Company and Finance News:

BC Government Seeks Stakeholder
Input for Proposed Franchise Law
British Columbia may be one step closer towards franchise legislation of the type already in effect in the "disclosure provinces" of Alberta, Ontario, Manitoba, New Brunswick and PEI. The BC Ministry of Justice is seeking stakeholder and public comment on a proposed BC Franchises Act. The proposed legislation is based on the Uniform Franchises Act, developed by the Uniform Law Conference of Canada, and the recommendations of the British Columbia Law Institute in its "Report on a Franchise Act for British Columbia," which includes a draft "Franchises Act" for BC. To be clear, no legislation has been introduced into the BC legislature. The Civil Policy and Legislation Office of the Ministry of Justice simply wants further input from franchisors, franchisees and other stakeholders in the franchise industry as to why BC should or shouldn't have the kind of legal protections that are available to franchisees in five disclosure provinces, and throughout the United States. Read The Globe and Mail article. 

Is Good Luck Taxable?
There seem to be plenty of opportunities to win – big and small – in our lives, from lotteries to radio contests to a friendly wager with a friend. Whether it's $10 on who wins the golf game, or $10 million from the lottery, does the tax man share in our good fortune? In Canada, the answer is generally "no" – receipts derived by luck are normally classified as non-taxable "windfalls". Income Tax Act specifies that no capital gain or loss results from the chance to win a prize, and that the cost of such a prize is equal to its fair market value at the time of acquisition. The Canada Revenue Agency (CRA) notes, in Interpretation Bulletin IT-213R (Prizes from lottery schemes, pool system betting and giveaway contest), that prizes are not taxable as capital gains or as ordinary income, unless they can be found to be income from employment, a business or property, or a prize for achievement in "a field of endeavour ordinarily carried on" by the recipient. Read the full article by Hugh Neilson and published in Law Now. 

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

• CSA Notice – CSA Notice of Approval - Amendments to National Instrument 21-101 Marketplace Operation regarding government debt transparency The Canadian Securities Administrators are providing advance notice of the adoption of amendments to National Instrument NI 21-101 Marketplace Operation and its companion policy. Under the proposed amendments, the application of the transparency requirements for government debt will be deferred until 2018.
• 31-103 – CSA Notice of Amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations and National Instrument 33-109 Registration Information and Companion Policy 33-109 Registration Information, and National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards and Companion Policy 52-107 Acceptable Accounting Principles and Auditing Standards. The amendments aim to improve the operation of the registration regime and promote stronger investor protection. If we receive the necessary approvals, including ministerial approval, the amendments will come into force on January 11, 2015.
• CSA Notice 62-307 – Update on Proposed Amendments to Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids, National Instrument 62-103 Early Warning System and Related Take-Over Bid and Insider Reporting Issues and National Policy 62-203 Take-Over Bids and Issuer Bids. This notice provides an update on the status of proposed amendments to address concerns about the level of transparency of significant holdings of issuers' securities under the early warning reporting system.
• 52-108 – Repeal and Replacement of National Instrument 52-108 Auditor Oversight and Amendments to National Instrument 41-101 General Prospectus Requirements, National Instrument 51-102 Continuous Disclosure Obligations and National Instrument 71-102 Continuous Disclosure and Other Exemptions Relating to Foreign Issuers. The Commission announces, effective September 30, 2014, the repeal and replacement of National Instrument 52-108 Auditor Oversight and adoption of amendments to National Instrument 41-101 General Prospectus Requirements, National Instrument 51-102 Continuous Disclosure Obligations and National Instrument 71-102 Continuous Disclosure and Other Exemptions Relating to Foreign Issuers.

For more information visit the BC Securities website.

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

• Notice 2013-011, Notice to Off-Road Vehicle Owners
• Bulletin PST 125, Advertising Agencies
• Bulletin PST 308, PST on Vehicles

For more information, visit the Consumer Taxes website.

Energy and Mines News:

BC Cabinet to Ban LNG Pipelines
from Converting to Oil
The BC government says it will block companies from converting any future natural gas pipelines into pipelines that could carry oil or diluted bitumen. But that is not going far enough, says one aboriginal nation. Natural Gas Minister Rich Coleman said [October 27^th] he has prepared new cabinet regulations that would effectively ban any company from building a natural gas pipeline and then, in the future, trying to "reverse" it to carry oil to the coast. "It was always our intention to not have them be able to reverse," Coleman said in an interview. "It's very difficult to reverse a gas pipeline actually, it's not as simple as some people think it is." The move is primarily to address concerns raised by First Nations whose territories could be affected by natural gas pipelines built to feed proposed liquefied natural gas projects on BC's northwest coast. Many First Nations are more agreeable to the idea of a natural gas pipeline than an oil pipeline, because a natural gas spill is less environmentally damaging than oil. The ban is also a warning to oil and gas companies that they can't use a natural gas project as a foot in the door to a pipeline, and then later turn around and sell it to another company with oil ambitions. Read The Vancouver Sun article. 

Mines Act Amendments
The government recently introduced Bill 4, Miscellaneous Statutes Amendment Act (No.2), 2014, which proposes amendments to the Mines Act. This legislative amendment to the Mines Act will ensure there is more time available, if required, to conduct thorough investigations into offences under the act and for a decision by Crown counsel on whether to pursue charges. Currently, the Province has six months to one year to pursue charges for offences committed under the act, depending on the nature of the offence. The amendment will increase this limit to three years from when the Chief Inspector of Mines first learns of the incident, aligning with other natural resource legislation, such as the Forest and Range Practices Act and Environmental Management Act.

Canada Introduces Payment Reporting Legislation:
What Mining and Oil & Gas Companies Need to Know
On October 23, 2014, the Government of Canada introduced its long-awaited legislation to mandate disclosure of public payments made by mining and oil & gas companies for the commercial development of oil, gas and minerals. The Extractive Sector Transparency Measures Act (the "Act") follows over a year of industry consultations and an industry and civil society-led roundtable, both of which Davis LLP has covered extensively (see previous bulletins from November 13, 2013, January 17, 2014 and March 3, 2014). With the introduction of the Act, a number of key details for the payment reporting scheme have been clarified, which are reviewed in this bulletin.

The Basic Payment Reporting Obligation
The Act applies to any entity engaged in, or controlling other entities engaged in, the commercial development of oil, gas or minerals anywhere in the world so long as the entity: (a) is publicly listed in Canada; or (b) has a place of business in Canada, does business in Canada or has assets in Canada and that, based on its consolidated financial statements, meets at least two of the following conditions for at least one of its two most recent financial years: (i) $20 million in assets; (ii) $40 million in revenue; and/or (iii) 250 employees.

Connecting to the Grid:
BC Sets Rates, Terms for LNG Industry
[On November 4th], the BC Government introduced the Domestic Long-Term Sales Contracts Regulation under the Clean Energy Act setting rates and terms for liquefied natural gas (LNG) customers proposing to use electricity from the BC Hydro grid. LNG proponents will pay $83.02 per megawatt hour (MWh) for electricity delivered at LNG export facilities, plus full cost of connecting to the BC Hydro system and any transmission system upgrades necessary to serve the facilities. Compared to $54.34/MWh, being the average rate paid by established industrial customers in the province in 2014. This is some impressive negotiation by government. Earlier in the day, BC Hydro announced that it has signed a power purchase agreement with LNG Canada (the Shell led consortium) to supply electricity to a portion of the proposed LNG facility in Kitimat, BC. Terms of the deal were not announced, but it is expected that LNG Canada will purchase 200 MW or approximately 2,000 GWh/year from BC Hydro to serve its ancillary (non-compression) load requirements. The BC Government news release also commented that the 3,000 GWh/year earmarked for LNG development in BC Hydro's 2013 Integrated Resource Plan (IRP) will be taken by LNG Canada and Fortis BC's Tilbury LNG plant in Delta, BC. [This] news shows that LNG companies are choosing BC's electricity, even paying the new "latecomer" industrial rate, because it is the cost-effective option when factoring in BC's GHG emissions compliance costs. You need to get to 0.16 of CO2e, or purchase carbon offsets or pay into a technology fund. Grid electricity in BC lower GHG emissions and reduces project costs. Read the full article by Warren Brazier with Clark Wilson LLP. 

Family and Children News:

Conservatives Propose Increasing Legal Marriage Age to 16,
Say It Will Keep ‘Barbaric Cultural Practices' out of Canada
The government is proposing to set 16 as the national age of marriage in legislation introduced in the House of Commons on [November 5^th] that it says will help keep "barbaric cultural practices" out of Canada. The bill tabled by Chris Alexander, the Minister of Citizenship and Immigration, targets early forced marriages as well as polygamy, which the legislation would make grounds for deportation. The "Zero Tolerance for Barbaric Cultural Practices Act" would make it a criminal offence to participate in or officiate the marriage of an underage child. Removing a child from Canada for the purposes of forced marriage would also be criminalized. The Justice department has also asked the provinces to have judges sign off on marriages involving those between the ages of 16 and adulthood. Currently only parental consent is required and the minimum age for marriage varies by province and, by some interpretations, is as low as seven. Read more on the National Post website.

Family Law Act – New Annotations Added
Over the last several weeks, John-Paul Boyd, a frequent contributor to Quickscribe, has published a significant number of annotations briefly summarizing recent cases treating each section of the Family Law Act up to the end of October. A quick way to review all of the recent annotations posted to the Act is to click the "View Annotations for this Law" button located on the top menu bar once you are in the Act itself.

Province Introduces Innovative,
Flexible Forest Licence
The Province has created a new type of forest licence that allows emerging, innovative forestry companies to more effectively respond to fluctuations in the supply of wood fibre, Forests, Lands and Natural Resource Operations Minister Steve Thomson announced [October 27^th]. The new supplemental forest licence allows companies to harvest wood only when traditional, business-to-business fibre supplies are reduced. This helps ensure that licence holders – bioenergy companies, pellet producers and secondary manufacturers – have ongoing access to the fibre supply they need to operate. The new licence also allows the Province to include conditions in licences that encourage the harvesting of less marketable and harder to access wood, helping to make greater use of the existing allowable annual cut. The legislation follows up on a recommendation made by the Special Committee on Timber Supply in its 2012 report, and is consistent with strategies identified in the Province's 2012 Mid-Term Timber Supply Action Plan. The new licence is not available to sawmills, which traditionally have more stable supplies of wood. Source: Government of BC 

Water Use in BC: Recurrent Short-Term
Water Use Approvals are Lawful
In yet another indication of the increasing prominence of water use issues in BC, the Supreme Court of British Columbia recently upheld the practice of the BC Oil and Gas Commission to grant recurrent short-term water approvals for oil and gas activities under the Water Act. In Western Canada Wilderness Committee v British Columbia (Oil and Gas Commission), 2014 BCSC 1919, (a case first reported on here) the petitioners, Western Canada Wilderness Committee and Sierra Club of British Columbia Foundation, alleged that the Commission's practice of granting recurrent short-term water use approvals to the same oil and gas companies for the same location was in violation of the Water Act. The Court disagreed, holding that there was nothing illegal about the Commission's practice of evaluating each successive application for an approval on a fresh basis and according to established criteria.

Facts: Under the Water Act, the ownership of all water in British Columbia, as well as the right to use it, is vested in the Crown. The government, through various agencies, may issue licences or short-term approvals to use water. In this case, the narrow issue was the Commission's practice of issuing recurring short-term approvals. However, because the Ministry of Forests, Lands and Natural Resources Operations (FLNRO) employs a similar practice of issuing short-term approvals to various users (land or mine owners, municipalities, water users' communities, federal and provincial ministries, and so on), the case has implications that go beyond the oil and gas industry.

Read the full article by Toby Kruger with Lawson Lundell LLP. 

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

Water Act

• Steven Vestergaard v. Engineer under the Water Act [Stay – Application Denied]

Environmental Management Act

• Randy Wells v. Director, Environmental Management Act [Preliminary Issue of Jurisdiction – Appeal Dismissed]
• Emily Toews; Elisabeth Stannus v. Director, Environmental Management Act [Application for Order to Produce Documents – Granted in Part]

Wildlife Act

• Robert P. Thompson v. Regional Manager (Kootenay-Boundary Region) [Final Decision – Appeal Dismissed]
• Philip Woodcock v. Deputy Director of Wildlife [Consent Order – Appeal Allowed in Part]

Visit the Environmental Appeal website for more information.

The Granddaddy of all Canadian-U.S. Trade Disputes
is about to Rear Its Ugly Head Again
A recent dispute over "country of origin labelling" for meat products underscores the fact that Canada and the U.S. still have their share of trade disputes. Yet lurking in the background is a massive trade issue that you haven't heard about for a while: softwood lumber, the granddaddy of all Canadian-U.S. trade disputes. Canada exported $7.4-billion worth of lumber in 2013, the highest amount since 2006. The United States is the destination for the bulk of that wood, and U.S. lumber producers have for decades demanded the U.S. government collect tariffs on Canadian lumber. After decades of dispute, Canada and the U.S. agreed to a nine-year truce in 2006. Under the agreement, the U.S. agreed to return more than $5-billion in duties collected from Canadian lumber companies, and a ceasefire in trade litigation. If you thought we've achieved lumber peace in our time, you might be premature. We've now entered the final year of that truce, which is set to expire on Oct. 12, 2015. There are signs this historic trade grievance is set to return with a vengeance. U.S. housing starts are heating up. As U.S. construction grows, demand for Canadian lumber increases, something that will inevitably antagonize U.S. lumber producers who have long argued that Canada's industry is unfairly subsidized. Read the Financial Post article. 

"Bad patents" on Human Genes Hinder
Health Care, Hospital Says
One of the country's premiere pediatric hospitals is challenging the notion that human genes can be patented by filing a lawsuit that, if successful, could lead to a rewriting of patent law and sharply advance the advent of personalized medicine. The Children's Hospital of Eastern Ontario argues in court filings that restricting access to genetic information by researchers and clinicians undermines patient care and is morally and legally untenable. No one should be able to patent human DNA. It's like trying to patent water or air," said Alex Munter, chief executive officer of CHEO. He noted that Canada is one of the only jurisdictions in the Western world that still allows gene patenting. This poses a significant obstacle to diagnosing and caring for children with a genetic condition and that "can't be tolerated," he said. Conversely, striking down the law, will "open the door to an era of personalized medicine," where treatments are tailored to specific genetic characteristics. Read The Globe And Mail article. 

Safeway, London Drugs and Other Pharmacy Chains
Threaten Legal Action if Cigarette Sales Banned
College of Pharmacists of BC says no bylaw
proposal is contemplated ‘at this time'
In other provinces, tobacco sales in drugstores are mainly prevented through provincial legislation. The BC government has not taken a similar approach by amending the Tobacco Control Act. Top executives for some of the biggest pharmaceutical retailers in BC are threatening legal action against the College of Pharmacists of BC. if it tries to prohibit sales of tobacco products in such stores as London Drugs and Safeway. The threat is in a letter, obtained by The Vancouver Sun, also signed by CEOs and presidents of Rexall, Thrifty Foods, Overwaitea and the Medicine Shoppe. BC is the only province that allows tobacco to be sold in stores containing pharmacies. The college has been proposing a ban for many years but the board hasn't yet passed it, nor is it expected to anytime soon. At a board meeting in the late spring, the college minutes show that the issue was discussed at length. The college's 2014 strategic plan states that the objective is to continue to advocate for the removal of non-medicinal nicotine products from stores with pharmacies. According to a 15-page board report, a legal opinion was to be sought and considered. Read The Vancouver Sun article. 

Medical Device Regulation in Cyberspace
When designing any electronic tool, whether it be a smart phone or a game console, it is always important for the manufacturer to strike a balance between functionality, or ease of use, and data privacy and security. Nowhere is the need to optimize this balance more important than in the realm of medical devices which collect, store and transmit digital medical information. A security breach, whether intentional or unintentional, involving a medical device connected to another device or the Internet can pose a significant risk of physical harm to the user as well as misuse of extremely sensitive medical information. [In early October], the Food and Drug Administration in the United Stated issued a set of Guidelines governing the cybersecurity of medical devices – Content of Premarket Submissions for Management of Cybersecurity in Medical Devices, Guidance for Industry and Food and Drug Administration Staff. While not binding, the Guidelines draw on international information security standards, and set out the current thinking of the FDA to assist manufacturers of medical devices in the development and design of medical devices and in preparing premarket submissions for those devices. The Guidelines encourage manufacturers to identify any assets, threats, and vulnerabilities of a new medical device; assess the likelihood of a security incident and its potential impact on device functionality and end users; determine the level of risk and mitigation strategies; and assess residual risk and risk acceptance. Read the full article by Kelly Friedman, Sara Zborovski with Davis LLP. 

Has Your Organization Had a Security Breach?
New Notification Requirements May Be
Coming to British Columbia – PIPA
Currently, British Columbia's Personal Information Protection Act ("PIPA") does not contain a specific obligation for organizations to notify either the Information and Privacy Commissioner's office ("OIPC") or affected individuals in the event of an information security breach. BC PIPA does, however, impose a general obligation on BC organizations to take reasonable steps to secure personal information against risks such as unauthorized access, unauthorized disclosure, and unauthorized destruction, etc. The general security obligation in PIPA may be interpreted, in some circumstances, to require notification of affected individuals in the case of an information security breach. Although BC PIPA does not currently contain a specific notification provision for information security breaches, that may be about to change. A special committee of the Legislative Assembly in Victoria (the "Special Committee") is currently reviewing PIPA. A number of the submissions made to the Special Committee have suggested that PIPA should be amended to include a specific notification requirement for information security breaches. These submissions are in line with proposed amendments to both federal privacy legislation and legislation already enacted in several US states. Read the full article by Tamara Hunter with Davis LLP. 

Legal Liability of Investigations Gone Wrong
For a variety of reasons, workplace investigations are becoming increasingly common in businesses of all sizes. There are a number of reasons for this, including compliance under law, requirements under collective bargaining agreements and best practices in human resources. While the benefits of effective investigations should not be understated, it's equally important for companies and HR professionals to recognize the legal implications of investigations gone wrong.

#1 – Privacy
While an investigator is tasked with gathering evidence and information, he or she must also be sensitive to privacy concerns. In British Columbia, most businesses will fall under the BC Personal Information Protection Act (PIPA) or the Federal Government's Personal Information Protection and Electronic Documentation Act (PIPEDA). This legislation governs the collection and use of personal information for both employees and non-employees. An unlawful use or disclosure of personal information by an investigator can quickly lead to a complaint to a privacy commissioner and in some cases a lawsuit for the tort of "intrusion upon seclusion".

#2 – Workers' Compensation
Under the BC Workers' Compensation Act, there are a number of instances where employers are required to conduct investigations, including in responding to a workplace injury or death and if occupational health and safety concerns are raised. While WorkSafeBC is not normally quick to issue sanctions, failure to investigate can lead to a complaint being filed and a WorkSafeBC field investigator being appointed. WorkSafeBC also has the authority to issue penalties and fines in response to a company's failure to investigate.

Local Government News:

Local Elections Expense Limits Committee Appointed
The Legislative Assembly of British Columbia has appointed an all-party Special Committee on Local Elections Expense Limits. The Special Committee's recommendations will support the development of legislation and regulations necessary to implement expense limits for the 2018 local government general election. These expense-limit rules will apply to municipalities, regional district electoral areas, boards of education, special purpose local governments and third party advertisers. Read the full article on the UBCM website.

Restrictions on Collecting Franchise Fees
for Natural Gas Pipelines to be Lifted
The government recently introduced Bill 4, Miscellaneous Statutes Amendment Act (No.2), 2014, which proposes amendments to the Vancouver Island Natural Gas Pipeline Act. Two sections are being repealed to help municipalities served by the Vancouver Island Natural Gas Pipeline improve natural gas service in their communities. A section of the act that prevents local governments from collecting franchise fees will be removed effective January 1, 2015. These fees, typically 3% of the utility bill, provide the municipality with the funds needed to cover costs associated with having natural-gas utility system infrastructure operating in their community. A second expired provision has been removed.

Richmond, BC, Considers Banning
Chinese-Only Signs amid Uproar over
City's "un-Canadian" Advertisements
Last year, two activists appeared in front of Richmond City Council with a 1,000-signature petition and a plea to force local businesses to advertise in one of Canada's official languages. "We, the new visible minorities, are experiencing exclusion," said resident Ann Merdinyan, in front of a slideshow of the city's Chinese-only signs. "WHY?" read the caption below a photo of a Chinese-only bus ad. "Is this INCLUSIVE TO ALL?" read another. Richmond's mayor and councillors – most of them English-speaking white people – told the activists to take a hike. "With a population of half our people or more being of Chinese origin you can't be surprised you'll see some Chinese language," Mayor Malcolm Brodie, mayor of the Vancouver suburb that is Canada's only majority-Chinese city. Read The National Post article. 

UBCM Discusses Land Claims Policy
with Federal Representatives
On Friday, October 24, 2014, Aboriginal Affairs and Northern Development Canada (AANDC) Ministerial Special Representative Douglas Eyford met with representatives from UBCM's Executive and staff to discuss Canada's interim Comprehensive Land Claims Policy, the document that guides the federal government in its negotiation of treaties or comprehensive land claims. The meeting, which also included representatives from Metro Vancouver's Aboriginal Relations Committee and the federal Department of Justice, provided UBCM with an opportunity to present feedback on the interim policy. Councillor Murry Krause, First Nations Relations Committee Chair, presented UBCM's submission, which is designed to be a starting point for further discussion, and is reflective of UBCM policy, member feedback and internal analysis. After all parties had presented their submissions, the meeting concluded with a discussion around the submissions, the role of local governments in the land claims process, and next steps in the process to renew the Comprehensive Land Claims Policy. Read the entire UBCM news release. 

Local Governments and Contaminated Sites:
Review of Regulatory Regime
The BC Ministry of Environment is seeking input on two aspects of the contaminated sites regime, both involving local governments. In particular, the Ministry is reviewing the legislative scheme governing identification of contaminated sites and governing relocation of contaminated soil. The details of any future legislative changes are sparse at this time. However, in discussion papers recently published on its website, the Ministry raises (among other things) questions about the ability of local governments to opt out of the contaminated sites regime, the authority to "freeze" development of contaminated sites, and the involvement of local governments in regulating the disposal of contaminated soil. The discussion papers can be found at: http://www.env.gov.bc.ca/epd/remediation/requests_for_comments/index.htm. Comments to the discussion papers are due December 10, 2014. As mentioned above, the Ministry is reviewing certain aspects of the regulatory regime governing identification of potentially contaminated sites, and the disposal of contaminated soil. The following aspects of the review would be of particular interest to local governments.

(a) Development "freeze"
Under the current legislative scheme, local governments form part of the mechanism whereby the Province identifies contaminated sites. In a nut-shell, a development applicant submits a site profile to a local government (this requirement may be triggered by zoning, demolition, development permit, soil removal or subdivision).

Miscellaneous News:

Supreme Court Civil Rules – New Annotations Added
Over the last month, Erik Magraken, a frequent contributor to Quickscribe, has published a significant number of annotations briefly summarizing recent cases involving the Supreme Court Civil Rules. A quick way to review all of the recent annotations posted to these Rules is to click the "View Annotations for this Law" button located on the top menu bar once you are in the law itself.

Man Seeks Return of $90k He Invested after Amulets Dealer
Threatened to Put Baby Ghosts Curse on Him
A BC man says the owner of two Lower Mainland stores threatened to put a curse on him using the souls of dead baby ghosts in his possession or control if he did not pay $90,000 to invest in one of the businesses. The unusual lawsuit filed in BC Supreme Court by Jia Liang Hu says that Han Xiao Xiao, also known as Steven Xiao, requested that Hu provide the funds in three installments earlier this year. Hu says he paid $50,000 in mid-May, $20,000 in mid-June and another $20,000 on Sept. 29 for the stated purpose of purchasing a 35-per-cent interest in Fan Yin Ge in Richmond's Parker Place Mall. "The installment of mid-May 2014 was provided under an implied threat of having the defendant place a curse upon the plaintiff, using the souls of the dead baby ghosts in his possession or control," says the court document. "The June 2014 and September 2014 installments were provided to the defendant under the express threat of the defendant using the souls of the baby ghosts in his possession or control of the defendant to curse the plaintiff if he did not provide the funds." Read The Province article. 

CVSE offers course – NSC Obligations
(for Carriers Training)
CVSE is offering a course designed to help you learn your responsibilities for meeting NSC obligations in BC. This training contains five modules that should take you approximately six to eight hours to complete. This course includes videos, downloadables, and some online activities. The videos and web pages can be viewed on a mobile device. The Flash activities work best on a computer. Visit CVSE site for more information about this course.

Annotations Posted to Insurance
(Vehicle) Regulation
The first of many annotations was recently posted to the Insurance (Vehicle) Regulation, B.C. Reg. 447/83. You can identify an annotated section by the annotation icon located on the far right side of each section. For example, if you refer to section 80 (1) in the regulation you will see a star icon adjacent to the section. Click the star icon to view the Expert annotation. You can expect to see more annotations posted in the coming weeks and months.

Vehicle Ride-Share Giant Uber
Warned that BC "Has Rules"
BC Transportation Minister Todd Stone issued a stern warning to ride-sharing giant Uber on [October 30th] , saying that any attempt to set up shop in BC without the proper licensing could result in stiff fines and even legal action. The comments came amid media reports and rumours within the taxi industry that the multi-million-dollar company was planning a guerrilla-style launch in Metro Vancouver on Halloween, one of the busiest days of the year for local taxi companies. Stone said that while he supports "additional choice and convenience for consumers," this is not to come at the expense or safety of British Columbians. Should Uber want to open up in BC, then they would need to obtain the needed provincial licensing from the Passenger Transportation Board (PTB), he said. "My message to Uber and any other company like Uber that might be considering providing a taxi-like or limousine-like service in British Columbia is, we have rules," Stone said. "If Uber opts to proceed with the provision of a service and not engage the transportation branch and obtain the appropriate licences that are required, then there are going to be significant consequences." Those consequences could come in the form of a $1,000 fine for not having an appropriate licence and a cease-and-desist order from the PTB, he added. Read the full article in The Province.

BC Creates Commissioner to Enforce Port Metro Vancouver
Trucking Rules, Prevent Future Shutdowns
Legislation lives up to B.C.'s end of federal/provincial
resolution to 28-day port trucking strike last spring
Transportation Minister Todd Stone tabled legislation [October 23rd] to create an independent port container-trucking commissioner, who will be expected to crack down on the undercutting of per-container driver pay rates and resolve the kind of disputes that built up to a full work stoppage this spring at Port Metro Vancouver. "Job No. 1 for the new commissioner of the container trucking office will be to ensure full and complete compliance with rates negotiated in good faith with truckers back in March," Stone told reporters at the legislature. Drivers were supposed to receive an immediate 12-per-cent increase in the per-container rates as part of the settlement to the 28-day strike by more than 2,000 drivers. However, Stone said, not all companies have paid the new rates, which was an issue that threatened to set off another work stoppage. View The Vancouver Sun article.   

Police Act Amendments
The government recently introduced Bill 4, Miscellaneous Statutes Amendment Act (No.2), 2014, which proposes amendments to the Police Act. The amendments are in response to recommendations made by the Missing Women Commission of Inquiry regarding co-ordination of policing across multiple jurisdictions. This amendment is intended to clarify government's authority to sustain and expand integrated policing teams and other specific, specialized policing services. This is intended to strengthen government's ability to ensure an adequate, effective level of policing is maintained throughout BC.

Passenger 35% To Blame For Riding With Impaired Driver
Reasons for judgement were released [recently] by the BC Supreme Court, Vancouver Registry, addressing contributory negligence for a passenger who rides with an impaired motorist involved in a collision. In [the] case (Telford v. Hogan) the Plaintiff was a passenger in a vehicle operated by the Defendant. Both were drinking throughout the day. As the vehicle was travelling at excessive speed on a highway the driver lost control resulting in a serious single vehicle collision. The Plaintiff apparently interfered somehow with the steering wheel moments before the loss of control and the Court found the driver 75% at fault with the passenger shouldering 25% of the blame for this interference. In addition to this the Court apportioned the Plaintiff's contributory negligence at 35% for riding with an impaired motorist. Read the full article by Erik Magraken on his BC Injury Law blog.

ICBC Training – Sign up Now!
An upcoming webinar training session on the new version of QS Online 2.0 is being offered to ICBC staff on November 13^th and 14^th. These sessions were requested by some of the managers whose staff were unable to attend the recent in-house sessions. The short, 45- to 60-minute session will introduce some of the new features of the latest version of Quickscribe, including the new annotation tools that are designed to allow you to communicate and collaborate with colleagues. The session is geared for both frequent and non-frequent users of legislation. We ask that ICBC staff please assist us by forwarding this opportunity to others who may not receive this Reporter. Click here to learn more or sign up to either session. 

BC Government Announces Stiffer
Penalties for Distracted Driving
British Columbia is cracking down on distracted drivers, announcing [October 8^th] stiffer penalties for activities such as talking on mobile phones or texting. BC Justice Minister Suzanne Anton said effective October 20^th, penalty points for drivers who are caught talking on a hand-held device while driving will be increased from zero to three demerits. This new penalty, which also covers infractions like watching a DVD, programming a phone's GPS, and operating hand-held audio players, is being combined with the $167 fine already in place for talking on mobile phones. Penalty points remain on person's driving record for five years and can result in further penalties, including prohibitions from driving. Read The Vancouver Sun article.  

Property and Real Estate News:

BC Tenancy Rules Allow Tenants to Sublet for a Profit
Property manager has no say over tenant
re-renting apartment at a profit
A Vancouver property manager is frustrated that one of his tenants is trying to sublet a high-end condo at a profit, and that there's nothing he can do about it. David Wong says the condo, which is in the Fairmont Pacific Rim hotel in Coal Harbour, rents for $4,500 a month. Wong met with the prospective tenant and checked his credit and references before signing the lease, which was set to begin in August. "It was basically a very simple transaction," says Wong. Before the tenant moved in, he asked to take some measurements of the suite, and Wong told him there was a key held by the building's concierge. "I got alerted from the concierge that he was actually trying to re-rent this unit before moving in," Wong says. Wong says he asked the tenant why he wasn't upfront about his plans to rent the unit to someone else. Read the CBC article. 

Atco Lumber and Impermissible Clauses
in Statutory Rights of Way
The British Columbia Supreme Court's recent decision in Atco Lumber Ltd. v. Kootenay Boundary (Regional District) has raised questions about the validity of statutory rights of way (SRWs) that aim to impose positive obligations on property owners. The Atco decision is particularly important to municipalities, public utilities and other entities that regularly rely on the benefit of SRWs in order to operate their undertakings.

Overview: An SRW is a right in the nature of an easement that is available to certain authorized entities pursuant to the Land Title Act (LTA). SRWs are generally used by government agencies to permit access over private lands for the purposes of facilitating the construction and/or maintenance of public works.

Wills and Estates News:

Proposed Changes Impacting Charitable Giving
The government tabled a detailed Notice of Ways and Means Motion [October 20^th] to implement a number of changes announced in Budget 2014, as well as other measures. One of these changes will provide greater flexibility with respect to charitable gifts that are made in a will. Currently, any charitable gifts in an individual's will are deemed to have been made by the individual immediately before they died and the donation tax credits that arise from the charitable gift can be used in the deceased's terminal tax return or the immediately prior tax return. It is not possible for any excess credits to be used by the estate to offset any income that may be earned by the estate. Read the full article by Areet Kaila with Clark Wilson LLP.  The proposed changes will provide additional flexibility so that the donation tax credits can be used by the deceased, or by the deceased's estate.

Dempsey v. British Columbia – Property Transfer Act
British Columbia's Property Transfer Tax Act is an incoherent, and at times absurd, taxation statute. Apart from the dubious economic and social policy of a tax that adds to the cost of housing in the province with the least affordable housing in Canada, there is little rhyme or reason to the types of transactions that are taxed, and those that are exempt. In very broad strokes, the Property Transfer Tax Act taxes transfers of real estate based on the value of the property, with the first $200,000 of the fair market value taxed at one per cent and the value above $200,000 at two per cent. In many cases the tax will reflect the sale price of real estate between a buyer and seller of a piece of real estate. But title to real estate may also be changed in circumstances other than a sale, for example as a gift between family members, or to a trustee as part of an estate plan. The Property Transfer Tax Act does have a variety of exemptions from the tax, including some that facilitate transfers between family members either as gifts or for estate planning. Read the full article by Stan Rule on his blog Rule of Law. 

Disability Planning – CLE Practice Point
This [recent] paper from the annual Wills, Estates and Trusts Conference (October 2014) reviews the basics of planning for disability and considers four areas of new developments including: soon-to-be-implemented adult guardianship law; drafting ideas for more robust enduring powers of attorney; the emergence of inter vivos trusts as planning tools for disability; and the impact of the Bentley case for future "heath/personal" care planning. Read the paper by Geoffrey W. White of Geoffrey W. White Law Corporation, Kelowna, published on the CLEBC website.