1998/99 Legislative Session: 3rd Session, 36th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 53 -- 1999

BUDGET MEASURES IMPLEMENTATION ACT, 1999

 
British Columbia Transit Act

1 Sections 11 (2) (a) and (b), 12 (2) (a) and (b) and 13 (2) (a) and (b) of the British Columbia Transit Act, R.S.B.C. 1996, c. 38, are amended by striking out "classes of expenditures" and substituting "classes of expenses".

 
Build BC Act

2 Section 2 of the Build BC Act, R.S.B.C. 1996, c. 40, is amended by renumbering the section as section 2 (1) and by adding the following subsection:

(2) A further purpose of this Act is to provide for the carrying out by the authority of the duties, powers and functions that it has under this Act or that may be assigned to it by another enactment.

3 Section 11 is amended by adding "hold," after "construct,".

4 Section 12 is amended

(a) by repealing subsection (2),

(b) in subsection (4) (a) by adding "hold," after "construct,", and

(c) by adding the following subsection:

(5) The authority has the same immunities in relation to property of the authority as the government has in relation to property of the government.

 
Ferry Corporation Act

5 Section 16 (1) of the Ferry Corporation Act, R.S.B.C. 1996, c. 137, is amended by striking out "$975 million." and substituting "$1 350 million."

 
Financial Administration Act

6 Section 1 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding the following definition:

"expenditure" includes amounts appropriated for amortization, allowances for doubtful accounts or other non-cash expenses and, in relation to this, a reference to paying, spending or otherwise expending amounts includes the application of non-cash expenses to the purposes for which they are appropriated; .

7 Section 11 is amended

(a) in subsection (2) by striking out "from the end of the last fiscal year" and substituting "from the beginning of the applicable fiscal year",

(b) by adding the following subsection:

(2.1) For the purposes of subsection (2):

"applicable fiscal year" means, in relation to a statement that under subsection (3) is presented to the Legislative Assembly with the annual estimates of revenue and expenditure, the fiscal year preceding the fiscal year for which those estimates are prepared;

"most recent date practicable" means, in relation to a statement referred to in subsection (2), whichever of the following applies:

(a) if the statement is presented to the Legislative Assembly on or before the 15th day of a month, a date that is not earlier than

(i) the end of the third preceding month, or

(ii) if the third preceding month is April, the end of March;

(b) if the statement is presented to the Legislative Assembly after the 15th day of a month, a date that is not earlier than

(i) the end of the second preceding month, or

(ii) if the second preceding month is April, the end of March. , and

(c) by repealing subsection (3) and substituting the following:

(3) On each occasion that annual estimates of revenue and expenditure are presented to the Legislative Assembly, the Minister of Finance and Corporate Relations must also present the statement referred to in subsection (2).

8 Part 2 is amended by adding the following section:

Economic Forecast Council

11.2 (1) The Economic Forecast Council is established to advise the Minister of Finance and Corporate Relations on economic growth forecasts.

(2) The council consists of not less than 12 persons appointed by order of the Minister of Finance and Corporate Relations and selected for their knowledge of the economy of British Columbia and their expertise in economic analysis and forecasting.

(3) An employee of the government, or of an agency of the government, is not eligible for appointment under subsection (2).

(4) Subject to subsection (5), the members of the council hold office for a term of at least 3 years, set by the Minister of Finance and Corporate Relations.

(5) A member who is identified in the appointment order by reference to his or her position in an organization is not eligible to continue as a member under that order if he or she ceases to hold that position in that organization.

(6) The members may be paid reasonable and necessary expenses that arise directly out of the performance of their duties as council members.

(7) Each year, when the annual estimates of revenue and expenditure are presented to the Legislative Assembly, the Minister of Finance and Corporate Relations must publish a report on the advice received from the council, including the range of economic forecasts for the calendar year in which those estimates are presented and for the following calendar year.

9 Section 23 (4) is repealed and the following substituted:

(4) An amount allocated by an appropriation in a Supply Act may be spent for any activity or standard object of expenditure that is within the general purposes of the appropriation.

10 Section 32 is amended by adding the following subsection:

(8) This section does not apply to the allocation of a non-cash expense.

11 Section 56.1 (1) is amended by striking out "or" at the end of paragraph (f) and by adding the following paragraphs:

(h) Rapid Transit Project 2000 Ltd., or

(i) any other organization designated by the Lieutenant Governor in Council.

 
Greater Vancouver Transportation Authority Act

12 Section 21 of the Greater Vancouver Transportation Authority Act, S.B.C. 1998, c. 30, is amended

(a) in subsection (1) by striking out "or limit",

(b) by adding the following subsection:

(1.1) For the purpose of subsection (1), an action would reduce the capacity of all or any part of the major road network to move people if the action would result in the alteration of a roadway, as that term is defined in section 119 of the Motor Vehicle Act, of a major road, or of the traffic control conditions on a major road, in such a way that fewer persons would be able to travel on the major road network in a given time period than were able to travel on the major road network in a comparable time period before the taking of the action. , and

(c) by repealing subsection (4) and substituting the following:

(4) Subject to subsection (5), a bylaw that prohibits the movement of trucks on a highway in the transportation service region is deemed to have been approved by the authority under subsection (2)

(a) if the bylaw was adopted by the Council of the City of Vancouver before the coming into force of this section, or

(b) in the case of a bylaw adopted by the council of any other municipality, if the bylaw was adopted

(i) with the approval of the Minister of Transportation and Highways under section 545 of the Municipal Act, and

(ii) before the coming into force of this section.

13 Section 34 is amended by adding the following subsections:

(4) Orders that may be made under subsection (1) may be made retroactive to March 31, 1999 or a later date the Lieutenant Governor in Council may determine, and an order made retroactive is deemed to come into force on the date specified in the order.

(5) Subsection (4) and this subsection are repealed on March 31, 2000.

14 Section 122 is amended by striking out number "30." of the section being enacted and substituting "31."

 
Highway Act

15 The Highway Act, R.S.B.C. 1996, c. 188, is amended by adding the following section:

Authority to account for certain highways

3.1 (1) In this section:

"arterial highway" and "highway" do not include

(a) a ferry landing,

(b) a highway, other than a bridge, if the highway is on land leased to the government, or

(c) a highway that is part of the major road network;

"major road network" has the same meaning as in the Greater Vancouver Transportation Authority Act.

(2) The BC Transportation Financing Authority is deemed

(a) to have acquired at the end of March, 1999, all of the government's right and title in and to the soil and freehold of

(i) every highway outside the limits of a municipality, and

(ii) every arterial highway as defined in section 27, and

(b) to acquire all of the government's right and title in and to the soil and freehold of every highway referred to in paragraph (a) (i) or (ii) that comes into being after the end of March, 1999, at the time when that highway comes into being.

(3) On the making of an order under subsection (7) specifying land as corridor protection land, the BC Transportation Financing Authority is deemed

(a) to have acquired at the end of March, 1999, all of the government's right and title in and to that corridor protection land, and

(b) to have assumed at the end of March, 1999, all of the government's liabilities with respect to that corridor protection land.

(4) This section does not affect any powers, duties, functions and liabilities in relation to highways, of the government, the Lieutenant Governor in Council, the minister or ministry, another minister or ministry or another authority under

(a) this Act, the Ministry of Transportation and Highways Act or any other enactment,

(b) any contract, licence or permit, or

(c) the law.

(5) The BC Transportation Financing Authority, in relation to a highway referred to in subsection (2) (a) (i) or (ii), did not acquire, because of subsection (2), any of the powers, duties, functions and liabilities referred to in subsection (4), except for the purpose of accounting for the highways, and does not, and did not since the end of March, 1999, have any of those powers, duties, functions and liabilities except for that purpose.

(6) Subsection (2) does not operate to constitute the BC Transportation Financing Authority as an occupier, within the meaning of the Occupiers Liability Act, of a highway referred to in subsection (2) (a) (i) or (ii) of this section.

(7) The Lieutenant Governor in Council may make orders specifying land as corridor protection land for the purposes of subsection (3), if he or she is satisfied that the land

(a) is owned by the government, and

(b) comprises a land bank for future highway development.

(8) Subsection (7) is repealed on October 1, 1999.

 
Industrial Development Incentive Act

16 Section 3 (2) (b) of the Industrial Development Incentive Act, R.S.B.C. 1996, c. 221, is amended by striking out "$450 million." and substituting "$500 million."

 
Land Title Act

17 Section 115 (2) of the Land Title Act, R.S.B.C. 1996, c. 250, is amended by striking out "and the title vested in the Crown under the Highway Act." and substituting "and the title vested in the government under section 3 of the Highway Act or in the BC Transportation Financing Authority under section 3.1 of that Act, as the case may be."

18 Section 142 (1) is amended by striking out "If the title to all or part of a highway is vested solely in the Crown in right of the Province, the Minister of Transportation and Highways may apply to register the title to all or part of the highway in the Crown in right of the Province," and substituting "If the title to all or part of a highway is vested solely in the Crown in right of the Province or in the BC Transportation Financing Authority, the Minister of Transportation and Highways may apply to register the title to all or part of the highway in the Crown in right of the Province or in the BC Transportation and Financing Authority, as the case may be,".

 
Municipal Finance Authority Act

19 Section 4 of the Municipal Finance Authority Act, R.S.B.C. 1996, c. 325, is amended by adding the following subsection:

(6) A resolution that is approved in writing, or by telex, telegraph, telephone or other similar means of communication confirmed in writing or other graphic communication, by a majority of the members is as valid as if it were passed at a meeting of the members properly called and constituted.

20 Section 8 (4) is repealed and the following substituted:

(4) The authority may enter into any of the following agreements for the purpose of reducing risks or maximizing benefits in relation to the borrowing, lending or investment of money under this Act:

(a) currency exchange agreements;

(b) spot and future currency agreements;

(c) interest rate exchange agreements;

(d) future interest rate agreements.

21 The following section is added:

Obligations of regional hospital districts

27.1 The following are jointly and severally liable for obligations arising under a security issued by a regional hospital district to the authority:

(a) the regional hospital district;

(b) the regional district that shares the same boundaries as the regional hospital district;

(c) the municipalities forming part of the regional district referred to in paragraph (b).

 
Municipalities Enabling and Validating Act (No. 2)

22 The Municipalities Enabling and Validating Act (No. 2), S.B.C. 1990, c. 61, is amended by adding the following Part:

Part 10 -- 1999

GVRD borrowing on behalf of other regional authorities

45 (1) In this section and section 46:

"GVRD" means the Greater Vancouver Regional District;

"GVRD securities" means securities issued by the GVRD under this section;

"regional authority" means any one or more of

(a) the Greater Vancouver Transportation Authority,

(b) the Greater Vancouver Sewerage and Drainage District, and

(c) the Greater Vancouver Water District;

"securities" includes debentures, securities and any other form of indebtedness;

"temporary financing" means a debt that has a term of no longer than 5 years from the date on which the securities for the debt are issued.

(2) Despite any other Act but subject to this section, for the purpose of providing temporary financing for a regional authority, the GVRD may borrow from a bank, a financial institution, any other lender or a regional authority.

(3) The GVRD may only borrow under this section if the regional authority

(a) is authorized to contract debt for the purpose for which the financing is to be used,

(b) requests the GVRD to provide the financing,

(i) by bylaw approved by the Inspector of Municipalities, in the case of the Greater Vancouver Sewerage and Drainage District or the Greater Vancouver Water District, and

(ii) by bylaw or resolution, in the case of the Greater Vancouver Transportation Authority, and

(c) enters into an agreement with the GVRD which provides that the regional authority will

(i) pay to the GVRD all costs of the GVRD associated with the borrowing, and

(ii) if requested by the GVRD, deliver to it security in the form of securities sufficient for the GVRD to meet and discharge all its obligations associated with the borrowing.

(4) For the purposes of this section, the GVRD board may do one or more of the following:

(a) adopt a security issuing bylaw without adopting a loan authorization bylaw, but the security issuing bylaw must reference the bylaw or resolution referred to in subsection (3) (b);

(b) combine all or part of a borrowing under this section with all or part of any other borrowing under this section;

(c) by bylaw, provide for all matters in any way related to the issue, execution, delivery, repayment, refunding, repurchase, redemption, charge, pledge, hypothecation or deposit of GVRD securities;

(d) subject to the limitations established by section 191 of the Municipal Act, by bylaw, delegate any powers of the GVRD or its board under this section to a director, committee of directors or officer of the GVRD or to any other person specified in the bylaw;

(e) provide for entering into credit, loan and financing agreements and any other agreements and instruments that may be necessary or advisable;

(f) determine the form of GVRD securities;

(g) issue or otherwise dispose of GVRD securities, either at par value or at less or more than par value;

(h) charge, pledge, hypothecate, deposit or otherwise deal with GVRD securities as collateral security;

(i) provide for the creation, management and application of sinking funds, including the setting of terms and conditions that will apply to those sinking funds, with respect to GVRD securities.

(5) GVRD securities may be issued in electronic form and may be held by a depository agency in a book-based system for the central handling of securities that provides for their transfer by bookkeeping entry without physical delivery.

(6) The following provisions of the Municipal Act apply for the purposes of this section:

section 262 [application to court to set aside bylaw];

section 462 [security issuing bylaw approval by inspector];

section 463 [appeal from inspector's decision];

Division 4 of Part 12 [Municipal Debentures];

section 477 [purposes for which money may be used];

section 478 [liability for use of money];

section 836 [liability for money borrowed by regional district];

sections 1022 to 1025 [certificate of approval for money bylaws].

(7) For the purposes of section 262 (2) of the Municipal Act, a security issuing bylaw under this section is deemed to be a security issuing bylaw referred to in that provision.

Validation of GVRD borrowing

46 (1) In this section, "borrowing bylaw" means one or more of the following:

(a) the Greater Vancouver Regional District bylaw cited as the "Greater Vancouver Regional District Credit Agreement and Debenture By-law Number 922, 1999" and given first reading by the board of that regional district on January 29, 1999;

(b) the Greater Vancouver Regional District bylaw cited as the "Greater Vancouver Regional District Promissory Note By-law Number 923, 1999" and given first reading by the board of that regional district on January 29, 1999;

(c) the Greater Vancouver Regional District bylaw cited as the "Greater Vancouver Regional District Security Issuing By-law (GVTA) Number 924, 1999" and adopted by the board of that regional district on February 26, 1999;

(d) the Greater Vancouver Sewerage and Drainage District bylaw cited as the "Greater Vancouver Sewerage and Drainage District Borrowing By-law Number 207, 1999" and given first reading by the board of that district on January 29, 1999;

(e) the Greater Vancouver Water District bylaw cited as the "Greater Vancouver Water District Borrowing By-law Number 224, 1999" and given first reading by the board of that district on January 29, 1999.

(2) In relation to a borrowing bylaw,

(a) the GVRD or regional authority, as applicable, is conclusively deemed to have had the authority to adopt the bylaw at the time it was adopted, whether this is before or after this section comes into force,

(b) the bylaw is conclusively deemed to have been validly in force from the date of its adoption, and

(c) the GVRD, regional authority and Municipal Finance Authority of British Columbia are conclusively deemed to have had and to continue to have the authority to carry out the transactions contemplated by the bylaw.

(3) All resolutions, bylaws and actions of the GVRD, a regional authority, the Municipal Finance Authority of British Columbia and the Inspector of Municipalities in relation to a borrowing bylaw are conclusively deemed to have been validly adopted and taken as of the date that they were adopted or taken, to the extent they would have been valid had this section been in force on the date they were adopted or taken.

(4) This section is retroactive to the extent necessary to give full force and effect to its provisions and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.

Additional Municipal Finance Authority of British Columbia powers

23 Without limiting any other power the Municipal Finance Authority of British Columbia may exercise under any enactment, that authority may

(a) issue securities in favour of the government under which the authority is obliged to make payments to the government in amounts equivalent to any debt obligations, including those arising from interest rate or currency exchange transactions, that

(i) are transferred from British Columbia Transit to the Greater Vancouver Transportation Authority under section 38 of the Greater Vancouver Transportation Authority Act, and

(ii) were, before the transfer, owed to the government by British Columbia Transit, and

(b) grant indemnities in favour of the government under which the Municipal Finance Authority of British Columbia agrees to indemnify the government for any payments the government is obliged to make under government guarantees of debt and lease obligations that

(i) are transferred from British Columbia Transit to the Greater Vancouver Transportation Authority under section 38 of the Greater Vancouver Transportation Authority Act, and

(ii) were, before the transfer, owed to entities other than the government by British Columbia Transit.

Additional Greater Vancouver Regional District powers

24 Without limiting any other power the Greater Vancouver Regional District may exercise under any enactment, that regional district may, by resolution,

(a) issue securities in favour of the Municipal Finance Authority of British Columbia under which the regional district is obliged to make payments to that authority in amounts equivalent to the payments that that authority is obliged to make under the securities issued under section 23 (a), and

(b) grant indemnities in favour of the Municipal Finance Authority of British Columbia under which the regional district agrees to indemnify that authority for any payments that that authority is obliged to make under the indemnities granted under section 23 (b).

Restructuring of Rapid Transit Project 2000 Ltd. debt

25 (1) Prescribed debt obligations owed by Rapid Transit Project 2000 Ltd. to the government as a result of borrowings by Rapid Transit Project 2000 Ltd. from the government before March 31, 1999 are released.

(2) The Lieutenant Governor in Council may make regulations prescribing debt obligations for the purposes of subsection (1).

(3) Regulations that may be made under subsection (2) may be made retroactive to March 31, 1999, and a regulation made retroactive is deemed to come into force on the date specified in the regulation.

Commencement

26 (1) Sections 1, 11 to 13 and 19 to 25 are deemed to have come into force on March 31, 1999 and are retroactive to the extent necessary to give them effect on and after that date.

(2) Sections 2 to 4, 15, 17 and 18 are deemed to have come into force at the end of March, 1999 and are retroactive to the extent necessary to give them effect at and after that time.

(3) Section 14 is deemed to have come into force on March 30, 1999 and is retroactive to the extent necessary to give it effect on and after that date

 
Explanatory Notes

 
British Columbia Transit Act

SECTION 1: [British Columbia Transit Act, amends sections 11 to 13] clarifies that it is expenses rather than expenditures that are to be taken into account when calculating the annual cost of a public passenger transportation system for the purposes of sections 11 and 12 of the British Columbia Transit Act or of a commuter rail service for the purposes of section 13 of that Act.

 
Build BC Act

SECTION 2: [Build BC Act, adds section 2 (2)] adds a further purpose for the Act, as set out.

SECTION 3: [Build BC Act, amends section 11] makes explicit that one of the purposes of the Act is to "hold" transportation infrastructure.

SECTION 4: [Build BC Act, amends section12]

 
Ferry Corporation Act

SECTION 5: [Ferry Corporation Act, amends section 16 (1)] increases the limit of outstanding debt of the British Columbia Ferry Corporation to $1 350 million.

 
Financial Administration Act

SECTION 6: [Financial Administration Act, amends section 1] extends the definition of "expenditure" to include non-cash expenses such as amortization of capital assets.

SECTION 7: [Financial Administration Act, amends section 11] defines the reporting period that must be covered in a statement of expenditures and revenues, and requires the statement to be tabled in the Legislative Assembly each time estimates are tabled.

SECTION 8: [Financial Administration Act, enacts section 11.2] formalizes the advisory role of the Economic Forecast Council and requires the Minister of Finance and Corporate Relations to publish reports of its advice.

SECTION 9: [Financial Administration Act, amends section 23] clarifies that this restriction on spending authority applies to all Supply Act appropriations, including allocations of non-cash expenses.

SECTION 10: [Financial Administration Act, adds section 32 (8)] excepts non-cash expenses from the cash expense requisition process of this section.

SECTION 11: [Financial Administration Act, amends section 56.1] includes the Rapid Transit Project 2000 Ltd. and designated organizations within the group of institutions to which a prepaid capital advance may be made for its capital expenditures.

 
Greater Vancouver Transportation Authority Act

SECTION 12: [Greater Vancouver Transportation Authority Act, amends section 21]

(a) and (b) clarifies the nature of the activity that is prohibited by section 21 (1) of the Greater Vancouver Transportation Authority Act;

(c) provides the bylaws of the City of Vancouver that prohibit the movement of trucks with the same deemed approval, in accordance with section 21 (4) of the Greater Vancouver Transportation Authority Act, as is available for those bylaws adopted by other municipalities.

SECTION 13: [Greater Vancouver Transportation Authority Act, adds section 34 (4) and (5)] allows the making of orders to exempt the Greater Vancouver Transportation Authority, a subsidiary of the Greater Vancouver Transportation Authority, a contractor of the Greater Vancouver Transportation Authority or a municipality from certain taxes, fees or licensing requirements in relation to the construction, acquisition or operation of a transportation service.

SECTION 14: [Greater Vancouver Transportation Authority Act, amends section 122] corrects a numbering error.

 
Highway Act

SECTION 15: [Highway Act, enacts section 3.1] transfers highways outside municipal limits, and arterial highways, from the government to the BC Transportation Authority, effective at the end of March, 1999 and deems the authority to acquire any such highways that come into being after that time. This enables the authority to account for those highways as capital assets. However, the transfer does not affect the powers, duties, functions and liabilities referred to in section 3.1 (except for the purpose of enabling the authority to account for the highways transferred). In addition, subsections (3) and (7) provide a mechanism for transfer by order in council, effective at the end of March, 1999, to the authority of "corridor protection lands" presently held by the government in anticipation of future highway development.

 
Industrial Development Incentive Act

SECTION 16: [Industrial Development Incentive Act, amends section 3 (2) (b)] increases to $500 million the cap on Industrial Development Incentive loans that the Minister of Employment and Investment may make under the Industrial Development Incentive Act.

 
Land Title Act

SECTION 17: [Land Title Act, amends section 115 (2)] amends the section providing for the deposit of statutory right of way plans by the Minister of Transportation and Highways to take into account the changes made by this Bill to the Highway Act.

SECTION 18: [Land Title Act, amends section 142 (1)] amends the section providing for the creating and dealing with "air space parcels" by the Minister of Transportation and Highways, to take into account the changes made by this Bill to the Highway Act.

 
Municipal Finance Authority Act

SECTION 19: [Municipal Finance Authority Act, adds section 4 (6)] allows members of the Municipal Finance Authority to approve resolutions by telephone or other communications media and confirms that a resolution approved in accordance with section 4 (6) of the Municipal Finance Authority Act as enacted by this Bill is as valid as if passed at a proper meeting of those members.

SECTION 20: [Municipal Finance Authority Act, repeals and replaces section 8 (4)] details the agreements into which the Municipal Finance Authority may enter in relation to the borrowing, lending or investment of money.

SECTION 21: [Municipal Finance Authority Act, enacts section 27.1] imposes joint and several liability, for obligations arising under securities issued by a regional hospital district to the Municipal Finance Authority of British Columbia, on the regional hospital district, the regional district with which it shares its boundaries and the municipalities that make up that regional district.

 
Municipalities Enabling and Validating Act (No. 2)

SECTION 22: [Municipalities Enabling and Validating Act (No. 2), enacts Part 10]

SECTION 23: [Additional Municipal Finance Authority of British Columbia powers] provides to the Municipal Finance Authority of British Columbia the ability to issue securities and grant indemnities in favour of the government in respect of debt obligations owed by British Columbia Transit that are transferred to the Greater Vancouver Transportation Authority under the Greater Vancouver Transportation Authority Act.

SECTION 24: [Additional Greater Vancouver Regional District powers] provides to the Greater Vancouver Regional District the ability to issue securities and grant indemnities in favour of the Municipal Finance Authority of British Columbia in respect of the payments that that authority is obliged to make under the securities issued by it and indemnities granted by it under section 23 of this Bill.

SECTION 25: [Restructuring of Rapid Transit Project 2000 Ltd. debt] is self explanatory.


[ Return to: Legislative Assembly Home Page ]

Copyright 1999: Queen's Printer, Victoria, British Columbia, Canada