An Act to amend the Budget Implementation Act, 1997 and the Financial Administration Act

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An Act to amend the Budget Implementation Act, 1997 and the Financial Administration Act

S.C. 2001, c. 11

Assented to 2001-06-14

An Act to amend the Budget Implementation Act, 1997 and the Financial Administration Act

SUMMARY

The amendments to the Budget Implementation Act, 1997 implement certain of the Government of Canada’s commitments regarding the Canada Foundation for Innovation that were announced in the Economic Statement and Budget Update of October 18, 2000.

Funding for the Foundation will include operation and maintenance costs of research infrastructure, as well as the purchasing of access to world-leading research facilities located outside Canada and to major international collaborative research projects.

Also, a further $750,000,000 is provided to the Foundation — beyond the $500,000,000 provided for in the Economic Statement and Budget Update of October 18, 2000 — for a total amount of $1,250,000,000.

The Financial Administration Act is amended to clarify that Parliament must provide explicit authority for any borrowing by or on behalf of the Crown. Two new kinds of regulations are made possible — regulations deeming certain transactions to be a borrowing of money, and regulations imposing a requirement that a money-borrowing transaction be authorized by the Minister of Finance. The Minister of Finance is empowered to authorize such transactions, subject to any terms and conditions that the Minister considers appropriate.

The Financial Administration Act is also amended to correct an oversight under which the Canada Pension Plan Investment Board was inadvertently removed from the list of Crown Corporations that are exempt from the application of Divisions I to IV of Part X of that Act.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1997, c. 26 BUDGET IMPLEMENTATION ACT, 1997

1. The definition “eligible project” in section 2 of the Budget Implementation Act, 1997 is replaced by the following:

“eligible project”

« travaux admissibles »

“eligible project” means

(a) a project carried on, or to be carried on, by an eligible recipient for the modernization, acquisition, development, operation or maintenance of research infrastructure by the recipient in Canada; or

(b) the purchasing by an eligible recipient of access to a world-leading research facility located outside Canada or to a major international collaborative research project, including the purchasing of such access by means of a contribution toward a portion of capital costs.

2. Section 5 of the Act is replaced by the following:

Marginal note:Objects and purposes of foundation

5. The objects and purposes of the foundation are to make grants to eligible recipients for eligible projects to increase Canada’s capability of carrying on high quality research.

3. The Act is amended by adding the following after section 94:

Marginal note:$1,250,000,000 granted

95. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Finance, be paid and applied a sum of one billion, two hundred and fifty million dollars for the fiscal year beginning on April 1, 2000, for payment to the Canada Foundation for Innovation for its use.

R.S., c. F-11 FINANCIAL ADMINISTRATION ACT

Marginal note:1999, c. 26, s. 21(E)

4. Section 43 of the Financial Administration Act is replaced by the following:

Marginal note:Borrowing of money

43. (1) Notwithstanding any statement in any other Act of Parliament to the effect that this Act or any portion or provision of it does not apply, no money shall be borrowed by or on behalf of Her Majesty in right of Canada except as provided by or under

(a) this Act;

(b) any other Act of Parliament that expressly authorizes the borrowing of money; or

(c) any other Act of Parliament that provides for the borrowing of money from Her Majesty in right of Canada or of a province.

Marginal note:Issuing of securities

(2) No securities shall be issued by or on behalf of Her Majesty in right of Canada without the authority of Parliament.

5. (1) Subsection 60(1) of the Act is amended by striking out the word “and” at the end of paragraph (e) and by adding the following after paragraph (f):

(g) deeming a specified transaction or a transaction of a specified class, including the issuance of securities, to be a transaction to borrow money for the purposes of subsection 43(1); and

(h) notwithstanding any right provided by or under any other Act of Parliament to borrow money without the Minister’s authorization, requiring the Minister’s authorization in respect of a specified transaction to borrow money or a transaction of a specified class to borrow money.

(2) Section 60 of the Act is amended by adding the following after subsection (3):

Marginal note:Minister’s authorization

(4) If a regulation is made under paragraph (1)(g) or (h), the Minister may authorize, subject to any terms and conditions that the Minister considers appropriate,

(a) the specified transaction;

(b) a particular transaction named by the Minister within the specified class;

(c) transactions of a particular subclass described by the Minister within the specified class; or

(d) transactions of the specified class.

Marginal note:1998, c. 17, s. 31

6. (1) Subsection 85(1) of the Act is replaced by the following:

Marginal note:Exempted Crown corporations

85. (1) Divisions I to IV do not apply to the Bank of Canada, the Canada Council, the Canada Pension Plan Investment Board, the Canadian Broadcasting Corporation, the Canadian Film Development Corporation, the International Development Research Centre or the National Arts Centre Corporation.

(2) Subsection (1) is deemed to have come into force on December 31, 1998.
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