2005 Legislative Session: 1st Session, 38th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE COLIN HANSEN
MINISTER OF ECONOMIC DEVELOPMENT AND MINISTER
RESPONSIBLE FOR THE ASIA-PACIFIC INITIATIVE AND THE OLYMPICS

BILL 6 – 2005

NORTHERN DEVELOPMENT INITIATIVE TRUST
AMENDMENT ACT, 2005

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Northern Development Initiative Trust Act, S.B.C. 2004, c. 69, is amended by adding the following definitions:

"additional one-time allocation" means any money, other than the northern development allocation, paid by the government to the Northern Development Initiative Trust;

"Pine Beetle Account" means the account established under section 10 (1.1) (a);

"qualified individual" means an individual who is not

(a) an elected official of a municipality or a regional district,

(b) a Member of the Legislative Assembly,

(c) an employee of the government,

(d) a member of the board of directors of the Northern Development Initiative Trust,

(e) a member of a regional advisory committee, or

(f) a person who is

(i) the spouse, parent or child of any individual referred to in paragraph (d) or (e), or

(ii) any other relative residing with that individual;

"regional advisory committee" means a regional advisory committee established under this Act; .

2 Section 3 (a) (i) is amended by adding "that are, in whole or in part," after "regional districts".

3 Section 6 is amended

(a) in subsection (3) (a) by adding "of this section" after "subsection (2) (a)",

(b) in subsection (3) (b) by adding "of this section" after "subsection (2) (b)", and

(c) by repealing subsection (4) and substituting the following:

(4) Nothing in this Act prevents

(a) a regional advisory committee from removing and replacing, in accordance with any procedures it has established for that purpose, any individual the regional advisory committee has appointed as a director of the Northern Development Initiative Trust, and

(b) the Lieutenant Governor in Council from removing and replacing any individual the Lieutenant Governor in Council has appointed as a director of the Northern Development Initiative Trust.

(4.1) If a director is removed and replaced under subsection (4),

(a) the regional advisory committee or the Lieutenant Governor in Council, as the case may be, must promptly notify the directors of the Northern Development Initiative Trust of the replacement appointment, and

(b) the term of office of the replacement director is the remainder of the term of the director he or she replaces.

(4.2) A director of the Northern Development Initiative Trust is removed as, and ceases to be, a director of the Northern Development Initiative Trust on the passing of a resolution to that effect by all of the remaining directors.

4 Section 10 is amended

(a) by adding the following subsection:

(1.1) The directors of the Northern Development Initiative Trust must

(a) establish a Pine Beetle Account, and

(b) receive the additional one-time allocation and

(i) deposit 60% of that allocation into the Pine Beetle Account, and

(ii) deposit 10% of that allocation into each of the regional development accounts. ,

(b) in subsection (2) by striking out "northern development allocation." and substituting "northern development allocation, the additional one-time allocation and any other money in the accounts established under this Act.", and

(c) by adding the following subsection:

(3) In appointing a chief executive officer and a chief financial officer under section 10.1 (1) and a review committee under section 23.1 (1), the directors are to be guided by the guidelines set out in the following as amended or replaced from time to time:

(a) the Governance and Disclosure Guidelines for Governing Boards of British Columbia Public Sector Organizations published by the British Columbia Board Resourcing and Development Office;

(b) the Review of the Governance Framework for Canada's Crown Corporations – Meeting the Expectations of Canadians published by the Treasury Board of Canada Secretariat.

5 Sections 11 and 12 are repealed and the following substituted:

Appointment of chief executive officer and chief financial officer

10.1 (1) Subject to section 10 (3), the directors must appoint a qualified individual as the chief executive officer of the Northern Development Initiative Trust, and the same or a different qualified individual as the chief financial officer of the Northern Development Initiative Trust, to carry out

(a) the functions and duties of the chief executive officer and chief financial officer, respectively, under this Act, and

(b) the functions and duties that the directors specify.

(2) The directors may set the remuneration of the chief executive officer and chief financial officer.

Officers and employees

10.2 (1) The chief executive officer, to the extent authorized by the directors, may do one or more of the following:

(a) enter into contracts on behalf of the Northern Development Initiative Trust to carry out any of its purposes;

(b) appoint other officers and employees considered necessary to carry out the operations of the Northern Development Initiative Trust;

(c) define the duties and set the remuneration of the individuals appointed under paragraph (b);

(d) provide a system of organization to establish responsibility and promote efficiency.

(2) The Public Service Act, the Public Service Benefit Plan Act, the Public Sector Pension Plans Act and the Public Service Labour Relations Act do not apply to the Northern Development Initiative Trust, the chief executive officer, the chief financial officer or a director, officer or employee of the Northern Development Initiative Trust.

Remuneration

11 A director of the Northern Development Initiative Trust must not accept remuneration from that corporation other than for reasonable travelling and out of pocket expenses necessarily incurred by the director in discharging his or her duties.

Part 2.1 – Public Accountability

Strategic plans

12.1 (1) For the purposes of public accountability, the directors must prepare strategic plans in accordance with this section.

(2) The directors must

(a) each year establish a 3 year strategic plan for the Northern Development Initiative Trust including goals for each year of the strategic plan relating to the fulfillment of the purposes identified in section 18 in relation to the accounts established under this Act,

(b) provide a copy of each strategic plan prepared under this section to each of the regional advisory committees, and

(c) publish each strategic plan prepared under this section in a manner that can reasonably be expected to bring the plan to the attention of the public.

(3) The directors must prepare

(a) the first strategic plan required under subsection (1) within 6 months after the coming into force of this section, and

(b) after that, a strategic plan before the first day of each fiscal year of the Northern Development Initiative Trust.

Annual reports

12.2 (1) Within 4 months after the end of each fiscal year of the Northern Development Initiative Trust, the directors must

(a) prepare an annual report that complies with subsection (2) (a), and

(b) prepare, in accordance with generally accepted accounting principles, financial statements for the Northern Development Initiative Trust for that fiscal year and have those financial statements audited in accordance with section 12.3.

(2) The directors must,

(a) in each annual report referred to in subsection (1) of this section,

(i) report on the goals set by the directors for the preceding fiscal year under section 12.1 (2), indicate how, if at all, those goals have been met and detail how those achievements met the intent of the purposes identified in section 18 in relation to the accounts established under this Act,

(ii) compare actual results for the preceding fiscal year with the expected results identified in the strategic plan for that fiscal year, and

(iii) include the audited financial statements referred to in subsection (1) (b),

(b) provide a copy of that annual report to each of the regional advisory committees, and

(c) publish each annual report in a manner that can reasonably be expected to bring the annual report to the attention of the public.

Audit

12.3 (1) The Northern Development Initiative Trust must, on or before the end of each fiscal year, appoint, as auditor for the Northern Development Initiative Trust, an individual who is authorized to be an auditor of a company under section 205 of the Business Corporations Act to audit the accounts, transactions and financial statements of the Northern Development Initiative Trust for the following fiscal year.

(2) The accounts, transactions and financial statements of the Northern Development Initiative Trust must, at least once in every year, be audited and reported on by the auditor and the costs of the audit must be paid by the Northern Development Initiative Trust.

(3) An oral or written statement or report made under this Act by the auditor or a former auditor of the Northern Development Initiative Trust has qualified privilege.

6 The following section is added:

Limit on the additional one-time allocation

13.1 Despite any other enactment, if the government makes additional one-time allocation payments to the Northern Development Initiative Trust, the total of those payments must not exceed $50 million.

7 Sections 15 (1) and (2) and 16 are amended by striking out "section 7 (3) (a)" wherever it appears and substituting "this Act".

8 Section 17 (1) is amended by striking out "to meet any of the costs and expenses incurred by the Northern Development Initiative Trust under this Act." and substituting "to satisfy those expenses that are reasonably and necessarily incurred in order to allow the directors and officers to perform their obligations under this Act, including, without limitation, any payments required under sections 10.1 (2) and 10.2 (1) (c)."

9 Section 18 is amended

(a) in subsection (1) by adding the following paragraph:

(j) agriculture. , and

(b) by adding the following subsections:

(3) The purpose of the Pine Beetle Account is to support pine beetle recovery projects to help communities in the legacy area respond to the mountain pine beetle infestation.

(4) Without limiting section 15 (1) but subject to section 17, money may be paid out of an account established under this Act for the purpose established for that account under this Act.

10 Section 20 is amended by adding ", the additional one-time allocation and any other money in the accounts established under this Act" after "the northern development allocation".

11 The following sections are added:

Winding up

21.1 (1) Promptly after all of the accounts established under this Act, other than the Operating Endowment Account, have been reduced to a nil balance, the directors must

(a) in accordance with the direction of the regional advisory committees, distribute the remaining assets of the Northern Development Initiative Trust, if any, including the money in the Operating Endowment Account,

(i) firstly in satisfaction of any outstanding liabilities of the Northern Development Initiative Trust, and

(ii) after that, to the municipalities and regional districts in the legacy area, or to any of them, in the proportions or amounts the regional advisory committees may direct,

(b) close all of the accounts established under this Act, and

(c) publish notice of the closing of the accounts, and the consequent dissolution of the Northern Development Initiative Trust, in a manner that can reasonably be expected to bring those matters to the attention of the public.

(2) On the closing of the accounts established under this Act,

(a) the Northern Development Initiative Trust is dissolved and disestablished,

(b) the appointment of each member of the board of directors of the Northern Development Initiative Trust is rescinded, and

(c) the regional advisory committees are dissolved and disestablished.

Review of this Act

23.1 (1) Subject to section 10 (3), on or before the fifth anniversary of the coming into force of this Act, and on or before every fifth anniversary after that, the directors must, if the Northern Development Initiative Trust has not by that date been dissolved and disestablished under section 21.1, appoint a committee of qualified individuals to review this Act and evaluate how it is functioning.

(2) The review committee may consult with business, labour, education providers, government and any other person or organization it considers appropriate.

(3) If a review committee is appointed, it must publish a report of its findings in a manner that can reasonably be expected to bring the report to the attention of the public.

Commencement

12 This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Notes

SECTION 1: [Northern Development Initiative Trust Act, section 1] adds definitions of "additional one-time allocation", "Pine Beetle Account", "qualified individual" and "regional advisory committee".

SECTION 2: [Northern Development Initiative Trust Act, section 3] clarifies that an individual may become a member of a regional advisory committee if that individual is an elected official from a municipality or regional district and all or a part of that municipality or regional district is in the region.

SECTION 3: [Northern Development Initiative Trust Act, section 6]

SECTION 4: [Northern Development Initiative Trust Act, section 10] provides for the establishment of the Pine Beetle Account and the receipt, deposit and investment of the additional one-time allocation, and establishes guidelines applicable to the appointment of a chief executive officer and a chief financial officer for the Northern Development Initiative Trust.

SECTION 5: [Northern Development Initiative Trust Act, sections 10.1, 10.2, 11, 12.1, 12.2 and 12.3]

SECTION 6: [Northern Development Initiative Trust Act, section 13.1] limits to $50 million the additional amount the government may pay to the Northern Development Initiative Trust.

SECTION 7: [Northern Development Initiative Trust Act, sections 15 and 16] broadens the reference to accounts to include the Pine Beetle Account.

SECTION 8: [Northern Development Initiative Trust Act, section 17] expressly allows remuneration of officers and employees to be paid out of the Operating Endowment Account.

SECTION 9: [Northern Development Initiative Trust Act, section 18] adds agriculture as one of the purposes for which the money in the Cross-regional Account may be spent, describes the purpose of the Pine Beetle Account and clarifies that the ability to manage the accounts created under this Act includes the ability to pay money out of those accounts for the purposes established for them under this Act.

SECTION 10: [Northern Development Initiative Trust Act, section 20] limits the investment of the additional one-time allocation and other money in the account in the same way that investment of the northern development allocation is limited.

SECTION 11: [Northern Development Initiative Trust Act, sections 21.1 and 23.1]


Copyright (c) 2005: Queen's Printer, Victoria, British Columbia, Canada