Bill C-20

Offences

111. Every person who, after making an oath or solemn affirmation under section 103,

(a) wilfully makes a false declaration, statement or return in the performance of his or her duties,

(b) in the pretended performance of his or her duties, obtains or seeks to obtain information that the person is not authorized to obtain, or

(c) contravenes section 108

is guilty of an offence and liable on summary conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding six months, or to both.

112. Every person who, after making an oath or solemn affirmation under section 103,

(a) wilfully discloses, directly or indirectly, information obtained in the course of his or her duties that might affect the market value of a security or commodity, including any information referred to in subsection 108(2), to any person who has not been sworn or affirmed under section 103, or

(b) uses any information described in paragraph (a) for the purpose of speculating in a security or commodity

is guilty of an offence and liable on summary conviction to a fine not exceeding the aggregate of $5,000 and double the amount of any benefit obtained from speculation referred to in paragraph (b) or to imprisonment for a term not exceeding five years, or to both.

Regulations

113. The Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Institute, make regulations prescribing anything to be prescribed under paragraph 105(2)(q) or subsection 107(1).

PART 6

FINANCIAL MANAGEMENT AND CONTROL

114. The following definitions apply in this Part.

“board of directors” includes

(a) in respect of the First Nations Tax Commission, the commissioners referred to in section 17; and

(b) in respect of the First Nations Financial Management Board, the directors referred to in section 38.

“institution” means the First Nations Tax Commission or the First Nations Financial Management Board.

115. (1) The officers and employees of an institution are not part of the public service of Canada.

(2) No person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of an institution.

116. The financial year of each institution is the period from April 1 to March 31, unless otherwise prescribed by regulation.

117. Subject to any terms and conditions that the Treasury Board may direct, for the purposes of the institution, an institution may expend, during a financial year or the following year, any revenues that it receives in that financial year through the conduct of its operations.

118. (1) Each institution shall, in accordance with any directions given by the Minister, establish a corporate plan and budget for each financial year and submit them to the Minister for approval.

(2) The corporate plan of each institution shall encompass all of the businesses and activities of the institution and include a statement of

(a) the objects or purposes of the institution;

(b) the institution’s objectives for the financial year and the strategy it intends to employ to achieve those objectives; and

(c) the institution’s expected performance for the financial year as compared to its objectives for that year as set out in the last corporate plan.

(3) The budget of each institution must include a statement of the institution’s projected revenues and expenses for the financial year on account of capital and operations.

(4) The corporate plan of each institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.

(5) No institution may carry on any business or activity in any financial year in a manner that is not consistent with its corporate plan for that year.

(6) Any amendment by an institution to its corporate plan or budget shall be submitted to the Minister for approval.

119. (1) Each institution shall

(a) keep books of account and records in relation to them; and

(b) maintain financial and management control and information systems.

(2) The books, records and systems referred to in subsection (1) shall be kept and maintained in such a manner as will provide reasonable assurance that

(a) the institution’s assets are safeguarded and controlled;

(b) its transactions are in accordance with this Act;

(c) its financial, human and physical resources are managed economically and efficiently; and

(d) its operations are carried out effectively.

(3) An institution may cause internal audits to be conducted to assess compliance with subsections (1) and (2).

(4) Each institution shall annually prepare financial statements, in accordance with generally accepted accounting principles, as supplemented by any directions given by the Minister under subsection (6).

(5) The financial statements of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.

(6) The Minister may give directions respecting the preparation of financial statements, to supplement generally accepted accounting principles.

120. (1) Each institution shall cause an annual auditor’s report to be prepared in accordance with any directions of the Minister, on

(a) its financial statements; and

(b) any quantitative information required to be audited under subsection (3).

(2) A report under subsection (1) shall

(a) include separate statements as to whether in the auditor’s opinion

(i) the financial statements are presented fairly, in accordance with generally accepted accounting principles, applied on a basis consistent with that of the preceding year,

(ii) the quantitative information is accurate in all material respects and, if applicable, was prepared on a basis consistent with that of the preceding year, and

(iii) the transactions of the institution that have come to the auditor’s notice in the course of his or her examination for the report were carried out in accordance with this Act; and

(b) call attention to any other matter falling within the scope of the auditor’s examination for the report that, in his or her opinion, should be brought to the attention of the institution or the Minister.

(3) The Minister may require that any quantitative information required to be included in an institution’s annual report pursuant to paragraph (2)(a) be audited.

(4) Each institution shall submit its audited financial statements to the Minister at least 30 days before the day of its annual meeting.

121. (1) Each institution shall, at least once every five years and at any other time required by its board of directors or by the Minister, cause a special examination to be carried out in respect of its operations to determine if the books, records, systems and practices referred to in section 119 were, in the period under examination, maintained in a manner that met the requirements of that section.

(2) Before commencing a special examination, an examiner shall survey the systems and practices of the institution to be examined and submit a plan for the examination, including a statement of the criteria to be applied in the examination, to the audit committee of the institution.

(3) Any disagreement between the examiner and the audit committee or board of directors of an institution with respect to a plan referred to in subsection (2) shall be resolved by the Minister.

(4) An examiner shall, as far as is practica­ble, rely on any internal audit conducted pursuant to subsection 119(3) in respect of the institution being examined.

122. (1) An examiner shall, on completion of a special examination in respect of an institution, submit a report on his or her findings, and a summary of that report, to the Minister and to the board of directors of the institution.

(2) The report of an examiner shall include

(a) a statement whether in the examiner’s opinion, having regard to the criteria referred to in subsection 119(2), there is a reasonable assurance that there are no significant deficiencies in the systems and practices examined; and

(b) a statement of the extent to which the examiner relied on internal audits.

(3) An institution shall, as soon as possible after receipt of an examiner’s report, post a summary of the report on an Internet website maintained by the institution.

123. (1) Subject to subsection (2), a special examination shall be carried out by the auditor of the institution.

(2) If, in the opinion of the Minister, a person other than the auditor of an institution should carry out a special examination in respect of the institution, the Minister may, after consulting with the board of directors of the institution, direct that the examination be carried out by another auditor who is qualified for the purpose.

124. The auditor or examiner of an institution may at any time consult the Auditor General of Canada on any matter relating to an audit or special examination.

125. (1) At the request of the auditor or examiner of an institution, the present or former commissioners, directors, officers, employees or agents of the institution shall provide any information and explanations, and give access to any records, documents, books, accounts and vouchers of the institution that are under their control, that the auditor or examiner considers necessary to prepare a report required under this Act.

(2) If a commissioner or director of an institution does not have information or an explanation requested by an auditor or examiner under subsection (1), the commissioner or director shall obtain the information or explanation and provide it to the auditor or examiner.

126. Nothing in this Part or in any directions of the Minister shall be construed as authorizing the auditor or examiner of an institution to express any opinion on the merits of matters of policy, including the merits of

(a) the objects or purposes for which the institution was established or the restrictions on the businesses or activities that it may carry on, as set out in this Act; or

(b) any business or policy decision of the institution.

127. An oral or written statement or report made under this Part by an auditor or examiner has qualified privilege.

128. (1) Each institution shall establish an audit committee composed of not less than three commissioners or directors who are not officers of the institution and who are competent to perform the duties set out in subsection (2).

(2) An audit committee shall

(a) review, and advise the board of directors in respect of, the financial statements that are to be included in the annual report of the institution;

(b) oversee any internal audit of the institution;

(c) review, and advise the board of directors in respect of, the annual auditor’s report in respect of the institution;

(d) review, and advise the board of directors in respect of, any plan and report of a special examiner; and

(e) perform any other functions that are assigned to it by the board of directors of the institution.

(3) An auditor and any examiner of an institution are entitled to receive notice of every meeting of the audit committee and, at the expense of the institution, to attend and be heard at each meeting.

(4) The auditor or examiner of an institution shall attend any meeting of the institution’s audit committee at which he or she is requested to attend by a member of that committee.

(5) The auditor or examiner of an institution or a member of the institution’s audit committee may call a meeting of that committee.

129. The chief executive officer of an institution shall, as soon as reasonably practica­ble, notify the Minister and any commissioner or director of the institution not already aware of them of any financial or other developments that, in the chief executive officer’s opinion, are likely to have a material effect on the perform­ance of the institution, relative to its objectives or requirements for funding.

130. (1) Each institution shall, within four months after the end of each financial year, submit to the Minister an annual report on the operations of the institution in that year.

(2) The annual report of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution and shall include

(a) the financial statements of the institution;

(b) the annual auditor’s report;

(c) a statement on the extent to which the institution has met its objectives for the financial year;

(d) any quantitative information respecting the performance of the institution that the Minister may require to be included; and

(e) any other information that is required under this Act or any other Act of Parliament.

131. (1) The board of directors of an institution shall call an annual meeting not later than 18 months after the institution is established and subsequently not later than 15 months after the preceding annual meeting.

(2) An institution shall, at least 30 days before the annual meeting, publish a notice in a major newspaper setting out the time and location of the meeting and specifying that the institution’s annual report may be accessed on an Internet website to be maintained by the institution.

(3) At the annual meeting, the board of directors shall ensure that

(a) there are available a sufficient number of copies of the institution’s most recent annual report for those present at the meeting; and

(b) the chief executive officer and the commissioners or directors of the institution are available to those present at the meeting to answer any questions about the institution’s operations.

PART 7

PROVISIONS OF GENERAL APPLICATION

General

132. (1) No person who is appointed to, or is employed by, a commission, board, authority or institute established under this Act shall be appointed to, or be employed by, any other commission, board, authority or institute established under this Act.

(2) No person referred to in subsection (1) shall accept or hold any office or employment that is inconsistent with that person’s duties or take part in any matter involving the commission, board, authority or institute in which that person has an interest.

(3) All persons appointed to a commission, board or institute established under this Act shall comply with the Conflict of Interest and Post-Employment Code for Public Office Holders, issued by the Office of the Ethics Counsellor, as amended from time to time, as though they were public office holders as defined in that Code.

133. (1) No person has a right to receive any compensation, damages, indemnity or other relief from Her Majesty in right of Canada in respect of any claim against the First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority or First Nations Statistical Institute arising from its exercise of, or its failure to exercise, any of the powers or functions of that Commission, Board, Authority or Institute, as the case may be, including any claim against the First Nations Tax Commission as an agent of Her Majesty in right of Canada.

(2) The First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority and First Nations Statistical Institute shall maintain in good standing at all times the insurance coverage required by any regulations made under paragraph 140(b).

134. No payment to the First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority or First Nations Statistical Institute may be made under an appropriation by Parliament authorized under an Act of Parliament to enable the Commission, Board, Authority or Institute to satisfy any claim referred to in subsection 133(1).

135. No person has a right to receive any compensation, damages, indemnity or other relief from Her Majesty in right of Canada, or from the First Nations Tax Commission, for any acquired, vested or future right, or for any prospect of such a right, that is affected by a law approved by the First Nations Tax Commission under subsection 31(3), or for any duty or liability imposed on that person as a result of such a law.

136. No civil proceedings lie against a commissioner or employee of the First Nations Tax Commission, or any director or employee of the First Nations Financial Management Board or First Nations Statistical Institute, for anything done, or omitted to be done, in the exercise or purported exercise in good faith of any power, or in the performance or purported performance in good faith of any duty, of that person in accordance with this Act.

137. No civil proceedings lie against a member of a council or an employee of a first nation for anything done, or omitted to be done, during the course of the exercise or purported exercise in good faith of any power, or the performance or purported performance in good faith of any duty, of that member or employee in accordance with this Act, regulations made under this Act or a law made by the council of a first nation under this Act.

138. (1) In the event of a conflict between a local revenue law and an Act of Parliament or any regulations made under an Act of Parliament or a code made by a first nation under another Act of Parliament, the Act, regulations or code prevails to the extent of the conflict.

(2) In the event of a conflict between a law made by a first nation under this Act and a law, other than a code, made by the first nation under another Act of Parliament, the law made by the first nation under this Act prevails to the extent of the conflict.

139. (1) For greater certainty, the provisions of the Official Languages Act applicable to federal institutions apply to the First Nations Tax Commission and First Nations Statistical Institute.

(2) Where there is a significant demand for services in a particular official language, the First Nations Financial Management Board and First Nations Finance Authority shall offer services in that language.

Regulations

140. The Governor in Council may make regulations

(a) prescribing anything that is to be prescribed under subsection 20(3) or 41(2) or section 116; and

(b) prescribing the insurance coverage required to be maintained by the First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority and First Nations Statistical Institute in respect of liabilities referred to in subsection 133(1).

141. For the purpose of enabling an aborig­inal group that is not a band as defined in subsection 2(1) of the Indian Act but is a party to a treaty, land claims agreement or self-government agreement with Canada to benefit from the provisions of this Act or obtain the services of any body established under this Act, the Governor in Council may make any regulations that the Governor in Council considers necessary, including regulations

(a) adapting any provision of this Act or of any regulation made under this Act; and

(b) restricting the application of any provision of this Act or of any regulation made under this Act.

142. The Governor in Council may make regulations

(a) prescribing anything that is to be prescribed for the purposes of paragraph 74(b); and

(b) adapting or restricting any provision of this Act or of any regulation made under this Act for the purposes of paragraph 74(b).

PART 8

TRANSITIONAL PROVISIONS, CONSEQUENTIAL AMENDMENTS, COORDINATING AMENDMENTS AND COMING INTO FORCE

Transitional Provisions

143. (1) Persons who are employed by the Indian Taxation Advisory Board at the time that the First Nations Tax Commission is established shall be offered employment with the Commission, at the same salary and with equivalent terms and conditions of employment.

(2) Until new rules are established by the First Nations Tax Commission, the Commission shall conduct itself in accordance with the rules of procedure established by the Indian Taxation Advisory Board.

144. Persons who are directors of the First Nations Finance Authority Inc., a corporation incorporated under the Canada Business Corporations Act, on the day on which section 58 comes into force shall continue as directors of the First Nations Finance Authority until new directors are elected.

145. (1) By-laws made by a first nation under paragraph 83(1)(a), or any of paragraphs 83(1)(d) to (g), of the Indian Act that are in force on the day on which the name of the first nation is added to the schedule are deemed to be laws made under section 5 or 9, as the case may be, to the extent that they are not inconsistent with section 5 or 9, and remain in force until they are repealed or replaced.

(2) For greater certainty, subsections 5(2) to (7) and 9(2) and (3) apply to amendments of by-laws referred to in subsection (1).

146. (1) Section 4 does not apply to a first nation that, immediately before the coming into force of that section, had in place a by-law made under section 83 of the Indian Act.

(2) Despite subsection (1), section 4 applies to a borrowing member.

147. Within seven years after the day on which this Act receives royal assent, the Minister, after consultation with the First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority and First Nations Statistical Institute, shall review the provisions and operation of this Act and the operations of those institutions, and submit a report to each House of Parliament on that review, including any changes that the Minister recommends relating to the evolution of the mandate and operation of those institutions.

Consequential Amendments

Access to Information Act

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

149. Schedule II to the Act is amended by adding, in alphabetical order, a reference to

and a corresponding reference in respect of that Act to “section 108”.

Financial Administration Act

150. Part I of Schedule III to the Financial Administration Act is amended by adding the following in alphabetical order:

Indian Act

151. The portion of subsection 87(1) of the Indian Act before paragraph (a) is replaced by the following:

87. (1) Notwithstanding any other Act of Parliament or any Act of the legislature of a province, but subject to section 83 and section 5 of the First Nations Fiscal and Statistical Management Act, the following property is exempt from taxation:

152. Section 88 of the Act is replaced by the following:

88. Subject to the terms of any treaty and any other Act of Parliament, all laws of general application from time to time in force in any province are applicable to and in respect of Indians in the province, except to the extent that those laws are inconsistent with this Act or the First Nations Fiscal and Statistical Management Act, or with any order, rule, regulation or law of a first nation made under those Acts, and except to the extent that those provincial laws make provision for any matter for which provision is made by or under those Acts.

Privacy Act

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

Coordinating Amendments

154. (1) On the later of the coming into force of section 8 of the Public Service Modernization Act and subsection 60(1) of this Act, subsection 60(1) of the English version of this Act is replaced by the following:

60. (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 federal public administration.

(2) On the later of the coming into force of section 8 of the Public Service Modernization Act and subsection 115(1) of this Act, subsection 115(1) of the English version of this Act is replaced by the following:

115. (1) The officers and employees of an institution are not part of the federal public administration.

Coming into Force

155. The provisions of this Act, other than section 154, come into force on a day or days to be fixed by order of the Governor in Council.