SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Budget Implementation Act, 2005.

PART 1AMENDMENTS IN RESPECT OF INCOME TAX

R.S., c. 1 (5th Supp.)Income Tax Act

• 2. (1) Section 37 of the Income Tax Act is amended by adding the following after subsection (1.2):

  • Marginal note:SR&ED in the exclusive economic zone

    (1.3) For the purposes of this section and section 127 of this Act and Part XXIX of the Income Tax Regulations, an expenditure is deemed to have been made by a taxpayer in Canada if the expenditure is

    • (a) made by the taxpayer in the course of a business carried on by the taxpayer in Canada; and

    • (b) made for the prosecution of scientific research and experimental development in the exclusive economic zone of Canada, within the meaning of the Oceans Act, or in the airspace above that zone or the seabed or subsoil below that zone.

• (2) Subsection (1) applies to expenditures made after February 22, 2005.

• 3. (1) The portion of subsection 86.1(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Eligible distribution

    (2) For the purpose of this section, a distribution by a particular corporation that is received by a taxpayer is an eligible distribution if

• (2) The portion of paragraph 86.1(2)(f) of the Act before subparagraph (i) is replaced by the following:

  • (f) the taxpayer elects in writing filed with the taxpayer’s return of income for the taxation year in which the distribution occurs that this section apply to the distribution and provides information satisfactory to the Minister

• (3) Subsections (1) and (2) apply to distributions received after 2004.

• 4. (1) The portion of paragraph 107.4(3)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) the transferee trust’s cost of the property is deemed to be the amount, if any, by which

• (2) Paragraph 107.4(3)(c) of the Act is repealed.

• (3) Subsections (1) and (2) apply to dispositions that occur after 2004.

5. Subsection 118(3.1) of the Act is replaced by the following:

6. For the purpose of applying section 118.1 of the Act, a gift made by an individual after 2004 and before January 12, 2005 is deemed to have been made by the individual in the individual’s 2004 taxation year and not in the individual’s 2005 taxation year if

• (a) the individual claims an amount under subsection 118.1(3) of the Act in respect of the gift for the individual’s 2004 taxation year;

• (b) the gift was made to a registered charity listed under the International Humanitarian Assistance program of the Canadian International Development Agency;

• (c) the individual directed the charity to apply the gift to the tsunami relief effort; and

• (d) the gift was in the form of cash or was transferred by way of cheque, credit card or money order.

• 7. (1) Paragraph (a) of the description of A in subsection 122.51(2) of the Act is replaced by the following:

  • (a) $750, and

• (2) Subsection (1) applies to the 2005 and subsequent taxation years.

• 8. (1) The portion of the description of N in the description of M in subsection 122.61(1) of the Act before paragraph (a) is replaced by the following:

  N

  is the product obtained by multiplying $2,000 by the number of qualified dependants in respect of whom both

• (2) Subsection (1) applies in respect of overpayments deemed to arise during months that are after June 2005.

• 9.  Section 123.2 of the Act is replaced by the following:

  Marginal note:Corporation surtax

  • 123.2 (1) There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation an amount equal to the corporation’s specified percentage for the taxation year multiplied by the amount, if any, by which

    • (a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.3, 123.4 and 125 to 126 and subsections 127(3), (5), (27) to (31), (34) and (35) and 137(3) and as if subsection 124(1) did not contain the words “in a province”

    exceeds

    • (b) in the case of a corporation that was throughout the year an investment corporation or a mutual fund corporation, the amount determined for A in the definition “refundable capital gains tax on hand” in subsection 131(6) in respect of the corporation for the year, and

    • (c) in any other case, nil.

  • Marginal note:Specified percentage

    (2) The specified percentage of a corporation for a taxation year is

    • (a) if the taxable capital employed in Canada of the corporation for the taxation year is equal to or less than $50,000,000, that pro- portion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year; and

    • (b) if paragraph (a) does not apply, the percentage determined by the formula

      A + B[(C - $50,000,000)/$25,000,000]

      where

      A

      is that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,

      B

      is that proportion of 4% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year; and

      C

      is the lesser of $75,000,000 and the taxable capital employed in Canada of the corporation for the taxation year.

  • Marginal note:Taxable income

    (3) For the purpose of subsection (2), the taxable capital employed in Canada of a corporation for a particular taxation year is

    • (a) if the corporation is associated with one or more other corporations in the particular taxation year, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation, or of such an associated corporation, for its last taxation year that ended in the calendar year preceding the calendar year in which the particular taxation year ends; and

    • (b) if the corporation is not associated with one or more other corporations in the particular taxation year, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the particular taxation year.

• 10. (1) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:

  “specified plan”

  « régime déterminé »

  “specified plan” means an education savings plan

  • (a) that does not allow more than one beneficiary under the plan at any one time,

  • (b) under which the beneficiary is an individual in respect of whom paragraphs 118.3(1)(a) to (b) apply for the beneficiary’s taxation year that ends in the 21st year following the year in which the plan was entered into, and

  • (c) that provides that, at all times after the end of the 25th year following the year in which the plan was entered into, no other individual may be designated as a beneficiary under the plan;

• (2) Clause 146.1(2)(d.1)(iii)(B) of the Act is replaced by the following:

  • (B) the payment is made in the year in which the plan is required to be terminated in accordance with paragraph (i), or

• (3) Paragraphs 146.1(2)(h) and (i) of the Act are replaced by the following:

  • (h) the plan provides that no contribution (other than a contribution made by way of a transfer from another registered education savings plan) may be made into the plan after

    • (i) in the case of a specified plan, the 25th year following the year in which the plan was entered into, and

    • (ii) in any other case, the 21st year following the year in which the plan was entered into;

  • (i) the plan provides that it must be terminated on or before the last day of

    • (i) in the case of a specified plan, the 30th year following the year in which the plan was entered into, and

    • (ii) in any other case, the 25th year following the year in which the plan was entered into;

• (4) The portion of paragraph 146.1(6.1)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) for the purposes of this paragraph, the definition “specified plan” in subsection (1) and paragraphs (2)(d.1), (h) and (i), the transferee plan is deemed to have been entered into on the day that is the earlier of

• (5) Subsections (1) to (4) apply to the 2005 and subsequent taxation years.

• 11. (1) Paragraph (k) of the definition “money purchase limit” in subsection 147.1(1) of the Act is replaced by the following:

  • (k) for 2006, the greater of $19,000 and the former limit for the year,

  • (l) for 2007, the greater of $20,000 and the former limit for the year,

  • (m) for 2008, the greater of $21,000 and the former limit for the year,

  • (n) for 2009, the greater of $22,000 and the former limit for the year, and

  • (o) for each year after 2009, the greater of

    • (i) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of

      • (A) the money purchase limit for 2009, and

      • (B) the quotient obtained when the average wage for the year is divided by the average wage for 2009, and

    • (ii) the money purchase limit for the preceding year;

• (2) Subsection 147.1(1) of the Act is amended by adding the following in alphabetical order:

  “former limit”

  « ancien plafond »

  “former limit” for each calendar year after 2005 and before 2010 means the greater of

  • (a) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of

    • (i) $18,000, and

    • (ii) the quotient obtained when the average wage for the year is divided by the average wage for 2005, and

  • (b ) for 2006, $18,000, and for any other of those calendar years, the former limit for the preceding calendar year;

• (3) Subsections (1) and (2) apply after 2004.

• 12. (1) Clauses 204.4(2)(a)(i)(A) and (B) of the Act are replaced by the following:

  • (A) not fewer than 20 beneficiaries are taxpayers described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s), or

  • (B) not fewer than 100 beneficiaries are taxpayers described in paragraph 149(1)(r) or (x),

• (2) Subparagraphs 204.4(2)(a)(vi) and (vii) of the Act are replaced by the following:

  • (vi) the total value of all interests in the applicant owned by all trusts or corporations described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s) to which any one employer, either alone or together with persons with whom the employer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property,

  • (vii) the total value of all interests in the applicant owned by all trusts described in paragraph 149(1)(r) or (x) to which any one taxpayer, either alone or together with persons with whom the taxpayer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property, and

• (3) Subsection 204.4(4) of the Act is replaced by the following:

  • Marginal note:Suspension of revocation

    (4) Notwithstanding a notification to a taxpayer under subsection (3), for the purposes of sections 204.6 and 204.7, the taxpayer is deemed to be a registered investment for each month or part of a month after the notification during which an interest in, or a share of the capital stock of, the taxpayer continues, by virtue of having been a registered investment, to be a qualified investment for a plan or fund referred to in subsection (1).

• (4) Subsections (1) to (3) apply to taxation years that begin after 2004.

• 13. (1) Clause (b)(iii)(A) of the definition “eligible investment” in subsection 204.8(1) of the Act is replaced by the following:

  • (A) a debt obligation, issued by the entity, that is prescribed to be a small business security, or

• (2) Subsection (1) applies to taxation years that begin after 2004.

• 14. (1) Part XI of the Act is repealed.

• (2) Subsection (1) applies to months that end after 2004.

• 15. (1) The heading of Part X1.1 of the Act is replaced by the following:

  TAX IN RESPECT OF DEFERRED INCOME PLANS AND OTHER TAX EXEMPT PERSONS

• (2) Subsection (1) applies to months that end after 2004.

• 16. (1) Section 207.1 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Tax payable in respect of agreement to acquire shares

    (5) Where at any time a taxpayer whose taxable income is exempt from tax under Part I makes an agreement (otherwise than as a consequence of the acquisition or writing by it of an option listed on a prescribed stock exchange) to acquire a share of the capital stock of a corporation (otherwise than from the corporation) at a price that may differ from the fair market value of the share at the time the share may be acquired, the taxpayer shall, in respect of each month during which the taxpayer is a party to the agreement, pay a tax under this Part equal to the total of all amounts each of which is the amount, if any, by which the amount of a dividend paid on the share at a time in the month at which the taxpayer is a party to the agreement exceeds the amount, if any, of the dividend that is received by the taxpayer.

• (2) Subsection (1) applies to months that end after 2004.

• 17. (1) The definition “automobile” in subsection 248(1) of the Act is amended by adding the following after paragraph (b.1):

  • (b.2) a clearly marked emergency medical response vehicle that is used, in connection with or in the course of an individual’s office or employment with an emergency medical response or ambulance service, to carry emergency medical equipment together with one or more emergency medical attendants or paramedics,

• (2) Paragraph (c) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following:

  • (c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by paragraph (f) or (k), and

• (3) Paragraph (g) of the definition “disposition” in subsection 248(1) of the Act is repealed.

• (4) Subsection (1) applies to the 2005 and subsequent taxation years.

• (5) Subsections (2) and (3) apply to dispositions that occur after 2004.

• 18. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Proportional holdings in trust property

  • 259. (1) For the purposes of subsections 146(6), (10) and (10.1) and 146.3(7), (8) and (9) and Parts X, X.2 and XI.1, if at any time a taxpayer that is a registered investment or that is described in paragraph 149(1)(r), (s), (u) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

• (2) Paragraph 259(1)(c) of the Act is repealed.

• (3) Subsection 259(2) of the Act is repealed.

• (4) Subsections 259(3) and (4) of the Act are replaced by the following:

  • Marginal note:Election

    (3) An election by a qualified trust under subsection (1) shall be made by the qualified trust filing a prescribed form with the Minister and shall apply for the period

    • (a) that begins on the later of

      • (i) the day that is 15 months before the day on which the election is filed, and

      • (ii) the day, if any, that is designated by the qualified trust in the election; and

    • (b) that ends on the earlier of

      • (i) the day on which the qualified trust files with the Minister a notice of revocation of the election, and

      • (ii) the day, if any, that is designated by the qualified trust in the notice of revocation and that is not before the day that is 15 months before the day on which the notice of revocation is filed.

  • Marginal note:Requirement to provide information

    (4) Where a qualified trust elects under subsection (1),

    • (a) it shall provide notification of the election

      • (i) within 30 days after making the election, to each person who held a unit in the qualified trust at any time in the period before the election was made and during which the election is applicable, and

      • (ii) at the time of acquisition, to each person who acquires a unit in the qualified trust at any time in the period after the election was made and during which the election is applicable; and

    • (b) if a person who holds a unit in the qualified trust at any time in the period during which the election is applicable makes a written request to the qualified trust for information that is necessary for the purpose of determining the consequences under this Act of the election for that person, the qualified trust shall provide to the person that information within 30 days after receiving the request.

• (5) The definition “qualified corporation” in subsection 259(5) of the Act is repealed.

• (6) Subsections (1) to (5) apply to taxation years that begin after 2004.

R.S., c. 2 (5th Supp.)Income Tax Application Rules

• 19. (1) Section 65 of the Income Tax Application Rules is repealed.

• (2) Subsection (1) applies to months that end after 2004.

PART 2AMENDMENTS IN RESPECT OF THE AIR TRAVELLERS SECURITY CHARGE

2002, c. 9, s. 5Air Travellers Security Charge Act

Marginal note:2003, c. 15, s. 44(1)

• 20. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following:

  • (a) $4.67 for each chargeable emplanement included in the service, to a maximum of $9.35, if

• Marginal note:2003, c. 15, s. 44(1)

  (2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) $5.00 for each chargeable emplanement included in the service, to a maximum of $10.00, if

• Marginal note:2003, c. 15, s. 44(1)

  (3) The portion of paragraph 12(1)(c) of the Act before subparagraph (i) is replaced by the following:

  • (c) $7.94 for each chargeable emplanement included in the service, to a maximum of $15.89, if

• Marginal note:2003, c. 15, s. 44(1)

  (4) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following:

  • (d) $8.50 for each chargeable emplanement included in the service, to a maximum of $17.00, if

• Marginal note:2003, c. 15, s. 44(1)

  (5) Paragraph 12(1)(e) of the Act is replaced by the following:

  • (e) $17.00, if the service includes transportation to a destination outside the continental zone.

• (6) The portion of paragraph 12(2)(a) of the Act before subparagraph (i) is replaced by the following:

  • (a) $7.94 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $15.89, if

• (7) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) $8.50 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $17.00, if

• (8) Paragraph 12(2)(c) of the Act is replaced by the following:

  • (c) $17.00, if the service includes transportation to a destination outside the continental zone.

• (9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after that day.

Coordinating Amendment

Marginal note:Bill C-33

• 21. (1) Subsections (2) and (3) apply if Bill C-33, introduced in the 1st session of the 38th Parliament and entitled the Budget Implementation Act, 2004, No. 2 (the “other Act”), receives royal assent.

• (2) If the other Act receives royal assent on the same day as this Act, section 2 of the other Act is deemed to have come into force immediately before section 20 of this Act.

• (3) If the other Act receives royal assent after this Act, then, on the day on which the other Act is assented to, subsection 2(9) of the other Act is replaced by the following:

  • (9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after April 1, 2004 and for which any consideration is paid or becomes payable on or after April 1, 2004 but do not apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after March 1, 2005.

PART 3AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX

R.S., c. E-15Excise Tax Act

• 22. (1) The definition “selected public service body” in subsection 259(1) of the Excise Tax Act is amended by striking out the word “or” at the end of paragraph (d) and by adding the following after paragraph (e):

  • (f) a facility operator, or

  • (g) an external supplier;

• Marginal note:2004, c. 22, s. 39(1)

  (2) Paragraph (b) of the definition “specified percentage” in subsection 259(1) of the Act is replaced by the following:

  • (b) in the case of a hospital authority, a facility operator or an external supplier, 83%,

• (3) Subsection 259(1) of the Act is amended by adding the following in alphabetical order:

  “ancillary supply”

  « fourniture connexe »

  “ancillary supply” means

  • (a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or

  • (b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding;

  “external supplier”

  « fournisseur externe »

  “external supplier” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies;

  “facility operator”

  « exploitant d’établissement »

  “facility operator” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility;

  “facility supply”

  « fourniture en établissement »

  “facility supply” means an exempt supply (other than a prescribed supply) of property or a service in respect of which

  • (a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process

    • (i) is undertaken in whole or in part at the public hospital or qualifying facility,

    • (ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of

      • (A) a physician acting in the course of the practise of medicine,

      • (B) a midwife acting in the course of the practise of midwifery,

      • (C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or

      • (D) a prescribed person acting in prescribed circumstances, and

    • (iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that

      • (A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,

      • (B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,

      • (C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and

      • (D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and

  • (b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;

  “home medical supply”

  « fourniture de biens ou services médicaux à domicile »

  “home medical supply” means an exempt supply (other than a facility supply or a prescribed supply) of property or a service

  • (a) that is made

    • (i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and

    • (ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),

  • (b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,

  • (c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and

  • (d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;

  “medical funding”

  « subvention médicale »

  “medical funding” of a supplier in respect of a supply means an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by

  • (a) a government, or

  • (b) a person that is a charity, a public institution or a qualifying non-profit organization

    • (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and

    • (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;

  “midwife”

  « sage-femme »

  “midwife” means a person who is entitled under the laws of a province to practise the profession of midwifery;

  “physician”

  « médecin »

  “physician” means a person who is entitled under the laws of a province to practise the profession of medicine;

  “qualifying funding”

  « subvention admissible »

  “qualifying funding” of the operator of a facility for all or part of a fiscal year of the operator means a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by

  • (a) a government, or

  • (b) a person that is a charity, a public institution or a qualifying non-profit organization

    • (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and

    • (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;

  “specified activities”

  « activités déterminées »

  “specified activities” means activities referred to in any of clauses (4.1)(b)(iii)(B) to (D), other than the operation of a public hospital;

  “specified supply”

  « fourniture déterminée »

  “specified supply” of property of a person means

  • (a) a taxable supply made to the person at any time after December 31, 2004, of property that was owned on that day by the person or by another person who is related to the person at that time, or

  • (b) a taxable supply that the person is deemed under subsection 211(4) to have made after December 30, 2004, of property that was, on that day, owned by the person, or by another person who last supplied the property to the person by way of sale and who was related to the person on the day the supply by way of sale was made.

• (4) Section 259 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Qualifying facilities

    (2.1) For the purposes of this section, a facility, or part of a facility, other than a public hospital, is a qualifying facility for a fiscal year, or any part of a fiscal year, of the operator of the facility or part, if

    • (a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition “facility supply” in subsection (1) to “public hospital or qualifying facility” were references to the facility or part;

    • (b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and

    • (c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.

• Marginal note:2004, c. 22, s. 39(4)

  (5) Subparagraphs 259(4.1)(b)(i) to (iii) of the Act are replaced by the following:

  • (i) the reference in subsection (4) to “specified percentage” were read as a reference to “specified percentage appli­cable to a selected public service body described in whichever of paragraphs (a) to (g) of the definition of that expression in subsection (1) applies to the person minus 50%”,

  • (ii) the reference in subsection (4) to “specified provincial percentage” were read as a reference to the greater of “specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%” and “0%”,

  • (iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of C in subsection (4) to “designated activities” were read as a reference to

    • (A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority,

    • (B) in the case of a person acting in the person’s capacity as a hospital authority, activities engaged in by the person in the course of operating a public hospital, operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,

    • (C) in the case of a person acting in the person’s capacity as a facility operator, activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,

    • (D) in the case of a person acting in the person’s capacity as an external supplier, activities engaged in by the person in the course of making ancillary supplies, facility supplies or home medical supplies, or

    • (E) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, an elementary or secondary school or a post-secondary college or technical institute, as the case may be, and

  • (iv) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of F in subsection (4) to “designated activities” were read as a reference to

    • (A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority, or

    • (B) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a post-secondary college or technical institute, as the case may be.

• Marginal note:2004, c. 22, s. 39(4)

  (6) The portion of subsection 259(4.2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Exclusions

    (4.2) For the purposes of determining a rebate payable to a person, in determining an amount under paragraphs (3)(a) and (4)(a), or under paragraph (4.1)(a) if the applicable specified provincial percentage is 0% and the person is a selected public service body described in any of paragraphs (a) to (e) of the definition “selected public service body” in subsection (1) or in paragraph (f) or (g) of that definition if the person is resident in Newfoundland and Labrador, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included

• Marginal note:2000, c. 30, s. 76(6)

  (7) Subparagraph 259(4.3)(c)(ii) of the Act is replaced by the following:

  • (ii) in any other case, that it engages in otherwise than in the course of

    • (A) fulfilling its responsibilities as a local authority,

    • (B) operating a public hospital, an elementary or secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with or research body of such a degree-granting institution, or

    • (C) making facility supplies, ancillary supplies or home medical supplies or operating a qualifying facility for use in making facility supplies,

• Marginal note:1993, c. 27, s. 115(3)

  (8) Subsection 259(7) of the English version of the Act is replaced by following:

  • Marginal note:Selected public service bodies

    (7) If a selected public service body acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body is deemed to be engaged in those activities.

• Marginal note:1993, c. 27, s. 115(3)

  (9) Subsection 259(8) of the Act is replaced by the following:

  • Marginal note:Selected public service bodies

    (8) If a person acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition “selected public service body” in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

• (10) Section 259 of the Act is amended by adding the following after subsection (13):

  • Marginal note:Application

    (14) For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person’s capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person’s responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be.

  • Marginal note:Rules for specified supplies

    (15) Despite subsections (3), (4) and (4.1), for the purpose of applying subsection (4.1) to determine a rebate payable under subsection (3) or (4) to a person that is a hospital authority, a facility operator or an external supplier, for a claim period of the person, if the person is required to determine under paragraph (4.1)(b) a particular amount, in respect of a specified supply of property of the person made at any time, that would, if subsection (4) applied to the person, be determined by the formula in paragraph (4)(a) for the claim period and the value of C in that paragraph is the extent to which the person intended, at that time, to consume, use or supply the property in the course of specified activities, the particular amount shall be determined by the formula

    A x B

    where

    A

    is the amount that would, in the absence of this subsection, be determined to be the particular amount; and

    B

    is the amount determined by the formula

    (B₁ - B₂) / B₁

    where

    B₁

    is the fair market value of the property at the time of the supply, and

    B₂

    is the fair market value of the property on January 1, 2005.

• (11) Subsections (1) to (10) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after January 1, 2005, except that the rebate shall be determined as if those subsections had not come into force for the purposes of determining a rebate of a person for the claim period that includes that day in respect of

  • (a) an amount of tax that became payable by the person before that day;

  • (b) an amount that is deemed to have been paid or collected by the person before that day; or

  • (c) an amount that is required to be added in determining the person’s net tax

    • (i) as a result of a branch or division of the person becoming a small supplier division before that day, or

    • (ii) as a result of the person ceasing before that day to be a registrant.

23. Section 295 of the Act is amended by adding the following after subsection (6):

Marginal note:1997, c. 10, s. 239(1)

24. Subsection 323(1) of the Act is replaced by the following:

PART 4AMENDMENTS IN RESPECT OF EXCISE TAX ON JEWELLERY, ETC.

R.S., c. E-15Excise Tax Act

• 25. (1) Section 5 of Schedule I to the Excise Tax Act is replaced by the following:

  5. Clocks and watches adapted to household or personal use, except railway men’s watches, and those specially designed for the use of the blind,

  • (a) eight per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 23, 2005 and before March 2006;

  • (b) six per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2006 and before March 2007;

  • (c) four per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2007 and before March 2008; and

  • (d) two per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2008 and before March 2009.

  5.1 Articles of all kinds made in whole or in part of ivory, jet, amber, coral, mother of pearl, natural shells, tortoise shell, jade, onyx, lapis lazuli or other semi-precious stones,

  • (a) eight per cent, applicable after February 23, 2005 and before March 2006;

  • (b) six per cent, applicable after February 2006 and before March 2007;

  • (c) four per cent, applicable after February 2007 and before March 2008; and

  • (d) two per cent, applicable after February 2008 and before March 2009.

  5.2 The following articles, namely, articles commonly or commercially known as jewellery, whether real or imitation, including diamonds and other precious or semi-precious stones for personal use or for adornment of the person, and goldsmiths’ and silversmiths’ products except gold-plated or silver-plated ware for the preparation or serving of food or drink,

  • (a) eight per cent, applicable after February 23, 2005 and before March 2006;

  • (b) six per cent, applicable after February 2006 and before March 2007;

  • (c) four per cent, applicable after February 2007 and before March 2008; and

  • (d) two per cent, applicable after February 2008 and before March 2009.

• (2) Subsection (1) is deemed to have come into force on February 24, 2005.

• 26. (1) Sections 5 to 5.2 of Schedule I to the Act are repealed.

• (2) Subsection (1) comes into force on March 1, 2009.

PART 5AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

R.S., F-8; 1995, c. 17, s. 45(1)Federal-Provincial Fiscal Arrangements Act

27. The headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:

28. The Act is amended by adding the following after section 24.7:

Coordinating Amendment

Marginal note:Bill C-39

29. If Bill C-39, introduced in the 1st session of the 38th Parliament and entitled An Act to amend the Federal-Provincial Fiscal Arrangements Act and to enact an Act respecting the provision of funding for diagnostic and medical equipment (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 27 of this Act, the headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:

PART 6NORTHERN STRATEGY

Marginal note:Payments to trust

• 30. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than one hundred and twenty million dollars, to a trust established to provide the territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy developed jointly by the federal government and the territories.

• Marginal note:Share of a territory

  (2) The amount that may be provided to a territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.

• Marginal note:Payments out of C.R.F.

  (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

PART 7AUDITOR GENERAL OF CANADA

R.S., c. A-17Amendments to the Auditor General Act

31. The heading before section 2 of the French version of the Auditor General Act is replaced by the following:

32. Section 2 of the Act is amended by adding the following in alphabetical order:

33. The Act is amended by adding the following after section 2:

34. The Act is amended by adding the following after section 7:

R.S., c. F-11Amendments to the Financial Administration Act

Marginal note:2001, c. 11, s. 6(1), c. 34, par. 16(c)(E); 2002, c. 17, par. 14(c)

35. Subsection 85(1) of the Financial Administration Act is replaced by the following:

• 36. (1) Subsections 134(1) and (2) of the Act are replaced by the following:

  Marginal note:Appointment of auditor

  • 134. (1) Subject to subsection (2), the auditor of a Crown corporation shall be appointed annually by the Governor in Council, after the appropriate Minister has consulted the board of directors of the corporation, and may be removed at any time by the Governor in Council, after the appropriate Minister has consulted the board.

  • Marginal note:Auditor General

    (2) The Auditor General of Canada shall be appointed by the Governor in Council as the auditor, or a joint auditor, of each Crown corporation, unless the Auditor General waives the requirement of being so appointed.

• (2) Subsections 134(4) to (7) of the Act are replaced by the following:

  • Marginal note:Criteria for appointment

    (5) The Governor in Council may make regulations prescribing the criteria to be applied in selecting an auditor for appointment pursuant to subsection (1).

  • Marginal note:Re-appointment

    (6) An auditor of a Crown corporation is eligible for re-appointment on the expiration of the auditor’s appointment.

  • Marginal note:Continuation in office

    (7) Notwithstanding subsection (1), if an auditor of a Crown corporation is not appointed to take office on the expiration of the appointment of an incumbent auditor, the incumbent auditor continues in office until a successor is appointed.

37. Sections 135 to 137 of the Act are replaced by the following:

38. Sections 140 and 141 of the Act are replaced by the following:

39. Subsections 142(1) to (3) of the Act are replaced by the following:

Marginal note:1991, c. 24, s. 43

40. Section 146 of the Act is replaced by the following:

Consequential Amendments

1991, c. 11Broadcasting Act

41. Subsections 60(1) to (6) of the Broadcasting Act are repealed.

42. Sections 62 to 69 of the Act are repealed.

43. Paragraphs 71(3)(a) and (b) of the Act are replaced by the following:

R.S., c. 10Canada Post Corporation Act

Marginal note:1993, c. 44, s. 31

44. Section 33 of the Canada Post Corporation Act is repealed.

1991, c. 8Canadian Race Relations Foundation Act

45. Subsection 17(3) of the Canadian Race Relations Foundation Act is replaced by the following:

46. Subsection 25(2) of the Act is repealed.

1999, c. 34Public Sector Pension Investment Board Act

47. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:

48. The heading before section 36 and sections 36 to 46 of the Act are repealed.

• 49. (1) Paragraph 48(4)(b) of the Act is replaced by the following:

  • (b) the annual auditor’s report referred to in section 132 of the Financial Administration Act;

• (2) Paragraph 48(4)(i) of the Act is replaced by the following:

  • (i) a report of any special examination referred to in subsection 139(1) of the Financial Administration Act; and

Coordinating Amendments

Marginal note:Bill C-6

50. If Bill C-6, introduced in the 1st session of the 38th Parliament and entitled the Department of Public Safety and Emergency Preparedness Act (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 47 of this Act, subsection 3(7) of the Public Sector Pension Investment Board Act is replaced by the following:

Marginal note:Bill C-18

51. If Bill C-18, introduced in the 1st session of the 38th Parliament and entitled An Act to amend the Telefilm Canada Act and another Act (the “other Act”), receives royal assent, then, on the later of the coming into force of section 35 of this Act and section 8 of the other Act, the portion of section 85 of the Financial Administration Act before subsection (2) is replaced by the following:

PART 8PAYMENTS TO CERTAIN ENTITIES

Aboriginal Healing Foundation

Marginal note:Payment of $40,000,000

52. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister responsible for Indian Residential Schools Resolution, be paid and applied a sum not exceeding forty million dollars for payment to the Aboriginal Healing Foundation for its use.

Asia-Pacific Foundation of Canada

Marginal note:Payment of $50,000,000

53. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Foreign Affairs, be paid and applied a sum not exceeding fifty million dollars for payment to the Asia-Pacific Foundation of Canada for its use.

Canadian Academies of Science

Marginal note:Payment of $30,000,000

54. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding thirty million dollars for payment to the Canadian Academies of Science for its use.

Canadian Cattlemen’s Association

Marginal note:Payment of $50,000,000

55. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Agriculture and Agri-Food, be paid and applied a sum not exceeding fifty million dollars for payment to the Canadian Cattlemen’s Association for the purpose of establishing a legacy fund to support the Canadian cattle and beef industry and ensure its long-term viability.

Canadian Youth Business Foundation

Marginal note:Payment of $10,000,000

56. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding ten million dollars for payment to the Canadian Youth Business Foundation for its use.

Federation of Canadian Municipalities

Marginal note:Payment of $150,000,000

• 57. (1) From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment, be paid and applied a sum not exceeding one hundred and fifty million dollars for payment to the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.

• Marginal note:Payment of $150,000,000

  (2) From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Natural Resources, be paid and applied a sum not exceeding one hundred and fifty million dollars for payment to the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.

Genome Canada

Marginal note:Payment of $165,000,000

58. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding one hundred and sixty-five million dollars for payment to Genome Canada for its use.

Precarn Incorporated

Marginal note:Payment of $20,000,000

59. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding twenty million dollars for payment to Precarn Incorporated for its use.

PART 9ASIA-PACIFIC FOUNDATION OF CANADA

R.S., c. A-13Asia-Pacific Foundation of Canada Act

• 60. (1) The portion of section 3 of the Asia-Pacific Foundation of Canada Act before paragraph (a) is replaced by the following:

  Marginal note:Purpose of Foundation

  3. The purpose of the Foundation is to develop closer ties between the peoples and institutions of Canada and the peoples and institutions of the Asia-Pacific region and to promote capacity development in persons and entities that share an interest in the Asia-Pacific region and the building of networks between them by

• (2) Section 3 of the Act is amended by adding the following after paragraph (a):

  • (a.1) promoting dialogue on, and understanding of, foreign policy issues as they relate to Canada and the Asia-Pacific region;

61. Paragraph 4(l) of the Act is replaced by the following:

62. Section 7 of the Act is replaced by the following:

63. Section 8 of the Act is repealed.

Marginal note:1995, c. 5, par. 25(1)(a)

64. Section 9 of the Act is replaced by the following:

65. Section 10 of the Act is replaced by the following:

66. The Act is amended by adding the following after section 12:

67. The Act is amended by adding the following after section 16:

68. Section 17 of the Act is replaced by the following:

Marginal note:1992, c. 1, s. 8

69. Sections 18 and 19 of the French version of the Act are replaced by the following:

70. Section 20 of the Act is replaced by the following:

71. Sections 21 to 23 of the French version of the Act are replaced by the following:

72. The Act is amended by adding the following after section 25:

73. Section 27 of the Act is replaced by the following:

Marginal note:1995, c. 5, par. 25(1)(a)

74. Sections 31 and 32 of the Act are repealed.

75. Section 33 of the Act is replaced by the following:

76. Section 34 of the Act and the heading before it are replaced by the following:

77. Section 35 of the Act is replaced by the following:

78. Section 36 of the Act is replaced by the following:

79. Section 37 of the Act is replaced by the following:

Marginal note:Replacement of “Chairman” and “Vice-Chair­man”

80. The English version of the Act is amended by replacing the expressions “Chairman” and “Vice-Chairman” with the expressions “Chairperson” and “Vice-Chairperson”, respectively, wherever they occur in the following provisions:

• (a) sections 12 to 14;

• (b) section 16; and

• (c) section 22.

Coordinating Amendments

Marginal note:2003, c. 22

• 81. (1) On the later of the coming into force of section 67 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), section 16.1 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:

  Marginal note:Directors without voting rights

  16.1 A director who is part of the federal public administration does not have the right to vote on any matter before the Board or a committee of the Board.

• (2) On the later of the coming into force of section 73 of this Act and section 224 of the other Act, section 27 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:

  Marginal note:Not agent of Her Majesty

  27. The Foundation is not an agent of Her Majesty and the Chairperson, the other directors, the President and the officers and employees of the Foundation are not, by virtue of their office or employment, part of the federal public administration.

PART 101998, c. 21AMENDMENT TO THE BUDGET IMPLEMENTATION ACT, 1998

Marginal note:2001, c. 27, s. 207

82. Paragraph 27(1)(a) of the Budget Implementation Act, 1998 is replaced by the following:

PART 11PAYMENTS FOR INFRASTRUCTURE

Marginal note:Payments for infrastructure

83. For the fiscal year 2005-2006, pursuant to the Government of Canada’s five-year initiative commonly known as “A New Deal for Cities and Communities”, the Minister of State (Infrastructure and Communities) may, subject to the terms and conditions approved by the Treasury Board, make payments from and out of the Consolidated Revenue Fund in an aggregate amount of not more than six hundred million dollars to provinces, territories and first nations for the purpose of providing funding to municipal and regional governments and related entities, including transit authorities and commissions and first nation communities, for environmentally sustainable infrastructure projects.

Marginal note:Agreement

• 84.  (1) The Minister of State (Infrastructure and Communities) shall not make a payment to a province, territory or first nation under section 83 unless the Government of Canada has entered into an agreement with the recipient province, territory or first nation.

• Marginal note:Direct payments

  (2) The Minister of State (Infrastructure and Communities) may, at the request of a provincial or territorial government, make payments under section 83 directly to a municipality, a municipal association or a provincial, territorial or municipal entity.

PART 12NOVA SCOTIA AND NEWFOUNDLAND AND LABRADOR ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS

Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

85. The Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act is enacted as follows:

2004, c. 22Related Amendment to the Budget Implementation Act, 2004

86. Subsections 8(1) to (3) of the Budget Implementation Act, 2004 are replaced by the following:

PART 13CANADA EMISSION REDUCTION INCENTIVES AGENCY

Canada Emission Reduction Incentives Agency Act

87. The Canada Emission Reduction Incentives Agency Act is enacted as follows:

Consequential Amendments

R.S., c. A-1Access to Information Act

88. Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

R.S., c. F-11Financial Administration Act

89. Schedule II to the Financial Administration Act is amended by adding the following in alphabetical order:

R.S., c. P-21Privacy Act

90. The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

R.S., c. P-35Public Service Staff Relations Act

91. Part I of Schedule I to the Public Service Staff Relations Act is amended by adding the following in alphabetical order:

R.S., c. P-36Public Service Superannuation Act

92. Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:

Coordinating Amendments

Marginal note:2003, c. 22

• 93. (1) On the later of the coming into force of section 87 of this Act and section 11 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), Schedule IV to the Financial Administration Act is amended by adding the following in alphabetical order:

  • Canada Emission Reduction Incentives Agency

    Agence canadienne pour l’incitation à la réduction des émissions

• (2) If section 11 of the other Act comes into force before section 91 of this Act, then, on the later of the day on which that section 11 comes into force and the day on which this Act receives royal assent, section 91 of this Act and the heading before it are repealed.

Marginal note:2003, c. 22

94. On the later of the coming into force of section 87 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, section 22 of the English version of the Canada Emission Reduction Incentives Agency Act, as enacted by section 87 of this Act, is replaced by the following:

Coming into Force

Marginal note:Order in council

95. This Part, other than sections 93 and 94, comes into force on a day to be fixed by order of the Governor in Council.

PART 14GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND

Greenhouse Gas Technology Investment Fund Act

96. The Greenhouse Gas Technology Investment Fund Act is enacted as follows:

Coming into Force

Marginal note:Order in council

97. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 15AMENDMENTS TO THE CANADA DEPOSIT INSURANCE CORPORATION ACT

R.S., c. C-3Canada Deposit Insurance Corporation Act

Marginal note:1996, c. 6, s. 22

98. Paragraph 7(b) of the Canada Deposit Insurance Corporation Act is replaced by the following:

Marginal note:2001, c. 9, s. 205

99. Paragraph 8(c) of the Act is replaced by the following:

Marginal note:1992, c. 26, s. 4

100. Paragraph 11(2)(e) of the Act is repealed.

101. Paragraph 12(c) of the Act is replaced by the following:

102. Subsection 13(2) of the Act is replaced by the following:

Marginal note:1996, c. 6, s. 26(3)

103. Subsection 14(2.4) of the Act is replaced by the following:

Marginal note:R.S., c. 18 (3rd Supp.), s. 54; 1991, c. 45, s. 543

• 104. (1) Subsection 17(1) of the Act is replaced by the following:

  Marginal note:Insurance of federal institutions

  • 17. (1) The Corporation shall insure the deposits held by a federal institution in the manner and to the extent provided in this Act and the by-laws.

  • Marginal note:Insurance of provincial institutions

    (1.1) On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if

    • (a) the Corporation approves the institution for deposit insurance;

    • (b) the institution is authorized by the province of its incorporation to apply for deposit insurance;

    • (c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and

    • (d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution.

• Marginal note:R.S., c. 18 (3rd Supp.), s. 54

  (2) Subsection 17(3) of the Act is repealed.

Marginal note:2001, c. 9, s. 210

105. Paragraph 29(1)(b) of the Act is replaced by the following:

Marginal note:1992, c. 26, s. 9(E)

106. Paragraph 30(1)(a) of the Act is repealed.

Marginal note:1992, c. 26, s. 10(E)

• 107. (1) The portion of subsection 31(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Notice of termination

  • 31. (1) Where a report has been sent or delivered under subsection 30(1) and the progress made by the member institution in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,

• Marginal note:R.S., c. 18 (3rd Supp.), s. 62

  (2) Paragraph 31(3)(a) of the Act is replaced by the following:

  • (a) the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates; or

• Marginal note:1996, c. 6, s. 36

  (3) Subsections 31(4) and (5) of the Act are replaced by the following:

  • Marginal note:Where report on federal member institution

    (4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution’s progress in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.

  • Marginal note:Termination of policy

    (5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates.

Marginal note:R.S., c. 18 (3rd Supp.), s. 73(1)

108. Subsection 3(1.1) of the schedule to the Act is replaced by the following:

Coming into Force

Marginal note:Order in council

• 109. (1) Subject to subsection (2), the provisions of this Part come into force on a day or days to be fixed by order of the Governor in Council.

• Marginal note:Exception

  (2) Sections 101 to 103 and 108 are deemed to have come into force on February 23, 2005.

PART 161994, c. 28AMENDMENTS TO THE CANADA STUDENT FINANCIAL ASSISTANCE ACT

110. The Canada Student Financial Assist­ance Act is amended by adding the following after section 10:

111. The Act is amended by adding the following after section 11:

Marginal note:2003, c. 15, s. 10(1)

• 112. (1) Paragraph (c) of the description of B in the definition “net costs” in subsection 14(6) of the Act is replaced by the following:

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

• Marginal note:2003, c. 15, s. 10(1)

  (2) Paragraph (c) of the description of B in the definition “total program net costs” in subsection 14(6) of the Act is replaced by the following:

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

• Marginal note:2003, c. 15, s. 10(2)

  (3) Paragraph 14(7)(c) of the Act is replaced by the following:

  • (c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis; and

PART 17R.S., c. C-52AMENDMENTS TO THE CURRENCY ACT

Exchange Fund Account

Marginal note:1993, c. 33, s. 1

113. Section 17 of the Currency Act is replaced by the following:

Marginal note:R.S., c. 3 (4th Supp.), s. 1

114. Sections 19 to 21 of the Act are replaced by the following:

115. Subsection 22(2) of the Act is replaced by the following:

116. Section 23 of the Act is repealed.

Transitional Provisions

Marginal note:First fiscal year — payment into C.R.F.

117. The 15-month period that begins after the last calendar year for which the net income of the Exchange Fund Account was paid into or charged to the Consolidated Revenue Fund under section 20 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 20 of that Act, as enacted by section 114 of this Act, applies.

Marginal note:First fiscal year — report to Parliament

118. The 15-month period that begins after the last calendar year for which the Minister of Finance reported to Parliament under section 21 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 21 of that Act, as enacted by section 114 of this Act, applies.

Coming into Force

Marginal note:Order in council

119. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 18AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT

1996, c. 16Department of Public Works and Government Services Act

120. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order:

121. Paragraphs 6(b) and (c) of the Act are replaced by the following:

122. Paragraphs 7(1)(b) and (c) of the Act are replaced by the following:

123. Section 9 of the Act is replaced by the following:

124. Section 20 of the Act is replaced by the following:

Coming into Force

Marginal note:Order in council

125. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 19AMENDMENTS RELATED TO THE PREMIUM RATE PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT

1996, c. 23Employment Insurance Act

Marginal note:2001, c. 5, s. 9; 2003, c. 15, s. 21; 2004, c. 22, ss. 25 and 26

126. Sections 66 to 67 of the Employment Insurance Act are replaced by the following:

1996, c. 11Department of Human Resources Development Act

127. Section 31 of the Department of Human Resources Development Act is amended by adding the following after subsection (1):

128. The Act is amended by adding the following after section 31:

Coordinating Amendments

Marginal note:Bill C-23

• 129. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 1st session of the 38th Parliament and entitled the Department of Human Resources and Skills Development Act (in this section referred to as the “other Act”), receives royal assent.

• (2) On the later of the coming into force of section 126 of this Act and section 28 of the other Act,

  • (a) section 28 of the other Act is amended by adding the following after subsection (1):

    • Marginal note:Chief actuary

      (1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.

  • (b) the other Act is amended by adding the following after section 28:

    Marginal note:Persons who have specialized knowledge

    28.1 Despite section 28, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

  • (c) subsection 65.3(1) of the Employment Insurance Act is replaced by the following:

    Marginal note:Chief actuary

    • 65.3 (1) The chief actuary referred to in section 28 of the Department of Human Resources and Skills Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

• (3) If section 28 of the other Act comes into force before sections 127 and 128 of this Act, then, on the day on which this Act receives royal assent, the heading before section 127 and sections 127 and 128 of this Act are repealed.

PART 201996, c. 23AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT (PROVINCIAL PLANS)

130. Section 23 of the Employment Insurance Act is amended by adding the following after subsection (3.4):

131. The Act is amended by adding the following after section 153.1:

PART 21AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

R.S., c. F-11Financial Administration Act

Marginal note:1996, c. 18, s. 3

132. Section 7.1 of the Financial Administration Act is replaced by the following:

Marginal note:Replacement of “chairman”

133. The English version of the Act is amended by replacing the expression “chairman” with the expression “chairperson” wherever it occurs in the following provisions:

• (a)  the definition “chairman” in subsection 83(1);

• (b)  subsection 102(2);

• (c)  section 106;

• (d)  subsection 107(1);

• (e)  section 108; and

• (f)  section 154.

Coordinating Amendments

Marginal note:2003, c. 22

134. On the later of the coming into force of section 7 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, and the coming into force of section 132 of this Act, subsection 7.1(1) of the English version of the Financial Administration Act is replaced by the following:

Marginal note:Bill C-21

135. If Bill C-21, introduced in the first session of the thirty-eighth Parliament and entitled the Canada Not-for-profit Corporations Act (in this section referred to as the “other Act”), receives royal assent, then, on the later of the coming into force of section 132 of this Act and section 307 of the other Act, section 7.4 of the Financial Administration Act is replaced by the following:

Marginal note:Regulations

7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Not-for-profit Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.

PART 22R.S., c. O-9AMENDMENTS TO THE OLD AGE SECURITY ACT

Marginal note:1998, c. 21, s. 108(1); 1999, c. 22, s. 88(1); 2000, c. 12, par. 207(1)(a)

136. Subsections 12(1) and (2) of the Old Age Security Act are replaced by the following:

Marginal note:R.S., c. 34 (1st Supp.), s. 5(1); 2000, c. 12, s. 198(1) and par. 208(1)(e)

• 137. (1) The definitions “supplement equivalent” and “supplement equivalent for the survivor” in subsection 22(1) of the Act are replaced by the following:

  “supplement equivalent”

  « valeur du supplément »

  “supplement equivalent” means, in respect of any month in a payment quarter, the amount of the supplement that would be payable for that month under subsection 12(1), (1.1), (1.2), (2), (3) or (4), as the case may be, to a pensioner whose spouse or common-law partner is also a pensioner when both the pensioner and the spouse or common-law partner have no income in the base calendar year and both are in receipt of a full pension;

  “supplement equivalent for the survivor”

  « valeur du supplément pour le survivant »

  “supplement equivalent for the survivor” means, in respect of any month in a payment quarter, the amount determined under subsection (4.1), (4.2), (4.3) or (4.4), as the case may be.

• (2) Section 22 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Supplement equivalent for the survivor

    (4.1) The amount of the supplement equivalent for the survivor is

    • (a) four hundred and fifty-four dollars and nine cents, for any month in the payment quarter commencing on April 1, 2005;

    • (b) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2006; and

    • (c) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2007.

  • Marginal note:Indexation of supplement equivalent for the survivor

    (4.2) Subject to paragraphs (4.1)(b) and (c), the amount of the supplement equivalent for the survivor for any month in a payment quarter commencing after June 30, 2005 is the amount obtained by multiplying

    • (a) the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter

    by

    • (b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter.

  • Marginal note:No decrease

    (4.3) Despite subsection (4.2), the amount of the supplement equivalent for the survivor for any month in a payment quarter may not be less than the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter.

  • Marginal note:Reduction in Consumer Price Index

    (4.4) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter,

    • (a) no adjustment of the supplement equivalent for the survivor is to be made under subsection (4.2) in respect of that payment quarter; and

    • (b) no adjustment of the supplement equivalent for the survivor is to be made under that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter.

PART 23PAYMENTS TO CERTAIN PROVINCES AND TERRITORIES

Payment to Quebec

Marginal note:Payment of $200,000,000

• 138. (1) For the purposes of giving effect to the Canada–Quebec Final Agreement on the Quebec Parental Insurance Plan and to support its implementation, the Minister of Finance may make a cash payment of two hundred million dollars to Quebec.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to British Columbia

Marginal note:Payment of $100,000,000

• 139. (1) The Minister of Finance may make a cash payment of one hundred million dollars to British Columbia to assist the province in meeting the costs arising from the mountain pine beetle infestation, including the costs of damages caused by the infestation and of measures to combat the spread of the infestation.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to Saskatchewan

Marginal note:Payment of $6,500,000

• 140. (1) The Minister of Finance may make a cash payment of six million and five hundred thousand dollars to Saskatchewan.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to Yukon

Marginal note:Payment of $13,700,000

• 141. (1) The Minister of Finance may make a cash payment of thirteen million and seven hundred thousand dollars to Yukon.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to the Northwest Territories

Marginal note:Payment of $22,500,000

• 142. (1) The Minister of Finance may make a cash payment of twenty two million and five hundred thousand dollars to the Northwest Territories.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to Nunavut

Marginal note:Payment of $21,800,000

• 143. (1) The Minister of Finance may make a cash payment of twenty one million and eight hundred thousand dollars to Nunavut.

• Marginal note:Payment out of C.R.F.

  (2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.