Legislative Reform Initiative (Regional District of Nanaimo correspondence & attachments)

Memorandum: Update on Legislative Reform Initiative

TO: RDN Board of Directors
DATE: March 22, 2024
FROM: Elizabeth J. Hughes, Manager, Strategy and Intergovernmental Services
SUBJECT: Update on Legislative Reform Initiative

Background
The Legislative Reform Initiative began in 2021, led by the RDN, and envisions mobilizing a collective intergovernmental effort to update and modernize the Local Government Act.

Concerns with the dated Local Government Act include restrictions on taxation and revenue sources, complexities in establishing services, and the lack of provisions in comparison with Section 8 of the Community Charter which gives municipalities powers to regulate, prohibit, and impose requirements by bylaw without provincial approval or establishing bylaws. Regional districts are limited in their legislative authority in several areas such as business licensing authority (which the province is now addressing as part of its efforts around short-term rental housing), subdivision approval, regulation of fireworks discharge, parking enforcement, tree management, and taxation and funding models. Social, political, and economic environments that local governments operate within continue to evolve in areas such as climate change, environmental stewardship, and a recognition of the importance of First Nations’ participation in governance. These realities should be reflected in a modernized legislative framework.

Actions Taken
Since 2021, discussions of the Legislative Reform Initiative have been held with three Ministers of Municipal Affairs. The RDN has hosted or co-hosted 8 panel sessions or presentations about this initiative at AVICC, UBCM, and several Chair/CAO Forums, including an upcoming session at the Regional District Chair/CAO Forum on March 26, 2024. Chair Vanessa Craig and CAO Douglas Holmes have been invited to present an update on the initiative at the Electoral Area Directors Forum at AVICC on April 12, 2024.

Most recently, at the panel session on legislative reform at UBCM in September 2023, co-hosted by the RDN, Fraser Valley Regional District (City of Chilliwack), Alberni-Clayoquot Regional District, and Don Lidstone, K.C., session attendees expressed support for asking UBCM to lead the initiative and establish a working group to steer the process. The proposed working group would include representatives from municipalities, regional districts, First Nations, UBCM, and ministerial staff, and would conduct research and policy work to develop a framework for reviewing and modernizing the Local Government Act.

Following the September 2023 UBCM panel session, the RDN drafted a “What We Heard” document (attached) and circulated it to UBCM members, summarizing the session discussion and next steps, and requesting letters of support for a UBCM working group on comprehensive legislative reform and modernization.

Current Status
Letters of support are being received from regional districts and municipalities and are being provided to directors in weekly Board correspondence. While UBCM has not come to a decision about including the legislative reform initiative in its work plan, UBCM leadership has held several discussions about the initiative and is gathering further information. This is a long term project that will likely take several years to unfold and come to fruition.

---

LEGISLATIVE REFORM INITIATIVE: NEXT STEPS

UBCM ANNUAL CONVENTION, September 21, 2023
Summary of Session and What We Heard

SUMMARY OF SESSION

On September 21, 2023, the Regional District of Nanaimo, Fraser Valley Regional District (City of Chilliwack), Alberni-Clayoquot Regional District, and Don Lidstone, K.C., hosted an interactive, discussion-based session on legislative reform. The session was intended for both municipal officials as well as regional district officials because many aspects of municipal operations are contained in the Local Government Act.

The goals of the session were:

• to provide context and background about the Legislative Reform Initiative
• to discuss whether to proceed with the Legislative Reform Initiative
• to discuss options for the best path forward to steer the process

The Ministry of Municipal Affairs provided background and several questions to consider during the group’s discussion (Attachment 1).

Approximately 80-85 people attended the session, indicating a broad interest in this evolving topic.

Concerns with the dated Local Government Act include restrictions on taxation and revenue sources, complexities in establishing services, and the lack of provisions in comparison with Section 8 of the Community Charter which gives municipalities powers to regulate, prohibit, and impose requirements by bylaw without provincial approval or establishing bylaws. Regional districts are limited in their legislative authority in comparison with municipalities in several key areas such as business licensing authority (which the province is now addressing as part of its efforts around short-term rental housing), subdivision approval, regulation of fireworks discharge, parking enforcement, tree management, and taxation and funding models. Further, social, political, and economic environments that local governments operate within continue to evolve in areas such as climate change, environmental stewardship, and a recognition of the importance of First Nations’ participation in regional governance. These realities should be reflected in a modernized legislative framework.

During the session, Slido polls were used to conduct two “straw polls” of the participants, on these questions: 1) whether or not to proceed with the Legislative Reform Initiative, and 2) whether a UBCM working group or a joint local government project is the best path forward to steer the process.

The majority of participants indicated support for the Legislative Reform Initiative, and indicated their preference would be for a UBCM working group to steer the initiative. These polls were conducted to gain a sense of the sentiments of the session participants only, and are not assumed to represent the views of the UBCM membership as a whole.

WHAT WE HEARD

WHY A COMPREHENSIVE MODERNIZATION EFFORT IS NEEDED

• The Ministry of Municipal Affairs has made important incremental changes in the legislation over time, but a more comprehensive modernization project is needed.
• Extensive downloading of responsibilities from the Province to local governments has exacerbated the problems local governments face; outdated legislation prevents local governments from addressing these issues effectively.
• Over 90% of the province is rural and is not under the Community Charter; these areas should not be governed by legislation that was drafted in 1966.
• Regional districts and municipalities have restricted powers where they have delegated authority only, are not constitutionally protected, and have few tools or resources to address local problems.
• Particular challenges with the Local Government Act (LGA) raised by participants at this session:
  • responding effectively to emergencies and natural disasters
  • taking measures to mitigate the effects of climate change
  • dealing with old infrastructure and the ability to fund these projects solely through property taxes
  • population growth and migration from cities during the pandemic is rapidly changing the character of rural areas; incoming residents have higher expectations for services
  • incorporation should not be the only other governance option for rural areas; there should be an intermediate step available
  • Electoral Areas lack power and resources
  • business licensing authority1 and subdivision approval are difficult for regional districts
  • small municipalities and regional districts are unable to fund necessary projects costing millions, such as recycling, dikes, etc., to continue to provide the quality of life that residents cherish in these communities.

CONSIDERATIONS FOR PURSUING LEGISLATIVE REFORM RAISED AT THIS SESSION

• The background and questions provided by the Ministry of Municipal Affairs were very helpful in this discussion.
• Need to identify and list specific, concrete, local community issues and distill them from a 10,000-foot level to provide the Ministry of Municipal Affairs with evidence for the need to modernize the Local Government Act.
• Legislative reform should be viewed as supporting the Province, not in conflict with the Province.
• The Ministry of Municipal Affairs should be involved from day one.
• The Ministry should provide funding for this initiative’s research and policy work, as they have done for the Northwest Benefits Alliance.
• What is working well in the legislation should be left as is.
• If legislative reform is successful in providing new powers and tools for local governments, that does not mean all local governments must use them.
• Islands Trust has an even smaller toolbox than municipalities and regional districts.
• Metro Vancouver has excellent models and best practices, especially in the area of climate change; we can borrow good ideas.
• Local governments need a legislative framework that recognizes the importance of, and facilitates working together with, First Nations in a respectful, effective, and inclusive manner.
• When First Nations participate at the Board level, it changes the conversation and the votes. Local governments often are not well informed regarding Indigenous rights and title.
• The inclusive governance goals in UNDRIP legislation and provincial action plans can be reinforced and worked on concurrently with the Legislative Reform Initiative.
• Need to consider 7 generations into future when modernizing the LGA.
• Planning and land use issues should not be included in this initiative.
• Several participants stressed the need to draft a new charter rather than revise portions of the LGA in a continuation of the “band aid” approach.
• Area associations of UBCM should be included in the conversation.
• A retired CAO or Chair could be a primary resource person for this project, conducting research and policy work and keeping the project on track.

DECIDING WHETHER TO PROCEED WITH THE LEGISLATIVE REFORM INITIATIVE
 Slido poll #1: Is there an interest in proceeding with the Legislative Reform Initiative? (96% yes, 4% no)

OPTIONS FOR STEERING AND MANAGING THE LEGISLATIVE REFORM INITIATIVE

Option 1: UBCM Executive could form a working group on legislative reform, comprised of representatives from municipalities, regional districts, First Nations, UBCM, and ministerial staff

Option 2: This could be structured as a joint local government project, with local governments contributing funding to form a working group on legislative reform, comprised of representatives from municipalities, regional districts, First Nations, UBCM, and ministerial staff

Considerations for Option 1:

Pros:

• UBCM has an efficient network, broad reach, consistency, research capacity, and impact with the province.
• UBCM can be representative.
• UBCM has already been doing some work on legislative reform, and has experience.
• UBCM can allocate resources if legislative reform is identified as a priority.
• Reporting back will happen at UBCM.

Cons:

• Last UBCM working group report in 2010 did not meet expectations.
• Some uncertainty on the part of some participants as to how a UBCM working group functions.
• A UBCM working group may be more distant from local governments than is ideal.

Considerations for Option 2:

Pros:

• May insulate the project from getting sidetracked, if the Province does not assist with resources for UBCM.
• With a group of passionate people committed to working together on the project, the Legislative Reform Initiative may not need UBCM.

Cons:

• Challenges with resources and capacity: initiative will require significant buy-in and continued long-term commitment from local governments in terms of funding and staff time.
• Difficult to achieve forward momentum “off the side of the desk”.
• The complex coordination required for the project will be a challenge.

 Slido poll #2:

• Option 1: UBCM Executive forming a working group (85% in favour)
• Option 2: Joint local government project (15% in favour)

NEXT STEPS

• A “What We Heard” document summarizing the session will be distributed to UBCM members.
• It is noted that although there was significant enthusiasm for the initiative, including from areas outside the AVICC region, some representatives indicated they would like additional information on the initiative.

UPDATE: December 2023
Following the UBCM Annual Convention, Douglas Holmes, CAO of the Regional District of Nanaimo had the opportunity to discuss the Legislative Reform Initiative and the September 21, 2023, interactive panel session with Gary MacIsaac, Executive Director, UBCM. Mr. MacIsaac is in the process of seeking direction on this matter from the President’s Committee.

Attachment 1: Ministry of Municipal Affairs background and discussion questions

---

Attachment 1: Ministry of Municipal Affairs — Background and Discussion Questions

Background and Discussion Questions
The Ministry of Municipal Affairs (MUNI) is committed to listening to local governments about their evolving needs and how the existing legislated framework accommodates new responsibilities and challenges. Much of the legislative agenda sponsored by MUNI in recent years has responded to critical local government needs uncovered as a result of the pandemic and in response to UBCM resolutions. The development of legislative change is a lengthy, complex, and resource intensive process. Therefore, it must be rooted in and supported by a clear gap in existing tools and authorities to fix an identified problem that the current legislation or other tools don’t resolve. The mere desire for regional district (RD) legislation alone needs to be tested against a real need, with a clear path on policy development for the province to consider.

Government Priorities
The province has been clear in its priorities and focus on pressing issues of affordability and housing supply – allocating significant resources from both the Ministry of Housing and MUNI to initiatives in this space. That scarce allocation is determined by elected decision makers. The priority on affordability and housing supply also presents an opportunity and recognizes that issues of housing availability and affordability are not just urban issues – and that there is a role for regional approaches to support this work that may require new thinking of how RDs are better able to participate in solutions that will have direct implications for RD regulatory authorities.

In addition, MUNI along with other agencies and ministries, are working on other initiatives that have a direct impact on RD authorities, these include:

• The local government financial review working group, made up of staff from the province and UBCM, where work has been underway to review the local government finance system in B.C., analyzing the recommendations in the 2021 UBCM report, and discussing matters of mutual interest;
• Inclusive regional governance to explore First Nations’ interests on RD boards (explore issues such as geographic implications/boundaries of the current RD system and alignment with First Nation territories, election mechanics, and service provision);
• Consideration of business licensing and enforcement authorities for RDs, as previously requested by RDs.

Discussion questions – Are there specific RD challenges and legislative concerns that align with the current provincial priorities? What are the clearly defined problem statements/lack of authority for RDs not already accommodated for?

Other Approaches and Tools
In the past, RD officials have expressed a range of concerns such as lack of regulatory authority – in some cases the authorities in question may exist or it may be facilitated through regulation (recent examples include fireworks and source separation regulations). Other identified concerns relate to some of the fundamental foundations of RD structures and principles – such as the principle that cost-recovery for services being matched with the beneficiaries of the service, or the unique ability of RDs to balance rural and urban interests. Any changes contemplated need to be evidence-based and targeted and not be change for “a nice to have” versus a particular business or governance need for which a policy rationale exists and no other tools exist.

Discussion questions – given the inherent flexibility in the RD system, are there other tools or approaches that may address challenges that could support RDs in the absence of legislative changes?

Process for further engagement
Given the key and pressing priorities that the province is currently engaged on (e.g., housing and homelessness, climate change and emergency planning, health, and the opioid crisis) there are practical considerations about how the local government system (including municipalities and RDs) will partner and collaborate with the province to address these issues. MUNI remains committed to understanding the broad views and perspectives of local government officials (both regional and municipal) across BC on the issues facing their regions and communities including the need for legislative change. We will take under consideration the results of this session.

Discussion questions – Have inclusive, broad meaningful conversations about RD outcomes and authorities occurred across all RDs? And have those been shared with MUNI? How will RDs organize themselves to ensure that all voices will be heard?