This document was prepared by the staff of the Parliamentary Research Branch to provide Canadian Parliamentarians with plain language background and analysis of proposed government legislation. Legislative summaries are not government documents. They have no official legal status and do not constitute legal advice or opinion. Please note, the Legislative Summary describes the bill as of the date shown at the beginning of the document. For the latest published version of the bill, please consult the parliamentary internet site at www.parl.gc.ca.

LS-351E

BILL C-13:  THE CANADIAN INSTITUTES
OF HEALTH RESEARCH ACT

Prepared by:
Sonya Norris, Science and Technology Division
Odette Madore, Economics Division
Luc Gagné, Law and Government Division
22 November 1999
Revised 28 March 2000

TABLE OF CONTENTS

BACKGROUND

DESCRIPTION AND ANALYSIS

   A.  Introductory Clauses (Preamble and Clauses 1 through 5)

   B.  Organization (Clauses 6 through 11)

   C.  Compensation and Benefits (Clauses 12 and 13)

   D.  Responsibilities of the Governing Council (Clauses 14 through 19)

   E.  Health Research Institutes (Clauses 20, 21 and 22)

   F.  President and Employees (Clauses 23, 24 and 25)

   G.  Powers (Clauses 26 through 30)

   H.  Reports (Clauses 31 and 32)

   I.  Transitional (Clauses 33 through 40)

   J.  Consequential Amendments, Repeal and Coming into Force (Clauses 41 through 52)

COMMENTARY

BILL C-13: THE CANADIAN INSTITUTES OF
HEALTH RESEARCH ACT

BACKGROUND

Bill C-13 was tabled by the Minister of Health in the House of Commons on 4 November 1999. The bill would create the Canadian Institutes of Health Research (hereafter, the CIHR) and result in the dissolution of the Medical Research Council of Canada (hereafter, the MRC).

The first major step toward federal support for Canadian medical research was taken in 1936. In that year, the National Research Council (hereafter, the NRC), supported by the Canadian Medical Association and the Royal College of Physicians and Surgeons of Canada, established an Associate Committee on Medical Research. In 1946, that committee was replaced by the NRC Division of Medical Research, which in 1960, became an autonomous body within the NRC. In 1969, legislation was passed establishing the Medical Research Council of Canada as an independent departmental corporation, reporting to Parliament through the Minister of National Health and Welfare.(1)

The CIHR concept emerged in 1998 from the work of a Task Force broadly representative of many diverse interests in health research. Plans to proceed with the proposal of the Task Force were announced in the 1999 federal Budget which set aside an additional $225 million (over current MRC funding) by the year 2001-02 for the new CIHR.(2)

In general terms, the proposed CIHR would represent a more integrated approach to health research which would be more focused on the underlying determinants of health and disease. Its purpose would be to link researchers across a broad spectrum of disciplines and provide a national focus to Canada’s research efforts. The CIHR would not only support existing research in Canada but would also foster new synergies among researchers and build upon the research base by joining loosely linked health research in a network of virtual institutes.(3)

The following clause-by-clause analysis of Bill C-13 will summarize and simplify this bill of 52 clauses, and compare its provisions with those of the Medical Research Council Act.(4) It also highlights the amendments made to the original bill in committee and at report stage as well as the recommendations of the House of Commons Standing Committee on Health following its review of the legislation.

DESCRIPTION AND ANALYSIS

   A. Introductory Clauses (Preamble and Clauses 1 through 5)

Bill C-13, unlike the Medical Research Council Act, is preceded by a lengthy preamble. Overall, this preamble acknowledges the importance of health care and health research as well as Parliament’s obligation to optimize both. It was amended to explicitly state that the delivery of health care is the responsibility of the province. Although the spirit of the preamble is well founded, some may question the purpose of its considerable length. In fact, the preamble mentions several issues that are subsequently never discussed again within the body of the bill, for example the National Health Research and Development Program (NHRDP).

Clauses 1 and 2 introduce the bill as the Canadian Institutes of Health Research Act, and discuss the term "Minister" as it pertains to this bill but without specifying which Minister this would be. This follows the pattern of clause 2 of the Medical Research Council Act, which does not specify the Health Minister. The bill proposes that the Governor in Council would designate a member of the Queen’s Privy Council as Minister, although the Minister of Health was cited in the Medical Research Council Act.(5) Clause 3(1), (2) and (3) discusses the establishment of the CIHR Corporation, as an agent of Her Majesty, to have a head office in Canada as designated by the Governor in Council.

Clause 4 ((a) through (l)) describes the objective of the proposed CIHR; an objective is omitted from the Medical Research Council Act. The clause reflects the introductory preamble and largely defines the change in direction considered necessary for health research in Canada. The CIHR would aim to excel in the creation of new knowledge and its translation into improved health for Canadians, in keeping with "internationally accepted standards of scientific excellence." It is clear from the use of this phrase that the CIHR would be expected to meet its objective while accomplishing research on a par with that of other leaders in the international community. It is not clear, however, whether there are in fact standards of scientific excellence that have been internationally accepted. Clause 4(d) was amended to ensure that the Institutes would work in collaboration with the provinces to help advance health research and promote the dissemination and application of new research knowledge. Clause 4(g) which states that the CIHR would foster discussion of ethical issues was amended to expressly indicate that ethical principles would be applied to CIHR’s health research projects.

Finally, the powers and functions of the CIHR set out in clause 5 indicate that, in order for it to achieve its objective, the CIHR would promote, assist and undertake health research. Clause 5(a) is only slightly different from the comparable paragraph in the Medical Research Council Act, which states that the MRC is to "promote, assist and undertake basic, applied and clinical research in Canada in the health sciences." In addition, the current Act stipulates that the MRC is to "advise the Minister in respect of such matters relating to such research as the Minister may refer to the Council for its consideration," which is similar to the role proposed for the CIHR. There are, however, five additional functions described for the CIHR:

• fostering the development and support of the careers of those involved in health research;
• consulting, collaborating and forming partnerships with the provinces, as well as persons and organizations in and outside of Canada;
• monitoring, analyzing and evaluating issues, including those that are ethical;
• communicating issues of health or health research to the public, government, Canadian and international research communities, voluntary organizations, and the private sector;
• exercising any other function assigned to the CIHR by the Governor in Council in order to achieve its objective.

   B. Organization (Clauses 6 through 11)

The proposed organization of the CIHR is set out in clauses 6 through 11. As is now the case with the MRC, the CIHR President would be appointed by the Governor in Council for a term not exceeding five years, although he or she would be eligible for reappointment (clause 6). In addition, clause 7(1) and (2) provides for a Governing Council consisting of the President and no more than 19 other members, each appointed by the Governor in Council for terms not exceeding three years and who could not be appointed to more than two consecutive terms. There is no similar restriction on the reappointment of MRC members, who, under section 3 of the Medical Research Council Act, can number 22 members including the President. As the new CIHR would encompass a more diverse range of disciplines than does the MRC, one may question whether the reduced Council numbers will be sufficient. In order to ensure that the terms of office of the entire Governing Council would not expire simultaneously, the initial appointments would consist of both one-year and two-year appointments.

Clause 7(4), which discusses the criteria to be met by those appointed to the Governing Council, has no counterpart in the Medical Research Council Act. This subsection outlines that those to be appointed should "reflect a range of relevant backgrounds and disciplines," meet the "highest standards of scientific excellence" and "should be able to contribute to the achievement of the objective of the CIHR." Also noteworthy here is the repeated use of the phrase "women and men," rather than persons, people, or individuals.

Unlike the comparable provision of the Medical Research Council Act, clause 8 proposes that the Deputy Minister of Health would be an ex-officio and non-voting member of the Governing Council.

Under clause 9, the President of the Governing Council would be appointed Chairperson (as at the MRC). The Governing Council would elect a Vice-Chairperson from among its members. The Vice-Chairperson elected by the MRC council also requires the approval of the Governor in Council. In the event that the Chairperson of the CIHR was absent or incapacitated or that this office was vacant, the Vice-Chairperson would assume all powers of the Chairperson.

An executive committee, and other committees, including advisory committees, could be established by by-law as set out in clause 10. Clause 10(l) was amended in paragraph (b) to specify that the purpose of these committees would be to advise the Governing Council, particularly with respect to the creation of Health Research Institutes (paragraph 4(d)) and promoting, assisting and undertaking health research projects (paragraph 4(e)). With the exception of the executive committee, membership of these committees could be extended to those who were not members of the Governing Council, who could receive fees in an amount fixed by the Governor in Council. These parameters are similar to those set out in the Medical Research Council Act except that the MRC’s executive committee is limited to eight members, including the President and Vice-President, and the assignments and duties of the executive committee are described (section 10(1) and (2) of the Medical Research Council Act).

Finally, the bill stipulates that meetings of the Governing Council would have to be held at least twice a year, at times and places in Canada that the Council considered necessary; the Medical Research Council Act contains a similar provision.

   C. Compensation and Benefits (Clauses 12 and 13)

Clauses 12 and 13 outline the proposed remuneration for the President and other members of the Governing Council. These allowances would be the same as those now provided under the Medical Research Council Act.

   D. Responsibilities of the Governing Council (Clauses 14 through 19)

The proposed responsibilities of the Governing Council are outlined in clauses 14 through 19. Management of the CIHR is described in clause 14, paragraphs (a) to (h). The Governing Council of the CIHR would be responsible for developing its directions, goals and policies and for evaluating its performance. It would approve the budget, the funding for research, and the expenditures necessary for the CIHR to carry out its objective, as well as establishing a peer review process for research proposals made to the CIHR. The Governing Council would also have to establish policies respecting consultation and collaboration with persons and organizations with an interest in health research. Finally, the Governing Council would be responsible for dealing with anything that it considered to be related to the affairs of the CIHR.

The CIHR would be permitted, according to clause 15, to delegate any of its powers, duties and functions (with certain exceptions) to any of its members or committees, the President, a Health Institute, an Advisory Board or a Scientific Director (see section 20(1)). No such authority is given in the Medical Research Council Act.(6)

According to clause 16, the Governing Council would advise the Minister on any matter that the Minister referred to it for consideration. This clause is very similar to section 4(b) of the Medical Research Council Act, though under that Act the MRC is limited to advising the Minister on matters relating to research.

The CIHR would be a separate employer as laid out in clauses 17, 47 and 48; however, unlike the case in similar legislation creating separate employers, this fact is not specifically stated.(7) As such, the Governing Council of the CIHR could appoint, lay off or terminate its employees, as well as establishing standards, procedures and processes governing staffing. Section 11(2) of the Financial Administration Act(8) would not apply to the CIHR; the Governing Council could determine the organization and classification of the positions in the CIHR, set the terms and conditions of employment, and provide for other matters it considered necessary to manage the personnel effectively.

Clause 18 states that the Governing Council might enter into a collective agreement, a power that is usually given to the Treasury Board. Clause 19 is a common clause relating to a general power to adopt by-laws.

   E. Health Research Institutes (Clauses 20, 21 and 22)

Under clauses 20, 21 and 22, the Institutes to be established under the CIHR would be created, maintained and terminated by the Governing Council, which would also determine the mandate of each. Each Institute would support researchers for the purpose of implementing the objective of the CIHR. The Governing Council would also create and appoint the members of an Advisory Board and a Scientific Director for each Health Research Institute and would also determine the policies respecting the role and functioning of the Advisory Boards and Scientific Directors.

Appointments to the Advisory Boards are addressed in clause 20(4). As was the case in clause 7(4), the individuals appointed by the Governing Council to the Advisory Boards would have to meet certain enumerated criteria and reflect the highest standards of scientific excellence.

The Governing Council would have to review the mandate and performance of each of the Institutes created by the CIHR at least once every five years (clause 21). It would determine whether an Institute should be merged with another or terminated, or its function amended. While Bill C-13 provides for the creation of a number of institutes, it does not specify how many of them will be created, nor does it identify any fields of research. In its report, the House of Commons Standing Committee on Health stressed that Aboriginal health issues are of significant interest to Canadians and that this should be taken into consideration when the Governing Council of CIHR establishes the institutes.

Clause 22 outlines that members of Advisory Boards would serve without remuneration; however they could be reimbursed for travel and living expenses incurred while they were absent from their ordinary place of residence and performing duties and functions as members of Advisory Boards. They could also be paid fees as approved by the Governing Council for performing additional duties on behalf of the Advisory Board.

   F. President and Employees (Clauses 23, 24 and 25)

Clause 23(1) states that the President would be the Chief Executive Officer of the CIHR and would be responsible for its management and direction. Under clause 23(2), in the event of the absence or incapacity of the President, or vacancy of the office, the Governing Council would have to authorize an officer of the CIHR to act as President. This authorization could not exceed a period of 90 days without the approval of the Governor in Council. This is in contrast to the provision in the Medical Research Council Act, whereby the Vice-President assumes the President’s functions and duties in his absence.

Clause 24 specifies that the President of the CIHR would be forbidden to work for or against a political party or candidate and could not stand as a candidate. Employees would also be forbidden to engage in such activities unless they requested first a leave of absence. Clause 25 specifies that all employees of the CIHR would be deemed to be employees of the Public Service.

   G. Powers (Clauses 26 through 30)

The content of clauses 26 through 30, which describe the powers of the CIHR, is largely a departure from that of the Medical Research Council Act. Clause 26, paragraphs (a) to (h), describes the ancillary powers of the CIHR:

1. providing funding for health research;
2. entering into contracts, agreements, etc. with any department or agency of the federal or other government;
3. entering into a partnership or incorporating a subsidiary of the CIHR, and acquiring or disposing of shares in any corporation;
4. the ability to acquire or lease real estate;
5. the ability to acquire or lease personal property or movables;
6. the power to license, assign, sell or otherwise make available any patent, copyright, industrial design, trade-mark, trade secret or like property of the CIHR;
7. publishing, selling or disseminating studies, reports or other documents of the CIHR, and;
8. the power to do anything else necessary to achieve the objective of the CIHR.

Originally, clause 26 of Bill C-13 discussed the ability of the CIHR to borrow money, issue debt obligations and grant or receive security interest. This would have allowed the CIHR to assume or secure the debt or obligation of another person, with the approval of the Treasury Board. These provisions have been deleted.

Clause 27 of Bill C-13 is comparable to section 13(3) of the Medical Research Council Act. It indicates that all of the property of the CIHR would be the property of Her Majesty and could be held in the name of either Her Majesty or of the CIHR. Clause 28 refers to the ability of the CIHR to retain goods and services and legal services from outside the public service. In the case of legal services, it could do so only with the approval of the Attorney General of Canada or the Governor in Council. No similar provision is contained in the Medical Research Council Act.

Clause 29 discusses how the CIHR could spend its money. The clause, which is similar to section 4(3) of the Medical Research Council Act, says that, for the purpose of achieving its objective, CIHR could expend any money received as gift or bequest or, with the approval of the Treasury Board, money received through conducting its operations. Finally, clause 30 states that legal proceedings could be brought against or taken by the CIHR. The same stipulation is included in section 13(4) of the Medical Research Council Act.

   H. Reports (Clauses 31 and 32)

Clause 31 is similar to section 16 of the Medical Research Council Act, in that it provides that the Auditor General would annually audit the accounts and financial transactions of the organization. The report would have to be provided both to the Minister and the CIHR. Clause 32(1) and (2) state that, within four months of fiscal year-end, an annual report by the Governing Council would have to be submitted to the Minister, who would table it in Parliament. It would appear that the annual report submitted by the CIHR would have to be more detailed than that of the MRC. Section 17(1) of the Medical Research Council Act specifies that the annual report is to include the "activities" of the Council; the CIHR is to report on "activities and operations."

   I. Transitional (Clauses 33 through 40)

Clauses 33 through 40 deal with the transition from the MRC to the CIHR. Any funds remaining with the MRC at the time that the Medical Research Council Act was repealed would be allocated to the CIHR. In addition, all rights, property, obligations and liabilities of the MRC would be transferred to the CIHR and all references made to the MRC in any document executed by the MRC would have to be read as a reference to the CIHR, unless its context required otherwise.

Clause 35(1) and (2) indicates that the commencement or continuation of any legal proceeding by or against the MRC would proceed, with the CIHR replacing the MRC.

The transfer of employees from the MRC to the CIHR is the subject of clause 36(1) through (7). For all permanent employees of the MRC, the position, benefits, terms and conditions of employment would go over to the CIHR. A person who refused the transfer would be entitled to the benefits and severance pay provided under the applicable collective agreement with the MRC. Term employees of the MRC would also continue as employees of the CIHR, subject to the same terms and conditions of employment, on a day agreed to by the MRC and CIHR.

Clause 38(1) and (2) states that any collective agreements or arbitral awards in effect on or before the day that the Medical Research Council Act was repealed would continue to apply until their terms expired. Grievances filed by MRC employees under the Public Service Staff Relations Act and that were unresolved when the Medical Research Council Act was repealed would be dealt with and disposed of as though employment at MRC had not been terminated. Also, the CIHR would be bound to implement any decisions reached with respect to such grievances.

The final clause of this category, clause 40, states that, upon the coming into force of this legislation, all appointments of members and of the President of the MRC would be terminated.

   J. Consequential Amendments, Repeal and Coming into Force (Clauses 41 through 52)

Clauses 41-50 of the bill include all applicable amendments to remove references in existing Acts to the "Medical Research Council" and to replace them with references to the "Canadian Institutes of Health Research." Relevant Acts are:

• the Access to Information Act,(9)

• the Financial Administration Act,

• the Privacy Act,(10)

• the Public Service Staff Relations Act, and,

• the Public Service Superannuation Act(11)

Clause 51 would repeal the Medical Research Council Act and clause 52 provides for the coming into force of Bill C-13 as the Canadian Institutes of Health Act.

COMMENTARY

The CIHR would take over from the MRC, as well as adopting a broader focus. It is therefore to be expected that the legislation for the CIHR would be more comprehensive than that for the MRC. Most of Bill C-13 deals with the transfer of human resources, assets, liabilities and legal proceedings from the MRC to the CIHR. In terms of the actual functioning of the CIHR, the bill proposes that it would have several powers and functions additional to those of its predecessor. It should be noted that the MRC has in fact already undertaken to perform some of these additional powers and functions on its own; however, the remaining powers and functions would set the CIHR apart from the MRC. These functions would include working with the provinces as well as with people and organizations both within and outside of Canada, and keeping government and the public informed of issues in health and health research. In addition, the Governor in Council could assign to the CIHR any other function necessary for that body to achieve its objective.

Since the creation of the Canadian Institutes of Health Research was announced in the 1999 federal Budget, support has been expressed by the research community (universities, hospitals, national organizations, local health research associations, etc.), the Medical Research Council, and Health Canada. The most apparent support for the CIHR concept has come from the MRC, which considers that the new organization would be an instrument to "provide exciting and new opportunities for the health research community."(12) The MRC was responsible for developing the concept of the CIHR and will be integral in the formation of the new Institutes. Little has been heard from provincial governments, although they have shown no apparent opposition to the bill.

When it reviewed Bill C-13, the House of Commons Standing Committee on Health heard from a variety of witnesses. Overall, none spoke out against the legislation, although some suggestions were made to refine Bill C-13. One particular issue raised during the hearings related to conflict of interest. For example, there were concerns about the private sector influence in the process of selecting projects for funding as well as in establishing research institutes. For these reasons, the Standing Committee on Health recommended that the Governing Council of CIHR develop conflict of interest guidelines for the council as well as for the Institutes of Health Research.

(1)  From the MRC internet site at: www.mrc.gc.ca

(2)   Health Canada Fact sheet Health Initiatives in the 1999 Budget:
www.hc-sc.gc.ca/budget/english/factsht3.htm

(3)   From the CIHR internet site, frequently asked questions at www.cihr.org

(4)   R.S.C., 1985, c. M-4

(5)   "Designating the Secretary of State of Canada, the Minister of State for Science and Technology and the Minister of National Health and Welfare as Ministers for the Purposes of the Act," SI/77-207, Canada Gazette, 1977, Part II, p. 4658.

(6)   A similar power of delegation was conferred on the Canada Pension Plan Investment Board, which can delegate certain of its powers to committees, the President or a senior member of the Office: The Canada Pension Plan Investment Board Act, S.C., 1997, c. 40, sec. 9.

(7)   The Canadian Food Inspection Agency Act, S.C. 1997, C. 6, sec. 12, states that "The Agency is a separate employer under the Public Service Staff Relations Act, R.S.C., 1985, c. P-35." Also, see the Canada Customs and Revenue Agency Act, S.C. 1999, c.17, sec. 50

(8)   R.S.C., 1985, c. F-11

(9)   R.S.C., 1985, c. A-1

(10)   R.S.C., 1985, c. P-21

(11)   R.S.C., 1985, c. P-36

(12)   From the MRC internet site at www.mrc.gc.ca