SNL2022 CHAPTER F-27 - FUTURE FUND ACT

SNL2022 CHAPTER F-27 FUTURE FUND ACT Amended: 2026 c7 CHAPTER F-27 AN ACT RESPECTING THE ESTABLISHMENT OF THE NEWFOUNDLAND AND LABRADOR FUTURE FUND (Assented to November 9, 2022) Analysis 1. Short title 2. Definitions 3. Conflict with other Acts 4. Newfoundland and Labrador Future Fund 5. Board of trustees 6. Powers and duties of trustees 7. Investment of money in the fund 8. Permitted withdrawals 9. Rep. by 2026 c7 s5 10. Immunity 11. Rep. by 2026 c7 s6 12. RSNL1990 cF-8 Amdt. 13. RSNL1990 cP-43 Amdt. 14. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Future Fund Act. 2022 cF-27 s1 Back to Top Definitions 2. In this Act (a) "comptroller general" means the Comptroller General of Finance appointed under the Financial Administration Act ; (b) "Crown asset" means an asset owned by (i) a department of the government , (ii) a corporation, the ownership of which, or a majority of the shares of which is vested in the Crown and its subsidiaries, or (iii) a corporation, commission or body, the majority of the members of which, or the majority of members of the board of directors of which are appointed by an Act, the Lieutenant-Governor in Council or a minister; (c) "department" means, except where the context indicates otherwise, the department presided over by the minister; (d) [Rep. by 2026 c7 s1] (e) "fiscal year" means fiscal year as defined in the Financial Administration Act ; (f) "fund" means, except where the context indicates otherwise, the Newfoundland and Labrador Future Fund established under section 4; (g) "gross proceeds" means the amount received from the sale of an asset before any deductions are made; (h) "minister" means the minister appointed under the Executive Council Act to administer this Act; (i) "net proceeds" means the amount received from the sale of an asset less any costs and expenses paid or payable relating to the sale of the asset; (j) [Rep. by 2026 c7 s1] (j.1) "surplus cash position" means the financial position where the amount of cash on hand is in excess of the amount of cash required to fund all operational and capital expenditure requirements of the province, excluding amounts borrowed to fund such expenditures; (k) "Treasury Board" means the Treasury Board established under section 3 of the Financial Administration Act ; and (l) "trustees" means the board of trustees referred to in section 5. 2022 cF-27 s2 ; 2026 c7 s1 Back to Top Conflict with other Acts 3. Where there is a conflict between this Act and another Act or regulation enacted before or after the coming into force of this Act, this Act shall prevail. 2022 cF-27 s3 ; 2026 c7 s2 Back to Top Newfoundland and Labrador Future Fund 4. (1) There is established a fund called the Newfoundland and Labrador Future Fund. (2) The net proceeds from the sale of any Crown asset or group of Crown assets with gross proceeds in excess of $5,000,000 shall be deposited into the fund . (3) In addition to the amounts referred to in subsection (2), additional amounts may be deposited into the fund at the discretion of the Treasury Board, where the province was in a surplus cash position at the end of the previous fiscal year. (4) The trustees may maintain a consolidated bank account for the receipt and disbursement of money in the fund. (5) The annual expenses incurred in the management and operation of the fund shall be paid out of the interest earned from the investments held by the fund subject to the approval of the trustees as to the amount of the expenses. 2022 cF-27 s4 ; 2026 c7 s3 Back to Top Board of trustees 5. (1) A board of trustees shall be established to oversee the management of the fund. (2) The board of trustees shall be comprised of (a) the deputy minister of the department, who shall be the chairperson; (b) the assistant deputy minister responsible for treasury management in the department; (c) the comptroller general; (d) the director responsible for treasury management in the department; (e) one person employed in a department of the government who has expertise in environmental matters appointed by the Lieutenant-Governor in Council; and (f) one person appointed by the Lieutenant-Governor in Council. (3) The term of a person appointed under paragraph 2(e) shall be determined by the Lieutenant-Governor in Council. (4) A person appointed under paragraph (2)(f) shall be appointed for a term of 3 years and is eligible for reappointment. (5) Notwithstanding the expiry of the term of a person appointed under paragraph (2)(f), the person continues to be a trustee until reappointed or replaced. (6) A person appointed under paragraph (2)(f) may be remunerated in accordance with the Treasury Board guidelines. 2022 cF-27 s5 Back to Top Powers and duties of trustees 6. (1) The trustees shall (a) report to the minister on a quarterly basis regarding the performance of the fund; and (b) invest and dispose of the assets in the fund as directed by the Treasury Board. (2) A trustee, in exercising the powers and discharging the duties of a trustee, shall (a) act honestly and in good faith with a view to the best interests of the fund; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 2022 cF-27 s6 Back to Top Investment of money in the fund 7. (1) Money in the fund may, at the direction of the Treasury Board, be invested in bonds, debentures or other securities referred to in subsection 38(3) of the Financial Administration Act . (2) The investment income from the fund accrues to and forms part of the fund. (3) The trustees may, with the approval of the minister, lend to a company bonds and securities held by the fund under subsection (1), provided that (a) neither the company nor the trustees are associates of each other; (b) the book value of bonds or securities that the trustees lend to any one company is not more than 10% of the book value of the assets held by the fund; (c) investment income of the bonds or securities loaned under this subsection continues to accrue to the fund; (d) in return for the bonds or securities loaned under this subsection, the fund receives collateral equal in value to not less than 105% of the market value of the bonds or securities loaned by the trustees and 100% of the accrued interest on those bonds or securities and provided that those values continue throughout the period of time that the lending agreement for the bonds or securities is in force; (e) the collateral referred to in paragraph (d) is a readily marketable investment permitted under subsection (1); and (f) a market evaluation of the loaned bonds or securities and of the collateral referred to in paragraph (d) is made not less than once a week. (4) For the purpose of subsection (3), the words "associate" and "company" have the meanings assigned to them under the Securities Act . 2022 cF-27 s7 Back to Top Permitted withdrawals 8. (1) Subject to the approval of the Treasury Board, m oney may be withdrawn from the fund to be transferred to (a) the Newfoundland and Labrador Government Sinking Fund to service the public debt; and (b) the Consolidated Revenue Fund for one or more of the following purposes, subject to there being an appropriation provided under the Financial Administration Act for the amount being transferred: (i) to service the public debt, (ii) to pay expenses that arise as a result of the sale of Crown assets referred to in subsection 4(2) that were not known or determinable at the time the net proceeds were deposited in the fund, and (iii) to pay any amounts relating to abandonment and decommissioning activities under an oil lease or licence in accordance with the applicable regulations and agreements. (2) Where money is withdrawn from the fund under subsection 8(1), the minister shall, not later than 30 days after the date of the withdrawal, table in the House of Assembly a report respecting the withdrawal that sets out (a) the amount withdrawn; (b) the date of withdrawal; (c) the paragraph or subparagraph of subsection 8(1) under which the withdrawal was made; (d) the specific purpose for which the amount was or is to be applied; (e) the balance of the fund immediately before and immediately after the withdrawal; and (f) where the withdrawal was approved by the Treasury Board or the Lieutenant-Governor in Council, the date of that approval. (3) Where the House of Assembly is not sitting on the day a report is required to be tabled under subsection 8(2), the minister shall (a) file the report with the Clerk of the House of Assembly within the 30-day period referred to in subsection 8(2) and (b) table the report in the House on the first sitting day following the day the report is filed with the Clerk. 2022 cF-27 s8 ; 2026 c7 s4 Back to Top Rep. by 2026 c7 s5 9. [Rep. by 2026 c7 s5] 2026 c7 s5 Back to Top Immunity 10. An action or proceeding does not lie or shall not be instituted against the Crown, a minister, employee, trustee, an entity referred to in subparagraphs 2(b)(ii) and (iii) or any of the entity's directors, board members, officers or employees based on a cause of action arising from, resulting from or incidental to the operation of this Act. 2022 cF-27 s10 Back to Top Rep. by 2026 c7 s6 11. [Rep. by 2026 c7 s6] 2026 c7 s6 Back to Top RSNL1990 cF-8 Amdt. 12. Section 22 of the Financial Administration Act is amended by deleting the word "and" at the end of paragraph (f), deleting the period at the end of paragraph (g) and substituting a semi-colon and the word "and" and by adding immediately after paragraph (g) the following: (h) issues may be made in respect of contributions to the Newfoundland and Labrador Future Fund in accordance with the Future Fund Act . 2022 cF-27 s12 Back to Top RSNL1990 cP-43 Amdt. 13. Schedule C of the Public Service Commission Act is amended by adding immediately after the statutory appointment reference " Forestry Act , section 58" the statutory appointment reference " Future Fund Act , paragraph 5(2)(f)". 2022 cF-27 s13 Back to Top Commencement 14. This Act comes into force on a day to be proclaimed by the Lieutenant-Governor in Council. (In force Mar. 30/23) 2022 cF-27 s14