Vol. 149, No. 5 — March 11, 2015

Registration

SOR/2015-52 February 27, 2015

FIRST NATIONS FISCAL MANAGEMENT ACT

Order Amending the Schedule to the First Nations Fiscal Management Act

P.C. 2015-232 February 26, 2015

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, first require addition to the Schedule of 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 of the First Nations Fiscal Management Act.

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 institutions established through the First Nations Fiscal Management Act. These institutions are the First Nations Finance Authority, the First Nations Tax Commission and the First Nations Financial Management Board.

Objectives

Nine First Nations have requested, via Band Council Resolutions, to be added to the schedule of the First Nations Fiscal Management Act: Bande des Innus de Pessamit in Quebec; M’Chigeeng First Nation in Ontario; Berens River in Manitoba; Muskowekwan in Saskatchewan; Ehattesaht, Nak’azdli, Seton Lake and Stellat’en First Nation in British Columbia; and Behdzi Ahda″ First Nation in the Northwest Territories.

    Location (Most populous reserve) Population (Registered) FNFTA (see footnote 3) Section 83 of the Indian Act (see footnote 4)
Quebec Bande des Innus de Pessamit Betsiamites
40 km southeast of Baie-Comeau		 3 915 Compliant No
Ontario M’Chigeeng First Nation M’Chigeeng 22
21 km southwest of Little Current — Manitoulin Island		 2 527 Compliant No
Manitoba Berens River Berens River 13
273 km north of Winnipeg		 3 181 Compliant No
Saskatchewan Muskowekwan Muskowekwan 85
64 km northwest of Fort Qu’appelle		 1 793 Compliant Yes
British Columbia Ehattesaht Chenahkint 12
Vancouver Island, Nootka district, at entrance to Queens Cove east shore of Port Eliza		 461 Compliant No
Nak’azdli Fort St. James
approximately 160 km northwest of Prince George 		1 878 Compliant No
Seton Lake Slosh 1
Lillooet district, on north shore of Seton Lake, extending east 5.5 miles from west end of the lake 		675 Compliant Yes
Stellat’en First Nation Stellaquo (Stella) 1
at mouth of Stellaquo River approximately 163 km west- northwest of Prince George		 532 Compliant No
N.W.T. Behdzi Ahda″ First Nation Colville Lake
Settlement 50 km north of the arctic circle		 228 Compliant No

This chart is based on Aboriginal Affairs and Northern Development Canada’s (AANDC) collection of information on First Nation communities across Canada as of November 2014. For more information about a community — including direct links to First Nation Web sites, as available — please consult AANDC’s Web site under “First Nations Community Profiles.”

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 First Nations Fiscal Management Act. The First Nations may — should a First Nation’s government 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 of 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 138 First Nations on the schedule to the First Nations Fiscal Management Act. The addition of 9 more First Nations will bring this total to 147. 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, 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 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 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 requests by nine 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 the community. The First Nations Fiscal Management Act institutions will continue to work closely with the 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 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

Dennis Price
Director
Policy Development Directorate
Policy and Coordination Branch
10 Wellington Street
Gatineau, Quebec
K1A 0H4
Telephone: 819-953-0103
Fax: 819-997-7054