Good afternoon to all honourable members of this House. On behalf of the Ministry of Public and Business Service Delivery, it gives me immense pride to rise this afternoon in the Legislative Assembly to lead second reading debate of what is, I submit, a critical and urgently required piece of legislation, the Homeowner Protection Act, 2024. This landmark legislation, if passed, will significantly strengthen protections for homeowners as well as current and future homebuyers. It represents a comprehensive approach to protecting consumers from unethical practices, improving transparency, supporting strong condominium communities, and safeguarding buyers of new homes.

I am, indeed, grateful for the opportunity to speak about this urgent new legislative proposal, and I look forward to an informed debate about what it will mean for Ontario’s homeowners and homebuyers, if this House sees fit to pass it.

I will be sharing my time today with my great colleagues. They include, of course, the member of provincial Parliament for Kitchener South–Hespeler; the member of provincial Parliament for Cambridge, my parliamentary assistant; and the member of provincial Parliament for Kitchener–Conestoga.

Speaker, at the core of this proposed legislation is the fulfillment of our government’s promise to protect Ontarians, especially our seniors, newcomers and the most vulnerable. We must protect them all from the harm caused by the misuse of notices of security interest, NOSIs.

Consumer NOSIs can be registered on the land registry system by a business when it rents, finances or leases certain goods that become fixtures in homes, such as water heaters or furnaces. Initially, NOSIs were intended to register interests in financed appliances. However, over the past few years, they have become tools for organized and deliberate deception used to scam hard-working Ontarians.

Since the early 2000s, the number of NOSIs registered on Ontario’s land registry has skyrocketed, from around 400 each year 20 years ago to more than 58,000 in 2023 alone. These registrations often occur without the homeowner’s knowledge and for amounts far exceeding the fixture’s actual value. Homeowners usually discover NOSIs are registered against their homes when they want to sell or refinance their homes, and bad actors exploit this by demanding exorbitant fees to discharge the NOSIs. In some instances, multiple NOSIs are registered on a single property, which are then converted into sham mortgages that rob hard-working and law-abiding Ontarians of their live savings and their home equity.

The escalation of NOSIs and related scams and fraud appears to disproportionately affect seniors, new Canadians and other vulnerable consumers. Many of these cases have been reported in the media—cases where homeowners have made a large cash payment because NOSIs were leveraged by unethical operators, or they were trapped in high-interest mortgages for which they could not make the required payments and then they default, putting their property in peril.

You may have read of a Bowmanville senior in my riding of Durham who suffered from short-term memory loss. He had 11 NOSIs totalling over $100,000 registered against his home of over 50 years. These were for door-to-door rental contracts for home equipment, including plumbing valves, a digital thermostat, water softeners and outdoor cameras. The perpetrators targeted him and took advantage of his condition, leading him from one scam to the next until eventually they managed to leverage the NOSIs on title to convince him to sign a mortgage. Four days after a NOSI for plumbing valve and surge protector equipment was placed on his home, a financing company registered a one-year mortgage on the property for $130,000 with 25% interest. Then, in late 2022, he received a foreclosure letter from this mortgage company stating that he had two weeks to leave his home. According to his family, their father had signed mortgage paperwork, he had not understood it, and they had to get legal help. Sadly, this vulnerable gentleman passed away earlier this year.

This may seem like an extreme case, but I am sorry to say that situations like this occur far too often. The bad actors use NOSIs as leverage to obtain exorbitant contract payouts from consumers, sometimes inappropriately using them to discourage consumers from even changing suppliers or, in the case of the Bowmanville senior I spoke about, to convince that homeowner to sign a mortgage to pay off NOSIs.

I receive letters and emails from people across Ontario, many sent to my ministry by my fellow members of provincial Parliament. Ontario residents are openly expressing their frustration, their anguish and their outrage at being victimized by elaborate schemes to defraud them.

For example, an individual wrote about a contract he entered into with a company for a high-efficiency furnace, only to realize that the company was misrepresenting itself as a provincially endorsed company working for the province to make homes more energy-efficient. The company advised they would perform an energy audit to determine which provincial energy rebates the individual might be eligible to receive. It will likely come as no surprise to learn that that company was not provincially endorsed and the consumer had no assurances of receiving potential provincial energy rebates. According to the writer, the sales rep advised that he could opt for an earlier buyout after the first several years, at a quoted cost of $800 to $1,000. Almost two years later, when he decided to arrange that buyout, he was then told that the cost would be an exorbitant amount of approximately $15,000. Then, the individual became aware that a NOSI valued at more than $15,000 had been placed on the title to his property immediately after the furnace had been installed.

As I’ve said before, these elaborate schemes are being used against innocent, honest, trusting consumers. This is a despicable practice that particularly harms our senior citizens, newcomers and other vulnerable residents, and it must stop.

To that end, if passed, this comprehensive legislation will curb these unethical, immoral and shameful practices. Upon passage, this proposed legislation would ban the registration of consumer NOSIs on the land registry system and deem all currently registered consumer NOSIs expired.

To get to today—this legislation has been developed following extensive consultations across Ontario in the fall of 2023. My ministry, the Ministry of Public and Business Service Delivery, held these consultations on specific approaches to address the misuse of NOSIs. The ministry received feedback from businesses of all types, legal organizations, law enforcement, other regulators and consumer advocates, as well as many consumers negatively affected by NOSIs. Based on all the information received through that extensive consultation process, it has become apparent that the harms caused by the misuse of consumer NOSIs on the land registry far outweigh the benefits provided by their legitimate use.

I want to take this opportunity to thank my parliamentary assistant, the member of provincial Parliament for Cambridge, as well as the member of provincial Parliament for Kitchener–Conestoga and the member of provincial Parliament for Kitchener South–Hespeler. All have played a particularly crucial role in highlighting this issue and driving our government’s efforts to address it. They have been working tirelessly and closely with the Waterloo Regional Police Service and impacted Ontarians to shed light on this significant area of consumer harm. You will hear more from each of them today as part of our government’s leadoff on second reading of this bill, but I just want to take a moment to thank them for being such strong advocates for the elderly, for all of their constituents, and indeed for all Ontarians.

Also on behalf of the government, I wish to thank Chief Mark Crowell and the entire Waterloo Regional Police Service, particularly Detective Adam Stover, for their invaluable work on this issue. Detective Stover’s efforts have been instrumental in investigating and documenting the harms caused by NOSIs. It is because of his and the Waterloo Regional Police Service’s tireless efforts that we are here today to take a stand against those who seek to victimize our fellow citizens and residents.

In response to the tabling of Bill 200, stakeholders have applauded our government’s steadfast determination, under the leadership of Premier Ford, to bring forth change for our province’s consumers and homeowners. It brings me great pleasure indeed to highlight the widespread positive responses we have received from stakeholders who support this much-needed ban of consumer NOSIs.

As I just mentioned, this legislation has been strengthened through the dedicated work of the Waterloo Regional Police Service, who have committed extensive hours to investigating complaints of NOSI misuse, investigating the issue, sharing updates with our ministry. This occurred prior to and during and subsequent to the fall 2023 consultation process.

Upon tabling Bill 200 on May 27 of this year, the Waterloo Regional Police Service has extended “appreciation to ... the Ontario government for working to eliminate the registration of consumer” NOSIs “in the province.” The chief of police services in Waterloo region, Mark Crowell, has shared his optimistic outlook on this proposed legislation, as well as his hope that, as he put it, “the proactive policy approach announced today will put an end to this devastating fraud.” It is my hope that today, we can all make Chief Crowell’s hope a new reality.

Laura Tamblyn Watts, the president and CEO of CanAge, Canada’s national seniors’ advocacy organization, made it clear that the actions of our government will make a positive, meaningful impact on the lives of seniors in Ontario. CanAge recognizes that the tabling of Bill 200 is an opportunity, as she put it, for “historic action in protecting the financial well-being of Ontario’s seniors.” CanAge has commended our government for taking decisive action to address this problem and to make Ontario a safer marketplace for senior homeowners, while at the same time preventing predatory behaviours on the part of bad actors.

In addition to this report we have received from CanAge, we have welcomed responses from the Advocacy Centre for the Elderly, who supports the immediate passage of Bill 200. The Advocacy Centre for the Elderly has shared the extent to which senior homeowners are victimized by the unlawful and unscrupulous use of NOSIs, and underscored the urgency to which both future and retroactive abolitions of NOSIs are needed to protect the rights of vulnerable elderly citizens.

They have described the countless ways in which unethical lenders and home service companies are aggressively pursuing homeowners with lawsuits leveraged by the registration of grossly inflated NOSIs against title to their homes—homes that were paid off long ago and in which they have full equity.

Our government will not allow our elderly to be harassed by these exaggerated and unlawful claims by organized criminals. We cannot idly stand by while seniors pay out large claims to fraudsters, all the while led to believe that they have no other alternative, or having to retain legal counsel or paralegals and pay thousands of dollars to pursue relief in court.

So, Speaker, I stand before you now to make a promise to the seniors and the vulnerable members of our province that this government will put an end to the fear and the harassment perpetuated through the misuse of NOSIs and make Ontario a safer place for seniors and all Ontario homeowners.

I wish to send a clear message to our seniors and all Ontarians: Your government has your backs, and with help and support from His Majesty’s loyal opposition, help is on the way.

Beyond the ban of consumer NOSIs proposed in Bill 200, I wish to discuss the other proposed measures contained in the Homeowner Protection Act, 2024, which I submit will further strengthen protections for Ontarians making the biggest purchase of their lives, and that is their homes. These changes align with our government’s ongoing work to help ensure that purchasers are well informed and better protected when they make their plans to buy a new freehold home. With our proposed legislation, we are enhancing protections to make sure Ontarians who buy a new freehold home have the time to make informed decisions confidently and comfortably.

Home purchase agreements are complex, and buyers are sometimes faced with making a decision to sign a purchase agreement for a new home on the spot. If passed, our government would develop and consult on regulations needed to implement a 10-day cooling-off period for purchases of new freehold homes. A cooling-off period would help buyers make a more informed and confident purchasing decision and allow them to better understand the associated risks with their agreement. During that 10-day period, the buyer would be permitted to cancel the agreement for any reason with no fear of financial penalty. Providing buyers with this cooling-off period would, I submit, better align protections for buyers of new freehold homes with existing ones for those buying new condominium units.

In addition, the government plans to require in the future that builders who terminate freehold home purchases or freehold home purchase agreements must report those terminations to Tarion for public reporting on the Ontario Builder Directory on the Home Construction Regulatory Authority’s—HCRA—website. This will improve transparency for new home buyers so that they can better education themselves and make sound choices with peace of mind. And this brings new freehold home purchase requirements more in line with the existing requirements that we’ve had for some time with condominium projects and condominium purchase agreement terminations, which are already available on HCRA’s website.

Our government is also proceeding with initiatives aimed at promoting fairness in the new home market and bolstering consumer confidence. My ministry intends to publicly consult at a future date on potential ways to address the illegal building and illegal selling of new homes in Ontario.

Illegally built or sold homes are a real and growing threat to consumers, to developers, and indeed to all levels of government. Illegal building and illegal selling puts consumers at risk from unqualified builders and developers. Those risks include inferior quality and unsafe construction, unethical conduct, and greater costs for homeowners due to defects.

You may have heard of one recent case where Ontario’s building industry regulator, HCRA, had to freeze all the assets linked to one developer. This measure followed an investigation that revealed that the company had been building homes without the required approvals from Tarion, the administrator of Ontario’s new home warranty and protection program, and that builder had been accepting substantial payments on the sale of those homes.

Another Toronto-area developer was ordered to pay more than $180,000 after pleading guilty to selling a new home without a licence.

Illegal builders like these create an uneven playing field, offering consumers lower prices but without fulfilling their legal options; for example, by building or selling homes without a licence or without the required approval from Tarion—processes that are designed to protect consumers. Builders like these compete unfairly with licensed builders who play by the rules by fulfilling their licensing and warranty-related obligations through Tarion. That is not fair to those legitimate, fair and reasonable builders.

When builders illegally build or sell new homes without a licence or without Tarion’s approval, consumers are more likely to be exposed to risks to their deposits and to major structural defects in their homes. Buyers of these homes may only become aware of these risks when faced with serious and significant problems that put their peace of mind in jeopardy.

Tarion, one of the 12 administrative authorities within my ministry, is also exposed to financial risks associated with deposit protection and backstopping the builder’s warranty. Illegal builders often do not respect warranty obligations, so Tarion is left to pay for warranty coverage without being able to collect from the illegal builder. Over the years, this has resulted in payouts of millions of dollars, and the payment of these claims comes from a fund supported by the licensed legal builders and new home buyers.

Illegal builders, then, put additional strain on all levels, contributing to tax evasion and lost revenues, and they make it more difficult for the majority of builders who abide by the rules to build the many, many new homes we need—safe, properly constructed homes on the path to that 1.5 million new homes and builders in Ontario by 2031.

Speaker, as we know, homes come in many forms, and I would like to mention additional measures that our government is taking and is proposing to proceed with aimed at supporting Ontario’s condominium communities. More than a million Ontarians call condominiums home, and we know that condo communities often experience unique challenges and disputes. Our goal is to develop policies that are responsive to those needs.

Ontario currently has many rules in place to help condo buyers make informed decisions and protect themselves in the marketplace. Condo developers are required to provide buyers with an outline of the possible risks of buying a pre-construction unit, early termination conditions, important timelines and project status.

In 2021, my ministry launched a residential condominium buyers’ guide to help condo buyers make informed purchasing decisions. Developers also must provide condo purchasers with a copy of the guide to better inform them about the buying process and condominium living, along with a copy of the current disclosure statement.

Recent changes to the Condominium Act, 1998, also would increase the amount of interest payable under certain circumstances to purchasers on their deposits or payments for the purchase of a new or pre-construction condominium unit from a developer, including in the event of a cancellation.

I would like to point out that in the 2020 value-for-money report, the Auditor General called attention to condo-related issues. The audit on condominium oversight highlighted a need for more consumer information on how condominium fees are set and managed. The report also called for an enhanced mandate for the Condominium Authority of Ontario and Condominium Authority Tribunal to protect condo owners against many of the common issues that they may encounter in their daily living in condominium communities.

In 2021, the condominium authority itself conducted consultations on topics such as expansion of the tribunal’s jurisdiction to adjudicate disputes. Condominium residents and condominium board directors signalled their strong support for the expansion of the tribunal’s jurisdiction, and these findings were supported by a recent targeted consultation undertaken by my ministry. We are now taking steps to make sure that condominium communities do have a strong and responsive dispute-resolution mechanism available when issues arise, and we will continue to consult on ways to improve how condominiums are operated.

As part of that process, we are taking measured steps to expand the Condominium Authority Tribunal’s jurisdiction in a phased and thoughtful way, beginning with consultations on a proposal for the tribunal to resolve certain additional types of disputes.

Our province plans to also consult on other initiatives aimed at strengthening protections for condo owners and buyers. These include improvements to status certificates, disclosure statements, remedies for inadequate disclosure of material changes during construction, and how access to records may increase safety in condominium communities. Transparency is the goal. We want to help increase operational and financial clarity while limiting burden to the condominium corporations and managers that are entrusted with running a condominium on behalf of a community.

These are just some measures that are all part of our government’s broader plan to provide people with the very best in consumer protection, to ensure they have the necessary tools to both purchase and enjoy their home. Our government will do everything that we can to reassure hard-working Ontarians that we are protecting them when they make that major purchase.

Bill 200 also proposes a minor amendment to the Ontario Heritage Act. The proposed Homeowner Protection Act, 2024, if passed, would amend the Ontario Heritage Act, 1990, to improve heritage conservation outcomes. Our government is ensuring we continue to protect Ontario’s heritage for generations to come. The amendments my colleague the Honourable Minister of Citizenship and Multiculturalism is proposing to the Ontario Heritage Act will help ease administrative pressures related to the conservation of legacy-listed heritage properties by extending the timeline for municipalities to review such listed properties by an additional two years, to January 1, 2027. These proposed changes would encourage municipalities to prioritize and proactively review and designate heritage properties that are truly important to their communities. If passed, the changes would mitigate impacts on cultural heritage resources by providing additional time for review of the province’s legacy-listed properties, to ensure that those most important to communities and their histories are designated and protected for generations to come.

Our government will continue to work with municipalities, the building industry and other key stakeholders to ensure we conserve true heritage, while using all the tools at our disposal to support Ontario’s future growth.

Bill 200 also addresses transit-oriented communities. The proposed legislation, Bill 200, if passed, would also support our government’s efforts to provide zoning certainty for our building partners on transit-oriented communities. If the Homeowner Protection Act, 2024, passes, our government would exempt designated transit-oriented community lands from the immunity provisions in the Planning Act related to the making, amending or revoking of minister’s zoning orders. The changes my colleague the Honourable Minister of Municipal Affairs and Housing is proposing would support the government’s plan to build vibrant mixed-use communities near transit, while reducing the cost to taxpayers to build transit station infrastructure. We know transit-oriented communities will create more homes, including affordable housing, parkland and retail and office space near stations, and that will make it faster and easier for everyone to access reliable transit right in their own neighbourhoods.

Let me conclude by reiterating our government’s pledge to ensure that our fellow citizens and residents have the protections they need as they navigate the marketplace. Let me say that Ontarians can and must be well informed and empowered when they purchase a new home. Communities need clarity and flexibility to be able to protect their heritage assets, and all Ontario consumers, especially our elderly and our most vulnerable members, must be protected from financial abuse at the hands of organized criminals operating in the marketplace. When consumers can have trust in the marketplace as they spend their hard-earned dollars; when homeowners can be sure that they are not being taken advantage of; when businesses understand and comply with their responsibilities, then we all benefit.

The Homeowner Protection Act, 2024, if passed, would reinforce our government’s strong record of protecting Ontario consumers and supporting a level playing field for businesses to promote fairness in the marketplace.

The changes we are proposing would help eliminate unfair business practices and help ensure Ontario homeowners can make informed choices with peace of mind when purchasing a freehold home, just as when they are purchasing a new condominium unit. Our fellow citizens and residents then can be confident that, when it comes to their home and their rights, the government of Ontario has their backs.

It has been a great honour to address all members of this House today; I thank all for their kind attention. My colleagues and I look forward to the upcoming debate. We know that you all have informed and thought-provoking input to share. The track record with bills so far introduced by my ministry of late is that His Majesty’s loyal opposition has supported our goal in favour of consumer protection and safety for all. I look forward to members not only on this side of the aisle but the opposite side of the aisle in terms of their contribution to debate. I look forward to hearing from them. I will listen intently.

I encourage support for this urgently needed Homeowner Protection Act, 2024. It is the right thing to do in moving our province forward. It is a bill that is a true testament to our government’s unwavering commitment to building a safer, fairer and stronger economy, now and for future generations. Protecting Ontarians—especially our elderly and the most vulnerable—is our sacred duty. It is our sacred duty as legislators, and it is a duty that rises above partisanship; it is one that I know that each and every one of the members in this House holds near and dear to their hearts. A duty is one that unites us beyond any differences that we might otherwise have.

I look forward to the debate. Furthermore, I thank all for their kind attention.

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.

The member for Don Valley East I’m sure is aware that there are thousands of residential tenants—families in rental accommodation—that they call home. Our government has in the past brought in measures to strengthen protections for tenants, including fines for bad landlords and measures to prevent evictions. Unfortunately, the opposition chose to vote against those measures. This time, there’s an opportunity for the member opposite to support better protections for tenants in this province once again.

My question to the member from Don Valley East: On behalf of his constituents, will he join us in supporting these enhanced protections for tenants?