Application of Order in Council 241-2023

According to the first paragraph of section 3.13 of the Act respecting the Ministère du Conseil exécutif, the Government may exempt from the application of Division II of this Act, in whole or in part, an agreement or class of agreements, to the extent and under such conditions as it determines.

Order in Council 241-2023 allows for the exclusion, from the application of this Act, of agreements that involve the provision of a financial assistance of under $100,000 by the Government of Canada, a federal government agency or a federal public agency to a municipal body, subject to certain conditions.

In accordance with the third paragraph of this Order in Council's operative provisions, the Minister Responsible for Canadian Relations and the Canadian Francophonie shall publish, on the website of the Secrétariat du Québec aux relations canadiennes, an updated list of the programs of the Government of Canada, of a federal government agency or of a federal public agency to which Order in Council 241-2023 does not apply. 

Programs that do not benefit from the Order in Council

• Any program under the responsibility of Infrastructure Canada, including the following:
  • Green and Inclusive Community Buildings
  • Rural Transit Solutions Fund
  • Active Transportation Fund
  • Natural Infrastructure Fund
  • Zero Emission Transit Fund
  • Disaster Mitigation and Adaptation Fund
• Any program resulting from the National Housing Strategy, including the following:
  • National Housing Co-Investment Fund
  • Affordable Housing Innovation Fund
  • NHS Research and Planning Fund
  • Rapid Housing Initiative
  • Initial funding
• 2 Billion Trees program
• Canadian Healthy Communities Initiative
• Court Challenges Program

Be advised that a copy of each agreement, as well as a certified copy of a resolution adopted by the council of the municipal body certifying that the agreement complies with the terms of the Order in Council and the conditions it outlines, must be forwarded to the Minister of Municipal Affairs no later than 30 days after signing.

To be considered eligible for the purposes of Order in Council 241-2023, targeted agreements must meet specific guidelines. 

Provision for an agreement to provide financial assistance of less than $100,000 from the Government of Canada, a federal government agency or a federal public agency to a municipal body

In any such agreement, if the character of the project and the amount of the financial assistance which is paid require the inclusion of provisions dealing with any of the matters listed in this schedule, such provisions shall be drafted within the parameters specified therein.

These provisions shall contain any item that must be specified in order to carry out the purpose of the agreement or its execution.

Governing law provision

The governing law provision must state that the agreement shall be governed by and construed in accordance with the laws applicable in Québec and that in the event of a dispute, the courts of Québec shall have exclusive jurisdiction over the matter.

Project evaluation and implementation provision

This provision must indicate:

• that the municipal body will provide to the Government of Canada, the federal government agency or the public federal body a report or reports relating exclusively to the stages of the project as stated under this agreement as well as the state of progress of the project;
• that the preparation of these reports will be done in accordance with the practices, mechanisms and policies of the municipal body;
• a number of reports proportional to the financial assistance provided and the timeline for submitting these reports;
• the elements that each of these reports must contain;
• that these reports will assess the state of progress of the project covered under the agreement, as well as its different stages of completion, will be assessed in accordance with the practices, mechanisms and policies of the municipal body;
• that the Government of Canada, the federal government agency or the federal public agency may use the information contained in these reports exclusively for the purpose of carrying out this agreement and for evaluating its program, as required.

Audit provision

The audit provision must specify:

• the project-related documentation that the municipal body must provide to report on the use of project funding in accordance with the terms of the agreement;
• the terms and conditions of the audit and of sending prior notice thereof;
• the auditor and their accreditation, which cannot be the Auditor General of Canada and such identification cannot refer to the application of the Auditor General Act (R.S.C. (1985), c. A-17);
• the terms and conditions of access to the project sites, exclusively for the purpose of verifying that the financial assistance is used in accordance with the provisions of the agreement. Such access to the site shall be subject to a minimum of 10 days' notice and shall in no case include a right to monitor the execution of the project.

Termination provision

The agreement shall include the following two provisions or, if applicable, one of them:

Termination on notice provision

This provision shall provide that either party may terminate the agreement by giving notice to that effect. Such notice shall state the time period after which the agreement will expire and, if applicable, the terms and conditions required to do so. This provision shall also provide that repayment of monies spent in good faith on the project by the municipal agency prior to receipt of the notice of termination, shall not be required.

Termination for cause provision

This provision must include:

• that the Government of Canada, the federal government agency or the federal public agency may only terminate the agreement for reasons of incomplete execution or non-completion of the project, for failure to fulfill an obligation or for failure to deliver documents as required by the agreement;
• that the municipal body is allowed a period of no less than 30 days to remedy the default or implement a remedial action plan;
• that if the municipal body fails to remedy the default or implement a remedial action plan, the Government of Canada, the federal government agency or the federal public agency may terminate the agreement by written notice and withhold the outstanding portion of its financial assistance;
• that in the event of termination, reimbursement of monies spent in good faith on the project by the municipal body, prior to receipt of the notice of termination, shall not be required.

Language and communications provision

The language and communications provision must provide for the application of the Charter of the French language (chapter C-11), its regulations and policies, including the exclusive use of French in the execution and implementation of the agreement, unless the use of a language other than French is required to carry out the project for which the financial assistance is provided.

Consultation provision

If the character of the project for which funding is provided requires consultation with third parties or Indigenous communities, the consultation provision shall provide that such consultation be conducted exclusively in accordance with the procedures, practices and policies of the municipal body. This consultation must not, under any circumstances, be made, referred to or considered as being related to constitutional imperatives.

Public acknowledgement provision

The provision on public acknowledgement for the payment of financial assistance by the Government of Canada, federal government agency or federal public agency must be commensurate with the nature of the project andthe amount of financial assistance.

Dispute resolution provision

This provision must provide for advance negotiation and mediation mechanisms that ensure the equality of the parties. It may also provide for arbitration under Québec law.

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