Municipal Must-Knows: Recent Legislative Updates - Part 2

Note: This is the second of a three-part blog series on recent legislation. Read part 1. 

Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025

  • The Province's annual housing-related omnibus legislation proposes changes to the: 
    • Development Charges Act
    • Planning Act
    • Building Code Act
    • Other legislation for transit projects
  • Our primary interest is the impacts of changes to development charges and how municipalities are viewed as impediments to building housing. It appears that with the introduction of this Bill, there is an acknowledgement that development charges (DCs) are important tools; however, there are opportunities to “simplify and standardize” the development charge framework, including reducing DCs without requiring a study. 
  • The Bill also exempts future long-term care projects from DCs. It provides developers an option to defer DCs for residential development until “the earlier of” occupancy permit issuance or the day the building is first occupied. The technical briefing acknowledges that the Province is exploring the use of a public utility model for water and wastewater. There is also a regulation-making authority to define local services and to merge DC service categories for DC credits. Municipal staff may need to consider how these changes and the potential deferral of DC payments could impact municipal budgets. We understand that operationalizing the deferrals and other changes will have an administrative impact. 
  • The Bill has received Royal Assent

Bill 24, Plan to Protect Ontario Act (Budget Measures), 2025

  • The budget and Bill 24, which action some of the commitments, highlight several areas of interest.  Among other things, the Bill made changes to:
    • The Assessment Act so that Municipal Property Assessment Corporation (MPAC) notices can be provided by electronic means if the recipient consents. Consequential amendments are made to the City of Toronto Act (COTA) and the Municipal Act (MA).
    • Changes were made to COTA that remove the authority for personal vehicle taxes and now prevent city council from designating toll highways. Similar changes were made to the MA to prevent municipal councils from designating toll highways. 
    • Changes were made to the Highway Traffic Act (HTA) to allow the minister to remove bike lanes in Toronto through “reconfiguration”, and the Lieutenant Governor in Council (LGIC) can order the minister to do the same. 
  • Changes concerning Automated Speed Enforcement (ASE) and Red Light Cameras (RLC) within the HTA were also made. These include:
    • Adding requirements for municipalities to keep information, and provide this information to the minister if asked. These changes allow the minister to direct the municipality on how to conduct or operate systems.
    • Requiring information about ASE and RLC locations to be made public and published on websites and - if required by regulations - to be displayed on signs, which we understand is already a requirement. 
    • Adding regulation-making powers to prescribe circumstances when a notice summons or administrative penalty (AP) shall not be issued using ASE.
    • Restricting suppliers or vendors of ASE or RLC systems from seeking payment or compensation based on the number of offences issued, APs, or percentage of payment or revenue obtained. 
  • The Bill has received Royal Assent. 

Bill 30, Working for Workers Seven Act, 2025

  • The now annually expected bill aimed at protecting workers was also introduced. Of particular interest, the Bill provides the LGIC with the authority to make regulations that impose limits or conditions on the power of a municipality (both in amendment to the COTA and MA), such as bylaws with respect to development, building, or re-development projects for training and skills development purposes.  Previous amendments made within Bill 185 introduced the authority to exempt Community Service Facilities (which are public facilities) from the Planning Act and the MA. This Bill applies a similar exemption for private projects funded through the Skills Development Fund. 

Stay tuned for part 3, where we'll be breaking down more impacts of recent legislation on local government and municipal staff.

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