2nd Session, 37th Parliament,
51 Elizabeth II, 2002

House of Commons of Canada

BILL C-7

An Act respecting leadership selection, administration and accountability of Indian bands, and to make related amendments to other Acts

Preamble

Whereas governments in Canada have certain capacities and powers facilitating good governance, accountability and economic development;

Whereas representative democracy, including regular elections by secret ballot, and transparency and accountability are broadly held Canadian values;

Whereas effective tools of governance have not been historically available under the Indian Act, which was not designed for that purpose;

Whereas bands, within the meaning of the Indian Act, require effective tools of governance;

Whereas some bands refer to themselves as first nations while others refer to themselves as communities within first nations;

Whereas 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 neither the Indian Act nor this Act is intended to define the nature and scope of any right of self-government or to prejudge the outcome of any self-government negotiation;

And whereas the exercise of capacities and powers under all Acts of Parliament is subject to the Canadian Charter of Rights and Freedoms;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the First Nations Governance Act.

INTERPRETATION

Definitions

2. (1) The following definitions apply in this Act.

``band funds''
« fonds de la bande »

``band funds'' means money and financial assets belonging to a band, including

      (a) revenues of the band,

      (b) money borrowed by the band or received by it through the issue or sale of debt securities,

      (c) money received or collected for or on behalf of the band, and

      (d) money paid to or received or collected by the band under any band law, trust or contract and that is to be disbursed for a purpose specified in or pursuant to that band law, trust or contract,

    but not including Indian moneys within the meaning of the Indian Act or money received by the band on behalf of an individual.

``code''
« code »

``code'' means a code adopted by a band under Part 1.

``council''
« conseil »

``council'', in relation to a band, means the council selected by election or custom in accordance with a leadership selection code or, in the absence of such a code, by election in accordance with the regulations.

``eligible voter''
« électeur »

``eligible voter'', in relation to a band, means a member of the band, whether residing on or off reserve, who has attained the age of eighteen years.

``fiscal year''
« exercice »

``fiscal year'' means the period beginning on April 1 of one calendar year and ending on March 31 of the following calendar year.

``fish''
« poissons »

``fish'' has the same meaning as in the Fisheries Act.

``Minister''
« ministre »

``Minister'' means the Minister of Indian Affairs and Northern Development.

Words and expressions in Indian Act

(2) Unless otherwise provided in this Act, words and expressions used in this Act have the same meaning as in the Indian Act.

Exercise of council powers

(3) Unless otherwise provided in this Act, the powers of the council of a band under this Act must be exercised in conformity with the band's administration of government code or, in the absence of such a code, the regulations.

PURPOSES OF ACT

Purposes

3. The purposes of this Act are

    (a) to provide bands with more effective tools of governance on an interim basis pending the negotiation and implementation of the inherent right of self-government;

    (b) to enable bands to respond more effectively to their particular needs and aspirations, including the ability to collaborate for certain purposes; and

    (c) to enable bands to design and implement their own regimes in respect of leadership selection, administration of government and financial management and accountability, while providing rules for those bands that do not choose to do so.

PART 1

BAND GOVERNANCE

Band-designed Codes

Proposal for adoption by band

4. (1) The council of a band may, in accordance with the regulations, propose any of the following codes for adoption by the eligible voters of the band:

    (a) a leadership selection code;

    (b) an administration of government code; and

    (c) a financial management and accountability code.

Conditions for adoption

(2) A proposed code is adopted if it is in writing and is approved, in a vote conducted by the council in accordance with the regulations, by a majority of the eligible voters of the band who participate in the vote, and if those who vote to approve it constitute more than twenty-five per cent of all eligible voters.

Application of regulations

(3) While a code adopted by a band is in force, regulations made under section 32 providing for the same matters as the code do not apply to the band.

Leadership selection code

5. (1) Where a band was subject to an order under section 74 of the Indian Act immediately before the coming into force of this section, a leadership selection code adopted by the band must include rules

    (a) providing for the size and composition of the council of the band;

    (b) establishing the mode of selection of the members of the council, as long as a majority of them at least are elected;

    (c) specifying the term of office, not exceeding five years, of elected members of the council;

    (d) prescribing procedures for the selection of members of the council, and requiring that voting for the elected members be conducted by secret ballot;

    (e) prescribing the qualifications of persons to vote at elections of the council, to run for election to the council and to nominate candidates for election;

    (f) respecting the manner of filling vacancies on the council;

    (g) specifying the grounds and establishing a process for appealing the results of elections;

    (h) specifying the grounds and establishing a process for removal from office of elected and non-elected members of the council, respectively;

    (i) identifying what constitute corrupt electoral practices; and

    (j) establishing a procedure for amending the code.

Custom bands

(2) Where a band was not subject to an order under section 74 of the Indian Act immediately before the coming into force of this section, a leadership selection code adopted by the band must

    (a) include the rules required under subsection (1); or

    (b) consist of the custom rules for the council's selection, by election or otherwise, as they existed on the coming into force of this section, together with a process for appealing the selection and a procedure for amending the code.

Time limit for adoption of custom rules

(3) A code consisting of custom rules may be adopted only during the period of two years beginning on the coming into force of this section.

Newly created bands

(4) Where a band is established after the repeal of section 74 of the Indian Act, a leadership selection code adopted by the band must include the rules required under subsection (1).

Rights of all members respected

(5) A leadership selection code to which subsection (1), paragraph (2)(a) or subsection (4) applies must respect the rights of all members of the band but may balance their different interests, including the different interests of members residing on and off the reserve.

Administra-
tion of government code

6. (1) An administration of government code must include rules respecting meetings of members of the band and, in particular, rules

    (a) specifying the frequency of meetings, which shall not be less than once each calendar year;

    (b) prescribing the manner of calling and publicizing meetings;

    (c) respecting the participation of members in meetings; and

    (d) respecting the keeping of minutes of proceedings at meetings and access to the minutes by members.

Meetings of council

(2) An administration of government code must include rules respecting meetings of the council of the band and, in particular, rules

    (a) requiring that a meeting open to members of the band be held at least once each calendar year;

    (b) prescribing the manner of calling and publicizing meetings;

    (c) subject to subsection (3), prescribing the manner of making decisions and exercising the council's powers under this Act and the Indian Act; and

    (d) respecting the keeping of records of the council's decisions, and access to those records by members of the band.

Enactment of laws

(3) An administration of government code must include rules respecting the development, making and registration of band laws made under this Act and, in particular, rules

    (a) requiring reasonable public notice of a proposed law in order to enable members of the band and residents of the reserve to comment on it before it is made;

    (b) prescribing the procedure for the making of band laws by the council; and

    (c) respecting the maintenance of the band registry required by subsection 30(1).

Other rules

(4) An administration of government code must include rules

    (a) setting out the roles and authorities of the band administration and its relationship to the council;

    (b) respecting conflicts of interest of members of the council and employees of the band;

    (c) respecting access to information under the control of the band, protection of personal information under its control and access by individuals to information about themselves; and

    (d) establishing a procedure for amending the code.

Financial management and accountability code

7. A financial management and accountability code must include rules respecting

    (a) the preparation of an annual budget for each fiscal year, and its adoption by the council and presentation to members of the band during the last quarter of the preceding fiscal year;

    (b) the control of expenditures of band funds, including financial signing authorities;

    (c) internal controls with respect to deposits, asset management and the purchase of goods and services, including the manner of tendering for contracts;

    (d) the lending of band funds to members of the band and other persons, the making of loan guarantees by the band to persons other than members, and the repayment and collection of funds loaned;

    (e) the remuneration of members of the council and employees of the band;

    (f) the incurring of debt by the band and debt management;

    (g) the management of and limitations on the band's deficit; and

    (h) the establishment of a procedure for amending the code.