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HOSPITAL DISTRICT ACT

[RSBC 1996] CHAPTER 202

[Updated to September 6, 2000]

Contents

Section

Part 1 – Definitions

1 

Definitions

Part 2 – Hospital Districts and Boards

Division 1

2 

Division of British Columbia and incorporation of districts

2.1 

Transitional boards continued to manage old debt

3 

Letters patent

4 

Municipal regional districts declared regional hospital districts

5 

Amendment of letters patent

6 

Property

7 

Bylaws

Division 2

8 

Regional hospital board

9 

Voting

10 

Tenure of office of directors

11 

Vacancies

12 

Quorum

13 

Chair and acting chair

14 

Majority vote

15 

Remuneration of directors and officers

16 

Calling of meetings

16.1 

Meeting by telecommunication

17 

Officers and officials

Part 3 – Functioning Of Boards

Division 1

18 

Power to hold property

19 

Tax free property

20 

Purposes

21 

Executive committee

22 

Accounting requirements

23 

Provisional and annual budget

24 

Apportionment of costs

25 

Requisitioning and raising of funds

26 

Taxation

27 

Variable tax rate system

28 

Exemption

29 

Taxation (Rural Area) Act applies

30 

Assessment appeals

Division 2

31 

For operating expenses

32 

Capital bylaw

33 

Borrowing for capital expenses

34 

Delegation of authority as to terms

Division 3

35 

Securities on sinking fund plan

36 

Issue of securities to certain special purchasers

37 

Issuance of securities

38 

Signature and corporate seal

39 

Securities guaranteed

40 

Placing loan

41 

Registration of securities

42 

Validity of securities

43 

Loss of securities and issuance

Part 4 – General

44 

Adopting bylaws

45 

Inspection of books

46 

Dissolution of hospital improvement districts

47 

Hospitals not required to use this Act

48 

Board may borrow its share of cost

49 

Minister may designate health facility

50 

Vancouver Charter

51 

Power to make regulations

Part 1 – Definitions

Definitions

1 In this Act:

"board" and "regional hospital district board" mean a board of directors of a regional hospital district and, except in Division 2 of Part 2, include, if a municipal regional district is declared, by order under section 2, to be the regional hospital district, the municipal regional board;

"director" means a director of a board;

"district" and "regional hospital district" mean a regional hospital district incorporated under this Act and include a municipal regional district declared, by order under section 2, to be a regional hospital district;

"hospital" means a hospital as defined by any provision of the Hospital Act and includes an institution or facility in the health field designated by the minister under section 49 as a health facility for the purposes of this Act;

"hospital facilities" includes laboratories, laundries and things, services and premises used or supplied in conjunction with a hospital;

"hospital insurance fund" means the hospital insurance fund continued under the Hospital Insurance Act;

"hospital project" includes the establishment, acquisition, reconstruction, enlargement, operation and maintenance of a hospital or hospital facilities;

"improvement district" means an improvement district

(a) as defined in the Water Act, or

(b) incorporated or reincorporated under the Local Government Act;

"member" means a municipality or an unorganized area that is included in a regional hospital district and designated as a member by letters patent;

"member municipality" means a municipality that is a member or, if the municipal regional district is the regional hospital district, a municipality or electoral area within that regional district;

"minister" includes a person designated in writing by the minister;

"municipality" includes an improvement district designated by letters patent constituting or pertaining to a regional hospital district;

"municipal regional board" and "regional board" mean a board as defined in the Local Government Act;

"municipal regional district" and "regional district" mean a regional district as defined in the Local Government Act;

"secretary" means the secretary of a board appointed under this Act.

Part 2 – Hospital Districts and Boards

Division 1

Division of British Columbia and incorporation of districts

2 (1) The Lieutenant Governor in Council must, by order, divide British Columbia into areas for the purposes of this Act, each area having the boundaries defined in the order, and,

(a) except for an area to which a declaration made under paragraph (b) applies, must, by letters patent, incorporate the area and its residents into a regional hospital district, and

(b) may, if the boundaries of the area are coextensive with the boundaries of a municipal regional district and the municipal regional board requests, declare the municipal regional district to be the regional hospital district for the area and the municipal regional board to be the board for the purposes of this Act.

(2) The Lieutenant Governor in Council may, by order, revoke and replace or amend an order made under this section, and if, in consequence of it, a municipal regional district becomes the regional hospital district for an area previously incorporated under this Act, the corporation created under this Act is dissolved.

(3) Despite subsections (1) and (2) but without limiting section 49 of the Greater Vancouver Transportation Authority Act, the Lieutenant Governor in Council, by order,

(a) may dissolve the Greater Vancouver Regional Hospital District so that there is no regional hospital district for that area, and

(b) may provide for the transfer of the assets and liabilities of the Greater Vancouver Regional Hospital District and, without limitation, may provide that some or all of those assets and liabilities become the assets and liabilities of the government.

(4) The Minister of Finance and Corporate Relations may make payments out of the consolidated revenue fund, without an appropriation other than this subsection, for the payment of liabilities transferred to the government under subsection (3) (b).

(5) If the Lieutenant Governor in Council makes an order under subsection (3) dissolving the Greater Vancouver Regional Hospital District,

(a) each of the directors of the district ceases to hold that office on the dissolution of the district, and

(b) the Lieutenant Governor in Council may order that any or all of the powers and duties of the district become the powers and duties of the government.

(6) Despite subsection (5), none of the powers and duties of the Greater Vancouver Regional Hospital District respecting taxation of real property under this Act may become the powers and duties of the government under subsection (5) except that, if the district is dissolved at a date other than the end of its fiscal year, the Lieutenant Governor in Council may

(a) order that, in relation to the taxes that the district might have been entitled to requisition and collect for that fiscal year, the government may requisition, collect and retain the proportion of those taxes that the number of days in the fiscal year during which the district remained undissolved bears to the total number of days in that fiscal year,

(b) order that the government may exercise any and all such powers and duties of the district as may be necessary to allow the government to requisition, collect and retain those taxes, and, for that purpose, those powers and duties are deemed to be exercisable in relation to that portion of the fiscal year, and

(c) make any other orders that may be necessary to give effect to paragraphs (a) and (b).

(7) Despite subsections (5) and (6), the Lieutenant Governor in Council may, by order, delegate any or all of the powers and duties referred to in subsection (5) (b) or (6) (b) to any person or body.

Transitional boards continued to manage old debt

2.1 (1) In this section:

"letters patent", except in subsection (4), means the letters patent of a district amended as directed by the order;

"order" means Order in Council 1549/95;

"transitional board" means the board of a transitional district;

"transitional district" means a regional hospital district referred to in Schedule A of the order.

(2) The letters patent for each transitional district, and all measures taken as provided for under its letters patent, are valid and have the retroactive effect necessary to give them effect on or after December 31, 1995.

(3) A transitional board continues for the exercise of the powers and the discharge of the duties under its letters patent despite the existence of another regional hospital district covering all or part of its area of British Columbia or the fact that another board has similar powers or duties.

(4) If a regional hospital district is incorporated under section 2 (1) (a), or a municipal regional district is declared under section 2 (1) (b) to be a regional hospital district, for an area of British Columbia covered in whole or part by a transitional district, the transitional district and the regional hospital district or municipal regional district co-exist and all powers, functions and duties under the Act apply to each except insofar as these are limited by its letters patent.

Letters patent

3 (1) The letters patent incorporating a district under this Act must specify the following:

(a) the name and boundaries of the district;

(b) the members of the district;

(c) the population considered to be a voting unit;

(d) the date by which the municipalities and the Lieutenant Governor in Council must appoint directors to the first regional hospital district board;

(e) the boundaries of any rural area to be a member;

(f) the day, time and place of the first meeting of the board;

(g) the sums that may be borrowed to meet the current lawful expenditures of the district in the year of incorporation and, if considered expedient, for the following year;

(h) the powers, duties and obligations of the district in addition to those specified in this Act;

(i) the powers, duties and obligations of any municipality transferred to the exclusive jurisdiction of the district;

(j) the terms and conditions of arrangements, agreements or transactions between the district and

(i) the Ministry of Health,

(ii) a municipality,

(iii) a municipal regional district or an improvement district not within the definition "municipality",

(iv) the Minister of Finance and Corporate Relations,

(v) the Provincial Collector,

(vi) the owner of a hospital or hospital facilities, or

(vii) any other person or entity;

(k) other provisions and conditions the Lieutenant Governor in Council considers proper and necessary.

(2) A regional hospital district incorporated under this Act is a corporation under the name of "Regional Hospital District of ............................................................" or "........................................... Regional Hospital District."

Municipal regional districts declared regional hospital districts

4 (1) If the Lieutenant Governor in Council makes a declaration, under section 2 (1) (b), that the municipal regional district is a regional hospital district, the powers conferred on that district by this Act include the power to provide a service, within the meaning of the Local Government Act, of the municipal regional district in which, subject to letters patent under this section, all the municipalities and electoral areas within the municipal regional district participate, and the Lieutenant Governor in Council may do the following:

(a) despite the Local Government Act, issue supplementary letters patent conferring powers and imposing duties on, and making other provisions for, the municipal regional district in relation to its function as the regional hospital district, and may exclude or restrict a provision of the Local Government Act in relation to that function;

(b) by supplementary letters patent applying to the municipal regional district, substitute for a provision of this Act in relation to the regional hospital district a provision of the Local Government Act.

(2) Except as varied under subsection (1), this Act, other than this Part, applies to a municipal regional district declared under section 2 (1) (b) to be a regional hospital district and to the municipal regional board, for their respective functions as the regional hospital district and the regional hospital district board as it applies to a regional hospital district incorporated under this Act and to its board.

Amendment of letters patent

5 The Lieutenant Governor in Council must, as the case requires, amend, recall and reissue, rescind, cancel or issue letters patent to give effect to any variation of an order made under section 2, or a declaration in it, and may

(a) at any time amend the letters patent of a district in any other respect or recall letters patent and reissue others in their place, and

(b) on the receipt of petitions from the board of any district to divide the district, or from the board of 2 or more districts to unite the districts, accept the surrender of letters patent, vary the order and issue new letters patent for new districts incorporated under this Act.

Property

6 (1) If

(a) the municipal regional district becomes the regional hospital district for an area, or

(b) a district incorporated under this Act is divided, or 2 or more such districts are united, or a new such district is created out of parts of other districts, or the effect of the alteration of boundaries of 2 or more districts is, in the opinion of the Lieutenant Governor in Council, to increase or decrease the obligations of the districts concerned,

the Lieutenant Governor in Council must, by supplementary letters patent, provide for the transfer and vesting of the assets, rights, claims and obligations of the pre-existing district or districts, or some of those districts the Lieutenant Governor in Council, having regard to the changes, considers just, to and in the new or continuing district or districts, and the assets, rights, claims and obligations are transferred, by the letters patent, and vest accordingly.

(2) Subject to subsection (1), the amendment, recall and reissue of letters patent or the rescission or cancellation and issue of new letters patent to a continuing district, whether or not of the same boundaries as the district formerly constituted, does not impair or prejudice the assets, rights, claims or obligations of the district.

Bylaws

7 If an addition is made to the area of a district, the bylaws and resolutions of that district extend to the additional area and continue in force until altered or repealed by the board.

Division 2

Regional hospital board

8 (1) A regional hospital district board consists of the directors on the board of the regional district that corresponds to the regional hospital district.

(2) If a regional hospital district has the same boundaries as a coexisting regional district but the municipal regional district has not been declared to be the regional hospital district, the Lieutenant Governor in Council may, in any letters patent for the district, provide that the directors and alternate directors of the regional district are the directors and alternate directors of the regional hospital district without further appointment under this Act.

(3) Despite subsections (1) and (2), if an order is made under this subsection, a regional hospital district board consists of the directors or alternative directors of the regional district

(a) recommended by the board of the regional hospital district with the consent of the municipalities within the regional hospital district area, and

(b) specified by the Lieutenant Governor in Council.

Voting

9 (1) Section 783 of the Local Government Act applies to a vote by a board on a budget, operating expense, capital, borrowing or contract matter.

(2) On a vote on any matter not described in subsection (1), each director serving on the board has one vote.

Tenure of office of directors

10 Subject to a provision made under section 8 (2),

(a) each director appointed to a board on the incorporation of the district holds office until the first Monday after January 1 in the following year or until the appointment of his or her successor, whichever is later, and

(b) after the first appointment of directors under paragraph (a), each director must be appointed annually, on or before February 1, and each director holds office until the first Monday after January 1 in the following year or until the appointment of his or her successor, whichever is later.

Vacancies

11 (1) Unless alternate directors are provided for by letters patent under section 8 (2), the council or the trustees of a member municipality may appoint a member of the council or a trustee as an alternate director, and the Lieutenant Governor in Council may appoint an alternate director for each director appointed by the Lieutenant Governor in Council, and each alternate director takes the place of and has the vote of a specified director in the case of any necessary absence from a meeting of the board, and notice of the appointment must be given to the secretary before the alternate director may vote on any matter before the board.

(2) If the seat of a director representing a member municipality becomes vacant through death, resignation or disqualification, the alternate director must take the seat but, unless alternate directors are provided for by letters patent under section 8 (2), the council or the trustees, or the Lieutenant Governor in Council, may subsequently appoint another director and alternate director in his or her place.

(3) The appointment of a director, other than an alternate director, by the council or the trustees is not revocable except for the consecutive absence from attendance at meetings of the board for a period of 3 months without leave of the council or trustees.

Quorum

12 A quorum is a majority of all the directors, having among them a majority of all the votes.

Chair and acting chair

13 (1) Where the directors hold office under section 8 (1), the board must elect a chair from among its directors at the first meeting held in each year.

(2) The board may elect from among its directors an acting chair, who, during the absence or disability of the chair, has all the powers and is subject to the same rules as the chair.

(3) Each director has only one vote for an election under this section.

Majority vote

14 All bylaws and resolutions of the board must be decided by the majority of the votes of directors who are at the meeting.

Remuneration of directors and officers

15 (1) A board may by bylaw provide for the remuneration of its directors, alternative directors, chair, acting chair and any officer of the board.

(2) The chair, acting chair, director or alternative director of a board is entitled to be reimbursed for reasonable expenses in the course of the work of the board or its committees.

(3) A person is not disqualified from holding office as a director, a member of council or a trustee merely because he or she received remuneration or reimbursement under this section.

Calling of meetings

16 Section 793 of the Local Government Act applies to the calling and conduct of meetings of a board.

Meeting by telecommunication

16.1 If the majority of the members, entitled to vote, of a board, or of an executive committee or standing committee constituted under section 21, approve a bylaw or resolution or conduct an election, or inform the chair of the board of their approval or vote, by telephone or other means of telecommunication, the bylaw, resolution or election is as valid and effectual as if it had been passed at a meeting of the board, executive committee or standing committee properly called and constituted.

Officers and officials

17 (1) The auditor and the officers and employees of the board of the regional district that corresponds to the regional hospital district board are the auditor and the corresponding officers and employees of the regional hospital district board, and the regional hospital district board may specify their duties.

(2) Despite the Local Government Act, the cost of administering the affairs of the regional hospital district must be provided for in the budget of the relevant regional district and must be paid out of that budget unless the regional hospital district authorizes by resolution that the cost of administering its affairs be provided for in the budget of the regional hospital district and be paid out of that budget.

(3) Despite subsection (1), the board may elect from its members a person other than the chair of the regional board, as the chair of the board.

(4) In the absence of its chair and acting chair, a board may elect a director to chair its meeting.

(5) If specified by the letters patent, the auditor and other officers and employees of a specified regional district appointed under the Local Government Act are the auditor and corresponding officers and employees of the regional hospital district board, with or without extra remuneration, and the regional hospital district board must specify their duties.

(6) If subsection (1) or (5) does not apply, the board must appoint

(a) a secretary and a treasurer and other officers, officials and employees as it considers necessary, and specify their duties and remuneration, and

(b) annually an auditor, who must be a professionally qualified accountant regularly employed in auditing, to audit the accounts and transactions of the district.

Part 3 – Functioning of Boards

Division 1

Power to hold property

18 A regional hospital district has, for the purpose of exercising its powers and duties, full power to acquire, hold and dispose of property and to contract for materials and services, both personal and otherwise.

Tax free property

19 (1) In this section, "real property" has the meaning ascribed to land and improvements in the Assessment Act.

(2) Real property owned or held by a district is not subject to real property taxation

(a) if the real property is used in connection with a hospital project undertaken by the board of the district or by a hospital corporation,

(b) if the board of the district declares that real property owned or held by it will be used as described in paragraph (a) at a future time, or

(c) if the real property is occupied or leased by a person for a purpose for which the property would be exempt from real property taxation under any other Act if that person were the owner.

(3) Real property owned or held by a district that is used for a purpose other than that referred to in subsection (2) is subject to assessment under the Assessment Act and taxation

(a) under section 357 of the Local Government Act as if the real property were owned by a municipality,

(b) under section 18 (4) of the Taxation (Rural Area) Act as if the real property belonged to the government, or

(c) under the Vancouver Charter as if the real property belonged to the government.

Purposes

20 (1) The purposes of a regional hospital district are the following:

(a) to establish, acquire, construct, reconstruct, enlarge, operate and maintain hospitals and hospital facilities;

(b) to grant aid for the establishment, acquisition, reconstruction, enlargement, operation and maintenance of hospitals and hospital facilities;

(c) to the extent approved by the minister, to assume obligations of any member municipality, or any improvement district not within the definition "municipality", or any hospital corporation, with respect to the repayment of money borrowed and provided for the financing of hospital projects and interest on it, or to provide reimbursement to a municipality, improvement district or hospital corporation for money provided for financing hospital projects that were raised or obtained otherwise than by borrowing;

(d) to act as the agent of the government in receiving and disbursing money granted out of the hospital insurance fund;

(e) to act as the agent of a hospital for receiving and applying all money paid to or for the hospital by the government of Canada;

(f) to exercise and perform the other powers and duties prescribed by or under this Act or specified in letters patent as and when required.

(2) The board of a district may carry out the purposes referred to in subsection (1) only in accordance with and to the extent authorized by or under this Act, the regulations and the letters patent of the district.

(3) In exercising the powers contained in subsection (1) or section 17 (2), the board must raise in any year, with the approval of the minister or a person authorized by the minister to act in his or her behalf, and without other assents and approvals, by making provision in its budget or by temporary borrowing, an amount specified by the minister which must not be greater in the aggregate than a prescribed amount.

(4) Money raised under subsection (3) but not spent during one year may be carried forward and spent in succeeding years and must be reported to the minister.

(5) Money for which provision has been made in the board's budget under subsection (4) may be raised by temporary borrowing pending receipt of money requisitioned and due to the board under section 25 (2) and (6).

(6) In addition to the money raised under subsection (3), the board may raise annually the money required for the payment of principal and interest on borrowings, other than the principal of a short term loan that is to be repaid out of the money raised by the sale of securities.

Executive committee

21 (1) The board may, with the approval of the minister, by resolution passed by the votes of not less than 2/3 of the votes of all the directors, establish an executive committee, comprised of members of the board elected by the board annually, and one or more standing committees, comprised of members of the board and other persons elected by the board annually, and the board may specify the items of business of the district with which each of those committees has power to deal.

(2) The chair of the board is the chair of the executive committee.

Accounting requirements

22 The board must follow accounting policies established by the minister.

Provisional and annual budget

23 (1) The board must prepare and adopt, before a prescribed date in each year, a provisional budget for the following calendar year, in the form and manner specified by the minister, in which the following must be set out:

(a) detailed estimates of expenses of the board for the following calendar year, including amounts required for the payment of principal of and interest on borrowings, other than principal of short term loans that are to be repaid out of the money raised by the sale of securities;

(a.1) a list of all capital expenditures with a description of each project for the following year;

(b) detailed estimates of revenue of the board for the following calendar year;

(c) the deficit, if any, expected to be incurred by the board in the current calendar year;

(d) the surplus, if any, expected to be accrued in the current calendar year.

(2) The board must at once submit the provisional budget to the minister.

(3) The minister must review each provisional budget received under subsection (2) and may make revisions the minister considers necessary.

(4) The minister must

(a) designate in writing those items in each budget that are eligible for a prepaid capital advance of at least 60% of the approved costs of that item under section 56.1 of the Financial Administration Act, and

(b) on or before March 15 in each year, send to the board a copy of the budget as reviewed, together with

(i) any revisions made under subsection (3) of this section, and

(ii) a copy of items designated under paragraph (a) of this subsection.

(5) On or before March 31 in each year, the board must adopt, by bylaw, without further assents or approvals, the annual budget of the board, which must include the items designated under subsection (4), and the board must at once transmit to the minister a copy of the bylaw and budget certified by the secretary.

(6) On or before April 15 in each year, the minister must send to each board a notice setting out

(a) the current year net taxable value of all land and improvements in each member municipality and the rural area in the district for the purposes of this Act, and

(b) the amount to be raised by taxation for items designated under subsection (4).

(7) Capital expenditure must not be made by the board without the prior approval of the minister, or a person authorized by the minister to act on his or her behalf, who, at his or her discretion and on consideration of the capital expenditures that are necessary and essential, may approve or disapprove all or part of the proposed capital expenditures.

(8) If a question arises whether expenditure is capital expenditure for subsection (7), it must be determined finally by the minister.

(9) [Repealed 1998-30-86.]

Apportionment of costs

24 Except as otherwise specified in the letters patent, the amount required under the annual budget by the board must be raised by taxation at a uniform rate for each class of property throughout the district and must be apportioned by the secretary among the member municipalities and the rural area in the district on the basis of the current year net taxable values determined in accordance with section 26 (3).

Requisitioning and raising of funds

25 (1) Annually, after receiving a notice under section 23 (6), the secretary of the district must, on or before April 20, send to each member municipality that is a city, district, town or village a requisition stating the amount required of that member municipality.

(2) All amounts requisitioned under subsection (1) are a debt due by the member municipality to the district, and the council of that member municipality must provide for that debt, and must pay that debt to the board on or before August 1 in the current year.

(3) In the case of each member of the district that is not a city, district, town or village, the secretary of the district must, after receiving a notice, under section 23 (6), transmit to the Minister of Finance and Corporate Relations, on or before April 20, a requisition stating the amount required of that member, and a copy of the requisition must be sent to the trustees of the improvement district or the directors representing the rural area in the district, or both, as the case may be.

(4) On or before April 30, the secretary of each district must notify the minister in writing of the following:

(a) the total of the amounts being requisitioned under this section for the purposes of this Act;

(b) the uniform rates to be levied throughout the district to raise the sum referred to in paragraph (a).

(5) If there is a municipal regional district co-extensive with a district incorporated under this Act, the 2 districts must use their best endeavours to ensure that the taxation requisitions of each of them are sent to their respective member municipalities at the same time.

(6) The amounts requisitioned under subsection (3) must be paid from the consolidated revenue fund to the board on or before August 1 in the current year.

(7) If the net taxable values of land and improvements in a district as set out in the notice sent by the minister to the board in accordance with section 23 (6) are adjusted, any resulting adjustment of grants, or of the amounts to be raised by taxation and to be requisitioned from each part of the district, by a sum in excess of $1 000 must be taken into account and adjusted by the minister in the next year, unless otherwise ordered by the Lieutenant Governor in Council.

(8) On or before February 1 in each year, the amount received by a municipality, or by the Surveyor of Taxes by way of a grant in place of taxes for hospital purposes in the district, under the Municipal Grants Act (Canada) from the government of Canada or from a corporation included in Schedule III or IV of that Act in the immediately preceding calendar year must be paid to the board, and the amount paid must be included in the revenue of the board in its budget.

Taxation

26 (1) For the purpose of this section, the definitions of "land" and "improvements" in the Assessment Act apply.

(2) All amounts requisitioned under section 25 must be raised by taxation at a uniform rate for each class of property throughout the district by the member municipality or municipalities and the Provincial Collector.

(3) Despite any other Act relating to the assessment of values, in order to raise the amounts required under subsection (2), taxation must be levied on the net taxable value of land and improvements, but excluding property that is taxable for school purposes only by special Act.

Variable tax rate system

27 (1) In this section:

"property class" means a class of property prescribed by the Lieutenant Governor in Council under section 19 of the Assessment Act;

"variable tax rate system" means a system under which individual tax rates are determined and imposed for each property class.

(2) If a council of a municipality raises a tax under section 26, the council must employ a variable tax rate system.

(3) The Lieutenant Governor in Council may make regulations in respect of the variable tax rate system

(a) prescribing limits on tax rates,

(b) prescribing relationships between tax rates,

(c) prescribing formulas for calculating the limits or relationships referred to in paragraphs (a) and (b), and

(d) allowing the minister under prescribed circumstances to vary, by order, the limits, relationships or formulas prescribed under paragraph (a), (b) or (c).

Exemption

28 Sections 130, 131 (2) and (3) and 132 of the School Act apply for assessment and taxation under this Act, and wherever in those sections reference is made to the rural area of a school district, the reference is deemed to be to the part or parts of a regional hospital district not in a municipality.

Taxation (Rural Area) Act applies

29 (1) Subject to this Act, the Taxation (Rural Area) Act applies to the assessment, levy, collection and recovery of taxes in each part of the district that is

(a) not a municipality, or

(b) an improvement district designated as a municipality for this Act,

in a similar manner as to taxes imposed on land under the Taxation (Rural Area) Act, and despite the fact in any case that the lands taxed are entirely or partly located within the limits of a local district municipality.

(2) For all purposes of the Taxation (Rural Area) Act, all taxes on lands when so levied are deemed to be Provincial taxes imposed and levied under this Act, and on collection or recovery must be accounted for as such.

(3) The assessor must apply section 12 of the Assessment Act to the assessment of property for this Act in parts of districts not in a municipality, and the Provincial Collector must tax the property on a supplementary taxation roll at the same rates of taxation as were charged against property assessed for this Act in the district for the corresponding period under this Act.

Assessment appeals

30 For the purposes of an appeal from an assessment under section 29, Parts 4 to 7 of the Assessment Act apply.

Division 2

For operating expenses

31 A board may, by resolution, with the approval of the minister or any other person authorized by the minister to act on his or her behalf, either before or after the preparation of its annual budget, borrow for purposes other than capital expenditures, by way of temporary loan, sums the board may deem necessary to meet the current operating expenditures of the board for the year, including the amounts required for principal and interest falling due within the year on any debt of the board, but all money so borrowed must be repaid within 9 months of the date of the borrowing.

Capital bylaw

32 (1) A board that proposes to borrow or spend money to meet capital expenditures must prepare, in consultation with the minister, and enact, a capital bylaw permitting the borrowing or spending of that money.

(2) The capital bylaw

(a) must be in a form required by the minister,

(b) must include provisions that the minister considers necessary or that are prescribed by the regulations,

(c) may, subject to paragraphs (a) and (b), provide for the issue of securities to raise the net sums required, after payment of the expenses of the issue and sale of the securities, to pay the capital costs of projects approved under this Act if those costs are not to be paid by a prepaid capital advance under section 56.1 of the Financial Administration Act or from any other source, and

(d) has no effect until the minister has approved it in writing.

(3) A board may not amend a capital bylaw except as approved in writing by the minister.

(4) For the purposes of subsection (2) (d), the minister may approve all or any part of a capital bylaw.

Borrowing for capital expenses

33 (1) A board must not borrow or spend money to meet capital expenditures unless

(a) the board has enacted a capital bylaw in accordance with section 32, and

(b) the minister has in writing authorized the borrowing or expenditure.

(2) An approval under section 32 is not an authorization for the purpose of subsection (1) (b) of this section.

Delegation of authority as to terms

34 If a board enacts a capital bylaw under section 32, it may delegate to a director or officer of the board the authority to settle the terms and conditions of the loan.

Division 3

Securities on sinking fund plan

35 (1) A bylaw of a board for borrowing money by the issue of securities may authorize the issue of securities payable on the sinking fund plan.

(2) If a board authorizes the issue of securities under subsection (1)

(a) the board must set aside in each year during the term of the securities a sum that, together with interest compounded annually on it, at a rate of yearly interest determined by the Minister of Finance and Corporate Relations or by any other person designated by that minister, would be sufficient to provide a sinking fund for

(i) the repayment in full of the securities at maturity, or

(ii) with the approval of the Minister of Finance and Corporate Relations or of any other person designated by that minister, the partial repayment of the securities at maturity, and

(b) the amount of interest payable in each year and the amount to be set aside in each year for the sinking fund must be set out in the bylaw.

(3) For the purposes of this Act, the amount to be set aside for the sinking fund in a year is deemed to be an amount or installment of principal falling due or becoming payable in that year, and this Act must be construed accordingly.

(4) The amount to be set aside in each year for the sinking fund must be paid on or before the date specified in the bylaw to the Minister of Finance and Corporate Relations, or to any other person designated by that minister, who must

(a) act as trustee for the board,

(b) establish appropriate sinking fund trustee accounts, and

(c) invest the amount and interest earnings on that amount in investments permitted for a trust fund under section 40 (4) of the Financial Administration Act or as otherwise permitted by law.

Issue of securities to certain special purchasers

36 If securities issued by a board are to be sold to a purchaser designated by the Lieutenant Governor in Council as a purchaser to whom or which this section applies, the board may

(a) issue the securities in coupon form or in fully registered form and in denominations required by the purchaser, and

(b) exchange the securities for other securities of the same issue for an equal aggregate principal amount on terms and conditions determined by the board.

Issuance of securities

37 (1) Securities authorized by a bylaw may be issued all at one time, or if because it is anticipated that the proposed expenditures for the purposes set out in the bylaw will extend over a period of time and it is considered undesirable to have large portions of the money in hand unused and uninvested, or for other sufficient causes, the securities may, with the approval of the minister, be issued in installments of amounts, not greater in the aggregate than the total principal amount authorized by the bylaw, and at times as the exigency of the case demands, and securities may be issued up to the principal amount authorized by any such bylaws, even if the net sum realized after payment of the discount, commission, brokerage, exchange and other expenses with respect to the issue and sale of the securities is greater or less than the amount required for the purposes specified in the bylaw.

(2) If the amount realized is greater than the amount required for the purposes set out in the bylaw, the excess may, with the approval of the minister, be spent by the board to meet other capital expenditures or be applied to the retirement of the debt created.

(3) If the amount realized is less than the amount required for the purpose set out in the bylaw, the deficiency may be raised in a manner directed by the Lieutenant Governor in Council, and the Lieutenant Governor in Council may direct that the deficiency be raised by a further issue of securities.

Signature and corporate seal

38 (1) All securities issued under this Act by a board must be

(a) sealed with the corporate seal of the board, and

(b) signed by the chair and by the secretary of the board.

(2) All interest coupons, if any, attached to the securities must bear the signatures of the chair and secretary of the board.

(3) The signature of the chair on the securities and the signature of the chair and the secretary on the interest coupons may be printed or otherwise mechanically reproduced.

(4) The securities may be signed by the chair and the secretary of the board who holds office at the date of the passage of the bylaw authorizing the issue of the securities, at the date of the securities, or at any time after that.

(5) The securities are binding on the board despite a change in any of the persons holding those offices between the time when the signatures are respectively affixed and the date of delivery of the securities.

Securities guaranteed

39 (1) The Lieutenant Governor in Council may guarantee the payment of the principal and interest of any securities issued by a board.

(2) The form and manner of the guarantee must be as the Lieutenant Governor in Council may approve.

(3) A guarantee must be signed by the Minister of Finance and Corporate Relations or other officers that may be designated by the Lieutenant Governor in Council, and, on being signed, the government becomes liable for the payment of the principal and interest of the securities, according to their tenor.

(4) The Lieutenant Governor in Council is authorized to make arrangements for supplying the money necessary to fulfil the requirements of the guarantee, and to advance the amount necessary for that purpose out of the consolidated revenue fund.

(5) In the hands of a holder of any of those securities, a signed guarantee is conclusive evidence that the terms of this section have been complied with.

Placing loan

40 The board or other appointed person or agent may arrange all details and do, transact and execute all deeds, matters and things that may be required during the conduct of negotiations or for placing a loan authorized under this Act.

Registration of securities

41 (1) A security issued by a board may contain or may have endorsed on it a provision to the following effect:

This security, or any interest in it, after a certificate of ownership has been endorsed on it by the secretary of the board, is not transferable, except by entry by the secretary or the secretary's deputy in the security registry book of the regional hospital board of ...........................................

(2) If a security issued by a board is endorsed under subsection (1), the secretary or an authorized deputy, on the application of the owner of the security or of an interest in it, must endorse on the security a certificate of ownership, and must enter in a book, to be called the security registry book, a copy of the certificate and of every certificate which is subsequently given, and must also enter in the book a memorandum of every transfer of the security.

(3) A certificate of ownership must not be endorsed on a security except by the written authority of the person last entered as the owner of it, or of that person's executors or administrators, or of his or her or their attorney, and the authority must be retained and filed by the secretary.

(4) After a certificate of ownership has been endorsed, the security is transferable only by entry by the secretary in the security registry book, as and when a transfer of the security is authorized by the then owner of it, or the owner's executors or administrators, or his or her or their attorney.

(5) On the written request of the person named as owner in the certificate of ownership endorsed on a security, or of the person's executors or administrators, or of his or her or their attorney, the secretary may cancel and remove the certificate of ownership and by that act constitute the security a security payable to bearer and transferable by delivery.

(6) When any securities issued by a board are held by the Minister of Finance and Corporate Relations, the board may by resolution authorize the security registrar in that ministry to act as deputy of the secretary of the board for the purpose of registering in the security registry book of the board the ownership of those securities by the Minister of Finance and Corporate Relations for the government or by that minister as trustee for any of the accounts administered by that minister and of endorsing on any of those securities a certificate of ownership, and any registration or endorsement is of the same effect as if made by the secretary of the board.

Validity of securities

42 (1) Securities issued by a board under authority of a bylaw passed and registered under this Act are valid and binding on the board, despite an insufficiency in form or otherwise of the bylaw or security, or in the authority of the board in respect of it.

(2) When securities have been issued by a board under a bylaw and the interest fallen due has been paid for one year by the board, the bylaw and the securities issued under it, or as much of it as may be unpaid, are valid and binding on the board of the regional hospital district and on all parties concerned.

Loss of securities and issuance

43 If a security is lost, stolen or destroyed, and if notice of the loss, theft or destruction is given to the board, the security or any of the annexed coupons not having been presented for payment, on application, accompanied by proof of the facts satisfactory to the board, and on delivery to the board of a bond or policy of an insurer or guarantor approved by the board and carrying on business in British Columbia, in the amount of the security together with all interest on it indemnifying the board and its paying agents against loss or damage, and on payment of all costs of printing, the board may by bylaw, after the expiration of 6 months after the receipt of the notice, cause to be issued a duplicate security, with coupons attached, the duplicate to be printed in a manner distinguishing it from the original security, and this section applies to securities lost, stolen or destroyed.

Part 4 – General

Adopting bylaws

44 As long as any requirements specified by the minister have been complied with, a bylaw may be read 3 times and finally adopted by the board at one meeting, if the motion for adoption receives an affirmative vote of a majority of the directors having among them a majority of the votes.

Inspection of books

45 (1) The books and records of a board must be open at all times to inspection by the minister or any person authorized by the minister.

(2) The board must forward to the minister returns or reports that may be requested by the minister in the form and manner, and at times, specified by the minister.

Dissolution of hospital improvement districts

46 The Lieutenant Governor in Council may dissolve a hospital improvement district incorporated under section 731 of the Local Government Act and may transfer to a district in which or part of which the hospital improvement district lay, any or all of the assets, rights, claims, obligations and liabilities of the hospital improvement district under terms and conditions the Lieutenant Governor in Council considers advisable.

Hospitals not required to use this Act

47 Nothing in this Act operates to require an owner or proprietor of a hospital to accept or receive any financial or other assistance from a district, or to have recourse to or approval from a district in order to claim or request financing or financial assistance from the government of Canada or from the Ministry of Health, and the financing of any hospital may be continued on the same basis as if this Act had not been enacted.

Board may borrow its share of cost

48 (1) Despite this Act, if the cost of a capital project for a hospital is to be paid out of money provided by or through a corporation or society that owns or operates a hospital or a hospital facility, and the government, the government's share of the cost, as determined by the minister, may with the minister's consent be borrowed by the board, and the board must disburse the amount borrowed at a time and in a manner the minister directs in payment of the cost of the project.

(2) For an obligation undertaken by a board in accordance with this section, there must be paid in each year out of the hospital insurance fund to the board an amount sufficient to meet the liability of the board falling due in the same year.

Minister may designate health facility

49 The minister may designate an institution or facility in the health field as a health facility for the purposes of this Act.

Vancouver Charter

50 The Vancouver Charter is amended to the extent necessary to provide for assessment and taxation for this Act.

Power to make regulations

51 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing procedures to be followed in the exercise of the powers and duties of a board;

(b) prescribing the types of hospital projects which may be financed or for the financing of which assistance may be given by a district;

(c) prescribing terms and conditions to be fulfilled by districts prerequisite to the obtaining of any approval required under this Act;

(d) prescribing the calculations to be made for the purpose of equalizing the rates throughout each district for this Act and the factors and obligations to be taken into account in doing so;

(e) for the coordination of the exercise of the powers and duties of the Ministry of Health with the exercise of the powers and duties of districts or of any particular district;

(f) prescribing any prior approvals required, other than those required by this Act, before any power conferred by this Act or the regulations may be exercised;

(g) prescribing in detail the matters to be dealt with and properly provided for in any transaction or arrangement entered into or carried out for any of the purposes of this Act or any purpose, directly or indirectly, related to this Act;

(h) prescribing the manner in which obligations may be assumed by a district under section 20;

(i) incorporating any regulations made under the Hospital Insurance Act or the Hospital Act as a regulation made under this Act;

(j) regarding any matter relevant to the administration of this Act and which is authorized to be made under the Hospital Insurance Act or the Hospital Act;

(k) in special situations designating amounts that are deemed not to be received or due from the government of Canada for the purposes of this Act;

(l) [Repealed 1998-30-91.]

(m) [Repealed 1997-28-10.]

(n) regarding arrangements necessary to comply with the requirements of the government of Canada for securing financial assistance from it for hospital projects;

(o) prescribing different rates for different hospital districts under section 20 (3).


Copyright (c) 2001: Queen's Printer, Victoria, British Columbia, Canada