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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 (S.C. 2023, c. 16)

Assented to 2023-06-20

2005, c. 9; 2012, c. 19, s. 658First Nations Fiscal Management Act (continued)

Marginal note:2018, c. 27, par. 414(w)(E)

  •  (1) Subsection 53(1) of the Act is replaced by the following:

    Marginal note:Third-party management — local revenues

    • 53 (1) The Board may, on giving notice to the council of a First Nation and to the Minister, assume management of the First Nation’s local revenues, including its local revenue account,

      • (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52 has not been effective;

      • (b) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues; or

      • (c) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

  • Marginal note:2018, c. 27, par. 414(w)(E)

    (2) The portion of subsection 53(2) of the English version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Powers

      (2) If the Board assumes third-party management of the local revenues of a First Nation, the Board has the exclusive authority to

  • (3) Subparagraph 53(2)(b)(i) of the Act is replaced by the following:

    • (i) with respect to local revenues, exercise any powers and fulfil any obligations of the council under this Act, including under the regulations made under this Act, or under any laws made under paragraphs 5(1)(a) to (e) and 9(1)(a),

  • (4) Subparagraph 53(2)(b)(iv) of the Act is replaced by the following:

    • (iv) provide for the delivery of programs and services that are paid for out of the First Nation’s local revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets;

  • Marginal note:2018, c. 27, s. 399

    (5) Paragraph 53(2)(d) of the Act is replaced by the following:

    • (d) with respect to local revenues, exercise any powers or fulfil any obligations delegated to the Board under a law of the First Nation or an agreement between the First Nation and the Board or between the First Nation and the First Nations Finance Authority.

  • (6) Section 53 of the Act is amended by adding the following after subsection (5):

    • Marginal note:Board not agent or mandatary

      (5.1) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority or the First Nations Tax Commission while exercising its exclusive authority under subsection (2).

  • Marginal note:2018, c. 27, par. 414(w)(E)

    (7) Subsection 53(6) of the Act is replaced by the following:

    • Marginal note:Termination by Board

      (6) The Board may terminate third-party management of a First Nation’s local revenues, on giving notice to the council of the First Nation, if

      • (a) it is of the opinion that there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues and the Authority consents to the termination in writing;

      • (b) in the case of a First Nation that was in default of an obligation to the First Nations Finance Authority relating to a loan secured by local revenues, it is of the opinion that the First Nation has remedied the default and the Authority consents to the termination in writing;

      • (c) it is of the opinion that the situation for which third-party management of the First Nation’s local revenues was required has been remedied; or

      • (d) in the case of third-party management that was assumed by the Board following receipt of a notice under subsection 86(4), the First Nations Finance Authority has, in writing, requested the termination and stated its reasons for the request.

 The Act is amended by adding the following after section 53:

Marginal note:Third-party management — other revenues

  • 53.1 (1) The Board may, on giving notice to the council of a First Nation and to the Minister, assume management of the First Nation’s other revenues, including those that have not been used as security for a loan from the First Nations Finance Authority,

    • (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52.1 has not been effective;

    • (b) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues; or

    • (c) if the Board has received a notice under subsection 86(5).

  • Marginal note:Powers

    (2) If the Board assumes third-party management of the other revenues of a First Nation, the Board has the exclusive authority to

    • (a) subject to subsection (5), act in the place of the council of the First Nation to make laws under paragraphs 8.1(1)(a) and (b) and subsection 9(1);

    • (b) act in the place of the council of the First Nation to

      • (i) with respect to other revenues, exercise any powers and fulfil any obligations of the council under this Act, including under the regulations made under this Act, or under any laws made under paragraph 8.1(1)(a) or 9(1)(a),

      • (ii) manage the First Nation’s other revenues,

      • (iii) manage assets of the First Nation that are generating other revenues, including by exercising any powers of the council to terminate an agreement, or enter into a new agreement, in respect of those assets,

      • (iv) undertake any necessary borrowing for the purpose of remedying the situation for which third-party management was required, and

      • (v) provide for the delivery of programs and services that are paid for out of the First Nation’s other revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets; and

    • (c) with respect to other revenues, exercise any powers or fulfil any obligations delegated to the Board under a law of the First Nation or an agreement between the First Nation and the Board or between the First Nation and the First Nations Finance Authority.

  • Marginal note:Scope of power

    (3) In exercising the authority referred to in subparagraph (2)(b)(ii), the Board may manage other revenues of a First Nation that were received before, or that are received after, the Board assumes management of the First Nation’s other revenues, including those that are comingled with other moneys of the First Nation. However, the Board may not manage the First Nation’s other revenues that are in a secured revenues trust account or an intermediate account.

  • Marginal note:Board not agent or mandatary

    (4) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority while exercising its exclusive authority under subsection (2).

  • Marginal note:Delegation — consent of council required

    (5) The Board shall not make a law under paragraph 8.1(1)(b) or 9(1)(b) that delegates a power to a person or body to whom a power was not delegated at the time the Board assumed third-party management of the other revenues of a First Nation, unless the council of the First Nation gives its consent.

  • Marginal note:Prohibition

    (6) The council of a First Nation shall not, during the time that the Board assumes third-party management of the First Nation’s other revenues, repeal any law made under paragraph 8.1(1)(c).

  • Marginal note:Review every six months

    (7) If the Board has assumed third-party management of a First Nation’s other revenues, it shall review the need for third-party management at least once every six months and advise the First Nations Finance Authority, the First Nations Tax Commission and the council of the First Nation of the results of its review.

  • Marginal note:Termination by Board

    (8) The Board may terminate third-party management of a First Nation’s other revenues, on giving notice to the council of the First Nation, if

    • (a) it is of the opinion that there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues and the Authority consents to the termination in writing;

    • (b) in the case of a First Nation that was in default of an obligation to the First Nations Finance Authority relating to a loan secured by other revenues, it is of the opinion that the First Nation has remedied the default and the Authority consents to the termination in writing;

    • (c) it is of the opinion that the situation for which third-party management of the First Nation’s other revenues was required has been remedied; or

    • (d) in the case of third-party management that was assumed by the Board following receipt of a notice under subsection 86(5), the First Nations Finance Authority has, in writing, requested the termination and stated its reasons for the request.

  • Marginal note:Opinion final

    (9) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

  • Marginal note:Notice

    (10) The Board shall advise the First Nations Finance Authority and First Nations Tax Commission of the assumption or termination of third-party management of a First Nation’s other revenues.

Marginal note:2018, c. 27, par. 414(x)(E)

 Section 54 of the Act is replaced by the following:

Marginal note:Required information

54 At the request of the Board, a First Nation shall provide to the Board any information about the First Nation’s financial management system and financial performance that the Board requires for a decision regarding a co-management arrangement or third-party management of the First Nation’s local revenues or other revenues.

Marginal note:2018, c. 27, par. 414(y)(E)

 Paragraph 55(2)(c) of the Act is replaced by the following:

  • (c) the implementation or termination of a co-management arrangement or third-party management of a First Nation’s local revenues or other revenues.

 The Act is amended by adding the following after section 55:

Data Collection, Analysis and Publication

Marginal note:Functions and powers

  • 55.1 (1) The Board may, on matters within the scope of its purposes, collect, analyze, abstract and publish data for statistical purposes.

  • Marginal note:No identifying information

    (2) The Board shall ensure that no First Nation, entity, including an entity referred to in subsection 50.1(1), or individual can reasonably be identified, whether directly or indirectly, by any means, from any information that the Board makes publicly available under subsection (1).

  • Marginal note:Exception

    (3) The Board is not required to comply with subsection (2) if the information is already in the public domain or the First Nation, entity or individual to whom it relates consents to being identified.

Marginal note:Information sharing agreements

55.2 The Board may enter into agreements with a First Nation, entity, including an entity referred to in subsection 50.1(1), or individual or any level of government concerning the sharing of information for research, analysis and publication purposes.

Marginal note:2018, c. 27, par. 414(z)(E)

  •  (1) Paragraph 56(a) of the Act is replaced by the following:

    • (a) respecting the implementation of a co-management arrangement or third-party management of a First Nation’s local revenues or other revenues, including the obligations of affected First Nations to provide access to financial records; and

  • Marginal note:2018, c. 27, par. 414(z)(E)

    (2) Paragraph 56(b) of the French version of the Act is replaced by the following:

    • b) fixer les droits que peut imposer le Conseil relativement à la prestation de services, notamment les droits imposés aux premières nations pour les services de cogestion et de gestion, ainsi que les modalités de leur recouvrement.

Marginal note:2018, c. 27, s. 400

 The portion of section 56.1 of the French version of the Act before paragraph (a) is replaced by the following:

Marginal note:Règlements

56.1 Le gouverneur en conseil peut, afin de donner à une entité visée à l’un des alinéas 50.1(1)a) à e) la possibilité d’obtenir les services du Conseil — autres que des services de cogestion et de gestion —, prendre les règlements qu’il estime nécessaires, et notamment :

 

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