Policies and Legislation
This module deals with the policies and legislation that govern BIAs. Legislation generally sets
out what powers you have and don’t have.
The powers that the City and BIAs have are derived from legislation set out by the Province
of Ontario and by-laws passed by the City of Toronto.
The City of Toronto Act was signed by the Provincial Government in 2006.
By approving the Act, the Province essentially transferred its powers relating to BIAs to
the City of Toronto
The Act enables the City to legally establish City Boards such as BIA boards of management.
This legislation leaves it up to the City of Toronto to determine how BIAs are established
and operated ‒ but it does set out certain rules to ensure City boards are transparent
and accountable with basic governance structures in place.
For example the Act specifies that City boards must establish procedural by-laws, must meet
in public, and must keep proper records of their meetings.
Other relevant Provincial legislation that governs BIA board members includes the Municipal
Conflict of Interest Act, the Municipal Freedom of Information and Protection of Privacy Act,
and the Assessment Act.
We will come back to these a little later in the presentation.
Using powers granted under the City of Toronto Act, City Council sets out the rules and regulations
governing BIAs through Chapter 19 of the Municipal Code.
The Municipal Code is the rule book that all Toronto BIAs must adhere to.
It sets out:
- how BIAs are established, expanded or repealed; - the rights of BIA members;
- how the board is established; - Council's right to appoint or remove members;
- how vacancies are filled; - financial and reporting requirements; and
- how levies are collected.
Most importantly, it sets out what BIAs can and cannot do:
Generally speaking, the activities that BIAs can do are limited to those which benefit
of the broader membership not individual businesses.
These include:
- streetscape beautification and maintenance ‒ beyond the City's basic standard;
- promoting the BIA as a place to shop, dine, work, and invest;
- delivering festivals and special events; - advocating on behalf of the interests of
the BIA and BIA members; - safety and security initiatives; and
- graffiti and poster removal.
The Municipal Code also specifies some types of initiatives that are prohibited.
BIAs cannot fund improvements to private property, with the exception of graffiti and poster
removal.
BIAs cannot borrow or lend money, with exception of borrowing from the City for capital improvements.
They cannot incur indebtedness beyond the current fiscal year or spend money that is
not accounted for in the budget. The board's authority to raise and spend money comes from
the budget that is approved annually by the membership at an AGM. The Board cannot therefore
unilaterally change how monies are spent or spend more than they are authorized to.
BIA boards cannot participate in a hearing of the OMB, Committee of Adjustment, or Licensing
Tribunal without approval of the membership to participate and spend funds. This is to
ensure there is a compelling common interest to take action against one of your own members.
Also as City boards, BIAs may not take a position contrary to City Council once Council has
made a decision.
A common example is where a BIA supports a planning position which is contrary to the
City's land use policies. To be clear, it is okay for a BIA to advocate a contrary position
while an issue is moving through the decision making process. However, once Council makes
a decision, the BIA cannot pursue the matter further.
A BIA can also request reviews of City policy but again must accept the decision once it's
made.
There are other City policies that apply to BIA board members which we will talk more
about later including the Code of Conduct for Local Boards,
the Public Appointments Policy, and the Policy on Participation in Election Campaigns.
Boards of Management
The BIA Boards of Management are also required to establish their own governance policies,
including a Procedural By-law, Purchasing Policy and Human Resources Policy.
The Procedural By-law is essentially the ground rules that govern the internal workings of
the board, the roles of directors, subcommittees, notice of meetings and voting.
These rules of procedure are intended to uphold the following principles:
- Protection of basic rights of the majority to decide, the minority to be heard, and individuals
to participate;
- Decorum, courtesy and respect;
- The right to have information to help make decisions;
- The right to an efficient meeting;
- Equal rights, privileges and obligations for all board members; and
- Facilitating a reasonable compromise, when conflict occurs.
The basic rules of procedure for all BIAs are found in Schedule B of Municipal Code
Chapter 19, to which the BIA may add more specific policies, provided they do not conflict
with Schedule B.
The Municipal Code requires boards to adopt policies pertaining to the procurement of
goods and services. BIAs can use the City's policies or develop their own provided they
are in keeping with the following principles:
- All purchases must be approved in advance by the board, with the exception that the
board may assign temporary purchasing authority to a sub-committee of the board, with a maximum
limit that the Board is comfortable granting.
- The board will engage in fair bidding procedures. Reasonable efforts must be taken to get the
best price. For small purchases (generally under $3000) three quotes may be sufficient.
Smaller purchases or emergency spending may proceed without a bidding process. For larger
purchases a Request for Quotations or Request for Proposals should be issued.
The Municipal Code requires boards to adopt policies pertaining to the hiring of employees
and other matters related to paid staff.
The policy should set out hiring protocols, job descriptions, reporting relationships.
These policies should be supplemented with clear employment contracts that define responsibilities,
salary and benefits, performance requirements, and other employment terms.
BIAs that employ staff also need to be aware of other legislation that applies to employers
in the Province of Ontario including:
- Employment Standards Act; - Occupational Health and Safety Act; and
- Workplace Safety and Insurance Act
As you see there is a network of legislation and policies that apply to you as a BIA board
member. You need not memorize the rules set out in each document but hopefully with this
summary you will know where to look should you have a question.