Casual Legal: What you need to know about Bill 18

By Daina J. Young
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider

Bill 18, Provincial Priorities Act (the “Act”), received first reading on April 10, 2024. The Act has the potential to significantly affect Alberta municipalities.

The Act designates municipalities as a “provincial entity”. This is significant because Section 2(1) of the Act prohibits provincial entities from entering into agreements with federal entities without prior approval. The preamble to the Act suggests that this prohibition arises from a concern about the Government of Canada entering into agreements with provincial entitles “that relate to area of provincial jurisdiction without the involvement of the Government of Alberta”. If a provincial entity, such as a municipality, enters into an agreement with a federal entity without the provincial government’s approval, the Act states that the agreement has no effect.

Federal entities included within the scope of the Act include the federal Crown, federal Ministers, federal Crown corporations, federal agencies, boards, commissions, councils and bodies which meet specified criteria. Additional entities may be designated as a federal entity by regulation.

The Act does provide for a Minister to grant exemptions from the requirement for prior approval. The Act also provides for the Lieutenant Governor in Council to make regulations in relation to several things, including the approval process, criteria for approval, exemptions from the approval requirement and designating a Minister to grant exemptions from the approval requirement.

Regulations are often referred to as delegated or subordinated legislation and cannot be inconsistent with the enabling statute. However, the nature of the regulations authorized by the Act is such that the content of the regulations could substantially limit the extent of application of the legislation by setting out exemptions to the approval requirement – or not.

The Government of Alberta has stated that the Act is anticipated to come into force in early 2025, once regulations to be enacted under the Act are finalized, and comprehensive stakeholder engagement have taken place in the summer of 2024. Given the potential impact on municipalities, it is important for municipalities to review their existing agreements with federal entities to fully understand the potential implications of the Act, and to participate in the stakeholder engagement to ensure that their interests are represented.

To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or send an casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or riskcontrol [at] abmunis.ca (send) an email to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.

DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.