(j) "department" means the department presided over by the minister;

(k) "disclosure statement" means a statement required to be filed under section 4;

(l) "employee" means a person employed by a municipality;

(m) "excluded private interest" means

(i) cash on hand or on deposit with a financial institution that is lawfully entitled to accept deposits,

(ii) a position of director or executive officer in a municipal entity or municipal corporation,

(iii) membership in a council committee,

(iv) purchase or ownership of a municipal debenture,

(v) fixed value securities issued by a government or municipality in Canada or an agency of a government or municipality in Canada, and

(vi) a benefit or award of a value less than an amount prescribed in the regulations;

(n) "local service district" means a local service district established under the Municipalities Act, 1999 ;

(o) "minister" means the minister appointed under the Executive Council Act to administer this Act;

(p) "municipal official" means, unless the context indicates otherwise,

(i) a councillor,

(ii) a chief administrative officer,

(iii) an administrator,

(iv) an employee of a municipality, and

(v) any person acting, with or without remuneration, under the direction of a municipality, including fire chiefs and fire fighters providing services for or to a municipality;

(q) "municipality" means

(i) a town continued or incorporated under the Municipalities Act, 1999 ,

(ii) the City of Corner Brook continued under the City of Corner Brook Act ,

(iii) the City of Mount Pearl continued under the City of Mount Pearl Act , and

(iv) the City of St. John's continued under the City of St. John's Act ;

(r) "private interest" includes

(i) an asset, liability or financial interest,

(ii) a source of income,

(iii) a position of director or executive officer in a corporation, association or trade union, whether for profit or not for profit,

(iv) membership in a board, commission or agency of the Crown in right of Canada or a province,

(v) membership in or employment by a trade union where the trade union has entered into or is seeking to enter into a collective agreement with a council or an entity of a council, with respect to any matter related to the administration or negotiation of the collective agreement, and

(vi) a benefit or award,

but does not include an excluded private interest;

(s) "privileged meeting" means a privileged meeting referred to in

(i) section 213 of the Municipalities Act, 1999 ,

(ii) section 41 of the City of Corner Brook Act ,

(iii) section 41 of the City of Mount Pearl Act , or

(iv) section 38 of the City of St. John's Act ;

(t) "relative" means

(i) a spouse or cohabiting partner,

(ii) a child, step-child, parent, step-parent, sibling, step-sibling, parent-in-law or sibling-in-law of the municipal official, and

(iii) a person not referred to in subparagraphs (i) and (ii) who resides with the municipal official;

(u) "respondent" means a municipal official against whom a complaint has been made;

(v) "source of income" means

(i) in the case of employment, the employer, and

(ii) in the case of income arising from a business or profession, the business or profession; and

(w) "spouse" means a person to whom a municipal official is married, unless the person and the municipal official have made a separation agreement or their support obligations and family property have been dealt with by a court order.

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Application

3. This Act applies to municipal officials when the municipal officials are acting in their capacity as municipal officials.

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PART I
DISCLOSURE STATEMENT

Disclosure statement

4. (1) A councillor shall file with the council a disclosure statement in the form set by the council

(a) within 30 days of taking office after the councillor's election; and

(b) each year on or before March 1.

(2) A chief administrative officer shall file with the council a disclosure statement in the form set by the council

(a) within 30 days of commencing employment; and

(b) each year on or before March 1.

(3) A disclosure statement referred to in subsections (1) and (2) shall include the following information in relation to a councillor, chief administrative officer and a councillor's and chief administrative officer's spouse or cohabiting partner:

(a) ownership of real property or an interest in real property within the municipality;

(b) corporations in which 10% or more shares are held;

(d) ownership of businesses located within the municipality;

(e) corporations, associations or trade unions in which a position of director or executive officer is held;

(f) sources of income; and

(g) any other information the council determines necessary.

(4) Where there is a change in the information contained in a disclosure statement filed under subsection (1) or (2), the councillor or chief administrative officer shall report the change to the council no later than 60 days after the change occurred.

(5) A disclosure statement filed under this section shall be

(a) retained by the clerk of the council; and

(b) reviewed at a privileged meeting of the council no later than 30 days after the date required for filing under this section.

(6) The council shall make disclosure statements filed under subsection (1) available for public inspection during normal business hours of the council.

2021 cM-20.01 s4

PART II
CONFLICT OF INTEREST

Conflict of interest

5. (1) A municipal official has a conflict of interest where i n the making, or involvement in the making, of a decision

(a) the municipal official's private interests are affected; or

(b) the municipal official is unable to act impartially on behalf of the municipality due to the municipal official's personal relationships.

(2) For the purposes of paragraph (1)(a)

(a) a decision may affect, directly or indirectly, a private interest, where the decision may result in a gain or loss to the municipal official’s private interests or the private interests of a relative; and

(b) a decision does not affect, directly or indirectly, a private interest where the decision affects the municipal official or a relative of a municipal official as one of a broad class of the public.

(3) For the purposes of paragraph (1)(b) a municipal official is unable to act impartially where a reasonable person may conclude that the municipal official’s personal relationship would result in favoritism or prejudice to the person to whom the municipal official has a personal relationship.

2021 cM-20.01 s5

Conflict of interest re: councillors

6. (1) Where a councillor knows or ought reasonably to know that the councillor has a conflict of interest in a matter before council, the councillor shall, where present,

(a) declare the conflict of interest before any consideration or discussion of the matter;

(b) disclose the general nature of the conflict of interest;

(d) refrain from voting on any question, decision, recommendation or other action to be taken relating to the matter; and

(e) leave the room in which the meeting is held for the duration of the consideration of the matter.

(2) Notwithstanding paragraph (1)(e), where the meeting referred to in subsection (1) is open to the public, the councillor may remain in the part of the room set aside for the general public.

(3) A councillor referred to in subsection (1) shall not attempt, in any way, before, during or after the meeting, to influence

(a) the vote of other councillors; or

(b) any policy advice provided to council regarding the matter.

(4) A declaration of conflict of interest under subsection (1) and the general nature of the conflict of interest shall be recorded in the minutes of council or a committee of council, where the declaration was made at a committee meeting.

(5) Where a councillor is uncertain as to whether or not the councillor has a conflict of interest, the councillor shall disclose the nature of the possible conflict of interest to the council and the council may decide by a majority vote.

(6) A councillor whose possible conflict of interest is being voted on is not entitled to vote.

(7) Where the vote referred to in subsection (5) is a tied vote, the councillor shall be considered to have a conflict of interest.

(8) Where the council determines by a majority vote under subsection (5) that a councillor does not have a conflict of interest and a complaint is subsequently filed under this Act and it is determined that a councillor did have a conflict of interest, the council may invalidate the decision of council in which the councillor acted in a conflict of interest but shall not impose any other penalties under this Act against the councillor.

2021 cM-20.01 s6

Reduced quorum

7. (1) Where one or more councillors have declared a conflict of interest under subsection 6(1) and the number of councillors remaining at the meeting is not sufficient to constitute a quorum then, notwithstanding any other Act, regulations or a regulation of council, the number of councillors remaining, where not less than 2, shall be considered to constitute a quorum for purposes of discussion and voting on the matter being considered by the council.

(2) Where in the circumstances referred to in subsection (1) there would be less than 2 councillors remaining at a meeting, council shall request direction from the minister and the minister may order that

(a) the one remaining councillor vote on the matter as if the councillor constituted a quorum; or

(b) the councillors are exempted from subsection 6(1) in the matter and allow the councillors to vote on the matter.

(3) The minister may impose terms and conditions on an order issued under subsection (2).

2021 cM-20.01 s7

Complaint of conflict of interest re: councillors and former councillors

8. (1) Where a person is of the opinion that a councillor or former councillor has acted in a conflict of interest, the person may file a complaint with the chief administrative officer within 6 months of the person becoming aware of the potential conflict of interest.

(2) A complaint shall be in writing and shall include the following information:

(a) the nature of the conflict of interest;

(b) the councillor's or former councillor's actions in relation to the conflict of interest; and

(3) The chief administrative officer shall send a copy of the complaint to the respondent no later than 5 business days after receipt of the complaint.

(4) The respondent may provide a written response respecting the complaint to the chief administrative officer no later than 20 business days after receipt of a copy of the complaint.

(5) Where the respondent provides a written response under subsection (4), the chief administrative officer shall send a copy of the written response to the complainant within one business day after receipt of the written response.

(6) The chief administrative officer shall review the complaint and the respondent's written response no later than 10 business days after receipt of the written response, or where a written response is not filed the chief administrative officer shall review the complaint no later than 10 business days after the time period to file the written response has expired, and shall

(a) prepare a written report regarding the complaint;

(b) refer the complaint to council;

(c) provide a copy of the report referred to in paragraph (a) to the council at the time the complaint is referred to council; and

(d) give written notice of the referral to the complainant and the respondent.

(7) No later than 15 business days after receiving the report referred to in subsection (6), the council shall consider both the complaint and the report provided under subsection (6) and may, by resolution,

(a) dismiss the complaint;

(b) make a determination that the councillor or former councillor acted in a conflict of interest; or

(8) A person shall not hinder, obstruct, attempt to obstruct, interfere with, threaten, harass or fail to cooperate with a person conducting an investigation under paragraph (7)(c) in the exercise of that person's duties or functions under this Act or the regulations.

(9) A person conducting an investigation under paragraph (7)(c) shall prepare a report regarding the investigation and submit it to the council.

(10) Following review of the report referred to in subsection (9) the council may, by resolution,

(a) dismiss the complaint; or

(b) make a determination that the councillor or former councillor acted in a conflict of interest.

(11) A report referred to in subsection (9) shall be tabled at a public meeting.

2021 cM-20.01 s8

Penalties for conflict of interest re: councillors and former councillors

9. (1) Where a council determines that a councillor has acted in a conflict of interest, the council

(a) shall, by resolution, require the councillor to vacate the councillor's seat on council and declare that the councillor is not eligible to be nominated as a candidate until the nomination period for the next general election; and

(b) may, by resolution, invalidate the decision of the council in which the councillor acted in a conflict of interest.

(2) Notwithstanding subsection (1), where the council determines that a councillor acted in a conflict of interest through inadvertence or a genuine error in judgment, the council may, by resolution, allow the councillor to keep the councillor's seat on council and may do one or more of the following:

(a) reprimand the councillor;

(b) invalidate the decision of the council in which the councillor acted in a conflict of interest;

(d) suspend the councillor from council committees or other additional activities or duties for a period of no more than 3 months; and

(e) suspend the councillor from council, without remuneration, for a period of no more than 3 months.

(3) Where the council determines that a former councillor has acted in a conflict of interest, the council may do one or more of the following:

(a) reprimand the former councillor;

(b) invalidate the decision of council in which the former councillor acted in a conflict of interest; and

(c) declare that the former councillor is not eligible to be nominated as a candidate until the nomination period for the next general election.

(4) Where a councillor is unable to attend regular public meetings of the council for 3 successive months because of a suspension under paragraph (2)(e), the councillor's absence from the public meetings is considered to be with leave of the council for the purposes of subparagraph 20(2)(e)(ii) of the City of Corner Brook Act , subparagraph 20(2)(e)(ii) of the City of Mount Pearl Act, subparagraph 206(1)(f)(ii) of the Municipalities Act, 1999 and a regulation made under subparagraph 340.5(4)(i) of the City of St. John's Act .

2021 cM-20.01 s9

Complaint of conflict of interest re: administrators

10. (1) Where a person is of the opinion that an administrator has acted in a conflict of interest, the person may file a complaint with the minister.

(2) A complaint shall be in writing and shall include the following information:

(a) the nature of the conflict of interest;

(b) the administrator's actions in relation to the conflict of interest; and

(3) The minister shall send a copy of the complaint to the respondent no later than 5 business days after receipt of the complaint.

(4) The respondent may provide a written response respecting the complaint to the minister no later than 20 business days after receipt of a copy of the complaint.

(5) Where the respondent provides a written response under subsection (4), the minister shall send a copy of the written response to the complainant within one business day after receipt of the written response.

(6) No later than 15 business days after the minister receives the written response, or where a written response is not filed, no later than 15 business days after the time period to file a written response has expired the minister may

(a) dismiss the complaint;

(b) make a determination that the administrator acted in a conflict of interest; or

(7) A person shall not hinder, obstruct, attempt to obstruct, interfere with, threaten, harass or fail to cooperate with a person conducting an investigation under paragraph (6)(c) in the exercise of that person's duties or functions under this Act or the regulations.

(8) A person conducting an investigation under paragraph (6)(c) shall prepare a report regarding the investigation and submit it to the minister.

(9) Following review of the report referred to in subsection (8) the minister may

(a) dismiss the complaint; or

(b) make a determination that the administrator acted in a conflict of interest.

2021 cM-20.01 s10

Penalties for conflict of interest re: administrators

11. Where the minister determines that the administrator has acted in a conflict of interest, the minister may do one or more of the following:

(a) reprimand the administrator;

(b) invalidate the decision of the administrator in which the administrator acted in a conflict of interest;

(d) revoke the administrator's appointment as administrator.

2021 cM-20.01 s11

PART III
CODE OF CONDUCT

Code of conduct for councillors

12. (1) Within 6 months of the coming into force of this Act, a council shall establish a code of conduct that applies to all councillors.

(2) A code of conduct referred to in subsection (1) shall set guidelines that define the standards and values that the council expects councillors to meet in their dealings with each other, employees of the municipality and the public.

(3) A code of conduct referred to in subsection (1) shall

(a) include provisions relating to

(i) standards of professional behaviour,

(ii) use of influence,

(iii) confidentiality,

(iv) harassment and bullying, and

(v) any other matter prescribed in the regulations;

(b) establish the process for filing complaints relating to a contravention of the code of conduct, including

(i) designating to whom the complaint shall be filed,

(ii) the information to be included in a complaint, and

(iii) the time period for filing a complaint;

(d) provide for reports related to the complaint, including

(i) the form of the report,

(ii) the information required to be included in the report, and

(iii) the time period for submitting the report.

(4) Each councillor shall comply with the code of conduct.

(5) Where an administrator is appointed for a municipality, the administrator shall comply with the code of conduct established by the council under subsection (1).

2021 cM-20.01 s12

Code of conduct training

13. (1) A municipality shall arrange training relating to the code of conduct for councillors within 3 months of the establishment of a code of conduct and all councillors shall attend the training.

(2) A municipality shall arrange training relating to the code of conduct for a councillor within 3 months of a councillor being elected and the councillor shall attend the training.

(3) A councillor who does not attend the code of conduct training within the time period referred to in subsection (1) or (2) shall not carry out a power, duty or function as a councillor until the councillor has completed the training.

2021 cM-20.01 s13

Code of conduct complaint process re: councillors and former councillors

14. (1) Where a person is of the opinion that a councillor or former councillor has contravened the code of conduct, the person may file a complaint in accordance with the process set out in the code of conduct.

(2) Where a complaint referred to in subsection (1) is

(a) satisfactorily resolved; or

(b) is not satisfactorily resolved but the complainant and respondent agree on the facts,

the chief administrative officer or a person designated by the chief administrative officer shall submit a report to the council in the form and manner set out in the code of conduct.

(3) Where subsection (2) does not apply, the complaint shall be investigated in accordance with the code of conduct and the person conducting the investigation shall submit a report to the council in the form and manner set out in the code of conduct.

(4) A report referred to in subsection (2) or (3) shall be reviewed at a privileged meeting of the council following receipt of the report.

(5) Following review of a report under subsection (4), the council shall open the meeting to the public and shall, by resolution,

(a) dismiss the complaint; or

(b) make a determination that the councillor or former councillor contravened the code of conduct.

(6) A complaint filed under this section against a councillor or former councillor by a member of the public or another councillor is not considered a workplace investigation for the purposes of section 33 of the Access to Information and Protection of Privacy Act, 2015 .

2021 cM-20.01 s14

Penalties for contravention of code of conduct re: councillors and former councillors

15. (1) Where a council determines that a councillor has contravened the code of conduct or failed to comply with a penalty imposed under this section, the council may, by resolution, do one or more of the following:

(a) reprimand the councillor;

(b) require the councillor to attend training as determined by the council;

(c) suspend the councillor from council committees or other additional activities or duties for a period of no more than 3 months;

(d) suspend the councillor from council, without remuneration, for a period of no more than 3 months; and

(e) where one or more of the following apply, make an application to court seeking that the councillor vacate the councillor's seat on council and that the councillor not be eligible to be nominated as a candidate until the nomination period for the next general election:

(i) the contravention of the code of conduct resulted in loss of public trust,

(ii) the contravention of the code of conduct consisted of violence or the credible threat of violence, and

(iii) the councillor has contravened the code of conduct more than once and has refused to comply with the penalties imposed.

(2) Where the council determines that a former councillor has contravened the code of conduct, the council may, by resolution, do one or both of the following:

(a) reprimand the former councillor; and

(b) where one or more of the following apply, declare that the former councillor is not eligible to be nominated as a candidate until the nomination period for the next general election:

(i) the contravention of the code of conduct resulted in loss of public trust,

(ii) the contravention of the code of conduct consisted of violence or the credible threat of violence, and

(iii) the former councillor has contravened the code of conduct more than once and has refused to comply with penalties imposed.

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Code of conduct complaint process re: administrators

16. (1) Where a person is of the opinion that an administrator has contravened the code of conduct, the person may file a complaint in accordance with the process set out in the code of conduct except that the complaint shall be filed with the minister.

(2) Where a complaint referred to in subsection (1) is

(a) satisfactorily resolved; or

(b) is not satisfactorily resolved but the complainant and respondent agree on the facts,

a person designated by the minister shall submit a report to the minister in the form and manner set out in the code of conduct.

(3) Where subsection (2) does not apply, the complaint shall be investigated in accordance with the code of conduct and the person conducting the investigation shall submit a report to the minister in the form and manner set out in the code of conduct.

(4) Following review of a report referred to in subsection (2) or (3) the minister may

(a) dismiss the complaint; or

(b) make a determination that the administrator contravened the code of conduct.

2021 cM-20.01 s16

Penalties for contravention of code of conduct re: administrators

17. Where the minister determines that the administrator has contravened the code of conduct, the minister may do one or more of the following:

(a) reprimand the administrator;

(b) require the administrator to attend training as determined by the minister; and

2021 cM-20.01 s17

Code of conduct for other municipal officials

18. (1) In this section "municipal official" does not include a councillor or an administrator.

(2) Within 6 months of the coming into force of this Act, a council shall establish a code of conduct for municipal officials.

(3) A code of conduct referred to in subsection (2), shall include

(a) the information and processes prescribed in subsection 12(3); and

(b) provisions relating to conflict of interest.

(4) The provisions relating to conflict of interest shall

(a) specify the procedures that a municipal official is required to follow where the municipal official suspects that the municipal official may be in a conflict of interest;

(b) specify the procedures for a person making a complaint regarding a municipal official who may have a conflict of interest; and

(5) In addition to the requirements in subsection (4), the code of conduct provisions relating to a conflict of interest of a chief administrative officer shall allow a chief administrative officer, within the scope of the chief administrative officer's employment, to provide advice to council on a matter in which the chief administrative officer has a conflict of interest where

(a) the chief administrative officer disclosed the conflict of interest and the nature of the conflict of interest to the council; and

(b) the council made the request for advice knowing of the chief administrative officer's conflict of interest.

(6) Each municipal official shall comply with the code of conduct.

(7) A municipality shall arrange training relating to the code of conduct for municipal officials within 3 months of the establishment of a code of conduct and all municipal officials shall attend the training.

(8) A municipality shall arrange training relating to the code of conduct referred to in subsection (2) for a municipal official within 3 months of a municipal official commencing employment with a municipality or acting under the direction of a municipality and the municipal official shall attend the training.

(9) Where a code of conduct has been amended the municipality shall notify municipal officials of the changes within one month of the changes being made.

2021 cM-20.01 s18

Code of conduct for local service districts

19. (1) The minister may establish a code of conduct for local service districts.

(2) Members of local service district committees and employees of a local service district shall comply with the code of conduct established by the minister.

2021 cM-20.01 s19

PART IV
APPEALS

Appeal

20. (1) A complainant or respondent may appeal a decision made under paragraphs 8(7)(a) and (b), subsections 8(10) and paragraphs 9(1)(a), 9(2)(e) and 9(3)(c) to the Supreme Court of Newfoundland and Labrador by filing a notice of appeal with the Supreme Court of Newfoundland and Labrador.

(2) An appeal shall be commenced no later than 21 days after the complainant or respondent receives the decision being appealed.

2021 cM-20.01 s20

PART V
ORIENTATION TRAINING

Orientation training

21. (1) A councillor and chief administrative officer shall complete orientation training approved by the minister within the time period prescribed in the regulations.

(2) The orientation training referred to in subsection (1) shall include the following:

(a) information related to the roles and responsibilities of a councillor and chief administrative officer;

(b) information related to meetings and procedures of council;

(d) information related to access to information and protection of privacy; and

(e) any other information prescribed in the regulations.

(3) A councillor or chief administrative officer who does not attend the orientation training within the time period prescribed in the regulations shall not carry out a power, duty or function as a councillor or chief administrative officer until the councillor or chief administrative officer has completed the training.

2021 cM-20.01 s21

PART VI
REGULATIONS

Regulations

22. The minister may make regulations

(a) prescribing an amount for the purposes of subparagraph (2)(m)(vi);

(b) prescribing additional matters to be included in the provisions of a code of conduct;

(d) prescribing additional information to be included in orientation training;

(e) defining a word or phrase used but not defined in this Act; and

(f) generally, to give effect to this Act.

2021 cM-20.01 s22

PART VII
CONSEQUENTIAL AMENDMENTS, REPEAL AND COMMENCEMENT

RSNL1990 cC-15 Amdt.

23. (1) Paragraph 20(2)(a) of the City of Corner Brook Act is repealed.

(2) Sections 22 to 26 of the Act are repealed.

2021 cM-20.01 s23

RSNL1990 cC-16 Amdt.

24. (1) Paragraph 20(2)(a) of the City of Mount Pearl Act is repealed.

(2) Sections 22 to 26 of the Act are repealed.

2021 cM-20.01 s24

RSNL1990 cC-17 Amdt.

25. Section 44 of the City of St. John's Act is repealed.

2021 cM-20.01 s25

SNL2001 cM-20.2
Amdt.

26. Paragraph 15(3)(b) of the Municipal Elections Act is repealed and the following substituted:

(b) his or her seat as a councillor was declared vacant under subsection 20(2) of the City of Corner Brook Act or the City of Mount Pearl Act or section 11 of the City of St. Johns Act ,

2021 cM-20.01 s26

SNL1999 cM-24 Amdt.

27. (1) Paragraph 206(1)(i) of the Municipalities Act, 1999 is repealed.

(2) Subsection 206(2) of the Act is repealed.

(3) Sections 207 to 210 of the Act are repealed.

(4) Subsection 410(1) of the Act is repealed and the following substituted:

Appeal to Trial Division

410. (1) A councillor whose seat has been vacated under paragraphs 206(1)(c), (d), (e), (f), (g) or (h) may appeal to a judge of the Trial Division by filing a notice of appeal with the court within 21 days of the date on which he or she is notified by the clerk of the council that his or her position as councillor is vacant and upon paying into the court a sum, or upon giving a bond for the sum, that the judge considered sufficient to defray the costs of the appeal.

2021 cM-20.01 s27

Commencement

28. This Act, or a section, subsection, paragraph or subparagraph of this Act, comes into force on a day or days to be proclaimed by the Lieutenant-Governor in Council.

(In force Sept. 1/22)

2021 cM-20.01 s28

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