BILL 44

Fiscal Stabilization Fund Act

Chapter Outline

Definitions 1

eligible securities - valeurs admissibles

Fund - Fonds

Minister - Ministre

Fund established 2

Purpose of Fund 3

Application of Financial Administration Act 4

Management, administration and investment of Fund 5

Investment Management Committee 6

Transfers to Fund 7

Earnings of Fund 8

Transfers out of the Fund 9

Custody of investments 10

No lapse 11

Fiscal year 12

Financial statements 13

Audit 14

Audited financial statements 15

Administration of Act 16

Regulations 17

Consequential amendments 18

Commencement 19

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

Definitions

1 In this Act

"eligible securities" means

(a) direct obligations of the Government of Canada, any province of Canada or any municipality in the Province of New Brunswick;

(b) obligations guaranteed by the Government of Canada, any province of Canada or any agency of the Province of New Brunswick; and

(c) deposit receipts, deposit notes, certificates of deposit, acceptances and other similar instruments issued or endorsed by any Canadian chartered bank; («valeurs admissibles»)

"Fund" means the Fiscal Stabilization Fund established in section 2; («Fonds»)

"Minister" means the Minister of Finance and includes any person designated by the Minister to act on the Minister's behalf. («Ministre»)

Fund established

2(1) The Fiscal Stabilization Fund is hereby established under the direction and control of the Minister.

2(2) The money in the Fund is public money.

2(3) Notwithstanding the Financial Administration Act, the Fund does not form part of the Consolidated Fund.

Purpose of Fund

3 The purpose of the Fund is to assist in stabilizing the fiscal position of the Province of New Brunswick from year to year and to improve long term fiscal planning.

Application of Financial Administration Act

4(1) Except as otherwise provided in this Act, the Financial Administration Act applies with the necessary modifications to the management, administration and investment of the Fund.

4(2) Subsections 27(2.1) and (2.2) and section 60 of the Financial Administration Act do not apply in respect of the Fund.

Management, administration and investment of Fund

5(1) The Minister shall hold the Fund in trust and shall manage, administer and subject to subsection (2), invest the Fund.

5(2) The Minister shall invest the Fund only in eligible securities.

5(3) Notwithstanding the Financial Administration Act, the Minister may purchase, acquire and hold eligible securities and pay for them out of the Fund.

5(4) Notwithstanding the Financial Administration Act, the Minister may sell any eligible securities purchased, acquired or held under subsection (3) and shall deposit the proceeds of the sale in the Fund.

Investment Management Committee

6(1) The Investment Management Committee is hereby established consisting of the Deputy Minister of Finance, the Comptroller and three officials of the Department of Finance appointed by the Deputy Minister of Finance.

6(2) The Investment Management Committee shall advise the Minister respecting the management, administration and investment of the Fund.

Transfers to Fund

7 Transfers to the Fund shall be made from the Consolidated Fund by an appropriation in accordance with the Financial Administration Act.

Earnings of Fund

8 Notwithstanding the Financial Administration Act, the Minister shall credit to the Fund any earnings from investments of the Fund.

Transfers out of the Fund

9(1) No transfer shall be made out of the Fund except for the purpose referred to in section 3 and with the approval of the Lieutenant-Governor in Council.

9(2) A transfer referred to in subsection (1) shall be made only to revenue of the Consolidated Fund.

Custody of investments

10 Investments held in the Fund shall be under the custody of one or more bodies corporate designated by the Minister or under the joint custody of two or more natural persons designated by the Minister.

No lapse

11 Notwithstanding the Financial Administration Act, amounts standing to the credit of the Fund do not lapse at the end of any fiscal year.

Fiscal year

12 The fiscal year of the Fund is the period commencing on April 1 in one year and ending on March 31 in the next year.

Financial statements

13 For each fiscal year the Minister shall prepare financial statements of the Fund showing

(a) the revenues of the Fund,

(b) the expenditures of the Fund,

(c) the financial position of the Fund at the end of the fiscal year, and

(d) any information prescribed by regulation.

Audit

14 The accounts and transactions of the Fund shall be audited annually by the Auditor General.

Audited financial statements

15(1) Each year the Minister shall, within nine months after the end of the fiscal year, submit to the Lieutenant-Governor in Council for information purposes a copy of the audited financial statements of the Fund for that fiscal year.

15(2) After a copy of the audited financial statements has been submitted under subsection (1), the Minister shall lay a copy of the statements before the Legislative Assembly

(a) no later than the December 31 next following the end of the fiscal year to which the statements relate if the Legislature is then in session, or

(b) if the Legislature is not then in session, within ten days after the commencement of the next ensuing session.

Administration of Act

16 The Minister is responsible for the administration of this Act and may designate persons to act on the Minister's behalf.

Regulations

17(1) The Lieutenant-Governor in Council may make regulations

(a) prescribing information for the purposes of paragraph 13(d);

(b) respecting any matter the Lieutenant-Governor in Council considers necessary to give effect to this Act.

17(2) A regulation made under subsection (1) may be retroactive in its operation to March 31, 2001, or to any date after March 31, 2001.

Consequential amendments

18 Section 1 of the Financial Administration Act is amended by repealing the definition "Consolidated Fund" and substituting the following:

"Consolidated Fund" means, notwithstanding any other Act, the aggregate of all public moneys, except the money in the Fiscal Stabilization Fund established under the Fiscal Stabilization Fund Act, that are on hand and on deposit to the credit of the Province;

Commencement

19 This Act shall be deemed to have come into force on March 31, 2001.