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Bill C-32

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PART 3

FINANCIAL ASSISTANCE TO STUDENTS

1994, c. 28

Canada Student Financial Assistance Act

17. The Canada Student Financial Assistance Act is amended by adding the following after section 6:

GOVERNMENT FINANCING OF STUDENT LOANS

Agreements with qualifying students

6.1 (1) Subject to subsection (2), the Minister, or any person authorized by order of the Minister to act on the Minister's behalf, may enter into an agreement with any qualifying student for the purpose of making a student loan.

Terms and conditions to be approved by Governor in Council

(2) The agreement shall be subject to terms and conditions approved by the Governor in Council, on the recommendation of the Minister with the concurrence of the Minister of Finance.

Agreement with service provider

6.2 (1) The Minister may enter into an agreement with any corporation incorporated under the laws of Canada or a province and carrying on business in Canada (a ``service provider''), respecting the administration of student loans made, or other forms of financial assistance provided, by the Minister. An agreement may provide for, but is not limited to, the following matters:

    (a) disbursing student loans or other forms of financial assistance on behalf of the Minister;

    (b) audits and adjustments in respect of payments made by the Minister under the agreement;

    (c) the manner of calculating the interest payable by the Minister to the service provider, including the amount on which interest is to be calculated and the rate of interest or the manner of determining the rate of interest;

    (d) the procedures to be followed by the service provider in making, collecting or otherwise dealing with a student loan and other forms of financial assistance;

    (e) the making of reports to the Minister respecting student loans and other forms of financial assistance;

    (f) the terms and conditions respecting the obligations of the Minister and the service provider under the agreement; and

    (g) the payment of compensation by the Minister to the service provider for the administration of student loans and other forms of financial assistance.

Privacy Act

(2) The Privacy Act applies to a service provider with respect to its activities under this Act as if it were a government institution.

Agreement with financial institutions

6.3 Despite subsection 41(1) of the Financial Administration Act, the Minister may enter into an agreement with any financial institution, as defined in the regulations, with respect to the disbursement of student loans.

18. Section 13 of the Act is replaced by the following:

Maximum amount

13. Despite anything in this Act or any agreement entered into under section 5 or 6.1 , the aggregate amount of outstanding student loans may not exceed fifteen billion dollars, except as otherwise provided by an appropriation Act or other Act of Parliament.

19. (1) Subparagraph (a)(i) of the definition ``net costs'' in subsection 14(6) of the Act is replaced by the following:

        (i) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3 , to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and

(2) Subparagraph (a)(i) of the definition ``total program net costs'' in subsection 14(6) of the Act is replaced by the following:

        (i) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3 , to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces, and

20. Section 15 of the Act is amended by adding the following after paragraph (e):

    (e.1) defining the term ``financial institutions'' for the purposes of section 6.3 and providing for the circumstances under which financial institutions may disburse student loans to qualifying students;

21. Section 19 of the Act is replaced by the following:

Payment out of C.R.F.

19. Any amount payable by the Minister under this Act, the regulations or an agreement or arrangement entered into under this Act, including any student loans to be advanced by the Minister, shall be paid out of the Consolidated Revenue Fund.

Coming into force

22. The provisions of this Part, except this section, come into force on a day or days to be fixed by order of the Governor in Council.

PART 4

FIRST NATIONS' SALES TAX

General Provisions

Definitions

23. (1) The definitions in this subsection apply in this Part.

``alcohol''
« alcool »

``alcohol'' means ethyl alcohol.

``alcoholic beverage''
« boisson alcoolisée »

``alcoholic beverage'' means

      (a) beer, within the meaning assigned by section B.02.130 of the Food and Drug Regulations, that contains more than 0.5% alcohol by volume;

      (b) ale, stout, porter or malt liquor, within the meaning assigned by section B.02.131 of the Food and Drug Regulations, that contains more than 0.5% alcohol by volume;

      (c) wine, within the meaning assigned by section 25 of the Excise Tax Act, that contains more than 0.5% alcohol by volume;

      (d) any beverage that contains more than 0.5% alcohol by volume, that is obtained from the distillation of grains, fruits or other agricultural products or from the distillation of beer or wine; and

      (e) any other beverage that contains a combination of any beverage referred to in paragraphs (a) to (d) that is suitable for human consumption and that contains more than 0.5% alcohol by volume.

``council of a band''
« conseil »

``council of a band'' has the same meaning as the expression ``council of the band'' in subsection 2(1) of the Indian Act.

``direct''
« directe »

``direct'' has the same meaning, for the purpose of distinguishing between a direct and an indirect tax, as in class 2 of section 92 of the Constitution Act, 1867.

``fuel''
« carburant »

``fuel'' means

      (a) diesel fuel, including any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than fuel oil that is intended for use and is actually used as heating oil;

      (b) gasoline type fuels for use in internal combustion engines; and

      (c) propane gas.

``Minister''
« ministre »

``Minister'' means the Minister of Finance.

``tobacco product''
« produit du tabac »

``tobacco product'' means

      (a) every article made by a tobacco manufacturer from raw leaf tobacco, within the meaning assigned to those expressions by section 6 of the Excise Act, by any process whatever, and includes cigarettes and tobacco sticks, as defined in that section, and snuff;

      (b) the leaves and stems of the tobacco plant if they have been processed further than drying and sorting; and

      (c) cigars, within the meaning assigned by section 6 of the Excise Act.

Expressions defined in other Acts

(2) In this Part,

    (a) the expressions ``band'' and ``reserve'' have the meanings assigned by subsection 2(1) of the Indian Act; and

    (b) the expressions ``supply'' and ``taxable supply'' have the meanings assigned by subsection 123(1) of the Excise Tax Act.

Tax on specific supplies

24. (1) Despite section 87 of the Indian Act, the council of a band listed in the schedule may make a by-law imposing a direct tax in respect of taxable supplies of alcoholic beverages, fuel or tobacco products made on the reserves of the band at the rates at which tax is imposed under subsections 165(1) and (3) of the Excise Tax Act in respect of those supplies.

Collection of tax

(2) A direct tax imposed under a by-law made under subsection (1) shall be collected pursuant to an administration agreement entered into under subsection 26(1).

Supply on a reserve

(3) For the purposes of subsection (1), a supply is made on a reserve only if

    (a) tax under section 165 of the Excise Tax Act is not payable in respect of the supply because of the connection of the supply with the reserve and the application of section 87 of the Indian Act; or

    (b) tax under section 165 of the Excise Tax Act would not be payable in respect of the supply for the reasons set out in paragraph (a) if the recipient of the supply were eligible for exemption from taxation under section 87 of the Indian Act.

Application of section 87 of the Indian Act

25. (1) For greater certainty, except in respect of a tax imposed by a by-law made under subsection 24(1), nothing in that subsection affects the application of section 87 of the Indian Act.

Indian moneys

(2) Moneys raised pursuant to a direct tax imposed under subsection 24(1) are not Indian moneys within the meaning of subsection 2(1) of the Indian Act.

Expenditures

(3) Expenditures made out of moneys raised pursuant to a tax imposed under a by-law made under subsection 24(1) must be made under the authority of a resolution approved by a majority of councillors present at a meeting of the council of a band that is duly convened.

By-law

(4) A by-law made under subsection 24(1)

    (a) is valid only if approved by a majority of councillors present at a meeting of the council of a band that is duly convened;

    (b) does not come into force before it has been received by the Minister and an administration agreement has been entered into under subsection 26(1);

    (c) shall provide that the rates of tax under the by-law are those at which tax is imposed under subsections 165(1) and (3) of the Excise Tax Act;

    (d) may be made in respect of any matter arising out of or ancillary to the exercise of powers under this subsection; and

    (e) is not subject to the Statutory Instruments Act.

Proof of by-law

(5) A copy of a by-law made under this Part, if it is certified to be a true copy by the Minister or a person authorized by the Minister, is evidence that the by-law was duly made by the council of a band and received by the Minister, without proof of the signature or the authorization of the person, and no such by-law is invalid by reason of any defect in form.

Publication

(6) The council of a band shall, on demand, provide a copy of any by-law made by the council under this Part and shall publish a copy of every such by-law in a newspaper that has general circulation in the place where the tax applies and in the First Nations Gazette, but no by-law shall be invalid by reason of a failure to publish it.

Agreement with Government of Canada

26. (1) If the council of a band has made a by-law imposing a tax under this Part, the council may enter into an administration agreement within the meaning of subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act in respect of the by-law.

Rules where agreement

(2) If the council of a band has entered into an administration agreement under subsection (1) in respect of a by-law,

    (a) Part IX of, and Schedules V, VI and VII to, the Excise Tax Act apply for the purposes of the by-law as if the tax imposed under the by-law were imposed under section 165 of that Act;

    (b) Part IX of the Excise Tax Act applies for all other purposes as if the by-law were part of that Part and the tax imposed under the by-law were imposed under that Part;

    (c) the by-law applies as if Part IX of the Excise Tax Act were part of the by-law and tax imposed under that Part were imposed under the by-law;

    (d) for greater certainty,

      (i) where a person does anything to satisfy a requirement of the by-law that would satisfy a corresponding requirement of Part IX of the Excise Tax Act if the tax imposed under the by-law were imposed under section 165 of that Act, the requirement of the by-law is deemed to have been satisfied,

      (ii) where a person does anything to exercise an authority under the by-law that would be a valid exercise of a corresponding authority under Part IX of the Excise Tax Act if the tax imposed under the by-law were imposed under section 165 of that Act, the authority under the by-law is deemed to have been validly exercised, and

      (iii) every person who is a registrant for the purposes of Part IX of the Excise Tax Act is a registrant for the purposes of the by-law; and

    (e) any proceeding that could be taken under any other Act of Parliament in respect of the tax imposed under section 165 of the Excise Tax Act may be taken in respect of the tax imposed under the by-law.

Tax under subsection 165(1) of the Excise Tax Act not payable

27. No tax is payable under subsection 165(1) of the Excise Tax Act in respect of a supply if tax is payable in respect of the supply under a by-law made under subsection 24(1).

Offence

28. Where a person commits an act or omission in respect of a by-law made under subsection 24(1) that would be an offence under a provision of Part IX of the Excise Tax Act if the act or omission were committed in relation to that Part,

    (a) subject to paragraph (b), the person is guilty of an offence punishable on summary conviction;

    (b) the Attorney General of Canada may elect to prosecute the person by indictment where an offence under that provision of that Part may be prosecuted by indictment; and

    (c) the person is liable on conviction to the punishment provided for in that provision of that Part.

Amendment of schedule

29. The Governor in Council may, by order, amend the schedule by adding to it or deleting from it the name of any band.

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