Bill C-19

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	Functions and Powers
Review of financial management system	48. (1) On the request of the council of a first nation, the Board may review the first nation's financial management system or financial performance for compliance with the standards established under subsection 53(1).
Report	(2) On completion of a review under subsection (1), the Board shall provide to the first nation a report setting out
	(a) the scope of the review undertaken; and
	(b) an opinion as to the extent to which the first nation was in compliance with the standards.
Certificate	(3) Where after completing a review under subsection (1) the Board is of the opinion that the first nation was in compliance with the standards, it shall issue to the first nation a certificate to that effect.
Revocation of certificate	(4) The Board may, on giving notice to a council, revoke a certificate issued under subsection (3) if, on the basis of financial or other information available to the Board, it is of the opinion that the basis upon which the certificate was issued has materially changed.
Form and content	(5) The Board may determine the form and content of certificates issued under subsection (3), including any restrictions as to the purposes for which, and the persons by whom, they are intended to be used.
Remedial measures required	(6) If a borrowing member's certificate is revoked, the borrowing member shall, without delay, take such measures as are required to re-establish its certification.
Opinion final	(7) An opinion of the Board referred to in this section is final and conclusive and is not subject to appeal.
Required intervention	49. On receipt of a notice from the First Nations Tax Commission under paragraph 31(3)(b) or from the First Nations Finance Authority under subsection 84(4), the Board shall either require the first nation to enter into a co-management arrangement in accordance with section 50 or assume third-party management of the first nation's local revenues in accordance with section 51, as the Board sees fit.
Imposed co-manageme nt	50. (1) The Board may, on giving notice to the council of a first nation, require the first nation to enter into a co-management arrangement in respect of the first nation's local revenues, including its local revenue account,
	(a) if, in the opinion of the Board, there is a serious risk that the first nation will default on an obligation to the First Nations Finance Authority; or
	(b) on receipt of a request or demand to do so under paragraph 31(3)(b) or subsection 84(4).
Powers	(2) Under a co-management arrangement, the Board may
	(a) recommend amendments to a law of the first nation made under this Act;
	(b) recommend changes to the first nation's expenditures or budgets;
	(c) recommend improvements to the first nation's financial management system;
	(d) recommend changes to the delivery of programs and services;
	(e) order that expenditures of local revenues of the first nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; and
	(f) exercise any powers delegated to the Board under a law of the first nation or under an agreement between the first nation and the Board or the first nation and the First Nations Finance Authority.
Termination by Board	(3) The Board may terminate a co-management arrangement with a first nation on giving notice to its council that the Board is of the opinion that
	(a) there is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority;
	(b) where the first nation was in default of a payment obligation to the First Nations Finance Authority, the first nation has remedied the default;
	(c) a co-management arrangement requested or demanded under paragraph 31(3)(b) or subsection 84(4) is no longer required; or
	(d) third-party management of the first nation's local revenues is required.
Opinion final	(4) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.
Notice	(5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of a co-management arrangement.
Third-party management	51. (1) The Board may, on giving notice to the council of a first nation and to the Minister, assume management of the first nation's local revenues, including its local revenue account,
	(a) if, in the opinion of the Board, a co-management arrangement under section 50 has not been effective;
	(b) if, in the opinion of the Board, there is a serious risk that the first nation will default on an obligation to the First Nations Finance Authority; or
	(c) on receipt of a request or demand to do so under paragraph 31(3)(b) or subsection 84(4).
Powers	(2) Where the Board assumes third-party management of the local revenues of a first nation, the Board has the exclusive right to
	(a) make laws under paragraphs 4(1)(a) and (b);
	(b) act in the place of the council of the first nation under laws made under paragraphs 4(1)(a) to (e) and manage the first nation's local revenue account, including any necessary borrowing;
	(c) provide for the delivery of programs and services that are paid for out of local revenues;
	(d) assign rights or interests under subsection 4(7); and
	(e) exercise any powers delegated to the Board under a law of the first nation or an agreement between the first nation and the Board or between the first nation and the First Nations Finance Authority.
Review every six months	(3) Where the Board has assumed third-party management of a first nation's local revenues, it shall review the need for third-party management at least once every six months and advise the First Nations Finance Authority, the First Nations Tax Commission and the council of the first nation of the results of its review.
Termination by Board	(4) The Board may terminate third-party management of a first nation's local revenues, on giving notice to the council of the first nation, if
	(a) it is of the opinion that there is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority and the Authority consents to the termination in writing;
	(b) where the first nation was in default of an obligation to the First Nations Finance Authority, it is of the opinion that the first nation has remedied the default and the Authority consents to the termination in writing; or
	(c) it is of the opinion that the situation for which third-party management of the first nation's local revenues was required under paragraph 31(3)(b) or subsection 84(4) has been remedied.
Opinion final	(5) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.
Notice	(6) The Board shall advise the First Nations Finance Authority and First Nations Tax Commission of the assumption or termination of third-party management of a first nation's local revenues.
Required information	52. At the request of the Board, a first nation that has made a local revenue law shall provide to the Board any information about the first nation's financial management system and financial performance that the Board requires for a decision regarding a co-management arrangement or third-party management of the first nation's local revenues.
	Standards and Procedures
Standards	53. (1) The Board may establish standards, not inconsistent with the regulations, respecting
	(a) the form and content of laws made under section 8;
	(b) approvals of the Board under section 3;
	(c) certification of first nations under section 48; and
	(d) financial reporting under subsection 13(1).
Procedures	(2) The Board may establish procedures respecting
	(a) the submission for approval and approval of laws made under section 8;
	(b) issuance of a certificate under subsection 48(3); and
	(c) implementation or termination of a co-management arrangement or third-party management of a first nation's local revenues.
Statutory Instruments Act	(3) The Statutory Instruments Act does not apply to a standard established under subsection (1) or a procedure established under subsection (2).
First Nations Gazette	(4) All laws made under section 8 and approved by the Board and all standards established by the Board under subsection (1) shall be published in the First Nations Gazette.
	Regulations
Regulations	54. The Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Board, make regulations
	(a) respecting the implementation of a co-management arrangement or third-party management of a first nation's local revenues, including the obligations of affected first nations to provide access to financial records; and
	(b) fixing fees that the Board may charge for services, including fees to first nations for co-management and third-party management services, and the manner in which such fees may be recovered.
	PART 4
	FIRST NATIONS FINANCE AUTHORITY
	Interpretation
Definitions	55. The following definitions apply in this Part.
``Authority'' « Administrati on »	``Authority'' means the First Nations Finance Authority.
``investing member'' « membre investisseur »	``investing member'' means a first nation that has invested in a short-term investment pool managed by the Authority.
``long-term loan'' « prêt à long terme »	``long-term loan'' means a loan the term of which is one year or longer.
``member'' « membre »	``member'' means a borrowing member or investing member.
``property tax revenues'' « recettes fiscales foncières »	``property tax revenues'' means moneys raised under a law made under paragraph 4(1)(a).
``representativ e'' « représentant »	``representative'', in respect of a first nation that is a member, means the chief or a councillor of the first nation who is designated as a representative by a resolution of its council.
``security'' « titre »	``security'' means a security of the Authority issued under paragraph 73(1)(b).
``short-term loan'' « prêt à court terme »	``short-term loan'' means a loan the term of which is less than one year.
	Establishment and Organization of Authority
Establishment	56. There is hereby established a non-profit corporation without share capital, to be known as the First Nations Finance Authority.
Membership	57. The members of the Authority shall be its borrowing members and investing members.
Not agent of Her Majesty	58. (1) The Authority is not an agent of Her Majesty or a Crown corporation within the meaning of the Financial Administration Act, and its officers and employees are not part of the public service of Canada.
No guarantees	(2) No person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of the Authority.
Board of Directors	59. (1) The Authority shall be managed by a board of directors, consisting of from 5 to 11 directors, including a Chairperson and Deputy Chairperson.
Nomination of directors	(2) A representative of a borrowing member may nominate
	(a) a representative of a borrowing member for election as Chairperson or Deputy Chairperson; and
	(b) any representative for election as a director other than the Chairperson or Deputy Chairperson.
Election of directors	(3) Directors shall be elected by representatives of borrowing members.
Function of Deputy Chairperson	60. In the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Deputy Chairperson shall assume the duties and functions of the Chairperson.
Term of office	61. (1) Directors shall hold office on a part-time basis for a term of one year.
Additional terms	(2) A director is eligible to be re-elected for a second or subsequent term of office.
Ceasing to be director	(3) A person ceases to be a director when
	(a) the person ceases to hold office as a chief or councillor of a first nation that is a borrowing member or investing member;
	(b) the person's designation as a representative of a borrowing member or investing member is revoked by a resolution of the council of that first nation; or
	(c) the person is removed from office before the expiry of the term of the appointment by a special resolution of the board of directors.
Quorum	62. Two thirds of the directors constitute a quorum at any meeting of the board of directors.
Majority vote	63. Decisions by the board of directors shall be made by a majority vote of the directors present.
Canada Corporations Act	64. (1) The Canada Corporations Act does not apply to the Authority.

Bill C-19

Functions and Powers

Standards and Procedures

Regulations

PART 4

FIRST NATIONS FINANCE AUTHORITY

Interpretation

Establishment and Organization of Authority