FEDERAL REG

SOR/2016-8: Schedule to the First Nations Fiscal Management Act — Order Amending First Nations Fiscal Management Act

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
January 30, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Issues First Nations wishing to access the full array of services available through the First Nation institutions created under the First Nations Fiscal Management Act, first require addition to the schedule to the First Nations Fiscal Management Act. Accordingly, subsection 2(3) of the First Nations Fiscal Management... (Click for more)


House

1st Reading 2nd Reading 3rd Reading

Senate

1st Reading 2nd Reading 3rd Reading

Published on January 30, 2016

Bill Summary

SOR/2016-8: Schedule to the First Nations Fiscal Management Act — Order Amending First Nations Fiscal Management Act

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Issues First Nations wishing to access the full array of services available through the First Nation institutions created under the First Nations Fiscal Management Act, first require addition to the schedule to the First Nations Fiscal Management Act. Accordingly, subsection 2(3) of the First Nations Fiscal Management Act states that a First Nation may request the Governor General in Council to add, change or delete its name from the schedule. Background The First Nations Fiscal Management Act (see footnote 2) came into force on April 1, 2006. The First Nations Fiscal Management Act supports economic development and well-being in First Nation communities by enhancing First Nations property taxation, creating a First Nations bond financing regime and supporting First Nations’ capacity in financial management. These objectives are achieved through the First Nation fiscal organizations established through the First Nations Fiscal Management Act. These organizations are the First Nations Finance Authority, the First Nations Tax Commission and the First Nations Financial Management Board. Objectives Nineteen First Nations have requested, via Band Council Resolutions, to be added to the schedule to the First Nations Fiscal Management Act: Algonquins of Pikwakanagan First Nation, Anishnaabeg of Naongashiing, Chippewas of Rama First Nation and Fort William in Ontario; Innue Essipit in Quebec; Little Saskatchewan and Waywayseecappo First Nation Treaty 4-1874 in Manitoba; Flying Dust First Nation, Moosomin, Pheasant Rump Nakota, Sweetgrass and The Key First Nation in Saskatchewan; Bigstone Cree Nation, Enoch Cree Nation #440 and O’Chiese in Alberta; Lhtako Dene Nation, Nazko First Nation, Quatsino and Xaxli’p in British Columbia. Once added to the schedule to the First Nations Fiscal Management Act, these First Nations will have the ability to access some or all of the services provided by the fiscal institutions under the First Nations Fiscal Management Act. The First Nations may — should their governments so choose to — impose property taxes and use property tax revenues or other revenues to invest in and support community projects under the framework of the First Nations Fiscal Management Act, as an alternative to the existing property tax jurisdiction available to First Nations under section 83 of the Indian Act. First Nations who are added to the schedule to the First Nations Fiscal Management Act are also able to seek certification in the areas of financial performance and financial management systems. Once certified, First Nations may apply for access to a First Nations bond financing regime based on their property tax or other revenue streams. Description There are currently 158 First Nations on the schedule to the First Nations Fiscal Management Act. The addition of 19 more First Nations will bring this total to 177. The First Nations Tax Commission, the First Nations Finance Authority and the First Nations Financial Management Board will continue to work closely with First Nations appearing on the schedule to the First Nations Fiscal Management Act who wish to implement property tax systems as well as strong financial management practices, and who wish to access the First Nations bond financing regime. For First Nations choosing to exercise their property tax jurisdiction, the First Nations Tax Commission ensures the integrity of the First Nations real property tax regime under both the Indian Act and the First Nations Fiscal Management Act. In the case of property taxation under the Indian Act, the First Nations Tax Commission advises the Minister of Indian Affairs and Northern Development with respect to property tax by-laws and recommends approval. With respect to property taxation under the First Nations Fiscal Management Act, the First Nations Tax Commission approves the property tax laws directly. In both instances, the First Nations Tax Commission applies a firm assessment criterion to the by-law or law being considered for approval, including compliance with the Canadian Charter of Rights and Freedoms; conformity with the principles of natural justice; conformity with the respective legislation and supporting regulations; and, conformity with the First Nations Tax Commission policy. The First Nations Tax Commission will facilitate the transition for any First Nation who has requested to be added to the schedule to the First Nations Fiscal Management Act, to access the property tax regime created by the First Nations Fiscal Management Act should they so choose. The First Nations Tax Commission ensures the integrity of the system through promoting a common approach to First Nations’ real property taxation nationwide. First Nations scheduled under the First Nations Fiscal Management Act and intending to become a borrowing member of the First Nations Finance Authority must first obtain a financial performance certificate. In order to obtain this certificate, a First Nation must have a financial administration law that meets First Nations Financial Management Board standards. The financial performance certification is a point in time assessment of financial condition. It should be noted that the financial performance certificate is one criterion that the First Nations Finance Authority will use in their determination to provide a loan to a First Nation. The financial performance certificate is not intended to provide the basis for assessing credit worthiness for a particular loan, rather, the assessment (see footnote 3) evaluates how well a First Nation is using its resources to run its government, and provides a signal of overall financial health of a First Nation. The financial management systems certificate is a secondary certification that First Nations may seek in order to gain access to financing through the First Nations Finance Authority, dependent upon which certification and borrowing path (see footnote 4) they may choose to pursue under the First Nations Fiscal Management Act. “One-for-One” Rule The “One-for-One” Rule does not apply to this Order, as it does not result in any administrative costs or savings for businesses. Small business lens The small business lens does not apply to this Order, as it does not impose any level of compliance and/or administrative costs on small businesses. Consultation Given that this Order implements a request by these 19 First Nations to come under the First Nations Fiscal Management Act, it was not considered necessary to undertake consultations over and above those already conducted by the First Nations with the residents of their communities. The First Nations Fiscal Management Act institutions will continue to work closely with all First Nations who have requested to be added to the schedule to the First Nations Fiscal Management Act. Rationale By joining the First Nations Fiscal Management Act, a First Nation may choose to implement a property tax system under the First Nations Fiscal Management Act, seek certification of its financial performance and financial management systems, and/or participate in a First Nations bond financing regime. These tools and services are provided to build economic infrastructure, promote economic growth and attract investment on reserve, thereby increasing the well-being of First Nations communities. Implementation, enforcement and service standards There are no compliance and enforcement requirements associated with this Order and no implementation or ongoing costs which can be directly associated with adding First Nations to the schedule to the First Nations Fiscal Management Act. Contacts For the First Nations Tax Commission Clarine Ostrove Legal Counsel c/o Mandell Pinder 422 – 1080 Mainland Street Vancouver, British Columbia V6B 2T4 Telephone: 604-681-4146 Fax: 604-681-0959 For Indigenous and Northern Affairs Canada Stefan Matiation Director Policy Development Directorate Policy and Coordination Branch 10 Wellington Street Gatineau, Quebec K1A 0H4 Telephone: 819-953-0103 Fax: 819-997-7054 Footnote a S.C. 2005, c. 9; S.C. 2012, c. 19, s. 658 Footnote b S.C. 2005, c. 9; S.C. 2012, c. 19, s. 658 Footnote 1 S.C. 2005, c. 9; S.C. 2012, c. 19, s. 658 Footnote 2 The title was changed from the First Nations Fiscal and Statistical Management Act to the First Nations Fiscal Management Act on April 1, 2013, upon dissolution of the First Nations Statistical Institute. Footnote 3 For more information, please consult http://www.fnfmb.com/services/certification/financial-performance-certification/. Footnote 4 For more information, please consult http://www.fnfmb.com/services/certification/certification-options/.

This Bill does not amend any statutes.

Sign up for alerts on this Bill

Receive emails tracking this Bill's progress.

See all your alerts in a dashboard.

Set an alert with one click and you're done!