Municipal Affairs Minister Ric McIver says the government will introduce changes to clarify how and when cabinet can overrule local governments.
"Alberta’s government recognizes this authority should only be used as a last resort, which was always the intent of this legislation," McIver said in a statement Thursday.
"We would not do this lightly.”
McIver said he wants to see the power to repeal municipal bylaws used only when those bylaws fall under areas of shared responsibility, such as health care, education, the provincial economy or public safety.
McIver's office declined to offer specifics on what changes are coming, saying it plans to work with municipalities to hash them out.
The bill, introduced last month, has been criticized by municipal leaders as a severe overreach into local governance.
The legislation would allow cabinet to dismiss councillors and alter or cancel bylaws behind closed doors.
The only requirement is the moves be done in "the public interest" as defined by cabinet on a case-by-case basis.
On Thursday, critics welcomed changes but reserved judgment until they see the new rules.
Tyler Gandam, head of Alberta Municipalities – which represents towns, cities and villages – said the province could have avoided the rollback by consulting with municipalities ahead of time.
Gandam added that until “public interest” is more narrowly defined, the changes won’t matter.
"Things that happen in cabinet behind closed doors without a proper investigation -- it's completely unfair to the member of council who's being removed and then not publicly knowing why,” Gandam said.
He said the decision is also unfair to voters who elected the councillor who gets fired for no clear reason.
Gandam noted Smith’s government already has the power to dismiss councillors but only after public and transparent investigations.
Paul McLauchlin, the head of Rural Municipalities of Alberta, said he welcomes the chance to consult, but said his organization will push to completely remove the provisions giving cabinet the added powers.
McLauchlin said if those rules stay, there needs to be tight restrictions on how and when they are employed.
"Our concern is with the complete lack of accountability that cabinet would face for using (the bill’s) powers to interfere with local governance and decision-making,” McLauchlin said in a statement.
Edmonton Mayor Amarjeet Sohi said he still considers the bill an attack on local democracy.
"Residents put their trust in their local elected officials to make decisions within municipal jurisdiction, and any action that impedes our ability to represent our residents is a step in the wrong direction," he said in a statement.
Calgary Mayor Jyoti Gondek told reporters municipalities in Alberta have been very clear that the bill is overreach. She, too, said she looks forward to consultations.
"If they're truly interested in making sure that someone who has broken a law or misrepresented themselves or done something unethical is to be removed, then that language needs to be clear," she said.
Kyle Kasawski, the municipalities critic for the Opposition NDP, said the bill is another example of Smith's "authoritarian" approach to governing.
"The UCP needs to acknowledge that it is too flawed to amend and withdraw it entirely," he said in a statement.
Smith’s government has also introduced legislation that would give it veto power over funding and agreements between municipalities and the federal government.
