Order Fixing January 6, 2025 as the Day on Which Certain Provisions of An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act Come into Force: SI/2024-63

Canada Gazette, Part II, Volume 158, Number 26

Registration
SI/2024-63 December 18, 2024

AN ACT TO AMEND THE FIRST NATIONS FISCAL MANAGEMENT ACT, TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS, AND TO MAKE A CLARIFICATION RELATING TO ANOTHER ACT

Order Fixing January 6, 2025 as the Day on Which Certain Provisions of An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act Come into Force

P.C. 2024-1293 December 9, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of Crown-Indigenous Relations, under section 63 of An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act, chapter 16 of the Statutes of Canada, 2023, fixes January 6, 2025 as the day on which subsections 3(1), (3) and (5), section 4, subsections 5(2) and (4), sections 6, 9, 15 and 24 to 26, subsections 27(1), (2) and (4) to (7), sections 28 to 30, 32 and 33, subsection 35(3), section 36, subsections 38(2) and 40(1) and (3), sections 41, 42 and 51, subsection 52(2) and section 57 of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order fixes January 6, 2025, as the date on which subsections 3(1), (3) and (5), section 4, subsections 5(2) and (4), sections 6, 9, 15 and 24 to 26, subsections 27(1), (2) and (4) to (7), sections 28 to 30, 32 and 33, subsection 35(3), section 36, subsections 38(2) and 40(1) and (3), sections 41, 42 and 51, subsection 52(2) and section 57 of An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act (the Act), also known as former Bill C-45, come into force.

Objective

The objective of the Order is to fix January 6, 2025, for the coming into force of the remaining sections of the Act. While many of the amendments under the Act came into force upon royal assent in June 2023, provisions relating to the integration of the Financing Secured by Other Revenues Regulations and the combining of the two debt reserve funds (local and other revenues) require changes to several regulations under the First Nations Fiscal Management Act (FNFMA) before they can come into force. The coming into force of these provisions will align with the coming into force of the regulatory amendments.

Background

The FNFMA received royal assent in 2005, and has since been amended on several occasions. It is an innovative, First Nations-led and -designed legislative and institutional framework that provides First Nations with support and tools to strengthen their communities and build their economies. The FNFMA is an optional regime under which First Nation communities can choose whether to participate in the taxation, financial management, and borrowing options that have been created under the legislation and its regulations. It allows First Nations to exercise jurisdiction over fiscal matters, including financial management, local revenue generation, and local services infrastructure.

With the support of the four First Nations-led institutions established under the FNFMA, the First Nations Financial Management Board (FNFMB), the First Nations Tax Commission (FNTC), the First Nations Finance Authority (FNFA), and the First Nations Infrastructure Institute (FNII), the regime helps First Nations strengthen their financial administration capacity and systems to establish a strong foundation of good governance in their communities. These institutions work together and in collaboration with the federal government and other First Nation partners to improve the ability of First Nation governments to address the social and economic well-being of their communities, while providing the practical tools available to other governments for modern fiscal management.

Under the FNFMA, First Nations can exercise jurisdiction over property taxation and financial management, and gain access to capital, which results in increasing their revenues, improved socio-economic conditions in their communities and opportunities to advance their visions of self-determination. For instance, the FNFMA provides signatory First Nations with access to capital through the FNFA, which issues bonds on the open market in a manner similar to what is currently done by federal, provincial, and municipal governments.

Since the adoption of the FNFMA, there are currently more than 350 First Nations who have opted into the regime.

An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act received royal assent on June 20, 2023. Those legislative amendments were co-developed with the Indigenous-led institutions to improve the functioning of the regime. Most amendments came into force upon royal assent, including expanding and modernizing the mandates of the FNTC and FNFMB, updating governance provisions, establishing the FNII, expanding law-making and enforcement powers for First Nations, adding data collection powers, and enabling the FNTC and FNFMB to hold meetings virtually. Amendments integrating the content of the Financing Secured by Other Revenues Regulations into the FNFMA, and combining the two debt-reserve funds into one and clarifying its operation, will come into force with this Order.

In order to bring the Act into full force and support implementation, associated changes to several regulations are required, including amendments to the Debt Reserve Funds Replenishment Regulations and the Revenue Management Implementation Regulations, and the repeal of the Financing Secured by Other Revenues Regulations. The coming into force of these regulatory amendments will also come into force on January 6, 2025, to align with the coming into force of the remaining legislative provisions through this Order.

Implications

This Order makes it clear when the remaining provisions of the amended FNFMA come into force.

This Order will be published at the same time as the associated regulatory amendments, which are needed to support and fully implement these remaining legislative amendments to the FNFMA.

There are no financial implications to bringing into force the remainder of the Act.

Consultation

The Act’s amendments were co-developed with the Indigenous-led institutions. These institutions have the most direct experience with the operation of the regime. They have a wealth of knowledge and experience, as well as strong relationships with First Nations scheduled to the FNFMA. The institutions are in regular communication with the more than 350 First Nations currently scheduled to the FNFMA and have assisted Crown-Indigenous Relations and Northern Affairs Canada in reaching out to these First Nations.

The institutions are aware that the provisions are anticipated to come into force in early 2025 and they are prepared to implement the changes.

Contact

Andrea Dykstra
Director
Fiscal Policy and Investment Readiness Directorate
Crown-Indigenous Relations and Northern Affairs Canada
Telephone: 343‑596‑4150
Email: andrea.dykstra@rcaanc-cirnac.gc.ca