C-2013853-54Elizabeth II2004-2005An Act to provide for real property taxation powers of first nations, to create a First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority and to make consequential amendments to other ActsFirst Nations Fiscal Management ActFirst Nations Fiscal and Statistical Management201304
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F-11.6792005PreambleWhereas the Government of Canada has adopted a policy recognizing the inherent right of self-government as an aboriginal right and providing for the negotiation of self-government;Whereas this Act is not intended to define the nature and scope of any right of self-government or to prejudge the outcome of any self-government negotiation;Whereas the creation of national aboriginal institutions will assist first nations that choose to exercise real property taxation jurisdiction on reserve lands;Whereas economic development through the application of real property tax revenues and other local revenues to support borrowing on capital markets for the development of public infrastructure is available to other governments in Canada;Whereas real property taxation regimes on reserves should recognize both the interests of on-reserve taxpayers and the rights of members of first nations communities;Whereas first nations led an initiative that resulted in 1988 in an amendment to the Indian Act so that their jurisdiction over real property taxation on reserve could be exercised and the Indian Taxation Advisory Board was created to assist in the exercise of that jurisdiction;Whereas, in 1995, the First Nations Finance Authority Inc. was incorporated for the purposes of issuing debentures using real property tax revenues and providing investment opportunities;Whereas, by 1999, first nations and the Government of Canada recognized the benefits of establishing statutory institutions as part of a comprehensive fiscal management system;And whereas first nations have led an initiative culminating in the introduction of this Act;NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:2005, c. 9, Preamble; 2012, c. 19, s. 657.SHORT TITLEShort titleThis Act may be cited as the First Nations Fiscal Management Act.
2005, c. 9, s. 1;
2012, c. 19, s. 658.
Previous VersionINTERPRETATIONDefinitionsThe following definitions apply in this Act.borrowing membermembre emprunteurborrowing member means a first nation that has been accepted as a borrowing member under subsection 76(2) and has not ceased to be a borrowing member under section 77.councilconseil de la première nationcouncil has the same meaning as council of the band in subsection 2(1) of the Indian Act.first nationpremière nationfirst nation means a band named in the schedule.First Nations Finance AuthorityAdministration financière des premières nationsFirst Nations Finance Authority means the corporation established under section 58.First Nations Financial Management BoardConseil de gestion financière des premières nationsFirst Nations Financial Management Board means the board established under subsection 38(1).First Nations GazetteGazette des premières nationsFirst Nations Gazette means the publication published under section 34.First Nations Statistical Institute[Repealed, 2012, c. 19, s. 659]First Nations Tax CommissionCommission de la fiscalité des premières nationsFirst Nations Tax Commission means the commission established under subsection 17(1).local revenue lawtexte législatif sur les recettes localeslocal revenue law means a law made under subsection 5(1).local revenuesrecettes localeslocal revenues means moneys raised under a local revenue law.MinisterministreMinister means the Minister of Indian Affairs and Northern Development.property taxation lawtexte législatif relatif à l’imposition foncièreproperty taxation law means a law made under paragraph 5(1)(a).third-party managementVersion anglaise seulementthird-party management means the management of a first nation’s local revenues under section 53.Indian Act definitionsUnless the context otherwise requires, words and expressions used in this Act and not otherwise defined have the same meaning as in the Indian Act.Amendments to scheduleAt the request of the council of a band, the Governor in Council may, by order, amend the schedule in order toadd or change the name of the band; ordelete the name of the band, as long as there are no amounts owing by the band to the First Nations Finance Authority that remain unpaid.
2005, c. 9, s. 2;
2012, c. 19, s. 659.
Previous VersionABORIGINAL RIGHTSAboriginal and treaty rightsFor greater certainty, nothing in this Act shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.FIRST NATIONS FISCAL POWERSFinancial administration lawsThe council of a first nation may not make a law under paragraph 5(1)(d) until the council has made a law respecting the financial administration of the first nation under paragraph 9(1)(a) and that law has been approved by the First Nations Financial Management Board.Local revenue lawsSubject to subsections (2) to (6), sections 4 and 6 and any regulations made under paragraph 36(1)(d), the council of a first nation may make lawsrespecting taxation for local purposes of reserve lands, interests in reserve lands or rights to occupy, possess or use reserve lands, includingthe assessment of the value of those lands, interests and rights, the requisition of any information necessary to conduct the assessment and the inspection, in accordance with procedures prescribed by regulation, for assessment purposes of any reserve lands that are subject to taxation for local purposes,a mechanism to establish tax rates and apply them to the assessed value of those lands, interests and rights,taxation for the provision of services in respect of reserve lands,the taxation of business activities on reserve lands, andthe imposition of development cost charges;authorizing the expenditure of local revenues;respecting procedures by which the interests of taxpayers may be represented to the council;respecting the borrowing of money from the First Nations Finance Authority, including any authorization to enter into a particular borrowing agreement with that Authority;subject to any conditions, and in accordance with any procedures, prescribed by regulation, respecting the enforcement of laws made under paragraph (a) in respect of outstanding taxes or charges, includingthe creation of liens on reserve lands and interests in reserve lands,the imposition and recovery of interest and penalties on an amount payable pursuant to a law made under that paragraph, where the amount is not paid when it is due, and the rate of interest or the amount of the penalty, as the case may be,subject to subsection (7), the seizure, forfeiture and assignment of interests or rights in reserve lands,the seizure and sale of personal property located on reserve lands, other than property located in a dwelling, andthe discontinuance of services;delegating to any person or body any of the council’s powers to make laws under any of paragraphs (a) to (e); anddelegating to the First Nations Financial Management Board any other of the council’s powers that are required to give effect to a co-management arrangement entered into under section 52 or to give effect to third-party management of the first nation’s local revenues.Approval requiredA law made under subsection (1) does not have any force or effect until it is approved by the First Nations Tax Commission.Coming into forceA law made under subsection (1) comes into force on the later ofthe day of coming into force set out in the law, andthe day after it is approved by the First Nations Tax Commission.AppealsA law made under paragraph (1)(a) shall includean appeal procedure in respect of assessments, incorporating such procedures as are prescribed by regulation; andfixed rates of remuneration and fixed terms of office for any persons designated to decide the appeals.Third-party managementA property taxation law shall provide that, if the First Nations Financial Management Board gives notice to the first nation that third-party management of the first nation’s local revenues is required, the Board may act as agent of the first nation to fulfil any of the powers and obligations of the council under the property taxation law, this Act and any regulations made under this Act.Special levyA property taxation law of a borrowing member shall provide that the borrowing member must make a law under paragraph (1)(a) in order to recover amounts payable under paragraph 84(5)(b).Assignment of right or interestNotwithstanding the Indian Act or any instrument conferring a right or interest in reserve lands, if there are outstanding taxes payable pursuant to a law made under paragraph (1)(a) for more than two years, the first nation may assign the right or interest in accordance with the conditions and procedures prescribed by regulation.Judicial noticeIn any proceedings, judicial notice may be taken of a local revenue law.Statutory Instruments ActThe Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 9.Notice of proposed lawsThe council of a first nation shall, at least 60 days before making a law under any of paragraphs 5(1)(a) to (c), including a law repealing such a law or an amendment to such a law other than one referred to in paragraph 10(a) or (b),publish a notice of the proposed law in a local newspaper;post the notice in a public place on the reserve lands of the first nation; andsend the notice, by mail or electronic means, to the First Nations Tax Commission, to members of the first nation, to others who have interests in those lands or rights to occupy, possess or use those lands and to every government, organization and individual who, in the opinion of the council, may be affected by the proposed law.ExemptionThe First Nations Tax Commission may exempt a first nation from the requirements of subsection (1) in respect of an amendment of a law if the Commission considers that the amendment is not significant.Content of noticeA notice referred to in subsection (1) shalldescribe the proposed law;state where a copy of the proposed law may be obtained;invite representations regarding the proposed law to be made, in writing, to the council within 60 days after the date stated in the notice; andif the council is to review the proposed law at a public meeting, state the time and place of the meeting.Council to consider representationsBefore making a law under any of paragraphs 5(1)(a) to (c), the council of a first nation shall consider any representations that were made in accordance with paragraph (3)(c) or at a meeting referred to in paragraph (3)(d).Further representationsWhen the council of a first nation sends a property taxation law or a law made under paragraph 5(1)(c) to the First Nations Tax Commission for its approval, the council shallprovide a copy of the law to any persons who made representations under paragraph 6(3)(c); andinvite those persons to make written representations to the Commission within 30 days after the day on which they receive the copy of the law.Information accompanying property taxation lawA property taxation law — including an amendment of a property taxation law — shall, when submitted to the First Nations Tax Commission for approval, be accompanied bya description of the lands, interests or rights subject to the law;a description of the assessment practices to be applied to each class of land, interest or right;information regarding services to be provided from local revenues, existing service agreements and any service agreement negotiations under way at the time the law was made;a description of the notices that were given, any consultation undertaken by the council before making the law and copies of any written representations received by the council; andevidence that the law was duly made by the council.ExemptionThe First Nations Tax Commission may exempt a first nation from the requirements of subsection (1) in respect of an amendment of a property taxation law if the Commission considers that the amendment is not significant.Accompanying informationA law made under paragraph 5(1)(c), when submitted to the First Nations Tax Commission for approval, shall be accompanied bya description of the notices that were given, any consultation undertaken by the council before making the law and copies of any written representations received by the council; andevidence that the law was duly made by the council.Evidence law duly madeA law made under paragraph 5(1)(b), (d) or (e) that is submitted to the First Nations Tax Commission for approval shall be accompanied by evidence that it was duly made by the council.Additional information on requestAt the request of the First Nations Tax Commission, a first nation shall provide any documents that the Commission requires in order toreview a local revenue law;determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 35(1); orperform any of its other functions under this Act.Financial administration lawsSubject to subsections (2) and (3), the council of a first nation may make lawsrespecting the financial administration of the first nation; anddelegating to any person or body its powers to make laws under paragraph (a).Approval requiredA law made under subsection (1) by a borrowing member, including any amendment of such a law, does not have any force or effect until it is approved by the First Nations Financial Management Board.Coming into forceA law made under subsection (1) comes into force on the latest ofthe day on which it is made,the day of coming into force set out in the law, andin the case of a law or amendment made by a borrowing member, the day after it is approved by the First Nations Financial Management Board.Evidence law duly madeA law made under subsection (1) that is submitted to the First Nations Financial Management Board for approval shall be accompanied by evidence that it was duly made by the council.Additional information on requestAt the request of the First Nations Financial Management Board, a first nation shall provide any documents that the Board requires in order toreview a financial administration law submitted to the Board;determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 55(1); orperform any of its other functions under this Act.Annual rate and expenditure lawsA council of a first nation that makes a property taxation law shall, at least once each year at a time prescribed by regulation, makea law under paragraph 5(1)(a) setting the rate of tax to be applied to the assessed value of each class of lands, interests or rights; anda law under paragraph 5(1)(b) establishing a budget for the expenditure of revenues raised under the property taxation law.No repeal by borrowing membersA borrowing member shall not repeal a property taxation law.Priority to AuthorityA law made under paragraph 5(1)(b) by a borrowing member shall not authorize the expenditure of local revenues unless the borrowing member’s budget provides for the payment of all amounts payable to the First Nations Finance Authority during the budget period.Financial commitmentThe borrowing member shall, in every year, reserve such local revenues as are required to ensure that all amounts authorized to be paid to the First Nations Finance Authority in the year are actually paid in that year.Legal capacity of first nationsFor greater certainty, for the purposes of Part 4, a borrowing member has the capacity to contract and to sue and be sued.Local revenue accountLocal revenues of a first nation shall be placed in a local revenue account, separate from other moneys of the first nation.Restriction on expendituresLocal revenues may be expended only under the authority of a law made under paragraph 5(1)(b).Balanced budgetExpenditures provided for in a law made under paragraph 5(1)(b) shall not exceed the local revenues estimated for the year in which those expenditures are to be made, less any deficit accumulated from prior years.AuditThe local revenue account shall be audited at least once each calendar year and reported on separately from other accounts.Access to reportThe audit report of the local revenue account shall be made available tothe members of the first nation;any other persons who have an interest in, or the right to occupy, possess or use, the first nation’s reserve lands;the First Nations Tax Commission, the First Nations Financial Management Board and the First Nations Finance Authority; andthe Minister.Non-application of certain provisionsParagraphs 83(1)(a) and (d) to (g) and section 84 of the Indian Act and any regulations made under paragraph 73(1)(m) of that Act do not apply to a first nation.FIRST NATIONS TAX COMMISSIONInterpretationDefinitionsThe following definitions apply in this Part.CommissionCommissionCommission means the First Nations Tax Commission.taxpayercontribuabletaxpayer means a person paying tax under a property taxation law.Establishment and Organization of CommissionCommissionThere is hereby established a commission, to be known as the First Nations Tax Commission, consisting of 10 commissioners, including a Chief Commissioner and Deputy Chief Commissioner.Capacity, rights, powers and privilegesThe Commission has the capacity, rights, powers and privileges of a natural person, including the capacity toenter into contracts;acquire, hold and dispose of property or an interest in property;raise, invest or borrow money; andsue and be sued.When agent of Her MajestyThe Commission is an agent of Her Majesty only for the approval of local revenue laws.SavingsFor the purpose of subsection (1), the issuance of a certificate referred to in paragraph 32(2)(b) is deemed not to be an approval of a local revenue law.Appointment of Chief CommissionerOn the recommendation of the Minister, the Governor in Council shall appoint a Chief Commissioner and Deputy Chief Commissioner.TenureThe Chief Commissioner and Deputy Chief Commissioner hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.Appointment of commissionersOn the recommendation of the Minister, the Governor in Council shall appoint four commissioners to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.Appointment of commissionersOn the recommendation of the Minister, the Governor in Council shall appoint three additional commissioners — one of whom shall be a taxpayer using reserve lands for commercial, one for residential and one for utility purposes — to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.Appointment of additional commissionerA body prescribed by regulation shall appoint an additional commissioner to hold office during pleasure for a term not exceeding five years.Staggered termsIn determining the term of appointment of commissioners, the Governor in Council shall endeavour to ensure that the terms of no more than three commissioners expire in any one calendar year.QualificationsThe Commission shall be composed of men and women from across Canada, including members of first nations, who are committed to the development of a system of first nations real property taxation and who have the experience or capacity to enable the Commission to fulfil its mandate.StatusThe Chief Commissioner shall hold office on a full-time basis, while the other commissioners shall hold office on a part-time basis.ReappointmentA commissioner may be reappointed for a second or subsequent term of office.RemunerationCommissioners shall be paid the remuneration determined by the Governor in Council.ExpensesThe Chief Commissioner shall be reimbursed for reasonable travel and other expenses incurred in performing duties while absent from his or her ordinary place of work. Other Commissioners shall be reimbursed for such expenses incurred in performing duties while absent from their ordinary place of residence.Chief Commissioner — functionsThe Chief Commissioner is the chief executive officer of the Commission and has supervision over, and direction of, the work and staff of the Commission.Deputy Chief Commissioner — functionsIn the event of the absence or incapacity of the Chief Commissioner, or if the office of Chief Commissioner is vacant, the Deputy Chief Commissioner shall assume the duties and functions of the Chief Commissioner.Head officeThe head office of the Commission shall be on the reserve lands of the Kamloops Band or at any other location that the Governor in Council determines.Additional officeThe Commission shall maintain an additional office in the National Capital Region described in the schedule to the National Capital Act.Rules of procedureThe Commission may make any rules that it considers necessary for the conduct of, and the fixing of a quorum for, its meetings.StaffThe Commission mayhire any staff that is necessary to conduct the work of the Commission; anddetermine the duties of those persons and the conditions of their employment.Salaries and benefitsPersons hired under subsection (1) shall be paid the salaries and benefits fixed by the Commission.PurposesMandateThe purposes of the Commission are toensure the integrity of the system of first nations real property taxation and promote a common approach to first nations real property taxation nationwide, having regard to variations in provincial real property taxation systems;ensure that the real property taxation systems of first nations reconcile the interests of taxpayers with the responsibilities of chiefs and councils to govern the affairs of first nations;prevent, or provide for the timely resolution of, disputes in relation to the application of local revenue laws;assist first nations in the exercise of their jurisdiction over real property taxation on reserve lands and build capacity in first nations to administer their taxation systems;develop training programs for first nation real property tax administrators;assist first nations to achieve sustainable economic development through the generation of stable local revenues;promote a transparent first nations real property taxation regime that provides certainty to taxpayers;promote understanding of the real property taxation systems of first nations; andprovide advice to the Minister regarding future development of the framework within which local revenue laws are made.Functions and PowersPowersIn furtherance of the purposes set out in section 29, the Commission may enter into cooperative arrangements and shared-cost ventures with national and international organizations to consult on or sell products or services developed for first nations who have made property taxation laws.Local revenue law reviewThe Commission shall review every local revenue law.Written submissionsBefore approving a local revenue law, the Commission shall consider, in accordance with any regulations made under paragraph 36(1)(b), any representations made to it under paragraph 7(b) in respect of the law by members of the first nation or others who have interests in the reserve lands of the first nation or rights to occupy, possess or use those lands.Local revenue law approvalSubject to section 32, the Commission shall approve a local revenue law that complies with this Act and with any standards and regulations made under this Act.RegistryThe Commission shall maintain a registry of every law approved by it under this section and every financial administration law made under section 9.RestrictionsThe Commission shall not approve a law made under paragraph 5(1)(d) for financing capital infrastructure for the provision of local services on reserve lands unlessthe first nation has obtained and forwarded to the Commission a certificate of the First Nations Financial Management Board under subsection 50(3); andthe first nation has unutilized borrowing capacity.Copy and certificateOn approving a law made by a first nation under paragraph 5(1)(d) for financing capital infrastructure for the provision of local services on reserve lands, the Commission shall provide the First Nations Finance Authority witha true copy of the law registered under subsection 31(4); anda certificate stating that the law meets all the requirements of this Act and the regulations made under this Act.Notice of judicial reviewIf the Commission becomes aware that judicial review proceedings have been undertaken in respect of a law made by a first nation under paragraph 5(1)(d) for financing capital infrastructure for the provision of local services on reserve lands, the Commission shall without delay inform the First Nations Finance Authority of those proceedings.Certificate is evidenceA certificate referred to in paragraph (2)(b) is, in the absence of evidence to the contrary, conclusive evidence in any judicial proceedings of the facts contained in it.Review on requestOn the request in writing by a member of a first nation, or by a person who holds an interest in reserve lands or has a right to occupy, possess or use the reserve lands, whois of the opinion that the first nation has not complied with this Part or Part 1 or with a regulation made under either Part or section 141 or 142 or that a law has been unfairly or improperly applied,has requested the council of the first nation to remedy the situation, andis of the opinion that the council has not remedied the situation,the Commission shall conduct a review of the matter in accordance with the regulations.Independent reviewIf the Commission is of the opinion that a first nation has not complied with this Part or Part 1 or with a regulation made under either Part or section 141 or 142 or that a law has been unfairly or improperly applied, it shall conduct a review of the matter in accordance with the regulations.RemedyIf, after conducting a review, the Commission considers that a first nation has not complied with this Part or Part 1 or with a regulation made under either Part or section 141 or 142 or that a law has been unfairly or improperly applied, the Commissionshall order the first nation to remedy the situation; andmay, if the first nation does not remedy the situation within the time set out in the order, by notice in writing, require the First Nations Financial Management Board to either — at the Board’s discretion — impose a co-management arrangement on the first nation or assume third-party management of the first nation’s local revenues to remedy the situation.First Nations GazetteAll local revenue laws approved by the Commission and all standards and procedures established by the Commission under section 35 shall be published in the First Nations Gazette.Frequency of publicationThe Commission shall publish the First Nations Gazette at least once in each calendar year.Standards and ProceduresStandardsThe Commission may establish standards, not inconsistent with the regulations, respectingthe form and content of local revenue laws;enforcement procedures to be included in those laws;criteria for the approval of laws made under paragraph 5(1)(d); andthe form in which information required under section 8 is to be provided to the Commission.ProceduresThe Commission may establish procedures respectingsubmission for approval of local revenue laws;approval of those laws;representation of taxpayers’ interests in the decisions of the Commission; andresolution of disputes with first nations concerning the taxation of rights and interests on reserve lands.Statutory Instruments ActThe Statutory Instruments Act does not apply to a standard established under subsection (1) or a procedure established under subsection (2).RegulationsRegulationsThe Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Commission, make regulationsprescribing anything that is to be prescribed under subparagraph 5(1)(a)(i), paragraph 5(1)(e) or (4)(a), subsection 5(7) or section 10;establishing the procedures to be followed in reviewing laws submitted under section 7 and conducting reviews under section 33, including proceduresfor requiring the production of documents from a first nation or person requesting a review under subsection 33(1),for conducting hearings, andauthorizing the Commission to apply to a justice of the peace for a subpoena compelling a person to appear before the Commission to give evidence and bring any documents specified in the subpoena, and to pay associated travel expenses;prescribing fees to be charged by the Commission for services to first nations and other organizations; andrespecting the exercise of the law-making powers of first nations under subsection 5(1).Provincial differencesRegulations made under paragraph (1)(a) may vary from province to province.Authority to varyRegulations made under paragraph (1)(b) may authorize the Commission tovary the procedures to accommodate the customs or culture of a first nation in respect of which a hearing is being held;extend or shorten any period provided for in those regulations;dispense with compliance with any procedure provided for in the regulations in the interest of securing a just, expeditious and inexpensive hearing of a complaint; anddelegate any of the powers of the Commission under section 31 or 33 to one or more commissioners.InconsistenciesIn the event of an inconsistency between a law made under subsection 5(1) and regulations made under subsection (1), the regulations prevail to the extent of the inconsistency.FIRST NATIONS FINANCIAL MANAGEMENT BOARDInterpretationDefinition of BoardIn this Part, Board means the First Nations Financial Management Board.Establishment and Organization of BoardEstablishmentThere is established a board, to be known as the First Nations Financial Management Board, to be managed by a board of directors consisting of a minimum of nine and a maximum of 13 directors, including a Chairperson and Vice-Chairperson.Capacity, rights, powers and privilegesThe Board has the capacity, rights, powers and privileges of a natural person, including the capacity toenter into contracts;acquire, hold and dispose of property or an interest in property;raise, invest or borrow money; andsue and be sued.
2005, c. 9, s. 38;
2010, c. 12, s. 1733.
Previous VersionNot agent of Her MajestyThe Board is not an agent of Her Majesty.Appointment of ChairpersonOn the recommendation of the Minister, the Governor in Council shall appoint a Chairperson to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.Appointment of additional directorsThe Governor in Council, on the recommendation of the Minister, shall appoint a minimum of five, and a maximum of nine, other directors to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.Appointment by AFOAThe Aboriginal Financial Officers Association of Canada, or any other body prescribed by regulation, shall appoint up to three additional directors to hold office during pleasure for a term not exceeding five years.Staggered termsIn determining the term of appointment of directors, the Governor in Council shall endeavour to ensure that the terms of no more than three directors expire in any one calendar year.QualificationsThe board of directors shall be composed of men and women from across Canada, including members of first nations, who are committed to the strengthening of first nation financial management and who have the experience or capacity to enable the Board to fulfil its mandate.
2005, c. 9, s. 41;
2010, c. 12, s. 1734.
Previous VersionElection of Vice-ChairpersonThe board of directors shall elect a Vice-Chairperson from among the directors.FunctionsIn the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Vice-Chairperson shall assume the duties and functions of the Chairperson.ReappointmentDirectors may be reappointed for a second or subsequent term of office.StatusDirectors shall hold office on a part-time basis.RemunerationDirectors shall be paid the remuneration determined by the Governor in Council.ExpensesDirectors shall be reimbursed for reasonable travel and other expenses incurred in performing duties while absent from their ordinary place of residence.Rules of procedureThe board of directors may make any rules that it considers necessary for the conduct of its meetings.Head officeThe head office of the Board shall be at a location determined by the Governor in Council.StaffThe board of directors mayhire any staff that is necessary to conduct the work of the Board; anddetermine the duties of those persons and the conditions of their employment.Salaries and benefitsPersons hired under subsection (1) shall be paid the salary and benefits fixed by the board of directors.PurposesMandateThe purposes of the Board are toassist first nations in developing the capacity to meet their financial management requirements;assist first nations in their dealings with other governments respecting financial management, including matters of accountability and shared fiscal responsibility;assist first nations in the development, implementation and improvement of financial relationships with financial institutions, business partners and other governments, to enable the economic and social development of first nations;develop and support the application of general credit rating criteria to first nations;provide review and audit services respecting first nation financial management;provide assessment and certification services respecting first nation financial management and financial performance;provide financial monitoring services respecting first nation financial management and financial performance;provide co-management and third-party management services; andprovide advice, policy research and review and evaluative services on the development of fiscal arrangements between first nations’ governments and other governments.Functions and PowersReview of financial management systemOn the request of the council of a first nation, the Board may review the first nation’s financial management system or financial performance for compliance with the standards established under subsection 55(1).ReportOn completion of a review under subsection (1), the Board shall provide to the first nation a report setting outthe scope of the review undertaken; andan opinion as to the extent to which the first nation was in compliance with the standards.CertificateIf after completing a review under subsection (1) the Board is of the opinion that the first nation was in compliance with the standards, it shall issue to the first nation a certificate to that effect.Revocation of certificateThe Board may, on giving notice to a council, revoke a certificate issued under subsection (3) if, on the basis of financial or other information available to the Board, it is of the opinion that the basis upon which the certificate was issued has materially changed.Form and contentThe Board may determine the form and content of certificates issued under subsection (3), including any restrictions as to the purposes for which, and the persons by whom, they are intended to be used.Remedial measures requiredIf a borrowing member’s certificate is revoked, the borrowing member shall, without delay, take any measures required to re-establish its certification.Opinion finalAn opinion of the Board referred to in this section is final and conclusive and is not subject to appeal.Required interventionOn receipt of a notice from the First Nations Tax Commission under paragraph 33(3)(b) or from the First Nations Finance Authority under subsection 86(4), the Board shall either require the first nation to enter into a co-management arrangement in accordance with section 52 or assume third-party management of the first nation’s local revenues in accordance with section 53, as the Board sees fit.Imposed co-managementThe Board may, on giving notice to the council of a first nation, require the first nation to enter into a co-management arrangement in respect of the first nation’s local revenues, including its local revenue account,if, in the opinion of the Board, there is a serious risk that the first nation will default on an obligation to the First Nations Finance Authority; oron receipt of a request or demand to do so under paragraph 33(3)(b) or subsection 86(4).PowersUnder a co-management arrangement, the Board mayrecommend amendments to a law of the first nation made under this Act;recommend changes to the first nation’s expenditures or budgets;recommend improvements to the first nation’s financial management system;recommend changes to the delivery of programs and services;order that expenditures of local revenues of the first nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; andexercise any powers delegated to the Board under a law of the first nation or under an agreement between the first nation and the Board or the first nation and the First Nations Finance Authority.Termination by BoardThe Board may terminate a co-management arrangement with a first nation on giving notice to its council that the Board is of the opinion thatthere is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority;where the first nation was in default of a payment obligation to the First Nations Finance Authority, the first nation has remedied the default;a co-management arrangement requested or demanded under paragraph 33(3)(b) or subsection 86(4) is no longer required; orthird-party management of the first nation’s local revenues is required.Opinion finalAn opinion given by the Board under this section is final and conclusive and is not subject to appeal.NoticeThe Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of a co-management arrangement.Third-party managementThe Board may, on giving notice to the council of a first nation and to the Minister, assume management of the first nation’s local revenues, including its local revenue account,if, in the opinion of the Board, a co-management arrangement under section 52 has not been effective;if, in the opinion of the Board, there is a serious risk that the first nation will default on an obligation to the First Nations Finance Authority; oron receipt of a request or demand to do so under paragraph 33(3)(b) or subsection 86(4).PowersIf the Board assumes third-party management of the local revenues of a first nation, the Board has the exclusive right tosubject to subsection (3), act in the place of the council of the first nation to make laws under paragraphs 5(1)(a) to (f);act in the place of the council of the first nation under laws made under paragraphs 5(1)(a) to (e) and manage the first nation’s local revenue account, including any necessary borrowing;provide for the delivery of programs and services that are paid for out of local revenues;assign rights or interests under subsection 5(7); andexercise any powers delegated to the Board under a law of the first nation or an agreement between the first nation and the Board or between the first nation and the First Nations Finance Authority.Consent of council requiredThe Board shall not make a law under paragraph 5(1)(f) that delegates a power to a person or body to whom a power was not delegated at the time the Board assumed third-party management of the local revenues of a first nation, unless the council of the first nation gives its consent.ProhibitionThe council of the first nation shall not, during the time that the board assumes third-party management of the first nation’s local revenues, repeal any law made under paragraph 5(1)(g).Review every six monthsWhere the Board has assumed third-party management of a first nation’s local revenues, it shall review the need for third-party management at least once every six months and advise the First Nations Finance Authority, the First Nations Tax Commission and the council of the first nation of the results of its review.Termination by BoardThe Board may terminate third-party management of a first nation’s local revenues, on giving notice to the council of the first nation, ifit is of the opinion that there is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority and the Authority consents to the termination in writing;where the first nation was in default of an obligation to the First Nations Finance Authority, it is of the opinion that the first nation has remedied the default and the Authority consents to the termination in writing; orit is of the opinion that the situation for which third-party management of the first nation’s local revenues was required under paragraph 33(3)(b) or subsection 86(4) has been remedied.Opinion finalAn opinion given by the Board under this section is final and conclusive and is not subject to appeal.NoticeThe Board shall advise the First Nations Finance Authority and First Nations Tax Commission of the assumption or termination of third-party management of a first nation’s local revenues.Required informationAt the request of the Board, a first nation that has made a local revenue law shall provide to the Board any information about the first nation’s financial management system and financial performance that the Board requires for a decision regarding a co-management arrangement or third-party management of the first nation’s local revenues.Standards and ProceduresStandardsThe Board may establish standards, not inconsistent with the regulations, respectingthe form and content of laws made under section 9;approvals of the Board under Part 1;certification of first nations under section 50; andfinancial reporting under subsection 14(1).ProceduresThe Board may establish procedures respectingthe submission for approval and approval of laws made under section 9;the issuance of a certificate under subsection 50(3); andthe implementation or termination of a co-management arrangement or third-party management of a first nation’s local revenues.Statutory Instruments ActThe Statutory Instruments Act does not apply to a standard established under subsection (1) or a procedure established under subsection (2).First Nations GazetteAll laws made under section 9 and approved by the Board and all standards established by the Board under subsection (1) shall be published in the First Nations Gazette.RegulationsRegulationsThe Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Board, make regulationsrespecting the implementation of a co-management arrangement or third-party management of a first nation’s local revenues, including the obligations of affected first nations to provide access to financial records; andfixing fees that the Board may charge for services, including fees to first nations for co-management and third-party management services, and the manner in which the fees may be recovered.FIRST NATIONS FINANCE AUTHORITYInterpretationDefinitionsThe following definitions apply in this Part.AuthorityAdministrationAuthority means the First Nations Finance Authority.investing membermembre investisseurinvesting member means a first nation that has invested in a short-term investment pool managed by the Authority.long-term loanprêt à long termelong-term loan means a loan the term of which is one year or longer.membermembremember means a borrowing member or investing member.property tax revenuesrecettes fiscales foncièresproperty tax revenues means moneys raised under a law made under paragraph 5(1)(a).representativereprésentantrepresentative, in respect of a first nation that is a member, means the chief or a councillor of the first nation who is designated as a representative by a resolution of its council.securitytitresecurity means a security of the Authority issued under paragraph 75(1)(b).short-term loanprêt à court termeshort-term loan means a loan the term of which is less than one year.Establishment and Organization of AuthorityEstablishmentThere is hereby established a non-profit corporation without share capital, to be known as the First Nations Finance Authority.MembershipThe members of the Authority shall be its borrowing members and investing members.Not agent of Her MajestyThe Authority is not an agent of Her Majesty or a Crown corporation within the meaning of the Financial Administration Act, and its officers and employees are not part of the federal public administration.No guaranteesNo person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of the Authority.
2005, c. 9, ss. 60, 154(E).
Previous VersionBoard of DirectorsThe Authority shall be managed by a board of directors, consisting of from 5 to 11 directors, including a Chairperson and Deputy Chairperson.Nomination of directorsA representative of a borrowing member may nominatea representative of a borrowing member for election as Chairperson or Deputy Chairperson; andany representative for election as a director other than the Chairperson or Deputy Chairperson.Election of directorsDirectors shall be elected by representatives of borrowing members.Function of Deputy ChairpersonIn the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Deputy Chairperson shall assume the duties and functions of the Chairperson.Term of officeDirectors shall hold office on a part-time basis for a term of one year.Additional termsA director is eligible to be re-elected for a second or subsequent term of office.Ceasing to be directorA person ceases to be a director whenthe person ceases to hold office as a chief or councillor of a first nation that is a borrowing member or investing member;the person’s designation as a representative of a borrowing member or investing member is revoked by a resolution of the council of that first nation; orthe person is removed from office before the expiry of the term of the appointment by a special resolution of the board of directors.QuorumTwo thirds of the directors constitute a quorum at any meeting of the board of directors.Majority voteDecisions by the board of directors shall be made by a majority vote of the directors present.Acts not applicable to AuthorityThe Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Authority.Canada Business Corporations ActThe following provisions of the Canada Business Corporations Act apply, with any modifications that the circumstances require, to the Authority and its directors, members, officers and employees as if the Authority were a corporation incorporated under that Act, this Part were its articles of incorporation and its members were its shareholders:subsection 15(1) (capacity of a natural person);section 16 (by-law not required to confer powers on Authority, restriction on powers of Authority, and validity of acts of Authority);subsection 21(1) (access to Authority’s records by members and creditors);section 23 (corporate seal not needed to validate instrument);subsections 103(1) to (4) (powers of directors to make and amend by-laws, member approval of by-laws and effective date of by-laws);subsection 105(1) (qualifications of directors);subsection 108(2) (resignation of director);section 110 (right of director to attend members’ meetings and statements by retiring directors);subsection 114(1) (place of directors’ meetings);section 116 (validity of acts of directors and officers);section 117 (validity of directors’ resolutions not passed at meeting);subsections 119(1) and (4) (liability of directors);section 120 (conflict of interests of directors);section 123 (directors’ dissents);section 124 (directors’ indemnity);section 155 (financial statements);section 158 (approval of financial statements by directors);section 159 (sending financial statements to members before annual meeting);sections 161 and 162 (qualifications and appointment of auditor);section 168 (rights and duties of auditor);section 169 (examination by auditor);section 170 (auditor’s right to information);subsections 171(3) to (9) (duty and administration of audit committee and penalty for failure to comply);section 172 (qualified privilege in defamation for auditor’s statements); andsubsections 257(1) and (2) (certificates of Authority as evidence).
2005, c. 9, s. 66;
2009, c. 23, s. 328.
Previous VersionRemuneration of directorsDirectors shall be paid a fee for attendance at meetings of the board of directors, as fixed by the by-laws of the Authority.Duty of careThe directors and officers of the Authority in exercising their powers and performing their duties shallact honestly and in good faith with a view to the best interests of the Authority; andexercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.Limit of liabilityDirectors and officers are not liable for a failure to comply with subsection (1) if they rely in good faith ona written report of the auditor of the Authority or financial statements represented by an officer of the Authority as fairly reflecting the financial condition of the Authority; ora report of a lawyer, notary, accountant, engineer, appraiser or other person whose position or profession lends credibility to a statement made by that person.PresidentThe board of directors shall appoint a President to act as the chief executive officer of the Authority.Other staffThe President may employ any other officers and employees that are necessary to conduct the work of the Authority.Annual general meetingThe Authority shall hold an annual general meeting of representatives for the purpose ofpresenting the annual report and audited financial statements of the Authority;electing the board of directors; anddealing with any other business of the Authority that may be presented by the board of directors.By-lawsThe board of directors may make by-lawsrespecting the calling and conduct of meetings of the board, including the holding of meetings by teleconference;fixing the fees to be paid to directors for attendance at meetings of the board and the reimbursement of reasonable travel and living expenses to directors;respecting the duties and conduct of the directors, officers and employees of the Authority and the terms and conditions of employment and of the termination of employment of officers and employees of the Authority;respecting the signing and sealing of securities and interest coupons issued by the Authority; andgenerally for the conduct and management of the affairs of the Authority.Head officeThe head office of the Authority shall be on reserve lands at a location determined by the board of directors.Annual budgetAt the beginning of every year, the President shall prepare an annual budget of the Authority and present it to the board of directors for approval.PurposesMandateThe purposes of the Authority are tosecure for its borrowing members, through the use of property tax revenues,long-term financing of capital infrastructure for the provision of local services on reserve lands,lease financing of capital assets for the provision of local services on reserve lands, orshort-term financing to meet cash-flow requirements for operating or capital purposes under a law made under paragraph 5(1)(b), or to refinance a short-term debt incurred for capital purposes;secure for its borrowing members, through the use of other revenues prescribed by regulation, financing for any purpose prescribed by regulation;secure the best possible credit terms for its borrowing members;provide investment services to its members and first nations organizations; andprovide advice regarding the development of long-term financing mechanisms for first nations.Functions and PowersPowers of board of directorsFor the purposes of this Part, the board of directors may by resolutionborrow money in an amount authorized by the resolution;issue securities of the Authority;lend securities to generate income, if the loan is fully secured;enter into agreements for risk management purposes, including swaps; andprovide forpayments related to the issuance of securities,the registration, transfer, management and redemption of securities,the re-issuance, reinstatement or other disposition of lost, stolen, destroyed or damaged securities or interest coupons,the examination, cancellation or destruction of securities and of materials used in their production, orthe timing of the issuance of securities.Security issuance requirementsA resolution respecting the issuance of securities shall set outthe rate of interest;the time and place of repayment of principal and interest; andthe currency in which repayment of principal and interest will be made.Security issuance resolutionsA resolution respecting the issuance of securities may provide thatthe securities are to be redeemable in advance of maturity at a time and price set out in the resolution;all or any part of the securities may be paid, refunded or renewed;the securities are to be issued in an amount sufficient to realize the amount of any securities called in and paid before maturity, for a term not longer than the remainder of the term of the securities called in and paid; orthe securities and any interest coupons attached to them are to be in the form set out in the resolution, and are to be exchangeable for other securities of the same issue on any terms and conditions set out in the resolution.Amount of issueThe Authority may issue securities the principal amounts of which, after payment of any discount and the costs of issue and sale, will realize the net amount authorized by the board of directors in a resolution made under paragraph (1)(a).Declaration conclusiveA declaration in a resolution authorizing the issuance of securities that it is necessary to issue securities in the principal amount authorized in order to realize the net amount authorized is conclusive evidence of that fact.Sale priceThe board of directors may sell securities at their par value or at other than par value.DelegationThe board of directors may delegate its powers under this section to a committee of directors and officers of the Authority, subject to any limitations that the board of directors may impose.Application to become borrowing memberA first nation may apply to the Authority to become a borrowing member.CriteriaThe Authority shall accept a first nation as a borrowing member only if the First Nations Financial Management Board has issued to the first nation a certificate under subsection 50(3) and has not subsequently revoked it.Ceasing to be a borrowing memberA first nation may cease to be a borrowing member only with the consent of all other borrowing members.PriorityThe Authority has a priority over all other creditors of a first nation that is insolvent, for any moneys that are authorized to be paid to the Authority under a law made under paragraph 5(1)(b) or (d).Debts to the CrownFor greater certainty, subsection (1) does not apply to Her Majesty.Limitations — infrastructure loansThe Authority shall not make a long-term loan to a borrowing member for the purpose of financing capital infrastructure for the provision of local services on reserve lands unlessthe First Nations Tax Commission has approved a law made by the borrowing member under paragraph 5(1)(d); andthe loan is to be paid out of the property tax revenues of the borrowing member in priority to other creditors of the borrowing member.Restriction on financingA borrowing member shall not obtain long-term financing secured by property tax revenues from any person other than the First Nations Finance Authority.Limitations — short-term loansThe Authority shall not make a short-term loan to a borrowing member for a purpose described in subparagraph 74(a)(iii) unless the loan is made in anticipation of local revenues of the borrowing member set out in a law made under paragraph 5(1)(b).Sinking fundThe Authority shall establish a sinking fund, or any other system of repayment prescribed by regulation, to fulfil its repayment obligations to the holders of each security issued by the Authority.Separate accountsWhere a sinking fund is established, a separate sinking fund account shall be kept for each borrowing member participating in a security issued by the Authority.Sinking fund investmentsFunds in a sinking fund may be invested only insecurities issued or guaranteed by Canada or a province;securities of a local, municipal or regional government in Canada;investments guaranteed by a bank, trust company or credit union; ordeposits in a bank or trust company in Canada or non-equity or membership shares in a credit union.SurplusesThe Authority may declare a surplus in a sinking fund and use the surplus, in order of priority, toreplenish any amounts paid out of the debt reserve fund; andmake a distribution to borrowing members who are participating in that fund.Recovery from sinking fundThe Authority may recover fees payable by a borrowing member from any surplus to be distributed to that member under paragraph (1)(b).Debt reserve fundThe Authority shall establish a debt reserve fund to make payments or sinking fund contributions for which insufficient moneys are available from borrowing members.Provisioning of fundSubject to the regulations, the Authority shall withhold 5% of the amount of any long-term loan to a borrowing member for financing capital infrastructure for the provision of local services on reserve lands and deposit that amount in the debt reserve fund.Separate accountA separate account shall be kept for each security issued and for each borrowing member contributing to the debt reserve fund.InvestmentsThe funds of the debt reserve fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.Liability for shortfallIf payments from the debt reserve fund reduce its balanceby less than 50% of the total amount contributed by borrowing members, the Authority may, in accordance with the regulations, require all borrowing members to pay amounts sufficient to replenish the debt reserve fund; andby 50% or more of the total amount contributed by borrowing members,the Authority shall, in accordance with the regulations, require all borrowing members to pay without delay amounts sufficient to replenish the debt reserve fund, andthe borrowing members shall recover those amounts under their property taxation laws.RepaymentMoney contributed by a borrowing member to the debt reserve fund and investment income received on it shall be repaid by the Authority to the borrowing member when all obligations in respect of the security in respect of which the money was contributed have been satisfied.Credit enhancement fundThe Authority shall establish a fund for the enhancement of the Authority’s credit rating.InvestmentsThe funds of the credit enhancement fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.Investment incomeInvestment income from the credit enhancement fund may be usedto temporarily offset any shortfalls in the debt reserve fund;to defray the Authority’s costs of operation; andfor any other purpose prescribed by regulation.CapitalThe capital of the credit enhancement fund may be usedto temporarily offset any shortfalls in the debt reserve fund; andfor any other purpose prescribed by regulation.Default by first nationIf a borrowing member fails to make a payment to the Authority, to fulfil any other obligation under a borrowing agreement with the Authority or to pay a charge imposed by the Authority under this Part, the Authority shallnotify the borrowing member of the failure; andsend a notice of the failure to the First Nations Financial Management Board and the First Nations Tax Commission, together with evidence of the failure and a copy of any relevant documents and records.Requirement for reportIf a failure referred to in subsection (1) relates to an obligation other than payment, the Authority may require that the First Nations Financial Management Board review and report on the reasons for the failure.ReportOn receipt of a notice referred to in paragraph (1)(b) in respect of a failure related to an obligation other than payment, the First Nations Financial Management Board shall advise the Authority in writing of its opinion on the reasons for the failure and recommend any intervention under section 52 or 53 that it considers appropriate.Required interventionThe Authority may, by notice in writing, require the First Nations Financial Management Board to either — at the Board’s discretion — impose a co-management arrangement on a borrowing member or assume third-party management of the first nation’s local revenueswhere the borrowing member fails to make a payment to the Authority under a borrowing agreement with the Authority, or to pay a charge imposed by the Authority under this Part; oron receipt of a report of the Board under subsection (3) in respect of the borrowing member.Short-term pooled investment fundsThe Authority may establish short-term pooled investment funds.InvestmentsFunds in a short-term pooled investment fund may be invested only insecurities issued or guaranteed by Canada, a province or the United States;fixed-term deposits, notes, certificates or other short-term paper of, or guaranteed by, a bank, trust company or credit union, including swaps in United States currency;securities issued by the Authority or by a local, municipal or regional government in Canada;commercial paper issued by a Canadian company that is rated in the highest category by at least two recognized security-rating institutions;any class of investments permitted under an Act of a province relating to trustees; orany other investments or class of investments prescribed by regulation.GeneralAnnual reportThe Chairperson shall, within four months after the end of each fiscal year, submit to the Authority’s members and the Minister a report of the operations of the Authority for that fiscal year.ContentsThe annual report shall include the financial statements of the Authority and its auditor’s opinion on them.RegulationsRegulationsThe Governor in Council may, on the recommendation of the Minister after consultation by the Minister with the Authority, make regulationsprescribing anything that is to be prescribed under subsection 82(1) and paragraphs 85(3)(c) and (4)(b) and 87(2)(f);increasing or decreasing the amount to be withheld from a loan under subsection 84(2);respecting the imposition of charges under subsection 84(5), including the manner of calculating those charges and the share of those charges to be paid by each borrowing member; andextending the application of this Part to any non-profit organization established to provide social welfare, housing, recreational or cultural services to first nations or their members on reserve lands and making any adaptations to the provisions of this Act that are necessary for that purpose.[Repealed, 2012, c. 19, s. 660][Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous Version[Repealed, 2012, c. 19, s. 660]Previous VersionFINANCIAL MANAGEMENT AND CONTROLDefinitionsThe following definitions apply in this Part.board of directorsconseil d’administrationboard of directors includesin respect of the First Nations Tax Commission, the commissioners referred to in section 17; andin respect of the First Nations Financial Management Board, the directors referred to in section 38.institutioninstitutioninstitution means the First Nations Tax Commission or the First Nations Financial Management Board.Exclusion from federal public administrationThe officers and employees of an institution are not part of the federal public administration.No guaranteesNo person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of an institution.
2005, c. 9, ss. 115, 154(E).
Previous VersionFinancial yearThe financial year of each institution is the period from April 1 to March 31, unless otherwise prescribed by regulation.Expenditure of revenuesSubject to any terms and conditions that the Treasury Board may direct, for the purposes of the institution, an institution may expend, during a financial year or the following year, any revenues that it receives in that financial year through the conduct of its operations.Corporate plansEach institution shall, in accordance with any directions given by the Minister, establish a corporate plan and budget for each financial year and submit them to the Minister for approval.Scope and contents of corporate planThe corporate plan of each institution shall encompass all of the businesses and activities of the institution and include a statement ofthe objects or purposes of the institution;the institution’s objectives for the financial year and the strategy it intends to employ to achieve those objectives; andthe institution’s expected performance for the financial year as compared to its objectives for that year as set out in the last corporate plan.Contents of budgetThe budget of each institution must include a statement of the institution’s projected revenues and expenses for the financial year on account of capital and operations.Form of corporate planThe corporate plan of each institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.Restriction on business or activityNo institution may carry on any business or activity in any financial year in a manner that is not consistent with its corporate plan for that year.AmendmentAny amendment by an institution to its corporate plan or budget shall be submitted to the Minister for approval.Books and systemsEach institution shallkeep books of account and records in relation to them; andmaintain financial and management control and information systems.Books and systemsThe books, records and systems referred to in subsection (1) shall be kept and maintained in such a manner as will provide reasonable assurance thatthe institution’s assets are safeguarded and controlled;its transactions are in accordance with this Act;its financial, human and physical resources are managed economically and efficiently; andits operations are carried out effectively.Internal auditAn institution may cause internal audits to be conducted to assess compliance with subsections (1) and (2).Financial statementsEach institution shall annually prepare financial statements, in accordance with generally accepted accounting principles, as supplemented by any directions given by the Minister under subsection (6).Form of financial statementsThe financial statements of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.DirectionsThe Minister may give directions respecting the preparation of financial statements, to supplement generally accepted accounting principles.Annual auditor’s reportEach institution shall cause an annual auditor’s report to be prepared in accordance with any directions of the Minister, onits financial statements; andany quantitative information required to be audited under subsection (3).ContentsA report under subsection (1) shallinclude separate statements as to whether in the auditor’s opinionthe financial statements are presented fairly, in accordance with generally accepted accounting principles, applied on a basis consistent with that of the preceding year,the quantitative information is accurate in all material respects and, if applicable, was prepared on a basis consistent with that of the preceding year, andthe transactions of the institution that have come to the auditor’s notice in the course of his or her examination for the report were carried out in accordance with this Act; andcall attention to any other matter falling within the scope of the auditor’s examination for the report that, in his or her opinion, should be brought to the attention of the institution or the Minister.Audit of quantitative informationThe Minister may require that any quantitative information required to be included in an institution’s annual report pursuant to paragraph (2)(a) be audited.Presentation to MinisterEach institution shall submit its audited financial statements to the Minister at least 30 days before the day of its annual meeting.Special examinationEach institution shall, at least once every five years and at any other time required by its board of directors or by the Minister, cause a special examination to be carried out in respect of its operations to determine if the books, records, systems and practices referred to in section 119 were, in the period under examination, maintained in a manner that met the requirements of that section.PlanBefore commencing a special examination, an examiner shall survey the systems and practices of the institution to be examined and submit a plan for the examination, including a statement of the criteria to be applied in the examination, to the audit committee of the institution.Resolution of disagreementsAny disagreement between the examiner and the audit committee or board of directors of an institution with respect to a plan referred to in subsection (2) shall be resolved by the Minister.Reliance on internal auditAn examiner shall, as far as is practicable, rely on any internal audit conducted pursuant to subsection 119(3) in respect of the institution being examined.ReportAn examiner shall, on completion of a special examination in respect of an institution, submit a report on his or her findings, and a summary of that report, to the Minister and to the board of directors of the institution.ContentsThe report of an examiner shall includea statement whether in the examiner’s opinion, having regard to the criteria referred to in subsection 119(2), there is a reasonable assurance that there are no significant deficiencies in the systems and practices examined; anda statement of the extent to which the examiner relied on internal audits.Posting of reportAn institution shall, as soon as possible after receipt of an examiner’s report, post a summary of the report on an Internet website maintained by the institution.ExaminerSubject to subsection (2), a special examination shall be carried out by the auditor of the institution.Other auditorIf, in the opinion of the Minister, a person other than the auditor of an institution should carry out a special examination in respect of the institution, the Minister may, after consulting with the board of directors of the institution, direct that the examination be carried out by another auditor who is qualified for the purpose.Consultation with Auditor GeneralThe auditor or examiner of an institution may at any time consult the Auditor General of Canada on any matter relating to an audit or special examination.Right to informationAt the request of the auditor or examiner of an institution, the present or former commissioners, directors, officers, employees or agents of the institution shall provide any information and explanations, and give access to any records, documents, books, accounts and vouchers of the institution that are under their control, that the auditor or examiner considers necessary to prepare a report required under this Act.Obligation to informIf a commissioner or director of an institution does not have information or an explanation requested by an auditor or examiner under subsection (1), the commissioner or director shall obtain the information or explanation and provide it to the auditor or examiner.RestrictionNothing in this Part or in any directions of the Minister shall be construed as authorizing the auditor or examiner of an institution to express any opinion on the merits of matters of policy, including the merits ofthe objects or purposes for which the institution was established or the restrictions on the businesses or activities that it may carry on, as set out in this Act; orany business or policy decision of the institution.Qualified privilegeAn oral or written statement or report made under this Part by an auditor or examiner has qualified privilege.Audit committeeEach institution shall establish an audit committee composed of not less than three commissioners or directors who are not officers of the institution and who are competent to perform the duties set out in subsection (2).DutiesAn audit committee shallreview, and advise the board of directors in respect of, the financial statements that are to be included in the annual report of the institution;oversee any internal audit of the institution;review, and advise the board of directors in respect of, the annual auditor’s report in respect of the institution;review, and advise the board of directors in respect of, any plan and report of a special examiner; andperform any other functions that are assigned to it by the board of directors of the institution.Auditor’s or examiner’s attendanceAn auditor and any examiner of an institution are entitled to receive notice of every meeting of the audit committee and, at the expense of the institution, to attend and be heard at each meeting.Required attendanceThe auditor or examiner of an institution shall attend any meeting of the institution’s audit committee at which he or she is requested to attend by a member of that committee.Calling meetingThe auditor or examiner of an institution or a member of the institution’s audit committee may call a meeting of that committee.Disclosure of material developmentsThe chief executive officer of an institution shall, as soon as reasonably practicable, notify the Minister and any commissioner or director of the institution not already aware of them of any financial or other developments that, in the chief executive officer’s opinion, are likely to have a material effect on the performance of the institution, relative to its objectives or requirements for funding.Annual reportEach institution shall, within four months after the end of each financial year, submit to the Minister an annual report on the operations of the institution in that year.Form and contentsThe annual report of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution and shall includethe financial statements of the institution;the annual auditor’s report;a statement on the extent to which the institution has met its objectives for the financial year;any quantitative information respecting the performance of the institution that the Minister may require to be included; andany other information that is required under this Act or any other Act of Parliament.Annual meetingThe board of directors of an institution shall call an annual meeting not later than 18 months after the institution is established and subsequently not later than 15 months after the preceding annual meeting.Notice of meetingAn institution shall, at least 30 days before the annual meeting, publish a notice in a major newspaper setting out the time and location of the meeting and specifying that the institution’s annual report may be accessed on an Internet website to be maintained by the institution.Availability to publicAt the annual meeting, the board of directors shall ensure thatthere are available a sufficient number of copies of the institution’s most recent annual report for those present at the meeting; andthe chief executive officer and the commissioners or directors of the institution are available to those present at the meeting to answer any questions about the institution’s operations.PROVISIONS OF GENERAL APPLICATIONGeneralConflict of interestNo person who is appointed to, or is employed by, a commission, board or authority established under this Act shall be appointed to, or be employed by, any other commission, board or authority established under this Act.Conflict of interestNo person referred to in subsection (1) shall accept or hold any office or employment that is inconsistent with that person’s duties or take part in any matter involving the commission, board or authority in which that person has an interest.Conflict of interestAll persons appointed to a commission or board established under this Act shall comply with the Conflict of Interest Act as though they were public office holders as defined in that Act.
2005, c. 9, s. 132;
2006, c. 9, s. 8;
2012, c. 19, s. 661.
Previous VersionLiability of Her MajestyNo person has a right to receive any compensation, damages, indemnity or other relief from Her Majesty in right of Canada in respect of any claim against the First Nations Tax Commission, First Nations Financial Management Board or First Nations Finance Authority arising from its exercise of, or its failure to exercise, any of the powers or functions of that Commission, Board or Authority, as the case may be, including any claim against the First Nations Tax Commission as an agent of Her Majesty in right of Canada.Insurance requiredThe First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority shall maintain in good standing at all times the insurance coverage required by any regulations made under paragraph 140(b).
2005, c. 9, s. 133;
2012, c. 19, s. 662.
Previous VersionNo appropriationNo payment to the First Nations Tax Commission, First Nations Financial Management Board or First Nations Finance Authority may be made under an appropriation by Parliament authorized under an Act of Parliament to enable the Commission, Board or Authority to satisfy any claim referred to in subsection 133(1).
2005, c. 9, s. 134;
2012, c. 19, s. 662.
Previous VersionNo compensationNo person has a right to receive any compensation, damages, indemnity or other relief from Her Majesty in right of Canada, or from the First Nations Tax Commission, for any acquired, vested or future right, or for any prospect of such a right, that is affected by a law approved by the First Nations Tax Commission under subsection 31(3), or for any duty or liability imposed on that person as a result of such a law.Limit of liabilityNo civil proceedings lie against a commissioner or employee of the First Nations Tax Commission, or any director or employee of the First Nations Financial Management Board, for anything done, or omitted to be done, in the exercise or purported exercise in good faith of any power, or in the performance or purported performance in good faith of any duty, of that person in accordance with this Act.
2005, c. 9, s. 136;
2012, c. 19, s. 663.
Previous VersionLimit of liabilityNo civil proceedings lie against a member of a council or an employee of a first nation for anything done, or omitted to be done, during the course of the exercise or purported exercise in good faith of any power, or the performance or purported performance in good faith of any duty, of that member or employee in accordance with this Act, regulations made under this Act or a law made by the council of a first nation under this Act.Conflict with other lawsIn the event of a conflict between a local revenue law and an Act of Parliament or any regulations made under an Act of Parliament or a code made by a first nation under another Act of Parliament, the Act, regulations or code prevails to the extent of the conflict.Conflict with other first nation lawsIn the event of a conflict between a law made by a first nation under this Act and a law, other than a code, made by the first nation under another Act of Parliament, the law made by the first nation under this Act prevails to the extent of the conflict.Official languagesFor greater certainty, the provisions of the Official Languages Act applicable to federal institutions apply to the First Nations Tax Commission.Official languagesWhere there is a significant demand for services in a particular official language, the First Nations Financial Management Board and First Nations Finance Authority shall offer services in that language.
2005, c. 9, s. 139;
2012, c. 19, s. 664.
Previous VersionRegulationsRegulationsThe Governor in Council may make regulationsprescribing anything that is to be prescribed under subsection 20(3) or 41(2) or section 116; andprescribing the insurance coverage required to be maintained by the First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority in respect of liabilities referred to in subsection 133(1).
2005, c. 9, s. 140;
2012, c. 19, s. 665.
Previous VersionRegulationsFor the purpose of enabling an aboriginal group that is not a band as defined in subsection 2(1) of the Indian Act but is a party to a treaty, land claims agreement or self-government agreement with Canada to benefit from the provisions of this Act or obtain the services of any body established under this Act, the Governor in Council may make any regulations that the Governor in Council considers necessary, including regulationsadapting any provision of this Act or of any regulation made under this Act; andrestricting the application of any provision of this Act or of any regulation made under this Act.RegulationsThe Governor in Council may make regulationsprescribing anything that is to be prescribed for the purposes of paragraph 74(b); andadapting or restricting any provision of this Act or of any regulation made under this Act for the purposes of paragraph 74(b).TRANSITIONAL PROVISIONS, CONSEQUENTIAL AMENDMENTS, COORDINATING AMENDMENTS AND COMING INTO FORCETransitional ProvisionsITAB employeesPersons who are employed by the Indian Taxation Advisory Board at the time that the First Nations Tax Commission is established shall be offered employment with the Commission, at the same salary and with equivalent terms and conditions of employment.Interim rules of procedureUntil new rules are established by the First Nations Tax Commission, the Commission shall conduct itself in accordance with the rules of procedure established by the Indian Taxation Advisory Board.Continuation of directorsPersons who are directors of the First Nations Finance Authority Inc., a corporation incorporated under the Canada Business Corporations Act, on the day on which section 58 comes into force shall continue as directors of the First Nations Finance Authority until new directors are elected.Continuation of existing by-lawsBy-laws made by a first nation under paragraph 83(1)(a), or any of paragraphs 83(1)(d) to (g), of the Indian Act that are in force on the day on which the name of the first nation is added to the schedule are deemed to be laws made under section 5 or 9, as the case may be, to the extent that they are not inconsistent with section 5 or 9, and remain in force until they are repealed or replaced.Amendment of existing by-lawsFor greater certainty, subsections 5(2) to (7) apply to amendments of by-laws referred to in subsection (1).Review and evaluationWithin seven years after the day on which this Act receives royal assent, the Minister, after consultation with the First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority, shall review the provisions and operation of this Act and the operations of those institutions, and submit a report to each House of Parliament on that review, including any changes that the Minister recommends relating to the evolution of the mandate and the operation of those institutions.
2005, c. 9, s. 146;
2012, c. 19, s. 666.
Previous VersionConsequential AmendmentsAccess to Information Act[Amendment][Amendment]Financial Administration Act[Amendment]Indian Act[Amendment][Amendment]Privacy Act[Amendment]Westbank First Nation Self-Government Act[Amendment]Coordinating Amendments[Amendments]Coming into ForceOrder in councilThe provisions of this Act, other than section 154, come into force on a day or days to be fixed by order of the Governor in Council.[Note: Section 154 in force on assent March 23, 2005; Act, other than section 154, in force April 1, 2006, see SI/2006-59.](Subsections 2(1) and (3))Adams Lake Indian BandAitchelitz First Nation?Akisq’nuk First NationBeaver Lake Cree NationBingwi Neyaashi AnishinaabekBrokenhead Ojibway NationBuffalo Point First NationCampbell River Indian BandChawathil First NationCheamChippewas of Georgina Island First NationChippewas of the Thames First NationColdwater Indian BandConseil de la Première Nation AbitibiwinniConseil des Montagnais du Lac Saint-JeanCowichan Tribes First NationCross Lake First NationDouglasElsipogtog First NationGeorge Gordon First NationGitga’at First NationGitsegukla First NationGitwangak First NationIndian Island First NationKahkewistahaw First NationKitselas First NationK’ómoks First NationKwadachaKwaw-Kwaw-Apilt First NationLax Kw’alaamsLeq’á:mel First NationLheidli T’ennehLower Kootenay Indian BandLower Nicola Indian BandMadawaska Maliseet First NationMatsqui First NationMembertou First NationMetepenagiag Mi’kmaq NationMetlakatla First NationMillbrook BandMoricetown Indian BandMosquito, Grizzly Bear’s Head, Lean Man First NationsMount CurrieMunsee-Delaware First NationMuskeg Lake Cree NationMuskoday First NationNadleh Whut’en BandNanoose First NationNeskonlith Indian BandNipissing First NationObashkaandagaangOnion Lake Cree NationOromoctoOsoyoos Indian BandPeepeekisis Cree Nation No. 81Popkum First NationSaulteaux First NationSeabird Island BandSerpent River First NationShackan First NationShuswap First NationShxwhá:y Village First NationShxw’ow’hamel First NationSiksika NationSimpcw First NationSkawahlook First NationSkeetchestn Indian BandSkidegate First NationSkowkale First NationSliammon First NationSonghees First NationSplatsin First NationSquamish NationSquiala First NationSt. Mary’s First NationSts’ailesStz’uminus First NationSumas First NationTaku River Tlingit First NationThunderchild First NationTimiskaming First NationTk’emlúps te SecwépemcTla-o-qui-aht First NationsTobacco Plains Indian BandTobique First NationTsartlip First NationTsawout First NationTseycum First NationTsleil-Waututh NationT’Sou-ke First NationTzeachten First NationUpper Nicola Indian BandWasauksing First NationWe Wai Kai NationWhispering Pines/Clinton Indian BandWhite Bear First NationWhitecap Dakota First NationYakweakwioose First NationYellow Quill Band
2005, c. 9, Sch.;
SOR/2007-276, s. 1;
SOR/2008-264;
SOR/2009-25, 284;
SOR/2010-183, 254;
SOR/2011-27, 211, 290;
SOR/2012-30, 122, 273;
SOR/2013-59.
Previous VersionRELATED PROVISIONS
— 2012, c. 19, s. 667DefinitionIn sections 668 to 673, Institute means the First Nations Statistical Institute.
— 2012, c. 19, s. 668Appointments terminatedDirectors of the Institute, including the Chairperson and Vice-Chairperson, cease to hold office on the coming into force of this subsection.No compensationDespite the provisions of any contract, agreement or order, no person appointed to hold office as a director of the Institute, including as the Chairperson or Vice-Chairperson, has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office by the operation of this Division.
— 2012, c. 19, s. 669ReferencesEvery reference to the Institute in a deed, contract or other document executed by the Institute in its own name is to be read, unless the context otherwise requires, as a reference to Her Majesty in right of Canada.
— 2012, c. 19, s. 670Minister authorizedThe Minister of Indian Affairs and Northern Development is authorized to sell or otherwise dispose of all of the Institute’s assets and to do everything necessary for or incidental to closing out the Institute’s affairs.
— 2012, c. 19, s. 671SurplusAny surplus that remains after the satisfaction of the Institute’s debts and liabilities and the winding-up charges, costs and expenses belongs to Her Majesty in right of Canada.Unsatisfied debts and liabilitiesAny of the Institute’s debts and liabilities that remain unsatisfied on the day on which the Institute is dissolved become the debts and liabilities of Her Majesty in right of Canada.ExceptionDespite subsection (2), Her Majesty in right of Canada is not liable in respect of any claim against the Institute arising from its exercise of, or its failure to exercise, any of its powers or functions.
— 2012, c. 19, s. 672Commencement of legal proceedingsAny action, suit or other legal proceeding in respect of an obligation or liability incurred by the Minister of Indian Affairs and Northern Development in closing out the Institute’s affairs may be brought against Her Majesty in right of Canada in any court that would have had jurisdiction if the action, suit or other legal proceeding had been brought against the Institute.Continuation of legal proceedingsAny action, suit or other legal proceeding to which the Institute is a party — other than an action, suit or legal proceeding in respect of any claim against the Institute arising from its exercise of, or failure to exercise, any of its powers or functions — that is pending in a court on the coming into force of this subsection may be continued by or against Her Majesty in right of Canada in the same manner and to the same extent as it could have been continued by or against the Institute.
— 2012, c. 19, s. 673Limit of liabilityNo civil proceedings lie against a former director or employee of the Institute for anything done, or omitted to be done, in the exercise or purported exercise in good faith of any power, or in the performance or purported performance in good faith of any duty, of that person in accordance with the First Nations Fiscal Management Act, as that Act read immediately before the coming into force of section 660.AMENDMENTS NOT IN FORCE
— 2009, c. 23, s. 354On the day on which paragraph 313(a) comes into force, subsection 66(1) of the First Nations Fiscal and Statistical Management Act is replaced by the following:Canada Not-for-profit Corporations ActThe Canada Not-for-profit Corporations Act does not apply to the Authority.