Northern Development Initiative Trust Act

Northern Development Initiative Trust Act 69 2004 October 21, 2004 757987613/04069/tlc04069_f E3tlc04069 1 Interpretation Definitions 1 In this Act: additional one-time allocation means any money paid by the government to the Northern Development Initiative Trust, other than a the northern development allocation, and b money paid for services further to an agreement between the government and the Northern Development Initiative Trust; 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; Pine Beetle Account means the account established under section 10 (1.1) (a); 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); 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; region means the Cariboo-Chilcotin/Lillooet region, the Northwest region, the Peace region or the Prince George region; regional advisory committee means a regional advisory committee established under this Act; 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. 2 Northern Development Initiative Trust 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 that are, in whole or in part, 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. 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) of this section, 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) of this section, 3 years from the expiry of the term of the retiring director whom he or she replaces. 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. 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. 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, unless otherwise directed by the government, 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. 2 Subject to section 20, the directors of the Northern Development Initiative Trust may invest any or all of the northern development allocation, the additional one-time allocation and any other money in the accounts established under this Act. 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. 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. Repealed 12 [Repealed 2005-37-5.] 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. 3 Allocations 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. 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 $60 million. 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). 2 Northern Development Initiative Trust Management of accounts 15 1 The Northern Development Initiative Trust must manage the accounts established under this Act. 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 this Act 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 this Act 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 this Act, 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 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). 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 [Repealed 2023-47-115.] g small business; h economic development; i energy; j agriculture; k technology and innovation. 2 The purpose of each of the regional development accounts is to support investment in the matters referred to in paragraphs (a) to (k) of subsection (1) to benefit, and facilitate the development of, the region after which the account is named. 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. 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, the additional one-time allocation and any other money in the accounts established under this Act only as permitted under the provisions of the Trustee Act respecting the investment of trust property by a trustee. 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. 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. 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. 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 24 This Act comes into force by regulation of the Lieutenant Governor in Council.