Explanatory Note

This Bill corrects a system for giving grants and emergency interest-free loans to small businesses struggling from traffic disruptions due to the construction of significant infrastructure projects.

BILL M 218 – 2007
SMALL BUSINESS FAIRNESS AND PROTECTION ACT, 2007

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 — Introduction

Definitions

1  In this Act:

"eligible small business" means a small business that meets the criteria set out in section 3 of this Act;

"emergency protection loan" means a loan described under Part 3;

"given tax year" means the tax year which the small business is applying for a grant under this Act, and during which the small business suffered a traffic disruption for a period of not less than three months;

"local government" has the same meaning as in the Local Government Act, and includes the City of Vancouver;

"Minister" means the Minister of Small Business and Revenue or a person that the Minister of Small Business and Revenue designates to administer this Act;

"previous tax year" means the last tax year in which the small business did not suffer a traffic disruption due to the construction of a significant project for a period of at least three months;

"significant project" means a publicly-funded infrastructure project;

"small business" means a corporation that has no more than 100 employees calculated in the prescribed manner; and

"traffic disruption" means, in relation to a small business, that vehicle or pedestrian traffic in front of the small business is restricted due to the construction of a significant project.

Purpose of Act

2  The purpose of this Act is to facilitate the protection of small businesses adversely impacted by publicly-funded infrastructure projects.

Part 2 — Significant Project Grants

Significant project grant

3  (1) In a given tax year, an eligible small business is entitled to a grant in the amount set out in section 5.

(2) A small business is eligible if it is adversely affected by a significant infrastructure project for six months.

(3) For the purpose of subsection (2) a small business is adversely affected if it can demonstrate to the satisfaction of the Minister the following:

(a) its storefront has suffered or will suffer a traffic disruption due to the construction of a significant project for at least six months; and

(b) its taxable income in the given tax year in which there is a significant project is or will be less than its taxable income for the previous tax year.

Application for grant

4  (1) An eligible small business under section 3 may apply to the Minister on the form and in the manner prescribed for a grant under this Act and its regulations for a given tax year at any time after its business has suffered a traffic disruption due to the construction of a significant project for at least three months.

(2) Despite subsection (1), a small business may not apply to the Minister for a grant under this Act at any time after one year after a traffic disruption due to the construction of a significant project has ceased.

(3) An application may be made by the owner of the small business or by a representative who is authorized by the owner to make decisions about the business's financial affairs or assets.

Calculation of grant

5  (1) In a given tax year, an eligible small business is entitled to a grant for an amount equal to the property taxes assessed by the local government authority on the premises of their building in the given tax year.

(2) If the premises of an eligible small business are a part of a separate taxable parcel on a tax roll, the amount of the grant is equal to an appropriate portion of that separate taxable parcel, as determined in the prescribed manner.

(3) No more than one grant must be made in respect of an eligible small business in a given tax year.

Part 3 — Emergency Protection Loans

Emergency protection loan

6  (1) The Minister may provide a small business with an interest-free emergency protection loan if the small business can demonstrate the following:

(a) its storefront has suffered a traffic disruption due to the construction of a significant project for at least three months;

(b) the small business can demonstrate that its taxable income for those prior three months is considerably less than the same three months from the previous year; and

(c) its storefront will suffer a traffic disruption due to the construction of a significant project for a total of at least six months.

(2) A small business must repay the emergency protection loan within five years from the date of receipt of that loan.

(3) If as a result of the impact of the significant project,

(a) the revenues of the small business have not improved;

(b) the small business has become insolvent; or

(c) the small business has filed for bankruptcy

the minister may make an agreement with the small business to defer paying all or part of the emergency protection loan payable under this Act.

(4) The Minister will, by regulation, establish and publish criteria respecting emergency protection loans.

Application for emergency protection loan

7  (1) A small business that satisfies the criteria for an emergency protection loan under section 6 may apply to the Minister on the form and in the manner prescribed for a loan under this Act and its regulations.

(2) Despite subsection (1), a small business may not apply to the Minister for a loan under this Act at any time after one year after a traffic disruption due to the construction of a significant project has ceased.

(3) An application for an emergency protection loan may be made by the owner of the small business or by a representative who is authorized by the owner to make decisions about the business's financial affairs or assets.

Part 4 — General

Inspection of municipal records

8  (1) For any purpose related to the administration of this Act, the Minister or a person authorized by the Minister may do the following:

(a) during normal office hours enter any place where the records of a municipality are kept, and

(b) inspect any records that relate or may relate to a grant or an emergency protection loan.

(2) A person must not obstruct anyone conducting an inspection under subsection (1).

(3) Subsection (1) does not authorize anyone to enter a room used as a dwelling without the occupier's consent.

Offence and penalty

9  (1) A person who knowingly or recklessly furnishes false information in the course of applying for a grant or an emergency protection loan under this Act commits an offence and is liable to a fine of not more than $10 000.

(2) A proceeding must not be instituted under this section more than two years after the time when the subject matter of the proceeding arose.

Power to make regulations

10  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations to do one or more of the following:

(a) defining an expression used but not defined in this Act:

(b) prescribing criteria that must be met to determine eligibility of small businesses for the purposes of section 3;

(c) prescribing criteria that must be met to determine the amount of a grant for eligible small businesses for the purpose of section 5;

(d) respecting the forms to be completed by a small business applying for a grant or loan under sections 4 and 7;

(e) respecting the repayment of grants awarded in excess of what a small business is deemed entitled to under section 5;

(f) respecting the calculation of emergency protection loans;

(g) respecting the repayment of emergency protection loans;

(h) prescribing the criteria and guidelines for the application, determination and appeal of an emergency protection loan;

(i) respecting the application for a time extension for a grant.

Commencement

11  This Act comes into force on January 1, 2005.

 
Explanatory Note

This Bill corrects a system for giving grants and emergency interest-free loans to small businesses struggling from traffic disruptions due to the construction of significant infrastructure projects.