BILL 59 – 2004
NORTHERN DEVELOPMENT INITIATIVE TRUST ACT
Contents
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Part 1 -- Interpretation
Definitions
1 In this Act:
"B.C. Rail Benefits (First Nations) Trust" means the B.C. Rail Benefits (First Nations) Trust established under the B.C. Rail Benefits (First Nations) Trust Act;
"Cariboo-Chilcotin/Lillooet region" has the meaning prescribed by regulation;
"company" means the British Columbia Railway Company;
"Cross-regional Account" means the account established under section 7 (3) (a) (vi);
"legacy area" means that area of British Columbia comprising the Cariboo-Chilcotin/Lillooet region, the Northwest region, the Peace region and the Prince George region;
"northern development allocation" means the $135 million paid to the Northern Development Initiative Trust under section 13 (a);
"Northern Development Initiative Trust" means the Northern Development Initiative Trust established under section 5 (1);
"Northwest region" has the meaning prescribed by regulation;
"Operating Endowment Account" means the account established under section 7 (3) (a) (i);
"Peace region" has the meaning prescribed by regulation;
"Prince George region" has the meaning prescribed by regulation;
"proceeds" means any money realized by the company
(a) from the disposition of shares held by it in a subsidiary, as that term is defined in the British Columbia Railway Act, or interests held by it in BC Rail Partnership, as that term is defined in the British Columbia Railway Act,
(b) under any revitalization agreement, as that term is defined in the British Columbia Railway Act, or
(c) from the investments of money referred to in paragraph (a) or (b);
"region" means the Cariboo-Chilcotin/Lillooet region, the Northwest region, the Peace region or the Prince George region;
"regional development accounts" means the accounts established under section 7 (3) (a) (ii) to (v);
"transaction" means the disposition to Canadian National Railway Company of
(a) the shares of BC Rail Ltd. that are held by the company,
(b) the shares of BC Rail Ltd. that are held by BCR Properties Ltd., and
(c) the company's partnership interest in BC Rail Partnership.
Part 2 -- Northern Development Initiative Trust
Division 1 -- Regional Advisory Committees
Establishment of regional advisory committees
2 (1) There is established, for each region, a regional advisory committee comprising the following:
(a) the mayors of each of the municipalities that
(i) is within the region, and
(ii) on the coming into force of this Act, has a population greater than 500;
(b) the chairs of each regional district that is, in whole or in part, within the region;
(c) the Members of the Legislative Assembly who have been elected, in whole or in part, by electors from the region.
(2) The term of membership on a regional advisory committee for each individual referred to in subsection (1) expires on the earlier of
(a) the date that is 6 months after the coming into force of this Act, and
(b) the date on which he or she ceases to hold the position referred to in subsection (1).
(3) Within 6 months after the coming into force of this Act, each of the regional advisory committees must
(a) appoint 2 directors of the Northern Development Initiative Trust in accordance with sections 6 (2) (a) and 8 (1), and
(b) subject to section 3,
(i) determine the size of, and the manner of appointing members to, the regional advisory committee, and
(ii) determine the role of, and the manner of appointing, the chair of the regional advisory committee.
(4) On the coming into force of this Act, the following persons are the first chairs of the regional advisory committees:
(a) for the regional advisory committee for the Cariboo-Chilcotin/Lillooet Region, the mayor of Quesnel;
(b) for the regional advisory committee for the Northwest Region, the mayor of Terrace;
(c) for the regional advisory committee for the Peace Region, the mayor of Dawson Creek;
(d) for the regional advisory committee for the Prince George Region, the mayor of Mackenzie.
(5) The first chair of a regional advisory committee must call and chair the meeting or meetings necessary to allow that regional advisory committee to perform its obligations under subsection (3).
Composition of regional advisory committees
3 A regional advisory committee, whether under section 2 (3) (b) or otherwise, may from time to time determine the size of, and the manner of appointing members to, the regional advisory committee and the role of, and the manner of appointing, the chair of the regional advisory committee, but in doing so the members of the regional advisory committee must
(a) ensure that the only persons who are eligible to become members of the regional advisory committee are
(i) elected officials of municipalities or regional districts within the region, or
(ii) Members of the Legislative Assembly who have been elected, in whole or in part, by electors from the region,
(b) provide an opportunity for municipalities or regional districts within the region that have populations of less than 500 to be represented on the regional advisory committee,
(c) establish the terms of office for members of the regional advisory committee, and
(d) ensure that if a member of the regional advisory committee ceases to meet the qualifications for membership set out under paragraph (a), that individual immediately ceases to be a member of the regional advisory committee.
Procedures
4 The members of a regional advisory committee must appoint one of their number as chair and may, subject to section 3, otherwise establish their own procedures.
Division 2 -- Establishment and Structure of the Northern
Development Initiative Trust
Northern Development Initiative Trust established
5 (1) There is established a corporation known as the Northern Development Initiative Trust consisting of the directors referred to in section 6.
(2) The Northern Development Initiative Trust has the powers and capacity of an individual of full capacity.
(3) The Northern Development Initiative Trust is not an agent of the government.
Directors of the Northern Development Initiative Trust
6 (1) Directors of the Northern Development Initiative Trust must be appointed in accordance with this Division.
(2) Subject to section 7 and to subsection (6) of this section, the board of directors of the Northern Development Initiative Trust is to consist of 13 individuals of whom
(a) 8 are to be appointed by the regional advisory committees, with each of the 4 regional advisory committees appointing 2 of their number as directors, and
(b) 5 are to be appointed by the Lieutenant Governor in Council.
(3) Subject to section 7 (5), the term of office of a director of the Northern Development Initiative Trust is,
(a) if the director is appointed under subsection (2) (a), 2 years from the expiry of the term of the retiring director that he or she replaces, and
(b) if the director is appointed under subsection (2) (b), 3 years from the expiry of the term of the retiring director whom he or she replaces.
(4) Nothing in this Act prevents a regional advisory committee from removing and replacing, in accordance with any procedures it has established for that purpose, any director it has appointed to the Northern Development Initiative Trust and, in that event, the term of office of the replacement director is the remainder of the term of the director he or she replaces.
(5) An act or proceeding of the directors of the Northern Development Initiative Trust is not invalid merely because fewer than the number of directors required by subsection (2) are in office or in attendance.
(6) An individual who is a Member of the Legislative Assembly must not be appointed as a director of the Northern Development Initiative Trust.
First directors of the Northern Development Initiative Trust
7 (1) On the coming into force of this Act, the first directors of the Northern Development Initiative Trust are
(a) from the regions, the following persons:
(i) from the Cariboo-Chilcotin/Lillooet Region, the mayors of Williams Lake and Lillooet;
(ii) from the Northwest Region, the mayors of Prince Rupert and Kitimat;
(iii) from the Peace Region, the mayors of Fort St. John and Fort Nelson;
(iv) from the Prince George Region, the mayors of Prince George and Vanderhoof, and
(b) 5 individuals appointed as directors by the Lieutenant Governor in Council.
(2) The first directors of the Northern Development Initiative Trust must not, despite any other provision of this Act, incur any expense until the northern development allocation is paid by the government to the Northern Development Initiative Trust.
(3) The first directors of the Northern Development Initiative Trust
(a) must establish the following accounts:
(i) an Operating Endowment Account;
(ii) a Cariboo-Chilcotin/Lillooet regional development account;
(iii) a Peace regional development account;
(iv) a Northwest regional development account;
(v) a Prince George regional development account;
(vi) a Cross-regional Account,
(b) must receive the northern development allocation and
(i) deposit $25 million into the Operating Endowment Account,
(ii) deposit $15 million into each of the regional development accounts, and
(iii) deposit $50 million into the Cross-regional Account,
(c) subject to section 20, may invest any or all of the northern development allocation, and
(d) subject to paragraphs (b) and (c) of this subsection and to subsection (4), must not make any use of the northern development allocation.
(4) The first directors of the Northern Development Initiative Trust may use money from the Cross-regional Account to satisfy those expenses that
(a) are reasonably and necessarily incurred in order to allow the directors to perform their obligations under this Division, and
(b) cannot be funded from the income referred to in section 17 (1).
(5) The term of office of the first directors of the Northern Development Initiative Trust expires 6 months after the date of the coming into force of this Act.
Subsequent directors
8 (1) On or before the expiry of the term of any directors it appoints under section 6 (2) (a) and on or before the expiry of the term of the directors from its region referred to in section 7 (1) (a), a regional advisory committee must appoint 2 of their number as directors to replace the retiring directors, and must promptly notify the directors of the Northern Development Initiative Trust of those replacement appointments.
(2) On or before the expiry of the term of directors appointed under section 6 (2) (b) or 7 (1) (b), the Lieutenant Governor in Council is to appoint 5 individuals to replace those directors, and must promptly notify the directors of the Northern Development Initiative Trust of those appointments.
Vacancies among the directors
9 (1) A director of the Northern Development Initiative Trust ceases to hold office when
(a) the director's term of office expires,
(b) the director ceases to be a member of the regional advisory committee by which he or she was appointed, or
(c) the director dies, resigns or is removed from office.
(2) If one of the directors of the Northern Development Initiative Trust ceases to hold office, a replacement for that director must be appointed in the same manner as that director was appointed.
(3) A replacement director appointed under subsection (2) holds office until the end of the term of the director he or she replaces.
Proceedings of directors
10 (1) The directors of the Northern Development Initiative Trust
(a) must appoint one of their number as chair,
(b) must establish in Prince George a head office for that corporation, and
(c) may, subject to this Division, otherwise establish their own procedures.
(2) Subject to section 20, the directors of the Northern Development Initiative Trust may invest any or all of the northern development allocation.
Remuneration of directors
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.
Accountability
12 (1) Within 4 months after the end of each of its fiscal years, the Northern Development Initiative Trust must prepare an annual report on its use of the northern development allocation in the fiscal year for which the report is prepared, and must
(a) present that report to each of its directors, and
(b) make that report available to the public in a reasonable manner, including by electronic means.
(2) The annual report under subsection (1) must include the audited financial statements for the fiscal year for which the report is prepared.
Part 3 -- Allocations
Division 1 -- Directions
Appropriation
13 The government may, without any appropriation other than this Act, pay the following grants:
(a) through the minister, $135 million to the Northern Development Initiative Trust;
(b) through the minister, up to $200 million to the BC Transportation Financing Authority for its multi-year capital program;
(c) through the Minister of Community, Aboriginal and Women's Services, $15 million to the B.C. Rail Benefits (First Nations) Trust;
(d) through the Minister of Small Business and Economic Development, up to $13 million for the promotion of one or more of sport, recreation, music and volunteer initiatives;
(e) through the Minister of Small Business and Economic Development, up to $4 million for an Asia Pacific Market outreach program;
(f) through the Minister of Energy and Mines, up to $2 million for hydrogen and fuel cell research;
(g) through the Minister of Finance, up to $22 million for other initiatives that have been approved by Treasury Board for funding under the appropriation contemplated by this paragraph.
Government may issue directions
14 (1) The Lieutenant Governor in Council may, for the purposes of this Act, issue directions to the company, directing the company to pay to the government any or all of the proceeds.
(2) Despite section 25 of the British Columbia Railway Act and any other enactment, the company must pay to the government, out of the proceeds, the money it is directed to pay under subsection (1).
Division 2 -- Northern Development Initiative Trust
Management of accounts
15 (1) The Northern Development Initiative Trust must manage the accounts established under section 7 (3) (a).
(2) If any donation is made to the Northern Development Initiative Trust, the directors of the Northern Development Initiative Trust must deposit that money into whichever of the accounts established under section 7 (3) (a) was specified in the donation, or, if no account was so specified, into the Cross-regional Account.
Interest and other income on invested money
16 The interest or other income earned in relation to an account established under section 7 (3) (a) must be paid into that account or, if the interest or other income was earned in relation to 2 or more of the accounts established under section 7 (3) (a), be paid proportionately into those accounts.
Operating Endowment Account
17 (1) Subject to subsection (2), the directors of the Northern Development Initiative Trust may use the interest or other income earned from the money held in or invested out of the Operating Endowment Account to meet any of the costs and expenses incurred by the Northern Development Initiative Trust under this Act.
(2) The directors of the Northern Development Initiative Trust must ensure that the balance of the Operating Endowment Account does not fall below $25 million.
Purpose of other accounts
18 (1) The purpose of the Cross-regional Account is to support investment in the following in the legacy area:
(a) forestry;
(b) pine beetle recovery;
(c) transportation;
(d) tourism;
(e) mining;
(f) Olympic opportunities;
(g) small business;
(h) economic development;
(i) energy.
(2) The purpose of each of the regional development accounts is to support investment in the matters referred to in paragraphs (a) to (i) of subsection (1) to benefit, and facilitate the development of, the region after which the account is named.
Regional advisory committees may advise on projects
19 (1) Each regional advisory committee may identify, for the directors of the Northern Development Initiative Trust, projects that the regional advisory committee considers are appropriate for application of the money in the Cross-regional Account, and may recommend to those directors the ways in which the money in the regional development account applicable to their region should be spent.
(2) The directors of the Northern Development Initiative Trust must ensure that the money in each regional development account is spent in accordance with the recommendations of the regional advisory committee for that region under subsection (1).
(3) Despite subsection (2), the directors of the Northern Development Initiative Trust may reject any recommendation made to them by a regional advisory committee under subsection (1).
Investments
20 The Northern Development Initiative Trust must invest the northern development allocation only as permitted under the provisions of the Trustee Act respecting the investment of trust property by a trustee.
Part 4 -- General
Balanced Budget and Ministerial Accountability Act
21 For the purposes of sections 5 (1) and 6 (1) of the Balanced Budget and Ministerial Accountability Act, in relation to each of the ministers referred to in section 13 of this Act for the relevant fiscal year in which the expense is made, the estimated amount under section 6 (1) of the Balanced Budget and Ministerial Accountability Act is the sum of the amounts appropriated for
(a) the operating expenses for which that minister is responsible in the main estimates for that fiscal year,
(b) the expenses authorized for that minister under section 13 of this Act, and
(c) any other expenses that, under any other enactment, are, for that fiscal year, to be added to the estimated amount for that minister under section 6 (1) of the Balanced Budget and Ministerial Accountability Act for the purposes of sections 5 (1) and 6 (1) of that Act.
Offence Act
22 Section 5 of the Offence Act does not apply to this Act.
Power to make regulations
23 (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, if requested to do so by the directors of the Northern Development Initiative Trust, make regulations amending the definition of the Cariboo-Chilcotin/Lillooet region by adding or removing areas in accordance with that request.
Commencement
24 This Act comes into force by regulation of the Lieutenant Governor in Council.