Bill C-13

Income Tax Act

161. (1) Paragraph 18(1)(t) of the Income Tax Act is replaced by the following:

(t) any amount paid or payable

(i) under this Act (other than tax paid or payable under Part XII.2 or Part XII.6),

(2) Subsection (1) applies to taxation years that begin on or after April 1, 2007.

162. (1) Subsection 161.4(2) of the Act is replaced by the following:

(2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

(2) Subsection (1) applies to amounts owing on or after April 1, 2007.

163. (1) Section 164 of the Act is amended by adding the following after subsection (2):

(2) Subsection (1) comes into force on April 1, 2007.

164. (1) Subsection 220(3) of the Act is replaced by the following:

(3) The Minister may at any time extend the time for making a return under this Act.

(2) Section 220 of the Act is amended by adding the following after subsection (3.7):

(3) Subsection (1) applies in respect of extensions granted on or after April 1, 2007.

(4) Subsection (2) applies in respect of any instrument that is dishonoured on or after April 1, 2007.

165. (1) Section 221.2 of the Act is renumbered as subsection 221.2(1) and is amended by adding the following:

(2) Subsection (1) applies in respect of re-appropriation applications made on or after April 1, 2007.

166. (1) Paragraph 225.1(1)(e) of the Act is repealed.

(2) Subsection (1) comes into force on April 1, 2007.

Conditional Amendment

167. If this Act receives royal assent after April 1, 2007,

(a) every reference in this Part to “April 1, 2007” is replaced by the day of that assent; and

(b) every reference in this Part to “March 31, 2007” is replaced by the day before the day of that assent.

PART 6

UNIVERSAL CHILD CARE BENEFIT

Enactment of Act

168. The Universal Child Care Benefit Act is enacted as follows:

An Act to assist families by supporting their child care choices through direct financial support and to make consequential and related amendments to certain Acts

SHORT TITLE

1. This Act may be cited as the Universal Child Care Benefit Act.

INTERPRETATION

2. The following definitions apply in this Act.

“eligible individual” means a person who is an eligible individual for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act.

“Minister” means the Minister of Human Resources and Skills Development.

“qualified dependant” means a person who has not attained the age of six years and who is a qualified dependant for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act.

PURPOSE

3. The purpose of this Act is to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years.

BENEFIT

4. (1) The Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, a benefit of $100 for each child who is a qualified dependant of the individual at the beginning of that month.

(2) The benefit may not be paid in respect of any month before July, 2006.

5. A benefit

(a) is not subject to the operation of any law relating to bankruptcy or insolvency;

(b) cannot be assigned, charged, attached or given as security;

(c) cannot be retained by way of deduction, set-off or, in Quebec, compensation, under any Act of Parliament other than this Act; and

(d) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.

6. (1) A person who has received or obtained a benefit to which the person is not entitled, or a benefit in excess of the amount of the benefit to which the person is entitled, shall, as soon as possible, repay the amount of the benefit or the excess amount, as the case may be.

(2) The amount of the overpayment or erroneous payment constitutes a debt due to Her Majesty, as of the day on which it was paid, that may be recovered by the Minister of National Revenue.

7. (1) Subject to this section, no action or proceedings shall be taken to recover money owing under this Act after the expiry of the six-year limitation period that begins on the day on which the money becomes due and payable.

(2) Money owing by a person under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money, including a benefit under this Act, that may be due or payable by Her Majesty in right of Canada to the person, other than an amount payable under section 122.61 of the Income Tax Act.

(3) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

(4) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5) after the expiry of the limitation period, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.

(5) An acknowledgment of liability means

(a) a written promise to pay the money owing, signed by the person or his or her agent or other representative;

(b) a written acknowledgment of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

(c) a part payment by the person or his or her agent or other representative of any money owing; or

(d) any acknowledgment of the money owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

(6) The running of a limitation period in respect of money owing under this Act is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under this Act.

(7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

8. No interest is payable on any amount owing to Her Majesty under this Act as a result of an overpayment or an erroneous payment.

9. The Minister may enter into agreements or arrangements with any department, board or agency of the Government of Canada to assist the Minister in carrying out the purposes and provisions of this Act.

10. All amounts payable by the Minister under section 4 shall be paid out of the Consolidated Revenue Fund.

Consequential And Related Amendments

Children’s Special Allowances Act

169. The Children’s Special Allowances Act is amended by adding the following after section 2:

170. The Act is amended by adding the following after section 3:

171. Paragraph 4(4)(d) of the Act is replaced by the following:

(d) reaches eighteen years of age or, in the case of a special allowance supplement paid under section 3.1, reaches six years of age.

Employment Insurance Act

172. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following:

“income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were

(a) deductible under paragraphs 60(v.1), (w) and (y) of that Act,

(b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or

Income Tax Act

173. (1) Section 56 of the Income Tax Act is amended by adding the following after subsection (5):

(2) Subsection (1) applies to amounts received after June 30, 2006.

174. (1) Section 60 of the Act is amended by striking out the word “and” at the end of paragraph (w), by adding the word “and” at the end of paragraph (x) and by adding the following after paragraph (x):

(2) Subsection (1) applies to repayments made after June 30, 2006.

175. (1) The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following:

“adjusted income” of an individual, for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and as if no amount were deductible under paragraph 60(y) in computing that income.

(2) Subsection (1) applies to the 2006 and subsequent taxation years.

176. (1) The definition “adjusted income” in section 122.6 of the Act is replaced by the following:

“adjusted income” of an individual for a taxation year means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(y) in computing that income;

(2) Subsection (1) applies to the 2006 and subsequent taxation years.

177. (1) The description of A in subsection 122.61(1) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

(2) Subsection (1) applies in respect of overpayments that are deemed to arise during months that are after June 2007, and, for overpayments that are deemed to arise during months that are after June 2006 and before July 2007, the description of D in subsection 122.61(1) of the Act is to be read as follows:

D      is the product obtained by multiplying $249 by the number of qualified dependants who have attained the age of 6 years before the month and have not attained the age of 7 years before the month and in respect of whom the person is an eligible individual at the beginning of the month, and

178. (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

“adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under subsection 56(6) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w) or (y) in computing that income;

(2) Subsection (1) applies to the 2006 and subsequent taxation years.

179. (1) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.2):

(2) Subparagraph 241(4)(d)(vii.3) of the Act, as enacted by subsection (1), applies after June 2003.

(3) Subparagraph 241(4)(d)(vii.4) of the Act, as enacted by subsection (1), applies after June 2006.

Old Age Security Act

180. The definition “income” in section 2 of the Old Age Security Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d):

Coming Into Force

181. This Part, other than sections 173 to 179, comes into force, or is deemed to have come into force, on July 1, 2006.

PART 7

AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

182. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

3. Subject to the provisions of this Act, there may be paid to a province for each fiscal year that begins after March 31, 2004 a fiscal equalization payment not exceeding the amounts set out in this Part.

183. (1) Subsection 4.1(3) of the Act is replaced by the following:

(2) Subsection 4.1(4) of the Act is replaced by the following:

(4) The fiscal equalization payment shall be paid to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday.

184. The Act is amended by adding the following after section 4.3:

185. The portion of section 4.4 of the Act before paragraph (a) is replaced by the following:

4.4 Subject to the provisions of this Part, there may be paid to a territory

186. (1) Section 4.92 of the Act is amended by adding the following after subsection (1):

(2) Subsections 4.92(3) and (4) of the Act are replaced by the following:

(4) In April and May of each fiscal year beginning after March 31, 2005, there shall be paid to a territory a monthly instalment of the territorial formula financing payment equal to 16 per cent of the territory’s allocation of the aggregate territorial formula financing payment for that fiscal year. In each of the remaining ten months of the fiscal year, there shall be paid to the territory a monthly instalment of the territorial formula financing payment equal to 6.8 per cent of the territory’s allocation of the aggregate territorial formula financing payment under this section.

187. Section 4.93 of the Act is replaced by the following:

4.93 (1) If it is determined that an underpayment of any amounts payable to a territory under section 4.92 has been made, an amount equal to the underpayment may be paid to the territory at the times and in the manner that the Minister considers appropriate.

(2) If it is determined that an overpayment in respect of any amounts payable to a territory under section 4.92 for a fiscal year has been made, the Minister may recover the amount of that overpayment

(a) from any amount payable to the territory under this Act in the same fiscal year or as soon as possible after the end of that fiscal year; or

(b) from the territory as a debt due to Her Majesty in right of Canada.

188. The Act is amended by adding the following after section 4.93:

189. Section 41 of the Act is replaced by the following:

PART 8

PAYMENTS TO PROVINCES AND TERRITORIES

190. (1) From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Human Resources and Skills Development, be paid to the provinces a payment in the amount of $650,000,000 for the fiscal year beginning on April 1, 2006, in respect of early learning and child care.

(2) The payment referred to in subsection (1) shall be allocated to the provinces as follows:

(a) to Ontario, $252,933,933.35;

(b) to Quebec, $152,740,663.90;

(c) to Nova Scotia, $18,743,350.65;

(d) to New Brunswick, $15,028,068.42;

(e) to Manitoba, $23,683,368.44;

(f) to British Columbia, $85,920,064.72;

(g) to Prince Edward Island, $2,762,632.45;

(h) to Saskatchewan, $19,863,918.85;

(i) to Alberta, $65,973,415.33;

(j) to Newfoundland and Labrador, $10,266,477.67;

(k) to Yukon, $619,370.20;

(l) to the Northwest Territories, $862,067.75; and

(m) to Nunavut, $602,668.27.

191. From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance, be paid to the territories the following payments for the fiscal year beginning on April 1, 2006:

(a) to Yukon, $10,900,000;

(b) to the Northwest Territories, $18,000,000; and

(c) to Nunavut, $17,500,000.

PART 9

MORTGAGE INSURANCE

192. The following definitions apply in sections 193 and 194.

“mortgagee” means a mortgagee or hypothecary creditor that holds a mortgage or hypothec insurance policy with a mortgage insurer.

“mortgage insurer” means a corporation to which subsection 13(1) of the Insurance Companies Act applies and that is approved by the Superintendent of Financial Institutions to sell mortgage or hypothec insurance policies in Canada.

193. (1) The Minister of Finance may, with respect to an insurance policy held by a mortgagee, enter into an agreement with any person, including a mortgage insurer or the mortgagee, to do any of the following:

(a) provide an indemnity to the mortgagee;

(b) provide a guarantee or suretyship to the mortgagee; and

(c) purchase a replacement insurance policy for the mortgagee.

(2) The agreement shall provide that, if the mortgage insurer with whom the mortgagee holds an insurance policy becomes insolvent or is liquidated, a payment shall be made to the mortgagee, or to another mortgage insurer if the agreement provides for a replacement insurance policy.

(3) Subject to regulations made under paragraph 194(1)(a), the payment shall be equal to the benefits payable under the insurance policy held with the mortgage insurer less 10 per cent of the original principal amount of the mortgage or hypothec that is subject to the insurance policy.

(4) The aggregate outstanding principal amount of all mortgages or hypothecs to which insurance policies that are subject to such agreements apply shall not at any time exceed $200,000,000,000 or any other amount that may be authorized for the purposes of this subsection under an appropriation Act.

(5) An agreement having the same purpose as an agreement referred to in subsection (1) and that is entered into by the Minister of Finance before the coming into force of that subsection is deemed to be an agreement referred to in this section.

194. (1) The Governor in Council may make regulations respecting

(a) the percentage of the original principal amount to be subtracted under subsection 193(3), including the mortgages or hypothecs to which that percentage applies;

(b) information and documents, electronic or otherwise, to be maintained by a person who is a party to an agreement referred to in section 193; and

(c) the disclosure of any information and documents, electronic or otherwise, by such a person to the Minister of Finance or any person designated by the Minister of Finance.

(2) A regulation made under paragraph (1)(a) does not apply in respect of a mortgage or hypothec that became insured before the coming into force of the regulation by an insurance policy that is subject to an agreement referred to in section 193.

195. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Finance, be paid any amounts to be paid under an agreement entered into under section 193.

196. Finance vote 16b of Appropriation Act No. 4, 2003-2004 is repealed.

197. If a bill entitled Appropriation Act No. 1, 2006-2007 is introduced in the first session of the 39th Parliament and receives royal assent, Finance vote 10 of that Act is repealed.

198. If a bill entitled Appropriation Act No. 1, 2006-2007 is introduced in the first session of the 39th Parliament and comes into force before section 196 of this Act, section 196 of this Act is repealed.

PART 10

AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS

Bank Act

199. Subsection 21(1) of the Bank Act is replaced by the following:

21. (1) Subject to subsection (2), banks shall not carry on business and authorized foreign banks shall not carry on business in Canada after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, respectively, until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

199.1 Subsection 670(1) of the Act is replaced by the following:

670. (1) Subject to subsection (2), bank holding companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, bank holding companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

Cooperative Credit Associations Act

200. Subsection 22(1) of the Cooperative Credit Associations Act is replaced by the following:

22. (1) Subject to subsection (2), associations shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, associations may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

Insurance Companies Act

201. Subsection 21(1) of the Insurance Companies Act is replaced by the following:

21. (1) Subject to subsection (2), companies and societies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, companies and societies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

201.1 Subsection 707(1) of the Act is replaced by the following:

707. (1) Subject to subsection (2), insurance holding companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, insurance holding companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

Trust and Loan Companies Act

202. Subsection 20(1) of the Trust and Loan Companies Act is replaced by the following:

20. (1) Subject to subsection (2), companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.

PART 11

AMENDMENTS RELATING TO PENSIONS

Canadian Forces Superannuation act

203. Subsection 15(2) of the Canadian Forces Superannuation Act is replaced by the following:

(2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor

(a) has not reached the age of sixty-five years, and

(b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan,

there shall be deducted from the amount of any annuity to which that contributor is entitled under this Act an amount equal to the percentage, as set out in subsection (2.1), of

(c) the average annual pay received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings,

multiplied by

(d) the number of years of pensionable service after 1965 or after he or she has attained the age of eighteen years, whichever is the later, to the credit of the contributor, not exceeding thirty-five, divided by fifty.

Public Service Superannuation Act

204. Subsection 3(4) of the Public Service Superannuation Act is replaced by the following:

(4) For the purposes of paragraph 8(2)(e), a person is deemed to have reached the age of eighteen years at the beginning of the month following the month in which the person actually reached that age and, for the purposes of paragraph 11(2)(a), a person is deemed to have reached the age of sixty-five years at the beginning of the month following the month in which the person actually reached that age.

205. Subsection 11(2) of the Act is replaced by the following:

(2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor

(a) has not reached the age of sixty-five years, and

(b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan,

there shall be deducted from the amount of any annuity to which that contributor is entitled under this Part an amount equal to the percentage, as set out in subsection (2.1), of

(c) the average annual salary received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings,

multiplied by

(d) the number of years of pensionable service after 1965 to the credit of the contributor, not exceeding thirty-five, divided by fifty.

Royal Canadian Mounted Police Superannuation Act

206. Subsection 10(2) of the Royal Canadian Mounted Police Superannuation Act is replaced by the following:

(2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor

(a) has not reached the age of sixty-five years, and

(b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan,

there shall be deducted from the amount of any annuity to which that contributor is entitled under this Part an amount equal to the percentage, as set out in subsection (2.1), of

(c) the average annual pay received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings,

multiplied by

(d) the number of years of pensionable service after 1965 or after he or she has attained the age of eighteen years, whichever is the later, to the credit of the contributor, not exceeding thirty-five, divided by fifty.

Coming into Force

207. This Part comes into force on January 1, 2008.

PART 12

MACKENZIE GAS PROJECT IMPACTS ACT

Enactment of Act

208. The Mackenzie Gas Project Impacts Act, whose text is as follows and whose schedule is set out in Schedule 2 to this Act, is hereby enacted:

An Act to establish the Corporation for the Mitigation of Mackenzie Gas Project Impacts

SHORT TITLE

1. This Act may be cited as the Mackenzie Gas Project Impacts Act.

INTERPRETATION

2. The following definitions apply in this Act.

“board” means the board of directors of the Corporation.

“Corporation” means the Corporation for the Mitigation of Mackenzie Gas Project Impacts established by section 3.

“director” means a person who is on the board and includes the chairperson.

“eligible project” means a project referred to in section 5.

“employee or agent of Her Majesty in right of a province” does not include an employee or agent of Her Majesty in right of a province whose duties and functions in that capacity are restricted to work in a university, college or other educational institution.

“Mackenzie gas project” means the project proposed by a consortium led by Imperial Oil Resources Ventures Limited that includes the development of the natural gas fields of Niglintgak, Taglu and Parsons Lake, and the construction and operation of

(a) a gathering system related to those fields;

(b) a natural gas liquids pipeline;

(c) the natural gas pipeline that is the subject of the application GH-12004 made to the National Energy Board on October 7, 2004; and

(d) facilities related to the fields, the gathering system or the pipelines.

“Minister” means the Minister of Indian Affairs and Northern Development.

“regional organization” means an organization referred to in the schedule.

INCORPORATION

3. There is hereby established a corporation to be known as the Corporation for the Mitigation of Mackenzie Gas Project Impacts.

4. The Corporation is not an agent of Her Majesty in right of Canada.

5. (1) The objects and purposes of the Corporation are to provide contributions to regional organizations with respect to projects described in subsection (2).

(2) The Corporation may only provide contributions to regional organizations in respect of a project if the project

(a) mitigates the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project; and

(b) is consistent with criteria established and made publicly available by the Corporation.

6. In carrying out its objects and purposes, the Corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person.

7. The head office of the Corporation shall be in a place in Canada designated by the Governor in Council.

8. The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, does not apply to the Corporation.

DIRECTORS

9. There shall be a board of directors consisting of either three or five persons, including the person appointed as chairperson.

10. (1) The Minister shall provide notice to the regional organizations at least one month before appointing the first director, other than the chairperson, under section 105 of the Financial Administration Act and each successor of that director.

(2) The regional organizations, on receiving the notice, may provide the Minister with a list of nominees for the appointment. The Minister shall consider the nominees before making the appointment.

(3) A person is not eligible to be appointed as a director if the person

(a) is a member of the Senate, the House of Commons or the legislature of a province;

(b) is an employee or agent of Her Majesty in right of Canada or in right of a province;

(c) does not ordinarily reside in Canada; or

(d) is disqualified under subsection 105(1) of the Canada Business Corporations Act.

(4) Until all directors are appointed, the Corporation shall not provide any contributions or enter into any agreements or arrangements, or review any applications, for or in respect of contributions.

11. (1) The directors, other than the chairperson, shall be appointed to hold office during pleasure for terms not exceeding five years.

(2) The appointment of all directors shall ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors of the Corporation.

(3) A director ceases to be a director when the director

(a) dies;

(b) resigns;

(c) is appointed to the Senate;

(d) is elected to the House of Commons or to the legislature of a province;

(e) becomes an employee or agent of Her Majesty in right of Canada or in right of a province;

(f) ceases to be ordinarily resident in Canada; or

(g) becomes disqualified under subsection 105(1) of the Canada Business Corporations Act.

12. The appointment of directors shall be made having regard to the need for a board that has sufficient knowledge of, and experience in, financial administration and sufficient knowledge of the socio-economic issues affecting communities in northern regions.

13. (1) The following shall be paid by the Corporation:

(a) the directors’ remuneration and benefits, in accordance with section 108 of the Financial Administration Act;

(b) the directors’ reasonable travel and living expenses incurred by them in the perform­ance of their duties under this Act while absent from their ordinary place of residence; and

(c) other costs and expenses of carrying on the business of the Corporation.

(2) Except as provided under subsection (1), no director shall profit, gain any income or acquire any property, from the Corporation or its activities.

STAFF

14. (1) The board may appoint any officers, employees, agents and mandataries of the Corporation that it considers necessary to carry out the objects and purposes of the Corporation.

(2) Subject to the by-laws of the Corporation, the board may designate the offices of the Corporation and specify the duties and functions of each office.

(3) Directors are not eligible to be employees, agents or mandataries of the Corporation.

(4) The directors, officers, employees, agents and mandataries of the Corporation are not, because of being directors, officers, employees, agents and mandataries of the Corporation, part of the federal public administration.

OPERATIONS

15. (1) The Corporation shall, before providing a contribution to a regional organization, enter into an agreement with the organization respecting, among other things,

(a) the manner in which advances will be made in respect of contributions and when those advances will be made;

(b) the terms or conditions on which the contributions will be provided; and

(c) the evaluation of the regional organization’s performance in achieving the objectives associated with the provision of contributions for eligible projects and the evaluation of the results of the projects that are funded.

(2) In providing contributions to a regional organization, the Corporation shall not acquire any benefit or any interest, including an ownership interest, whether through the acquisition of share capital, a partnership interest or otherwise.

16. The board shall, with the approval of the Minister of Finance, establish investment policies, standards and procedures that a reasonably prudent person would apply in respect of a portfolio of investments to avoid undue risk of loss and obtain a reasonable return, having regard to the Corporation’s obligations and anticipated obligations.

17. (1) The Corporation shall invest its funds, and reinvest any income from those funds, in accordance with the investment policies, standards and procedures established by the board.

(2) The Corporation shall not cause any corporation to be incorporated, participate in such an incorporation or become a partner in a partnership.

(3) Except for the investment of its funds, the Corporation shall not carry on any business for gain or profit and shall not hold or acquire any interest in any corporation or enterprise.

18. (1) Except as permitted under its corporate plan approved in accordance with section 122 of the Financial Administration Act, the Corporation shall not borrow money, issue any debt obligations or securities, give any guarantees to secure a debt or other obligation of another person or mortgage, hypothecate, pledge or otherwise encumber property of the Corporation.

(2) The Corporation shall not purchase or accept a donation of real property or immovables.

19. (1) Subject to subsection (2), the board may delegate to the chairperson, a committee of directors or an officer of the Corporation any of the powers or rights of the board.

(2) The board shall not delegate any power or right of the board

(a) to enact, amend or repeal by-laws;

(b) to authorize the provision of contributions to regional organizations for eligible projects;

(c) to appoint officers of the Corporation or fix their remuneration; or

(d) to approve the annual financial statements or reports of the Corporation.

LIQUIDATION

20. The Governor in Council may, by order, require the Corporation to cease carrying on business and liquidate its assets.

21. Any money remaining after liquidation shall be distributed in accordance with instructions given by the Governor in Council.

GENERAL

22. The Corporation shall include in its by-laws provisions

(a) entitling a regional organization that has made an application for a contribution from the Corporation to request the board to make a ruling as to the possible conflict of interest of a director in the consideration or disposal of the application;

(b) establishing procedures to be followed by the board in responding to the request and giving the ruling; and

(c) determining the fiscal year of the Corporation.

23. In the event of an inconsistency between the provisions of this Act and the provisions of Part X of the Financial Administration Act, the provisions of this Act prevail.

AMENDMENT OF SCHEDULE

24. The Governor in Council may, by order made on the recommendation of the Minister, add or delete the name of any organization to or from the schedule.

Payments

209. (1) From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance made on the recommendation of the Minister of Indian Affairs and Northern Development, be paid to the Corporation for the Mitigation of Mackenzie Gas Project Impacts payments not exceeding in the aggregate the sum of $500,000,000.

(2) The Minister of Indian Affairs and Northern Development may only make the recommendation if the Mackenzie gas project, as defined in section 2 of the Mackenzie Gas Project Impacts Act, as enacted by section 208 of this Act, has not been terminated and the Minister of Indian Affairs and Northern Development is of the opinion that progress is being made on the project.

(3) The Minister of Indian Affairs and Northern Development may, with the concurrence of the Minister of Finance, enter into an agreement with the Corporation for the Mitigation of Mackenzie Gas Project Impacts respecting the terms and conditions applicable to the making of the payments and their use.

Consequential Amendments

Access to Information Act

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

Financial Administration Act

211. Part 1 of Schedule III to the Financial Administration Act is amended adding the following in alphabetical order:

Privacy Act

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

Coming Into Force

213. Sections 208 to 212 come into force on a day to be fixed by order of the Governor in Council.

PART 13

MISCELLANEOUS AMENDMENTS

European Bank for Reconstruction and Development Agreement Act

214. The European Bank for Reconstruction and Development Agreement Act is amended by adding the following after section 4:

215. Article 1 of the Agreement set out in the schedule to the Act is replaced by the following:

ARTICLE 1

Purpose

In contributing to economic progress and reconstruction, the purpose of the Bank shall be to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in the Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics. The purpose of the Bank may also be carried out in Mongolia subject to the same conditions. Accordingly, any reference in this Agreement and its annexes to “Central and Eastern European countries”, “countries from Central and Eastern Europe”, “recipient country (or countries)” or “recipient member country (or countries)” shall refer to Mongolia as well.

Freshwater Fish Marketing Act

216. Subsection 16(2) of the Freshwater Fish Marketing Act is replaced by the following:

(2) The aggregate outstanding at any time of the amounts borrowed by the Corporation pursuant to paragraph 7(g) and the amounts lent by the Minister of Finance under this section shall not exceed fifty million dollars.

Public Sector Pension Investment Board Act

217. The Public Sector Pension Investment Board Act is amended by adding the following after section 3: