Company and Finance News:

How Not to Buy a Distressed Business
The current economic environment has left many companies with attractive assets strapped for cash and unable to meet their obligations. As a result, entities with cash on hand will be in a position to acquire these companies or their assets at potentially discounted prices. The following sets out a few key concepts that should be considered prior to potential purchasers undertaking such an acquisition. Read the full article by Stewart Muglich with Clark Wilson LLP. 

BC Securities – Policies & Instruments
The following policies and instruments were published on the BCSC website in the month of April:

• BCN 2014/05 Notice of Revocation of Recognition Orders for Investment Dealers Association and Market Regulation Services Inc.
• BCN 2014/06 Notice of Revised Recognition Order for CDS Clearing and Depository Services Inc. This notice announces the revised recognition order for CDS Clearing and Depository Services Inc. effective April 16, 2014.
• 25-201 – CSA Notice and Request for Comment – Proposed National Policy 25-201 Guidance for Proxy Advisory Firms
• 21-101 and 23-101 – CSA Notice and Request for Comment – Proposed Amendments to National Instrument 21-101 Marketplace Operation and National Instrument 23-101 Trading Rules
• 31-338 – CSA Staff Notice 31-338 Guidance on Dispute Resolution Services Client Disclosure for Registered Dealers and Advisers that are not members of a Self-Regulatory Organization (see also National Instrument 31-103: Registration Requirements, Exemptions and Ongoing Registrant Obligations, B.C. Reg. 226A/2009)

For more information visit the BC Securities website. 

PST Bulletins
The following PST bulletins and notices were issued in the month of April:

• Bulletin PST 303, Warranties, Service Contracts and Maintenance Agreements
• FIN 357, Application to Cancel PST Registration (Small Sellers)
• The Small Business Guide to PST has been revised to remove information on the PST Education Program (PSTEP) that wrapped up on March 31
• Bulletin PST 310, Goods Brought Into BC
• FIN 119, Application for Registration for the Fuel Tax Refund Program for Persons with Disabilities
• FIN 355/PAC, Application for Refund of Provincial Sales Tax (PST) Paid on PAC-Funded Purchases
• Bulletin PST 305, Containers and Packaging Materials
• Bulletin CT 005, Commercial Air or Marine Services
• Bulletin PST 300, Special Occasion Liquor Licences
• Bulletin PST 402, PST Refunds on Charity-Funded Purchases of Medical Equipment
• Bulletin MFT-CT 008, International Fuel Tax Agreement and Motive Fuel User Permits
• Bulletin PST 134, Aircraft
• Bulletin PST 202, School Supplies

For more information, visit the Consumer Taxes website.

Energy and Mines News:

BC Minister of Environment Reverses Amendment to Reviewable
Projects Regulation on Sweet Gas Processing Plants
Fort Nelson First Nation puts Government on notice for upstream LNG development
On April 14, 2014, the BC Government issued Order in Council (No. 185) amending the Reviewable Projects Regulation (B.C. Reg 370/2000) to remove the need for a provincial environmental assessment for sweet natural gas processing plants (the Proposed Amendment). The Proposed Amendment, which was to come into effect on April 28, 2014, would have had significant implications for upstream activities, especially in northeast BC where shale gas development is rapidly underway. Following a public outcry in response to the Proposed Amendment by the Chief of the Fort Nelson First Nation (FNFN), Environment Minister Mary Polak publicly apologized for failing to adequately consult with First Nations prior to approving the Proposed Amendment and announced that the BC Government would rescind the Proposed Amendment [and] proceed to undertake discussions with First Nations before proceeding with the regulatory change. Read full article by Selina Lee-Andersen with McCarthy Tetrault. 

Joint Review Panel Delivers Site C Dam Report
to Federal and Provincial Governments
Arlene Boone, a third-generation farmer near the Peace River, said [May 1] she is "sitting on pins and needles" awaiting a decision on BC Hydro's Site C dam. "Our livelihood is on the line," said Boone, whose 200 hectares would be affected by the $7.9-billion dam. "It's a really important time in our lives." The Joint Review Panel reviewing Site C dam submitted its report [May 1] to the federal and provincial governments. The report will be publicly released on May 8 on websites of both the Canadian Environmental Assessment Agency and BC's Environmental Assessment Office project information centre. Boone said that since the province is already on record wanting Site C, the fate of the project largely rests with the federal government and whether it accepts the panel report's recommendations. The two governments have up to six months to make their decisions. Read the Vancouver Sun article. 

Family and Children News:

Adult Guardianship Act – Early Consolidation Coming Soon!
Quickscribe will soon make available an early consolidated version of the Adult Guardianship Act as it will read when a majority of the sections come into force on December 1, 2014. In the meantime, Tracy McLean, from Courthouse Libraries BC, wrote the following article which clarifies which parts of the Act are in force and which are not:

In theory, it should not be a momentous task to find out if an Act is in force, but sometimes it really is. If we resolve a particularly complicated piece of legislation, we know that there are others out there who may have similar questions. So we like to write a blog post about it so that someone else, faced with the same research, doesn't have to start from scratch. The latest post in our "Tricky Legislation" series is a particularly confusing one and concerns the Adult Guardianship Act. Sections were brought in to force by various proclamations, but some of those proclamations were then repealed. It's quite the nightmare. So below you will find a detailed account of the in force information. It's not pretty, but it's here if you need it.

Bottom line: Is the Adult Guardianship Act RSBC 1996, c. 6, in force?
Yes, parts of it are in force. Read the full article. 

Environmental Appeal Board Decisions
A number of Environmental Appeal Board decisions were released in the month of April. These include the following:

• Wildlife Act – Neil T. Findlay v. Deputy Regional Manager, Recreational Fisheries and Wildlife Program [Final Decision – Appeal Dismissed] 
• Wildlife Act – Chris Condie v. Regional Manager, Recreational Fisheries and Wildlife Program (Thompson/Okanagan Region) [Final Decision – Appeal Dismissed]
• Wildlife Act – Chris Condie v. Regional Manager, Recreational Fisheries and Wildlife Program (Cariboo Region) [Final Decision – Appeal Dismissed]
• Environmental Management Act – Lynda Gagne; Charles Henry Claus; Skeena Wild Conservation Trust; Lakelse Watershed Stewards Society v. Director, Environmental Management Act [Reconsideration of a Preliminary Issue of Standing to Appeal – Appeals Dismissed]  

The 'Honour of the Crown' in the BC Forest Industry
The Haida decision represents the Supreme Court of Canada's seminal discussion on the Crown's duty to consult with and accommodate First Nations who claim Aboriginal rights or title, but have yet to establish those rights or title in court or through treaty. A recent decision of the BC Supreme Court indicates that, ten years on, we are still muddling our way through the aftermath. Moulton Contracting Ltd. v. British Columbia concerned various claims that the plaintiff logging contractor advanced against the Province of British Columbia, the Fort Nelson First Nation (the "Band"), and particular members of the Band. The dispute concerned two Timber Sale Licenses (TSLs) that the Province had awarded to the plaintiff, but that the plaintiff was unable to harvest on account of a blockade that various Band members erected upon an access road. The blockade reflected the Band members' unhappiness over the Province's consultation efforts with respect to a major amendment made to a forest development plan on account of the TSLs. Read the full article by Jeff Waatainen with Davis LLP. 

Water Use in BC: Water Pricing Debate
Generates Widely Differing Views
The Province's discussion paper Pricing B.C.'s Water has garnered a wide range of opinions since being released in March. As part of the public consultation effort regarding the new Water Sustainability Act (now at [3^rd] reading in the legislature), the public was given until April 8 to provide its views on water pricing and the Province's water pricing principles. Although broad in scope, the water-pricing consultation excluded fees and rentals for hydroelectric purposes, by far the biggest source of water fees and rentals for the Province (although as part of its 10-Year Rate Plan for BC Hydro the Province has said it will eliminate the highest level of water rentals in 2019 in regard to annual energy output in excess of 3000 GWh). Also excluded, by implication, are water utility rates under the Water Utility Act. Read the full article by Jeff Christian with Lawson Lundell. 

WorkSafeBC Head Says Changes Will Come Quickly
Gord Macatee, the new administrator of WorkSafeBC, will tour sawmills and other high-risk workplaces early next month to get a grip on the changes needed to restore confidence in the beleaguered worker-protection agency. WorkSafeBC is under fire after failing to secure charges in the deaths of four workers in two separate sawmill explosions months apart. The families and survivors of the two mill incidents are demanding a public inquiry, but the provincial government instead appointed Mr. Macatee to lead a restructuring. Read the Globe And Mail article. 

A Prescription for Reform Needed in Health Care System
Personal information: New proposals offer ways to protect
sensitive files in digital age
As Information and Privacy Commissioner for British Columbia, [Elizabeth Denham's] role is to inform the public about their information and privacy rights, and bring forward issues and new developments affecting these important rights. [Recently, she issued] a special report, A Prescription for Legislative Reform, to promote an informed dialogue between patients, health practitioners, researchers and government about the collection and use of personal information in the health care system. This dialogue is urgently needed. While the drive to improve health outcomes and new technologies create new opportunities in the research and treatment of disease, government's current legal framework for the use of personal health information is strained by this new reality. Read the Vancouver Sun article. 

CIHI Report Supports Ministry of Health's
New Strategic Priorities Document
A report from the Canadian Institute of Health Information on health-care system efficiency is further evidence of the need for continual improvement and change for the better in health care. The report supports the Ministry of Health's new strategic priority document, to improve patient experience and outcomes at the best price for taxpayers. "Our experience in managing the health-care system is similar to what CIHI has found in their measure of health-system efficiency. Their report emphasizes the importance of using health-care resources effectively," said Health Minister Terry Lake. "Health care is continually evolving and our priority document shows that we're willing to explore and make changes that improve the system for patients without burdening the rest of government and taxpayers." The CIHI report, Measuring the Level of Determinants of Health System Efficiency, suggests that certain factors affect health-care efficiency, such as greater investment in primary care, lifestyle choices and equitable access to physicians. It suggested improving the health-care system in those areas could substantially reduce premature deaths in Canada without increasing health-care funding. Read government news release. 

British Columbia Privacy Commissioner Recommends
Limits on Police Information Checks
Employers who rely on police information checks to
assess the suitability of prospective employees may
now have to make do with less information.
In an investigation report released this month, the British Columbia Information and Privacy Commissioner made recommendations which will limit information disclosed by police departments in employment-related police information checks. Until recently, police departments in British Columbia have included information about prior criminal convictions, outstanding charges, contact with the police during an investigation (e.g., as a suspect or witness), and apprehensions under the Mental Health Act in employment-related police information checks. These checks are done with the consent of the employee, for employers and employees who are not covered by the Criminal Records Review Act ("CRRA"). The Commissioner found that, although these checks can be a valuable screening tool, the scope of information provided to employers – particularly mental health information and non-conviction information which has not been tested in court – was more than was necessary, and not in compliance with privacy legislation. Read the full article by Rosalie Cress with McCarthy Tetrault. 

Can [An Employer] Terminate an Employee Who is Off
Sick With the Flu? – Human Rights Code
Ahhh, flu season. That most charming time of the year, full of runny noses, stuffed sinuses, headaches, pain and soreness, often resulting in significant employee absence. As an employer, flu season is often the source of great frustration. You often need to juggle work schedules on short notice, requiring others step up and fill the vacancies, and just when it seems like you might be out from under the worst of it, another wave of flu and absences hits. In rare instances, this frustration can boil over and employers may even dismiss an ill employee. You might think that dismissal of an ill employee would be considered discrimination and, consequently, that the Human Rights Code would [come] into play. Section 13 of the Human Rights Code prohibits discrimination in employment on several grounds including physical or mental disability. Over the years, disability under the Human Rights Code and other similar pieces of legislation has been interpreted to include many ailments and conditions including depression, alcoholism, migraine headaches, kleptomania, drug addiction, obesity, and there is even one case where smoking was considered a disability. So of course the flu would be considered a disability too, right? Surprisingly, the answer is generally no. Read the full article by Daniel Sorensen with Waterston Law Group LLP. 

Miscellaneous News:

New BC Bill Could Conceal Animal
Health Risks, Privacy Chief Says
BC's privacy commissioner is raising concerns about broad secrecy provisions in new legislation to deal with animal health risks. Elizabeth Denham warns that the Animal Health Act overrides the freedom of information law and prevents the public from getting access to certain records on the reporting and testing of animal diseases. She said the law could stop the public from learning about some outbreaks, and would block scientists, journalists and citizens from reviewing the government's performance. "What if an individual wants to know how the record is on animal health surveillance?" she said in an interview. "Even five, ten years down the road, there's no legal right of access to those records." Denham said the act, in many cases, leaves it to a minister to decide what to tell the public. "And there's no oversight by my office or anyone else to make sure that the government is disclosing information in the public interest," she said. The province is overhauling the law to limit the spread of disease and better control outbreaks, some of which can pose a risk to humans. Agriculture Minister Norm Letnick was unavailable for comment, but his office said confidentiality provisions in the legislation are necessary to get farmers to report diseases. Read the Times Colonist article. 

Lawyers Question Civil Forfeiture's Evidence Policies
Abandoning its most high-profile case could indicate British Columbia's Civil Forfeiture Office is thinking twice about files in which evidence was unlawfully obtained, say lawyers who have worked on forfeiture cases. The government agency was created in 2006 to fight organized crime, but has come to have a far broader reach and has been criticized for the people it targets and the fairness of the process. The office – which was the subject of a recent Globe and Mail investigation – [in late April] ended its pursuit of a Fraser Valley home belonging to David Lloydsmith, a former electrician on partial disability. A police search of Mr. Lloydsmith's home turned up marijuana plants, but a judge ruled the search to be warrantless and in violation of the Charter. Mr. Lloydsmith was never charged with a crime, and the officer involved in the search characterized the offence as "minor." Read the full article on the Globe and Mail website. 

Minister Says Consultation Will Not Change or Delay ALR Legislation
Bill Bennett insists contentious bill will pass this session
The BC cabinet minister who is the driving force behind proposed changes to the province's Agricultural Land Reserve says the contentious legislation will not be delayed or fundamentally altered as a result of new public consultation. Core Review Minister Bill Bennett said [April 24] that a provincewide town hall proposed by Agriculture Minister Norm Letnick is respectful and welcome, but won't lead to major revisions or delays on the ALR bill before the legislature. "There is the potential for changes, but they wouldn't be anything fundamental," Bennett said in an interview. "The bill is going to pass this session, and it's going to have two zones in it. There is tremendous support in the Peace (region), and Cariboo and Kootenays for this." Read more.  

BC Mulls Tougher Distracted Driving Laws
Distracted driving is killing more British Columbians than impaired driving and Attorney General Suzanne Anton said [in April] the government is considering higher fines and penalties to put the brakes on the carnage. Anton said it doesn't appear British Columbians are getting the message that distracted driving is deadly, and along with increased penalties she's considering public education campaigns similar to previous initiatives targeting seatbelt use and drinking and driving. BC's distracted driver law was introduced in 2010, that included a fine of $167 for people caught talking on their mobile devices while driving. Drivers caught texting or emailing receive an additional three penalty points and the fine. Read story reported on Global BC. 

"It Is Contrary to Public Policy to Permit Contracts out of Liability for
Damages for Personal Injuries" in BC Vehicle Collision Cases
Important reasons for judgment were released [recently] by the BC Court of Appeal confirming, in divided reasons, that it is contrary to public policy to allow a vehicle owner/operator to contract out of liability for damages for personal injuries. In [a recent] case (Niedermeyer v. Charlton) the Plaintiff embarked on a tour to Whistler BC to participate in various activities including a zip lining experience. Transportation to and from Whistler was provided the by the Defendant. During the return trip the bus driver "allowed the bus to get too close to the edge of the road and…the bus went off the road and over the edge". The Plaintiff suffered severe injuries including a fractured neck, ribs and vertebra. Read the full article by Erik Magraken on his blog BC Injury Law. 

Property and Real Estate News:

Strata Property Amendments
Changes to the BC Strata Property Act came into force on April 9^th as a result of the passage of Bill 12, Natural Gas Development Statues Amendment Act. These changes included:

• streamlining some definitions by removing excess wording;
• requiring strata corporations to prepare lists of storage locker numbers belonging to owners;
• allowing an owner of a strata lot, who was the purchaser of the strata lot before the conveyance to the owner, to apply for an order regarding the removal of claims of lien;
• allowing the costs of depreciation reports to come out of the operating fund of a strata corporation;
• requiring a majority vote for certain expenditures from the contingency reserve fund; and
• clarifying who owes a special levy before a strata lot is conveyed to a purchaser.

Effective July 16, 2014, amendments to the Strata Property Regulation, B.C. Reg. 43/2000, will make changes to strata corporation investments.

BC to Review Tenancy Laws that May Trap Women
in Bad Relationships – Residential Tenancy Act
The province is reviewing a call from women's groups to change BC's tenancy laws amid suggestions they inadvertently stop women from fleeing domestic violence. On [April 23], legal advocates with West Coast LEAF warned that women dealing with abuse face financial penalties under the Residential Tenancy Act if they break their fixed-term lease. Backed by Atira Women's Resource Society, the groups are proposing an exception in abuse cases. "It's a small change," West Coast LEAF's legal director Laura Track said. "Given the incredible barriers that already exist for women fleeing domestic violence…we think having an additional barrier created by tenancy legislation is unconscionable." Under current laws, tenants who break fixed-term housing leases must pay their landlord the balance of remaining rent in their contract and may be forced to pay for advertising to find a tenant to replace them. For low-income women in particular, these "significant financial penalties" act as a deterrent to escaping abuse.  See more. 

Shelter Aid for Elderly Renters Regulation Amendments
A $12.5-million annual investment from the Governments of Canada and British Columbia will enhance the existing provincial Shelter Aid for Elderly Renters (SAFER) program and Rental Assistance Program (RAP), providing greater benefits to low-income seniors and family households renting in the private market. "Our government is committed to working with British Columbia to develop and implement local solutions to housing," said the Honourable Alice Wong, Minister of State (Seniors). "These new investments are especially helping seniors access safe and affordable housing that meets their needs."

"Rental assistance programs give low-income households more options. They are flexible, giving families and seniors the choice of where they want to live and the cash assistance helps with housing costs," said Rich Coleman, Deputy Premier and Minister Responsible for Housing. "The provincial government helped 26,700 households last year with the RAP and SAFER programs, and we hope to assist even more with these changes." Effective April 1, 2014, the maximum amount of rent used to calculate benefits for both programs was increased. The change to the monthly payment will vary. On average, families will see an extra $40 per month; the average increase for seniors will be about $34 per month. Both are non-taxable benefits. In addition, for SAFER, the minimum monthly benefit will increase to $25, up from $1 and the income eligibility level will rise by approximately 9% throughout the province. Read the government news release. 

BC Real Estate Development Marketing Act – Revisited
For at least 10 years prior to the market correction in 2008, strata lot prices in British Columbia were on a decidedly upward trend and, not surprisingly, the market attracted not just homebuyers, but also speculators who signed purchase agreements with a view to making a profit by either assigning their contracts or selling their strata lots. In the wake of the correction, litigation under the Real Estate Development Marketing Act (British Columbia) (REDMA) proliferated as homebuyers and speculators alike, faced with the realization that they had agreed to pay more than current market value, sought to avoid their obligations by identifying technical deficiencies in the disclosure made by developers as required by REDMA. Many of the ensuing court decisions, mindful of the consumer protection objectives of REDMA, strictly applied the legislation in favour of the purchaser, regardless of his or her motive in seeking to avoid a purchase agreement. Consequently, real estate industry participants have called for changes to REDMA to achieve a better balance between the goal of consumer protection and the practical realities of the development industry. On March 10, 2014, BC Attorney General and Minister of Justice Suzanne Anton introduced Bill 17, the Miscellaneous Statutes Amendment Act, 2014, in the BC Legislature. Bill 17 includes several proposed amendments and additions to REDMA which, according to the government, will "bring clarity to the scope of purchasers' remedies and certainty to the enforceability of purchasers' contracts" and are "designed to increase industry efficiency and provide purchasers with a more readable disclosure statement." Read the full article by Scott Smythe with McCarthy Tetrault. 

Wills and Estates News:

Subpoena for Testamentary Document
or Grant – New Probate Rules
Supposing you are the executor of a will of someone who has died, intend to apply for a grant of probate of the will, but someone else has the original will, but won't give it to you. What can you or your lawyer do? In British Columbia the new probate rules, which came into effect on March 31, 2014, provide a mechanism to require a person in possession of the will to deliver it to a court registry. Rule 25-12 of the Supreme Court Civil Rules replaces, and is broader than, the old citation to bring in a will under the previous rules. Read the full article by Stan Rule on his blog Rule of Law. 

WESA Amendments
The Wills, Estates and Succession Act ("WESA") was recently amended by Bill 14, Justice Statutes Amendment Act. These changes came into force on April 9^th. Changes include:

• correcting cross-references and changing the language of some sections to clarify meaning;
• ensuring that WESA reflects changes brought about by the coming into force of parts of the Adult Guardianship and Planning Statutes Amendment Act, 2007;
• updating the definition of "spouse" to reflect changes brought about by the enactment of the Family Law Act;
• correcting the operation of section 23 of WESA, which sets out the distribution of a deceased person's estate when they have no will;
• ensuring that WESA works with the proposed new probate rules; and
• clarifying three sections relating to the role or responsibilities of the Public Guardian and Trustee. 

Transitioning to WESA
As mentioned on several occasions, the Wills, Estates and Succession Act ("WESA") is now in force. That does not mean, however, that every legislative provision that WESA replaces is entirely obsolete. Sections 185-190 of WESA contain the transition provisions and provide, in part, as follows:

•  the provisions regarding the validity of wills and the legal effect of wills apply if the will-maker died on or after the date WESA came into force, even if the will was executed prior to that date. However, the WESA provisions will not invalidate a previously valid will or revive a previously revoked will;
•  the variation of wills provisions apply if the will-maker died on or after the date WESA came into force. However, these provisions are generally the same as under the Wills Variation Act;

Read the full article by Gordon Behan with Clark Wilson LLP.