Vol. 148, No. 9 — April 23, 2014

Registration

SOR/2014-77 April 4, 2014

FIRST NATIONS FISCAL MANAGEMENT ACT

Order Amending the Schedule to the First Nations Fiscal Management Act

P.C. 2014-354 April 3, 2014

Whereas, in accordance with paragraph 2(3)(a) of the First Nations Fiscal Management Act (see footnote a), the council of each band referred to in the annexed Order has requested that the name of the band be added to the schedule to that Act;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to paragraph 2(3)(a) of the First Nations Fiscal Management Act (see footnote b), makes the annexed Order Amending the Schedule to the First Nations Fiscal Management Act.

ORDER AMENDING THE SCHEDULE TO THE FIRST NATIONS FISCAL MANAGEMENT ACT

AMENDMENT

1. The schedule to the First Nations Fiscal Management Act (see footnote 1) is amended by adding the following in alphabetical order:

COMING INTO FORCE

2. This Order comes into force on the day on which it is registered.

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 (the Act) first require addition to the Schedule of the 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 of the Act.

Background

The First Nations Fiscal Management Act (see footnote 2) came into force on April 1, 2006. The 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 institutions established through the Act. These institutions are the First Nations Finance Authority, the First Nations Tax Commission and the First Nations Financial Management Board.

Objectives

The following 16 First Nations have requested, via Band Council Resolutions, to be added on the Schedule of the Act: Bear River First Nation (Nova Scotia), Buctouche Mic Mac Band (New Brunswick), Chippewas of Kettle and Stony Point First Nation (Ontario), Mohawks of Akwesasne (Ontario), Peter Ballantyne Cree Nation (Saskatchewan), Long Plain First Nation (Manitoba), Misipawistik Cree Nation (Manitoba), Pauingassi First Nation (Manitoba), Red Sucker Lake First Nation (Manitoba), Beecher Bay (British Columbia), Cayoose Creek Indian Band (British Columbia), Kanaka Bar (British Columbia), Kwantlen First Nation (British Columbia), Skwah (British Columbia), Soowahlie (British Columbia), Williams Lake (British Columbia).

Once added to the Schedule of 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 Act. The First Nations may — should leadership so choose — 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 of the First Nations Fiscal Management Act are also able to seek certification in the areas of financial performance and financial management systems, as well as access a First Nations bond financing regime based on their property tax or other revenue streams.

Description

There are currently 108 First Nations on the Schedule to the First Nations Fiscal Management Act. The addition of 16 more First Nations will bring this total to 124. 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 Act who wish to implement property tax systems and strong financial management practices and 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 bylaws 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 firm assessment criteria to the bylaw 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 Act should they so choose. The First Nations Tax Commission ensures the integrity of the system by promoting a common approach to First Nations’ real property taxation nationwide.

“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 or administrative costs on small businesses.

Consultation

Given that this Order implements requests by 16 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 residents of the community. The institutions established through the First Nations Fiscal Management Act will continue to work closely with the First Nations who have requested to be added to the Schedule to the Act.

Rationale

By adding its name to the Schedule of the First Nations Fiscal Management Act, a First Nation may choose to implement a property tax system under the Act, seek certification of its financial performance and financial management systems, and 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 reserves, 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 a First Nation 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 Aboriginal Affairs and Northern Development Canada

Brenda D. Kustra
Director General
Governance Branch
Regional Operations
72 Laval Street
Gatineau, Quebec
K1A 0H4
Telephone: 819-997-8154
Fax: 819-997-9541