Order Fixing the Day After the Day on Which This Order Is Made as the Day on Which Subsections 368(2) and 369(2) of the Budget Implementation Act, 2019, No. 1 Come into Force: SI/2023-61

Canada Gazette, Part II, Volume 157, Number 21

Registration
SI/2023-61 October 11, 2023

BUDGET IMPLEMENTATION ACT, 2019, NO. 1

Order Fixing the Day After the Day on Which This Order Is Made as the Day on Which Subsections 368(2) and 369(2) of the Budget Implementation Act, 2019, No. 1 Come into Force

P.C. 2023-916 September 25, 2023

Her Excellency the Governor General in Council, on the recommendation of the Minister of Indigenous Services, under subsection 383(2) of the Budget Implementation Act, 2019, No. 1, chapter 29 of the Statutes of Canada, 2019, fixes the day after the day on which this Order is made as the day on which subsections 368(2) and 369(2) of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Under subsection 383(2) of the Budget Implementation Act, 2019, No. 1, chapter 29 of the Statutes of Canada, 2019, this Order fixes the day after the day on which the Order is made as the day on which subsections 368(2) and 369(2) of that Act come into force.

Objective

The objective of this Order is to transfer ministerial responsibilities under the First Nations Financial Transparency Act from the Minister of Crown-Indigenous Relations to the Minister of Indigenous Services.

More specifically, the Order brings into force subsection 368(2) of the Budget Implementation Act, 2019, No. 1, which changes the definition of Minister under the First Nations Financial Transparency Act from the Minister of Crown Indigenous Relations to the Minister of Indigenous Services, thereby transferring ministerial responsibilities under the First Nations Financial Transparency Act. The Order also brings into force the companion provision, subsection 369(2), which changes the First Nations Financial Transparency Act’s requirement for the Minister to publish certain documents on the Internet site of the Department of Crown-Indigenous Relations and Northern Affairs to the Minister publishing the documents on the Internet site of the Department of Indigenous Services.

This Order brings these subsections into force on the day after the day on which the Order is made.

Background

The First Nations Financial Transparency Act came into force on March 27, 2013. It requires First Nations to provide to their membership, upon request, audited consolidated financial statements, including own-source revenues, and audited schedules of remuneration and expenses for chiefs and councillors. These documents are to be published by First Nations on an Internet site.

The First Nations Financial Transparency Act also requires the responsible minister to publish the above-mentioned documents, upon receipt, on the Department’s Internet site. It also provides ministerial authorities with respect to the application of administrative measures (e.g. withholding funding), as well as the option for the Minister, community members and others to seek court remedies, should a First Nation not comply with the Act’s requirements.

When the First Nations Financial Transparency Act was adopted, the Minister of Indian Affairs and Northern Development was identified in the Act as the responsible minister.

The Budget Implementation Act, 2019, No. 1 included enabling legislation that established two new departments: the Department of Crown-Indigenous Relations and Northern Affairs and the Department of Indigenous Services. It also included consequential amendments to transfer responsibility for the First Nations Financial Transparency Act to the Minister of Crown-Indigenous Relations, as well as clauses to transfer these responsibilities to the Minister of Indigenous Services at a later date through an Order.

The transfer of responsibilities for the First Nations Financial Transparency Act to the Minister of Crown-Indigenous Relations was implemented as a provisional measure to allow the two new departments time to undertake a transition that avoided operational challenges for the departments, as well as disruptions to First Nations, part way through the fiscal year.

Specifically, as the First Nations and Inuit Health Branch was part of Health Canada prior to being transferred to Indigenous Services Canada, a transition period was required to align disclosure requirements in funding agreements with the Minister’s obligation under the First Nations Financial Transparency Act to publish certain documents. These documents have continued to be published on Crown-Indigenous Relations and Northern Affairs Canada’s Internet site.

The transition took longer than originally planned due to unexpected challenges related to the separation of responsibilities between the two departments and the establishment of distinct internal services. The appropriate processes have now been put in place, and the two departments are prepared to move forward and have the Minister of Indigenous Services take over as the minister responsible for the First Nations Financial Transparency Act.

Implications

The Order is technical in nature and does not change the requirements of the First Nations Financial Transparency Act. There are no further implications beyond changing the designated responsible minister and associated department for the Act. There have also been no implications as a result of the delay in the transfer of responsibilities, as operational activities have continued.

Consultation

In 2017, Indigenous Services Canada and AFOA Canada both undertook extensive engagements on the First Nations Financial Transparency Act, and First Nations indicated that the Act should be repealed and replaced with a mutual accountability framework that recognizes First Nations’ primary accountability to their members.

Officials from Indigenous Services Canada have consulted with officials from Crown-Indigenous Relations and Northern Affairs Canada on the Order transferring responsibilities, and the Minister of Crown-Indigenous Relations has provided his concurrence.

First Nations partner organizations, notably the Assembly of First Nations and the First Nations Financial Management Board, have been informed of this Order and did not raise any concerns. As this Order is technical in nature and does not change the disclosure and reporting requirements for First Nations, further engagements have not been undertaken.

Contact

For more information, please contact

Lynne Newman
Director General
Fiscal Arrangements Branch
Indigenous Services Canada
Gatineau, Quebec
Telephone: 613‑894‑3771