Amid the avalanche of news coverage and commentary about the Harper Government?s new Federal Accountability Act (?FAA?), there are several things that are particularly important for charities and NGOs to know. They are:

 

1)  While the FAA was passed by both Chambers of Parliament and was given Royal Assent in December 2006, that doesn?t mean that all the provisions of this huge, omnibus legislation are law now. Indeed, relatively few parts of the FAA are now in effect. The vast majority of the Bill will not come into effect until there has been an order of the federal Cabinet (known as an ?order-in-council? or an order of the ?Governor-in-Council?), which declares those sections of the law are ?in force.?

 

2)  Among those sections of the FAA that are now in force are changes to the Canada Elections Act that prohibit all corporate and union donations to federal political parties and candidates for federal office. Previously, such donations to candidates and local constituency associations were capped at $1,000 per annum. As of January 1 2007, these donations  - both in cash or in-kind - are now totally banned. And rules governing individual political contributions by citizens and legal residents of Canada have also changed effective January 1, 2007:

• No more than $1,100 in any calendar year to each registered political party,
• No more than $1,100 in any calendar year to the various entities of each registered political party (registered associations, nomination contestants and candidates),
• No more than $1,100 to the leadership contestant or the leadership contestants of their choice in a particular leadership contest, and
• No more than $1,100 to each independent candidate for a particular election.

 

3)  Of primary concern to most Canadian charities and NGOs (as well as Canadian corporations, industry and professional associations) are the FAA?s provisions that amend the Lobbyists Registration Act (renamed, in the FAA, as the Lobbying Act.) It?s important to understand that the vast majority of the changes that have been made to lobbying law will not take affect until probably much later in 2007. This is because detailed regulations, pursuant to the new Lobbying Act, must be developed, be subject to public consultations, be approved twice by a committee of the federal cabinet, and be published twice in the Canada Gazette - all before the new lobbying law will take affect, probably in the Fall of 2007.  (Some other changes to lobbying law, including outlawing contingency-fee payments to lobbyists; the five-year cooling off period for senior government officials, increased financial and jail-time penalties for violations of the law; the creation of a Commissioner of Lobbying with enhanced powers of investigation, may come into force earlier.)

 

4)  Perhaps the most important dimension of the re-fashioned Lobbying Act will be the new requirement for ?registered lobbyists? to report in their filings with the Lobbyists Registry all ?planned? contact with what are characterized as ?Designated Public Office Holders?. These DPOHs include Ministers, ministerial political staff, deputy ministers, associate deputy ministers and assistant deputy ministers. Contact with such senior government officials will need to be reported within 30 days; thus, for some individual consultant lobbyists as well as for those who work in-house for corporations or associations, there may be a need for monthly reporting, depending on who in government is being contacted and how frequently such ?planned contact? is undertaken.

 

5)  Again, it?s important to understand that these new reporting requirements under the Lobbying Act are not yet in force. Moreover, the next several months will be an important period of time for those organizations that are concerned about the new reporting requirements especially if they want to ensure that federal officials involved in developing the new regulations and reporting systems are aware of whatever suggestions these organizations might have for how the new rules should be administered. (Treasury Board Secretariat - not the Office of the Registrar of Lobbyists - is developing the regulations and will be undertaking the stakeholder consultations on this matter.) 

 

6)  There are numerous issues related to the new reporting requirements which still need to be worked out. As noted earlier, the reporting requirement will apply only to ?planned communications.? This apparently implies that ?chance? encounters with DPOHs on the street or at a social event will not require reporting. As well, e-mails to DPOHs are not expected to be included in the type of contact that would require reporting. However, expect that there will be a vigourous debate about what will be included and what will not. Moreover, there will be discussions about how much information needs to be reported (i.e. how much detail on the subject-matter under discussion will need to be provided or whether, alternatively, it will involve only a ?checking of boxes on a registration form? to indicate the general subject-matter at issue.)

 

7)  The FAA also contained numerous amendments to Canada?s Access to Information Law. Perhaps the most important changes in this regard relate to the extension of the ATIA to major Crown corporations such as Canada Post, Export Development Corporation, Atomic Energy of Canada Limited, CBC and the National Arts Centre. Organizations that deal with these Crown corporations should be mindful that correspondence with these Crown corporations may be accessible by others through an Access to Information request

 

8)  The FAA also codified into law some activities related to federal ?conflict of interest? rules that previously had been only guidelines or practices.  Those who deal with federal government officials at all levels should be mindful that, in most cases, officials are not permitted to receive gifts or hospitality ? in many cases, even where the value is modest. For example, accepting tickets to major cultural or sports attractions is now definitely a no-no for most federal officials.

 

The FAA made numerous changes to several other areas of federal law and administration which are beyond the scope of this summary review. They include: the creation of a Director of Public Prosecutions; amendments to federal procurement law and policy including the creation of a federal Procurement Ombudsman; enactment of so-called ?whistleblower protection? through a new Public Servants Disclosure Protection Act and Tribunal; numerous internal audit and control systems in government including additional resources and powers for the Auditor-General.

 

Though outside the Federal Accountability Act itself, the Government also introduced a number of other measures packaged up in what is called the Federal Accountability Action Plan. These included the establishment of an ?independent blue ribbon panel? to review the draft policy on transfer payments, identify barriers to accessing grants and contributions programs and consider eliminating legislative barriers. The Panel submitted its report in December and it is expected to be released to the public later this month.

 

Count on 2007 being a year of great change in the always evolving nature of interaction between the Government of Canada and its community nonprofit sector, particularly in the context of the rules that govern that interaction.

 

Sean Moore is a Board member of IMPACS and a Partner and Public-Policy Advisor in the Ottawa office of the national law firm, Gowling Lafleur Henderson LLP. He provides leadership and expertise on regulatory and government-relations issues of concern to Canada?s community nonprofit sector.