1995 Legislative Session: 4th Session, 35th Parliament
The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE ELIZABETH CULL
MINISTER OF FINANCE AND
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 1 (1) of the Securities Act, S.B.C. 1985, c. 83, is amended in the definition of "commission" by striking out "established under Part 2;" and substituting "continued under Part 2;".
2 Section 4 (1) is repealed and the following substituted:
(1) The British Columbia Securities Commission is continued under the same name, and, by this subsection, is constituted as a corporation consisting of its members appointed under subsection (3), whether appointed before or after the commission's incorporation.
(1.1) The commission is responsible for the administration of this Act.
3 The following section is added:
4.1 (1) The commission is an agent of the government.
(2) The commission has the power and capacity of a natural person of full capacity.
(3) The Company Act does not apply to the commission, but the Lieutenant Governor in Council may order that one or more of the provisions of that Act apply.
(4) The commission is not liable to taxation, except insofar as the government is liable.
4 Section 7 (1) is repealed and the following substituted:
(1) The commission must appoint a person to be the Superintendent of Brokers.
5 The following sections are added:
7.1 The commission may appoint officers and employees of the commission necessary to enable the commission and the superintendent to perform their duties and exercise their powers under this Act and may define the duties and, subject to the prior approval of the Treasury Board, determine the remuneration and classification of the officers and employees.
7.2 (1) The Public Service Benefit Plan Act applies to the commission and to the officers and employees.
(2) The Lieutenant Governor in Council may order that the Pension (Public Service) Act applies to a member of the commission who is named in the order, and in that case subsection (3) applies in respect of a member so named.
(3) The Pension (Public Service) Act applies to the officers and employees of the commission and
(a) the commission is deemed to be an employer and the officers and employees of the commission are deemed to be employees within the meaning of that Act,
(b) the commission must make deductions from the salaries of the officers and employees as required under that Act and pay the money to the superannuation commissioner under that Act, and
(c) the commission must, in addition, pay to the superannuation commissioner, employer's contributions in the amounts equivalent to the amounts required under that Act.
6 Part 2.1 is repealed.
7 The following Part is added:
Part 2.2 -- Financial Administration
9.1 In this Part "Minister of Finance" has the same meaning as in the Financial Administration Act.
9.2 (1) Revenue received under this Act and the Commodity Contract Act, including but not limited to revenue from administrative penalties under section 144.1 of this Act and any cost recoveries under either Act, but not including revenue from fines referred to in section 138 of this Act or section 47 of the Commodity Contract Act, must be paid to the commis sion.
(2) Subject to subsection (3), money received by the commission may be expended for any costs involved in the administration and enforcement of this Act and of the Commodity Contract Act and for any costs involved in operating the commission.
(3) Money received by the commission as revenue from administrative penalties under section 144.1 of this Act may be expended only for the purpose of promoting knowledge of participants in the securities market of the legal, regulatory and ethical standards that govern the operation of the securities market in British Columbia.
(4) This section applies notwithstanding section 9 of the Financial Administration Act.
9.3 At the request of the commission, but subject to approval of the Treasury Board, the Minister of Finance may pay to the commission out of the consolidated revenue fund amounts not exceeding $5.5 million over the period ending March 31, 1998.
9.4 The Lieutenant Governor in Council may designate administrative services that the commission must obtain from the government or from any government corporation, agency, branch, department or other government organiza tion or entity that is specified in the order making the designation.
9.5 The Minister of Finance is the fiscal agent of the commission.
9.6 (1) The commission must place with the Minister of Finance, for investment, any money the commission receives but does not immediately require for carrying out the purposes of this Act.
(2) Money placed with the Minister of Finance under this section is to be treated for all purposes as money placed with the Minister of Finance pursuant to section 36 (3) of the Financial Administration Act.
9.7 Subject to the approval of the Lieutenant Governor in Council and the Minister of Finance, the commission, for the purpose of carrying out any power, right, function or duty conferred or imposed on the commission under this or any other Act, may borrow the sums of money the commission considers necessary or advisable.
9.8 (1) The commission must establish and maintain accounting policies and systems satisfactory to the Minister of Finance.
(2) The commission, whenever required by the Minister of Finance, must render detailed accounts of the commission's revenues and expenditures for the period or to the day the Minister of Finance designates.
(3) All books or records of account and other financial records must at all times be open for inspection by the Minister of Finance or a person designated by the Minister of Finance.
(4) The chair of the Treasury Board may direct the Comptroller General to examine and report to Treasury Board on any or all of the financial and accounting operations of the commission.
(5) At least once in every fiscal year, the accounts of the commission must be audited and reported on by an auditor appointed by the Lieutenant Governor in Council, and the costs of the audit must be paid by the commission.
(6) The fiscal year for the commission is a period of 12 months beginning on April 1 in each year and ending on March 31 in the next year.
9.9 At least once in every fiscal year of the commission and as directed by the Treasury Board, the commission must submit to the Treasury Board, for review and approval, a business plan that includes
(a) a proposed budget for the subsequent 3 fiscal years,
(b) management objectives for the next 3 years, and
(c) other information that the Treasury Board may specify.
9.91 (1) The commission must prepare and submit to the minister, within 90 days after the end of each fiscal year of the commission, a report for that fiscal year.
(2) The report must be laid before the Legislative Assembly by the minister as soon as practicable.
(3) The report must contain
(a) a summary of the commission's operations for the fiscal year of the report,
(b) a financial statement in the form required by the Minister of Finance showing the revenues, expenditures, assets and liabilities of the commission for the fiscal year of the report, and
(c) any other information that the minister may specify.
(4) The financial statement referred to in subsection (3)
(b) must be prepared in accordance with generally accepted accounting principles.
8 (1) Money may be paid out of the general fund of the consolidated revenue fund after the end of March, 1995 in satisfaction of liabilities incurred on the basis of an appropriation under the British Columbia Securities Commission special account.
(2) The balance on March 31, 1995 of any deferred revenue held in the consolidated revenue fund for money paid to the commission under the Securities Act or the Commodity Contract Act must be paid out of the consolidated revenue fund to the British Columbia Securities Commission.
9 Schedule 2 of the Financial Information Act, S.B.C. 1985, c. 8, is amended by adding "British Columbia Securities Commission".
10 Section 1 (1) of the Public Service Labour Relations Act, R.S.B.C. 1979, c. 346, is amended in paragraph (dd) of the definition of "employee" by striking out "section 7 (1)" and substituting "section 7.1".
11 This Act is deemed to have come into force at the end of March 31, 1995, and is retroactive to the extent necessary to give it effect on and after that date.
SECTION 1: [Securities Act, amends section 1] in the definition of "commission", is a consequence of the amendment to section 4 of the Act.
SECTION 2: [Securities Act, amends section 4] constitutes the British Columbia Securities Commission as a corporation and continues its present responsibility for the administration of the Act.
SECTION 3: [Securities Act, adds section 4.1] provides that the commission is an agent of the government, that the Company Act, except prescribed provisions, will not apply to it and that it is in the same tax position as its principal, the government.
SECTION 4: [Securities Act, reenacts section 7 (1)] removes the requirement that the employees of the commission be appointed under the Public Service Act.
SECTION 5: [Securities Act, adds sections 7.1 and 7.2]
Section 7.1 of the Act places on the commission the responsibility of appointing its own officers and employees and of defining their duties, but also imposes the requirement for prior approval of Treasury Board as to their remuneration and job classifications.
Section 7.2 preserves the status quo, now that the commission will be a corporation, by providing for its personnel to continue to receive benefits under 2 statutes.
SECTION 6: [Securities Act, repeals Part 2.1] repeals the part of the Act that established the British Columbia Securities Commission special account in the general fund of the consolidated revenue fund. The repeal of this Part is consequential to the enactment by this Bill of Part 2.2, "Financial Administration". The special account will not be required when Part 2.2 comes into effect, because revenue under the Act and under the Commodity Contract Act will be paid directly to the commission rather than into the consolidated revenue fund.
SECTION 7: [Securities Act, adds Part 2.2, "Financial Administration"] consists of sections 9.11 to 9.91, as follows:
Section 9.11 adds a definition to clarify that "Minister of Finance" as used in Part 2.2 has the same meaning as in the Financial Administration Act.
Section 9.2 provides that revenue under the Act and under the Commodity Contract Act is to be paid directly to the commission rather than into the consolidated revenue fund. The commission is empowered to use the revenue as set out in section 9.2 (2) and (3).
Section 9.3 provides authority to pay money out of the consolidated revenue fund to the commission, limited as set out in the section and expiring at the end of March, 1998.
Section 9.4 is self explanatory.
Section 9.5 appoints the Minister of Finance as the commission's fiscal agent.
Sections 9.6 to 9.91 provide for financial accountability of the commission to the government and for the supervisory role of the Lieutenant Governor in Council, the Treasury Board and the Minister of Finance in matters pertaining to the commission's financial administration.
SECTION 8: [Transitional] allows for the expenditure after the end of the 1994-1995 fiscal year of the government in satisfaction of certain liabilities incurred before then and requires payment to the British Columbia Securities Commission of certain deferred revenue.
SECTION 9: [Financial Information Act, amends Schedule 2] requires the British Columbia Securities Commission to file a financial information statement in accordance with the Financial Information Act.
SECTION 10: [Public Service Labour Relations Act, amends section 1], is a consequential amendment to the amendments made by sections 4 and 5 of this Bill.
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