Bill C-15: Key Changes to the Expropriation Law Framework in Canada
In our previous blog posts, we outlined several key provisions of Bill C-15, which, if passed, would enact the High-Speed Rail Network Act to facilitate and expedite the construction of the proposed high-speed rail corridor between Toronto and Quebec City.
Notably, Bill C-15 recently passed second reading at the House of Commons and has been referred to the Standing Committee on Finance for further consideration. At this stage, there have been no amendments to original text of Bill C-15, which can be found here.
This post explores Bill C-15’s impact on the current expropriation regime in Canada and the proposed revisions to the federal Expropriation Act.
Elimination of Mandatory Purchase Attempt Requirement
Pursuant to the Expropriation Act (Canada), a railway company requiring an interest in land must first attempt to acquire the interest by making the affected landowner an initial purchase offer, prior to proceeding with an expropriation. If passed, Bill C-15 would exempt VIA HFR, a new Crown corporation established to oversee the construction of the proposed inter-provincial rail corridor, from the requirement to present landowners with an initial offer to acquire the interest required for the construction of the rail corridor.
Practically, this change may significantly expediate the initial stages of the expropriation process for takings required in connection with the proposed high-speed rail corridor.
Notice Requirements
Additionally, Bill C-15 would result in less stringent notice requirements for the expropriation of lands necessary for the completion of the rail corridor. In contrast to the existing notice requirements in s.8 and s.11 of the Expropriation Act (Canada), which would no longer apply in respect of notices of intention relating to the proposed rail corridor, Bill C-15 would only require VIA HFR to provide an abbreviated form of the notice of intention. For clarity, the abbreviated notice of intention must include confirmation that a notice of intention has been registered, the registration details, the municipality where the relevant property is located, and outline the landowner’s right to object and the process for objecting to the notice of intention.
However, when a notice of intention is registered, the Minister of Transportation (the “Minister”) must still circulate the notice to all individuals identified in the Attorney General’s report and publish the notice in the Canada Gazette and a local newspaper, as required by the Expropriation Act (Canada).
Public Hearing
Bill C-15 would eliminate the existing public hearing process in s.9 and s.10 of the Expropriation Act (Canada) for rail-related expropriations. However, landowners would continue to be able to submit written objections within 30 days of the publication of the notice, which would be considered through an administrative review process rather than a public hearing.
Confirmation/Abandonment of Expropriation
Following the conclusion of the objection period, Bill C-15 would permit the Minister to confirm or abandon the intention to expropriate, at its discretion. If the Minister does not confirm the intention to expropriate within two years of the publication of the notice of intention, the intention would be deemed to be abandoned. Notably, the Minister could also confirm a narrower interest, resulting in the abandonment of the remaining interest.
Compensation
Furthermore, Bill C-15 would clarify how compensation is assessed in connection with rail-related expropriations. Specifically, any increase in value resulting from works performed in contravention of a prohibition on work imposed by VIA HFR could not be considered in the determination of the property’s market value. However, owners could claim compensation for any actual losses incurred during a freeze on work imposed by VIA HFR.
The above-referenced changes that would be introduced by Bill C-15 would simplify and expediate the expropriation process in connection with the completion of the proposed high-speed rail corridor, which the federal government has identified as a high-priority infrastructure project.
Our firm will continue to monitor Bill C-15 as it progresses through the House of Commons and the Senate, with further updates to follow.
Should you have any questions regarding Bill C-15, please do not hesitate to reach out to Paul Scargall, Matthew Owen-King, Guillaume Lavictoire or any other member of the Scargall Owen-King Lavictoire LLP team.