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Decentralized Democracy

Hon. Todd J. McCarthy

  • MPP
  • Member of Provincial Parliament
  • Durham
  • Progressive Conservative Party of Ontario
  • Ontario
  • 23 King St. W Bowmanville, ON L1C 1R2
  • tel: 905-697-1501
  • fax: 905-697-1506
  • Todd.McCarthy@pc.ola.org

  • Government Page
  • May/28/24 10:00:00 a.m.
  • Re: Bill 194 

I thank the member for Mississauga–Erin Mills for the question. Of course, that member was parliamentary assistant to the ministry for some time, even before I had the privilege of being appointed minister, so this piece of legislation is very much something that he has contributed to through his efforts.

Now, the bill was crafted in response to valid concerns raised by Ontarians. We recognize, and all Ontarians recognize, the incredible potential of AI—but its risks. So we begin with trust and, of course, the bill contains the words, “trust in the public sector.” Also, schedule 1, which contains the comprehensive definition of artificial intelligence, is the Enhancing Digital Security and Trust Act—once again, the word “trust.”

The AI definition that we have come up with in this bill is at section 1, subsection 1, paragraph (a) of schedule 1: “‘artificial intelligence system’ means, (a) a machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs.” That’s the key, and this can include things that influence physical or virtual environments.

So we are taking the lead. We have made the investments. We are getting the good advice within the ministry and across the public sector, and so much good advice has been provided. We are building that trust, and we’re getting it done for the children of our province—our future.

As the Minister of Education has said, and I completely agree, we prefer co-operation and conversation with all partners in the public and private sectors, rather than litigation. We choose co-operation and conversations over litigation. That’s why this proposed legislation aims to establish data protections for children and minors engaged with public sector organizations. Parents need to be confident that their children are protected. They certainly can be. We worked carefully with not just the Minister of Education and the—

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Through you, Mr. Speaker, good morning to all honourable members of this House. On behalf of the Ministry of Public and Business Service Delivery, it gives me great pleasure to lead off debate in regard to second reading of a very important and timely piece of legislation, the Strengthening Cyber Security and Building Trust in the Public Sector Act, which if passed—if it passes this House—promises to strengthen digital protections for people in our great province. I welcome the opportunity to speak about this critical new legislation and I look forward to an informed debate about what it will mean for ministries, public sector organizations and the citizens who elected us to serve them.

I will be sharing my time today with the Minister of Education, the Minister of Children, Community and Social Services and the parliamentary assistant to the Minister of Health.

I also want to take a moment to acknowledge the excellent work of my ministry officials in putting this bill together after many years of consultation and bringing it to the point where we can engage now in a thorough and thoughtful debate in the House. I want to particularly acknowledge and thank my deputy minister, Renu Kulendran; the associate deputy minister, chief digital and data officer, chief privacy archives, digital and data, John Roberts; ADM Melissa Kittmer; ADM, corporate chief information officer, Mohammad Qureshi; chief information security officer, Daniela Spagnolo; and our legal director, Fateh Salim. Thank you to all members of the ministry for making this possible today.

In an era dominated by technology, where our lives are increasingly intertwined with digital platforms and our data is stored in virtual realms, the importance of safeguarding against cyber attacks and protecting personal data cannot be overstated. The pace of digital innovation is accelerating like never before. On a daily basis, new technologies and modernization of services are revolutionizing the way we live and work. These new advancements are not only reshaping but enhancing the lives of individuals globally.

It is important that we harness the benefits of these changes as they have a profound effect on day-to-day life, impacting people of all ages while also safeguarding Ontarians against potential harms. By doing so, we aim to ensure Ontario remains a leader in the digital arena, fostering a future where technology enriches our lives while maintaining the highest standards of safety and security.

The Strengthening Cyber Security and Building Trust in the Public Sector Act, 2024, Bill 194, would, if passed, build a foundation to better protect the personal data entrusted to us by the people of Ontario when interacting with public sector organizations, with additional protections to safeguard the health and safety of Ontario’s children.

The overarching key outcomes of this important legislation, if passed, are as follows: enhancing cyber security by strengthening resilience and maturity within key public sector entities; building a strong foundation for artificial intelligence governance while ensuring its use is transparent, responsible and accountable; improving digital service delivery to provide a consistent, secure and seamless experience when accessing government programs and services; reinforcing data and privacy protections so Ontarians can confidently and safely participate in today’s digital world; and last, but certainly not least, strengthening children’s protections to prevent the misuse of their data, especially in classroom settings.

As a government, it is paramount that we do our part within our jurisdictional powers to ensure the proper safeguards are in place to protect the residents of Ontario. We are steadfast in our commitment to put guardrails in place to better shield Ontarians from potential harms, a key priority guiding all of our work on cyber security and digital trust.

In today’s digital age, we simply—I’ve said this many times before, and I’ll say it again: We simply cannot afford to be off-line in an online world. We live in an era dominated by technology, where our lives are increasingly intertwined with digital platforms. Personal data is stored virtually in the cloud; the importance of safeguarding it against cyber attacks for the people of Ontario can never be overstated.

Trust is the main pillar upon which our digital economy is built. Without trust, people are reluctant to interact with the ever-evolving digital economy, and businesses then hesitate to adopt new technologies moving toward the future. Building and maintaining trust in our digital ecosystem requires a multi-faceted approach involving not only robust cyber security measures but also transparent policies, effective regulation and co-operation among government, people, families, industry and civil society. As our lives become increasingly reliant on digital technologies, it is paramount that we enhance our safeguards and protections to maintain the trust of Ontarians in our government and our institutions.

We all know how increasingly sophisticated, relentless and frequent cyber attacks have become. According to the Canadian Centre for Cyber Security, cyber attacks are a growing threat to Ontario. The number of cyber incidents in this province has risen from more than 10,000 in 2018 to over 28,000 in 2022. From critical infrastructure to personal data, our digital systems are under constant threat from cyber attacks. These attacks can come from a variety of sources, including malicious hackers, organized cyber criminal groups and even hostile nation states. The consequences of a cyber attack can be severe, ranging from financial loss and identity theft to the disruption of essential services, and even threats to our national security.

There is no doubt about it, we must lead in protecting people’s personal information online, and that is why we developed Ontario’s first-ever Cyber Security Strategy in 2019. As part of that strategy, we established an all-new cyber security expert panel. The job of that panel is to identify and report on areas where we could grow and improve our efforts. After the expert panel released its report in October 2022, we very rapidly got down to work on implementing the recommendations of the panel. The report pointed to the need for strong governance, education, communication and co-operation. All of these are areas that we are targeting in this proposed legislation in a multitude of ways in our day-to-day work.

The proposed legislation, if passed, would establish regulation-making authority and empower the Ministry of Public and Business Service Delivery to lead the cyber security direction for select public sector entities, especially for vulnerable sectors such as hospitals, schools and children’s aid societies. Regulations may include sector-specific requirements and mandatory cyber incident reporting to government. These regulations would be developed through consultations with key government and public sector stakeholders to help these organizations better prepare, respond and recover from cyber threats and attacks.

We are also proposing centralized reporting within government to better respond, deploy and get involved in emergency management of cyber incidents, particularly with those public sector organizations that do not have strong cyber security practices. Not only will this elevate the overall maturity of Ontario’s cyber security regime, but it will lead to long-term cost savings by mitigating the quantity and severity of cyber attacks. On average, a cyber attack costs an organization almost $7 million. Cyber attacks on public institutions are not just attacks on Ontarians’ data, but also their tax dollars that fund and maintain these institutions.

Simply put, cyber security challenges are immense, and we must rise to meet them head on. We must safeguard and limit exposure to cyber threats and attacks for the people and the businesses of our province. If this legislation is passed, it will empower our government to take the serious measures needed to enhance protections across the board, to better protect the personal data entrusted to us from unauthorized use as well as curb the impact when cyber attacks do occur.

Let us shift gears to a core responsibility entrusted to the Ministry of Public and Business Service Delivery: the transparent, accountable and responsible use of artificial intelligence. This legislation, if passed, would empower my ministry to lead the way by building a strong foundation in AI governance to leverage its tremendous benefits while ensuring it is used safely and responsibly across government and the public sector.

As we embrace transformational and powerful artificial intelligence tools to help us build a better province, we are committed to ensuring that these technologies are used transparently, accountably and responsibly in the public sector. To that end, we are introducing safeguards through proposed legislation that will guide the use of AI in our government and public sector. This legislation will include a clear definition of an artificial intelligence system, aligned with other leading jurisdictions. This step is crucial to create consistency in how AI is defined and understood across the public sector, supporting our AI-related initiatives across government. We are also proposing to establish strong accountability and transparency requirements.

These measures will require public sector organizations to inform the public whenever they are interacting with AI systems. Additionally, any decisions made by way of artificial intelligence must always have a channel for human, recognizing the potential for bias in AI systems.

The proposed legislation will also create regulation-making authority to ensure the responsible, risk-based use of AI by select public sector organizations. This includes strict adherence to Ontario’s Trustworthy AI Framework. This framework has been developed by my ministry and it aims to protect people from unintentional harms and reduce both liability and reputational risk associated with artificial intelligence technologies.

We understand the importance of co-operation and consultation in this process. Therefore, these regulations will be developed through extensive consultations with government and public sector stakeholders, Indigenous partners, industry leaders and AI experts. These legislative changes are designed to ensure that Ontario remains at the forefront of AI guidance and usage, setting an example for transparent, responsible and accountable implementation of AI technologies.

The immense promise that artificial intelligence holds in putting forward solutions to some of our most pressing challenges cannot be overstated. It can unlock the potential for unprecedented innovation in virtually all industries, and it fosters long-term economic growth across Ontario.

With more than 400 artificial intelligence firms and institutions in our province—the number of which is growing daily, I might add—Ontario truly is at the forefront of an artificial-intelligence-enabled future. Ontario is where global giants and start-ups can grow side by side.

Under the leadership of our government, we have been exploring the use of AI, recognizing the amazing potential of its application in health care, education, crisis response and so much more. While working together with our public and private sector partners at all levels, we will position Ontario as a global leader in the responsible adoption of AI.

AI technology is, of course, evolving very rapidly. In the last year or so, we have seen its adoption and expansion advancing at a blistering pace. Every day, more and more companies of all sizes are building AI systems into their operations to increase efficiency or expand their range of products and services.

While we recognize that the potential of AI is incredible and can impact all in the province in a positive manner, our government is extremely cognizant of the many possible risks that it could pose as it continuously evolves. We are the first province in Canada that is taking initiative to create and implement substantial legislation that protects everyone of all ages in the online world. The AI pieces within this proposed legislation build upon our existing work to responsibly adopt this revolutionary technology.

Our consultations on AI began in 2021 to develop the principles of Ontario’s first trustworthy artificial intelligence framework. At that time, my ministry began by bringing together experts from the tech and AI industries as well as academia to form our AI expert working group, a group to provide advice and recommendations on the development of this proposed AI framework.

Round tables and bilateral meetings have been held with Indigenous groups, industry, civil society and legal organizations on the development of the framework. They play a pivotal role in ensuring we do not lag behind when it comes to AI. We will adopt the best policies and the best practices and invest in the appropriate technologies within government to create efficiencies in the work that we do. The regular advice of these stakeholders and advisers and their recommendations to my ministry have assisted and will continue to help support the development of any future updates to Ontario’s Trustworthy Artificial Intelligence Framework.

Additionally, we will continue to actively engage with our federal partners to advocate for the people of Ontario when it comes to the federal government’s work on cyber security, privacy and AI. This includes the federal government’s Bill C-27. We constantly monitor the progress of federal bills to ensure alignment in areas of common priority and sectors of critical importance for Ontario and how to be nimble as we integrate our future work for the benefit of the province of Ontario and, indeed, all of Canada. We will waste no time working with our federal counterparts and all of our partners to protect the people of Ontario in terms of their privacy and their online security. This is a top priority for our government.

Our government prides itself on protecting all citizens and consumers in Ontario. My ministry recently introduced the new Better for Consumers, Better for Businesses Act, 2023, and the Building Infrastructure Safely Act, 2024, both of which received unanimous consent in this House. Just yesterday, I tabled legislation that, if passed, will retroactively ban notices of security interest, or NOSIs, on the land registry with respect to consumer goods and services. This legislation, Bill 200, will protect seniors and the most vulnerable from bad actors, predatory practices and, indeed, organized white-collar crime.

These are just a few examples of the great work the various teams across my ministry have done, and I am proud to lead the ministry’s efforts to ensure that our government is providing safeguards for all consumers. Moving forward with this legislation, our goal remains the same: to protect all of our citizens and residents across this great province.

Another enhancement that will be delivered if Bill 194 is passed into legislation focuses on the critical topic of modernizing digital service delivery. In an era of rapid technological advancement and evolving public expectations, it is vital that we continue to evolve in the way our government interacts with citizens and businesses. Our government wants to ensure that we are creating the necessary changes to keep up with the ever-changing digital world, and we have already begun to make changes to help make life easier for the people of Ontario.

Digital technology has transformed nearly every aspect of our lives, revolutionizing the way we work, communicate and access information. The proposed changes in this legislation include enabling powers for service provider organizations like ServiceOntario to enhance digital service delivery; and allowing online service delivery to be more convenient by offering those who provide consent the ability to benefit from what we call the “tell us once” feature, which includes pre-populated fields and communication preferences so that citizens and residents don’t need to restate their information every time they interact with government. Again, this is a matter of choice, but it’s also a matter for convenience if selected by those of our fellow citizens and residents who interact with government.

This modernization requires a fundamental rethinking of the way government interacts with the people it serves, placing their needs and experiences at the forefront of service design and delivery. By embracing a holistic, integrated approach, we can streamline processes and provide a seamless, safe and consistent experience across all touch points.

For far too long, previous governments have been lagging when it comes to adopting new technologies and providing efficient and modern service delivery. Ontario is prepared and equipping itself to lead in this space and become a global model for how we can embrace technology for the benefit of all.

One of the key aspects of modernizing digital service delivery is the adoption of user-centric design principles. By engaging directly with the people of Ontario to understand their needs, preferences and pain points, we can create intuitive, user-friendly interfaces that enable a smooth interaction with government services across the board. From applying for permits to accessing social benefits, every interaction should be as simple, intuitive and efficient as ordering a meal or booking a ride.

Finally, modernization is not a one-time event but an ongoing journey, one that demands continuous iteration, adaption and improvement. As technology evolves and societal needs change, so too must our approach to digital service delivery. As we build a better Ontario together, it is vital that no one is left behind. Our government is providing muti-channel options, making services more convenient and accessible whenever and wherever Ontarians choose to obtain those services. The people and businesses of Ontario deserve nothing less, and we will continue to make changes moving forward based on the needs and wants of our citizens and residents.

As one of the top global leaders in the digital space, our Ontario government not only needs to demonstrate that we are taking a positive and responsive approach to preventing cyber attacks and breaches and ensuring that AI is used responsibly, but that we are also taking other measures to protect people by effectively safeguarding their personal data. Our proposed legislation, then, if passed, would further update Ontario’s privacy framework to reflect emerging digital and data issues. It is imperative that the data the people of Ontario entrust to government always remains safe and secure.

As I indicated previously, trust is essential. We need to continue to build up the trust of Ontarians so that we all feel safe participating and we are all able to thrive in today’s vast online world.

As we have seen over the past few years, privacy breaches have been occurring at an alarming rate. These breaches have the ability to impact our most important sectors such as our hospitals and our schools, indeed putting children and the most vulnerable at risk. Our government is therefore working tirelessly to strengthen these safeguards against those breaches and put mechanisms in place to mitigate and minimize their impacts when they do occur.

That is why we are proposing to modernize privacy protections and reduce risks associated with privacy breaches and unauthorized data access, including identity theft. This will be done, we submit, through proposed amendments to FIPPA, the Freedom of Information and Protection of Privacy Act.

The proposed amendments would establish requirements for privacy breach notifications and mandatory privacy breach statistical reporting to the Information and Privacy Commissioner of Ontario by all FIPPA institutions. This would provide information that is key to mitigating breaches and do better in terms of ensuring personal information is kept safe and secure. Let there be no doubt about it, Speaker and fellow members of this House: Safeguarding data and privacy in today’s increasingly digital world is, and will remain, a top priority for our Ontario government.

The proposed changes reflect a series of consultations with the public, key stakeholders and experts, including the Information and Privacy Commissioner and the Ontario Human Rights Commission, to modernize protections for data in our province. The changes would update our policy landscape to reflect the emerging digital data and privacy issues that deeply impact our citizens and reflect the rapid technology changes we see globally.

Now I would like to speak about the core priority of this landmark legislation, the protection of our province’s future: our children. In this world of ever-changing technological advances, there has been no period of history where children have been subjected to the online world more than right now. We must ensure that children are protected from bad actors online and that their personal data is not being mined or used for harmful practices. That is why this bill also includes targeted updates to improve privacy safeguards and establish information protections for our children, aligning with recommendations from a variety of partners.

The Law Commission of Ontario in 2023 issued recommendations citing the lack of protections for youth, the elderly and other vulnerable communities against risks in the digital landscape. As minister—but more importantly, as a father and as an uncle and a family man—I am beyond proud to have tabled this new act, which, if passed, will be a comprehensive approach to strengthening data protections for children in provincial settings such as schools and children’s aid societies.

Studies indicate that children are accessing the Internet at a younger age more than ever before, and experts agree that children are at greater risk of harms posed by digital platforms. Recent years have seen increasing instances of privacy violations, cyberbullying and other data-related harms. Yes, an expanded online world does provide tremendous benefits for our children, but we must recognize the unique risks that they face—risks that, quite frankly, none of us ever had to face growing up. We are truly, then, charting new territory in the digital world, and we must do what we can as legislators to place the appropriate safeguards needed to protect them. This is what we owe to our children: never accepting complacency, and putting their best interests first and foremost always. This is the priority of all our Ontario government, and I urge the member of House to adopt it unanimously because it goes above partisan politics.

Make no mistake about it, we must all work together, sparing no efforts to ensure their safety. That is why, if this bill passes, my ministry will work in lockstep with our partner ministries to develop consultation plans with priority sectors, the public and targeted experts. We are eager to work with school boards, parents, all groups overseeing children in provincial settings, social media and tech industry experts, as well as law enforcement. These extensive consultations would inform the development of regulations and directives to ensure the right protections are in place, matching the unique needs of our various public sector institutions and the children they serve.

It is paramount that we do our part, that we do everything that we can in protecting our children and our youth by acting in their best interests for a successful and secure future. We will be proposing to introduce clear rules to strengthen the protection of children’s information to combat the misuse of data created by children and youth engaging with schools and children’s aid societies. We must safeguard children’s information from being stolen or used inappropriately due to cyber incidents.

Based on the consultations, future regulations could include age-appropriate standards for the software programs on devices, such as laptops used by students at school, and strengthening the standards for software procurement by schools to prohibit the usage or selling of student data to third parties for predatory marketing.

Make no mistake about it, our government must and will take decisive action to safeguard children from harm and to ensure that their online experiences are safe, positive and empowering. It is not just about protecting them in the present, but also about safeguarding their future autonomy and agency over their personal data. The health and well-being now and in the future of the children of Ontario depends on meeting the new challenges of this age as we move forward in the ever-changing digital world.

My ministry’s work on safeguarding children in provincial settings through this proposed act goes hand in hand with the important protections for children and youth in educational settings implemented by the Ministry of Education’s latest proposed ban on cellphones and social media in schools. My colleague the Minister of Education will elaborate on this further in his remarks in the House today. And my colleague the Minister of Children, Community and Social Services, I anticipate, will highlight how our proposed changes also align with and work in parallel with his ministry’s Supporting Children’s Futures proposal. We will continue to build off the great work we have done with these ministries and consult with all impacted ministries and public sector entities on any policies that may impact them.

I wish to express my sincere thanks to the various teams across my ministry who helped make this bill a reality. This is a culmination of years of work by resolute Ontarians committed to securing the bright future of our great province, especially for our children. This legislation, if passed, would give Ontario residents and businesses critical peace of mind when interacting with their government and all public sector organizations.

Speaker and fellow members of this House, make no mistake about it: Ontario needs these new digital trust policies to reduce the risk of exposure to cyber attacks on critical infrastructure and government operations, the risk of privacy breaches that threaten individual trust in public services and the risk associated with irresponsible use of artificial intelligence.

As I hope I have made abundantly clear, the time for action is now. Bad actors in the digital world are increasingly sophisticated, persistent and growing in numbers exponentially each and every day. But we have the backs of Ontarians, and we are here to protect our children. We will combat the threats posed by these criminals head on. Together we are taking a government-wide, holistic and responsive approach to strengthening cyber security, keeping sensitive data protected and ensuring adaptability to emerging technologies. We in Ontario are taking the lead and will continue to consult with all partners and make the necessary changes as we move forward in our ever-changing digital world.

Cyber security, digital privacy, protecting children online, artificial intelligence risks and modernizing digital service delivery are interrelated issues that require our urgent attention and concerted action. I have no doubt that together we can build a more secure, resilient and inclusive digital society for generations to come.

Speaker, it has truly been an honour to address the House today with respect to our proposed Bill 194. I appreciate the kind attention of colleagues on both sides of the aisle, and I look forward to listening carefully to all contributors to this important debate. I know that there will be many thought-provoking and thoughtful comments that will be shared among us, and I look forward to a conversation that will result in a very, very effective and forward-thinking bill.

I encourage all here to support the Strengthening Cyber Security and Building Trust in the Public Sector Act, 2024, because it’s the right thing to do in moving the province forward in this digital age.

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I have a question for my friend, the member opposite, who is a very capable critic in regard to this particular ministry. I listened carefully to the concerns he raised in his remarks today about NOSIs. We’re equally concerned about it.

Can the member confirm that he agrees that section 60 of this proposed bill is a good start? But parallel to that, with our consultation period, which will continue on what we can do in the here and the now parallel to section 60, can he agree that he’ll be participating and encouraging others to participate in our consultation period on NOSIs, which concludes December 1?

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