Alberta is changing the system for how publicly funded agencies — including school districts, universities and health-care providers — can own and sell property.

If passed, Bill 13, the Real Property Governance Act, would require provincial agencies, boards and commissions to give the province first right of refusal when they’re selling surplus land and buildings.

The proposed change affects Alberta’s post-secondary institutions, school jurisdictions and charter schools, Alberta Health Services and numerous government organizations including the Alberta Social Housing Corporation, among others.

Infrastructure Minister Pete Guthrie said Thursday the province will also no longer transfer ownership of new buildings, like schools and hospitals, to the organization running them. Instead, the plan is for the government to retain ownership and make long-term lease arrangements with operators.

However, institutions like school boards would continue to be responsible for maintenance.

After the bill was tabled Thursday, Public School Boards’ Association of Alberta president Dennis MacNeil said school boards have many questions about what it means for them.

Public agencies still get to make decisions about when land or buildings are no longer needed, although that process requires additional government approval when it comes to schools.

MacNeil said he has concerns about school boards’ autonomy to decide what happens to a school after it closes.

“If it’s in the hands of the government as opposed to the hands of the board, then it would be easier to turn it over to another entity that may be in competition with the public school board,” he said.

Legislation stems from MacKinnon panel recommendation

The government estimates that public agencies, boards and commissions hold $83 billion in assets, while the infrastructure ministry owns just $12 billion.

“That kind of gives you an idea of … the transferring away of assets that we do not hold as having availability to and access to as the government of Alberta,” Guthrie said.

The policy is a call back to the 2019 blue ribbon panel led by former Saskatchewan finance minister Janice MacKinnon that made recommendations for sweeping changes to Alberta government finances.

One of the MacKinnon panel recommendations was to “redefine” government land assets to include the broader public sector. The panel suggested that setting policy to deal with surplus land and buildings could offset other capital costs or provide more revenue for the province.

Guthrie said the province’s goal is to make it easier to understand the full inventory of government-owned property and more readily convert available real estate to “priority” uses — for example, affordable housing or addictions recovery centres.

Bill Werry is executive director of the Alberta Post-Secondary Network, a collective of 26 presidents of the province’s colleges and universities.

He said post-secondary institutions will be looking to work with the government on the regulations around provincial ownership and lease arrangements for public assets.

“Not all of our institutions are the same size and scope, nor do they all have the same history or land and assets,” he said.

“The majority of our members are part of the government’s consolidated financial reporting so they’ve already got obligations to the province relative to land and buildings as it stands.”

According to Guthrie, when it comes to post-secondary institutions, anything held within their land trusts would not be included in the new system.