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1998 Legislative Session: 3rd Session, 36th Parliament

THIRD READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 21st day of

April, 1998

Ian D. Izard, Law Clerk

HONOURABLE JOY K. MacPHAIL

MINISTER OF FINANCE AND

CORPORATE RELATIONS

BILL 4 – 1998

CAPITAL FINANCING AUTHORITY REPEAL

AND DEBT RESTRUCTURING ACT

Contents

Section

Definitions

Acts repealed

Transfer of authorities' assets and liabilities

Restructuring of school and educational institution debt

Transitional – School Act

Transitional regulations

7-19

Consequential Amendments

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly

of the Province of British Columbia, enacts as follows:

Definitions

1 In this Act:

"authority" means the British Columbia Educational

Institutions Capital Financing Authority or the British Columbia School

Districts Capital Financing Authority;

"educational institution" means

(

a) a university or an institution as defined in the College and

Institute Act,

(

b) the British Columbia Institute of Technology , or

(

c) the agency as defined in the Open Learning Agency Act;

"school board" means a board or a francophone education

authority as defined in the School Act.

Acts repealed

2 The following Acts are repealed:

(

a) the Educational Institution Capital Finance Act, R.S.B.C.

1996, c. 105;

(

b) the School District Capital Finance Act, R.S.B.C. 1996,

c. 413.

Transfer of authorities' assets and liabilities

(1) On and after April 1, 1998, the assets and liabilities

of the authorities become the assets and liabilities of the government.

(2) On and after April 1, 1998, a reference to an authority in any

commercial paper, contract, lease, licence, permit or other instrument

or document is deemed to be a reference to the government.

(3) The Minister of Finance and Corporate Relations may make payments

out of the consolidated revenue fund, without an appropriation other than

this subsection, for the payment of liabilities transferred to the government

under this section.

Restructuring of school and educational institution debt

(1) The debt obligations owed to the authorities are released

and any debentures evidencing the debt obligations are cancelled.

(2) The sinking funds established for repayment of the debt obligations

referred to in subsection (1) are deemed to be held for the benefit of

the government.

(3) The obligations of school boards and educational institutions,

including those that arise under an enactment or a bylaw, to make payments

into sinking funds established for the repayment of the debt obligations

owed to an authority are released.

(4) The debt obligations owed by school boards and educational institutions

to the government under the certificate of approval program are released.

Transitional – School Act

(1) Despite

section 110 (2) of the School Act, the

reference in that

section to March 30 is deemed to be a reference to April

30 with respect to the estimate made by the Minister of Education in 1998.

(2) Despite

section 114 of the School Act, the Minister of Finance

and Corporate Relations is not required to pay grants for debt service

expenses under that

section with respect to the period from April 1, 1998

to June 30, 1998 in so far as those expenses relate to debt obligations

owed to an authority, or owed to the government under the certificate of

approval program.

(3) Despite

section 156 (7) of the School Act , the Minister

of Finance and Corporate Relations may

(

a) recover a debt service surplus of a school board as determined

by the Minister of Education for the 1997/98 fiscal year by subtracting

the amount of the surplus from the grant payable to the board under

section

114 of the School Act during the period from April 1, 1998

to June 30, 1998, and

(

b) fund a debt service deficit of a school board as determined by

the Minister of Education for the 1997/98 fiscal year out of the consolidated

revenue fund during the period from April 1, 1998 to June 30, 1998, without

an appropriation other than this subsection.

Transitional regulations

(1) The Lieutenant Governor in Council may make regulations

considered necessary or advisable to more effectively bring this Act into

operation and to facilitate the transition from the operation of the Acts

repealed by this Act.

(2) A regulation under subsection (1) may be made effective retroactively

to a date on or after April 1, 1998.

Consequential Amendments

College and Institute Act

Section 31 (2) of the College and Institute Act, R.S.B.C.

1996, c. 52, is repealed.

Section 34 (4) is repealed.

Section 35 is repealed.

Financial Administration Act

10 The definition of "government body"

section 1 of the Financial Administration Act, R.S.B.C. 1996, c. 138,

is amended by repealing paragraph (

c) and substituting the following:

(

c) a university or an institution as defined in the College and

Institute Act,

(c.1) the British Columbia Institute of Technology,

(c.2) the agency as defined in the Open Learning Agency Act,

and .

Section 21 (2) is amended by striking out "44,"

and substituting "44, 56.1," .

12 The following

section is added:

Prepaid capital advance

56.1

(1) In this section, "institution" means

(

a) a board or a francophone education authority as defined in the

School Act,

(

b) a university or an institution as defined in the College and

Institute Act,

(

c) the British Columbia Institute of Technology ,

(

d) the agency as defined in the Open Learning Agency Act,

(

e) a regional hospital district as defined in the Hospital District

Act,

(

f) the Health Facilities Association of British Columbia, or

(

g) British Columbia Transit.

(2) The Minister of Finance and Corporate Relations may make from the

consolidated revenue fund a prepaid capital advance to an institution for

its capital expenditures.

(3) The Minister of Finance and Corporate Relations must

(

a) amortize a prepaid capital advance made under this

section in accordance

with accounting practices approved by the Treasury Board, and

(

b) include in the estimates of revenue and expenditure for a fiscal

year the amount amortized under this

section for that year.

Freedom of Information and Protection of Privacy Act

Schedule 2 of the Freedom of Information and Protection

of Privacy Act, R.S.B.C. 1996, c. 165, is amended by striking out the following:

Public Body:

British Columbia Educational Institution Capital Financing Authority

Head:

Minister of Finance and Corporate Relations

Public Body:

British Columbia School Districts Capital Financing Authority

Head:

Minister of Finance and Corporate Relations .

Institute of Technology Act

Section 23 (4) of the Institute of Technology Act,

R.S.B.C. 1996, c. 225, is repealed.

Open Learning Agency Act

Section 10 (2) of the Open Learning Agency Act, R.S.B.C.

1996, c. 341, is repealed.

School Act

Section 145 of the School Act, R.S.B.C. 1996, c. 412,

is amended

(

a) in subsection (2) by striking out "British Columbia

School Districts Capital Financing Authority," wherever it appears

and substituting "Minister of Finance and Corporate Relations," ,

and

(

b) in subsection (4) by striking out "British Columbia

School Districts Capital Financing Authority, which" and substituting

"Minister of Finance and Corporate Relations, who" .

Section 146 is amended

(

a) in subsection (1) by striking out "the British

Columbia School Districts Capital Financing Authority or" , and

(

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

(4) Despite the other provisions of this Act, debentures issued by

a board under this Act to be sold to the Minister of Finance and Corporate

the Minister of Finance and Corporate Relations.

University Act

Section 29 (2) of the University Act, R.S.B.C. 1996,

c. 468, is repealed.

Section 58 (3) is repealed.

Commencement

20 This Act is deemed to have come into force on April 1, 1998

and is retroactive to the extent necessary to give it effect on and after

that date.

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© 1998: Queen's Printer, Victoria, British Columbia, Canada