Local Authorities Capital Financing Act

LOCAL AUTHORITIES CAPITAL FINANCING ACT Chapter L‑20.8 Table of Contents 1 Interpretation 2 Loans and financial services 3 Limit on lending 4 Borrowing by local authorities 5 Financial Administration Act 6 Regulations 7 Previous names Transitional Provisions, Consequential Amendment, Repeal and Coming into Force 8 Dissolution of Alberta Capital Finance Authority 9 Transitional regulations 10 Consequential amendment 11 Repeal 12 Coming into force Interpretation 1 (1) In this Act, (a) “educational authority” means (i) the board of trustees of a school division under the Education Act , (ii) the board of governors of a comprehensive community college under the Post-secondary Learning Act , (iii) the board of governors of a polytechnic institution under the Post-secondary Learning Act , (iv) the board of governors of a university under the Post-secondary Learning Act , (v) the Board of Governors of The Banff Centre under the Post-secondary Learning Act , or (vi) The Board of the Northland School Division under the Northland School Division Act ; (b) “health authority” means (i) a non-profit corporation other than a provincial health agency, regional health authority or provincial health corporation that operates an approved hospital under the Provincial Health Agencies Act , (ii) a non‑profit corporation other than a provincial health agency, regional health authority or provincial health corporation that operates a facility as defined in the Mental Health Act , (ii.1) a provincial health agency under the Provincial Health Agencies Act , (iii) a regional health authority under the Provincial Health Agencies Act , or (iv) a provincial health corporation under the Provincial Health Agencies Act ; (c) “improvement district” means, with respect to borrowing from the Minister under this Act, the Government of Alberta as represented by the Minister responsible for improvement districts; (d) “local authority” means a city, an educational authority, a health authority, a municipal authority, a regional authority or a town; (e) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act; (f) “municipal authority” means (i) an improvement district, (ii) a Metis settlement, (iii) a municipal district, (iv) a special area, or (v) a specialized municipality; (g) “regional authority” means (i) the board of trustees of a drainage district under the Drainage Districts Act , (ii) an irrigation district under the Irrigation Districts Act , (iii) a regional airports authority created under the Regional Airports Authority Act , (iv) a regional services commission established under the Municipal Government Act , or (v) a growth management board established under the Municipal Government Act ; (h) “securities” includes bonds, debentures, guaranteed investment certificates or receipts, certificates of deposit, deposit receipts, bills, notes and mortgages of real or personal property; (i) “special area” means, with respect to borrowing from the Minister under this Act, the Government of Alberta as represented by the Minister responsible for special areas. (2) A reference in this Act (a) to a city, municipal district, specialized municipality, improvement district or special area is a reference to a city, municipal district, specialized municipality, improvement district or special area under the Municipal Government Act , and (b) to a town is a reference to a town, village or summer village under the Municipal Government Act and includes a reference to a town under the Parks Towns Act . 2019 cL-20.8 s1;2024 c10 s27;2024 c16 s14;2025 c10 s35 Loans and financial services 2 (1) Subject to the regulations, the Minister may make a loan to the following: (a) a local authority for the purpose of financing or refinancing new or existing capital projects or assets, public works, buildings or structures; (b) a regional airports authority for the purpose of alleviating financial consequences arising from the COVID-19 pandemic that threaten the viability of the regional airports authority, provided that the loan is made on or before December 31, 2023. (2) The Minister may determine whether a specific project, undertaking or asset is considered a capital project or asset for the purposes of subsection (1). (3) The Minister may, if authorized by the Lieutenant Governor in Council in the regulations, provide other financial services to a local authority, including (a) acting as a financial agent or otherwise for a local authority in negotiating loans or refinancing securities of the local authority or in any other capacity authorized by the regulations, and (b) providing, in addition to any financial services referred to in clause (a) and subsection (1), any other financial services prescribed by the Lieutenant Governor in Council in the regulations. 2019 cL‑20.8 s2;2020 c33 s7 Limit on lending 3 The Minister shall not make a loan to a local authority if, at the time the loan is made, that loan would cause the total principal amount of all outstanding loans made by the Minister under this Act to exceed the amount prescribed by the regulations. Borrowing by local authorities 4 (1) A local authority may borrow from the Minister in any form or manner and on any terms that are acceptable to the Minister. (2) Nothing in this section relieves a local authority from compliance with any statutory requirement relating to any borrowing by the local authority. Financial Administration Act 5 Section 42.1 of the Financial Administration Act does not apply to loans made under this Act. Regulations 6 The Lieutenant Governor in Council may make regulations (a) prescribing the total principal amount of outstanding loans that may not be exceeded under section 3; (b) authorizing the Minister to provide other financial services to local authorities and prescribing the financial services the Minister is authorized to provide; (c) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of this Act. Previous names 7 (1) Any reference to the Alberta Municipal Financing Corporation or the Alberta Capital Finance Authority in (a) any contract or other agreement, (b) any commercial, financial or other document, (c) any document registered in a registry operated or maintained by Alberta Registries or any other registry, document recording system, information recording system, information bank, data bank or similar system that is operated by the Government of Alberta, (d) any document filed with or issued by a court or otherwise used in any legal proceeding, or (e) any enactment, is deemed to be a reference to the Minister. (2) Any reference to the Alberta Municipal Financing Corporation Act or the Alberta Capital Finance Authority Act is deemed to be a reference to the Local Authorities Capital Financing Act . Transitional Provisions, Consequential Amendment, Repeal and Coming into Force Dissolution of Alberta Capital Finance Authority 8 (1) The Alberta Capital Finance Authority is dissolved. (2) On the coming into force of subsection (1), the following applies: (a) the property, assets, rights, obligations, liabilities, powers, duties and functions of the Alberta Capital Finance Authority become the property, assets, rights, obligations, liabilities, powers, duties and functions of the Minister; (b) an existing cause of action, claim or liability to prosecution of, by or against the Alberta Capital Finance Authority is unaffected by the coming into force of this section and may be continued by or against the Minister; (c) a civil, criminal or administrative action or proceeding pending by or against the Alberta Capital Finance Authority may be continued by or against the Minister; (d) a ruling, order or judgment in favour of or against the Alberta Capital Finance Authority may be enforced by or against the Minister. (3) Section 95 of the Financial Administration Act does not apply in respect of subsection (2). Transitional regulations 9 (1) The Lieutenant Governor in Council may make regulations (a) respecting the transition of any of the powers, duties or functions of the Alberta Capital Finance Authority on its dissolution; (b) to remedy any confusion, difficulty, inconsistency or impossibility resulting from the dissolution of the Alberta Capital Finance Authority. (2) A regulation made under subsection (1) may be made retroactive to the extent set out in the regulation. 10 (This section amends another Act; the amendment has been incorporated into that Act.) Repeals RSA 2000 cA-14.5 11 The Alberta Capital Finance Authority Act is repealed. Coming into force 12 This Act comes into force on Proclamation . (NOTE: Proclaimed in force October 31, 2020.)