Bill 35 — Second Session, 18Th Legislature, 25 Elizabeth Ii the Legislative Assembly of Alberta Bill 35 the Alberta Heritage Savings Trust Fun,D .Acf (Legislature 18, Session 2)

L18 S2 5607

Alberta — Bills

1976 Bill 35 Second Session, 18th Legislature, 25 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 35 THE ALBERTA HERITAGE SAVINGS TRUST FUN,D .ACf THE PREMIER First Reading ............................. . Second Reading ............................ . Third Reading ..... . .................... . Printed bJ the Queen's Printer for the Province of Alberta, EDMONTON

Bill 35 BILL 3 5 1976 THE ALBERTA HERITAGE SAVINGS TRUST FUND ACT (Assente.d to , 1976)

WHEREAS substantial revenues are being received by the Province from the sale of non-renewable resources owned by the people of Alberta; and

WHEREAS there is a limited supply of non-renewable resources and therefore revenues from the sale of those resources will ultimately be reduced; and

WHEREAS it would be improvident to spend all such revenues as they are received; and

WHEREAS the Legislature of Alberta considers it appropriate that a substantial portion of those revenues be set aside and invested for the benefit of the people of Alberta in future years: THEREFORE HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1.. In this Act, (a) "Investment Committ'ee" means the Heritage Sav ings Trust Fund Investment Committee established under

section 3; (b) "non-renewable resource revenue" means (

i) moneys received by the Crown pursuant to agreements as defined in The Mines and Min erals Act, (ii) moneys received by the Crown as bonuses to acquire agreements as defined in The Mines and Mine.rals Act, and (iii) moneys reeeived under an agreement between the Crown in right of Alberta and the holder of a bituminous sands lease under which the Crown agrees to accept money payments in lieu of royalty under the lease;

Explanatory Notes This Bill will establish the Alberta Heritage Savings Trust Fund Lto which will be transferred $1,500,000,000 and, subject to the mditions in the Bill, 30% of non-renewable resource revenue, as efined in

section 1, clause (

b) of the Bill. The Fund will be inves ~d in three main classes of investments, that is, investments in Ie Capital Projects Division which must be authorized by the egislature itself, and investments in the Canada Investment Divi .on and in the Alberta Investment Division which must be ap roved by a committee of the whole Cabinet called the "Heritage avings Trust Fund Investment Committee" - see

section 6 of the ill. Residual powers of investment by the Provincial Treasurer re found in

section 9. The Provincial Treasurer's annual audited reports relating to the und are subject to review by a new Select Standing Committee : the Legislative Assembly: see ss. 12 and 13 of the Bill. I.

Definitions.

(c) "Special Act" with reference to any fiscal year after the 1976-77 fiscal year means

an Act of the Legislature authorizing the transfer from the Gen eral Revenue Fund to the Trust Fund of 30 per cent of the non-renewable resource revenue received in that fiscal year; (d) "Trust Fund" means the Alberta Heritage Savings Trust Fund established under

section 2. 2.

(1) There is hereby established a fund to be known as the "Alberta Heritage Savings Trust Fund".

(2) The Provincial Treasurer shall hold and administer the Trust Fund in accordance with this Act.

(3) The Provincial Treasurer shall establish and main tain a separate accounting record of the Trust Fund. 3.

(1) There is hereby established a committee called the "Heritage Savings Trust Fund Investment Committee" consisting of all members of the Executive Council.

(2) The Investm'ent Committee shall designate one of its members as chairman and another as vice-chairman.

(3) The Lieutenant Governor in Council may make rules governing the calling of meetings of the Investment Com mittee, the quorum required at its meetings and, generally, the conduct of the Committee's business and affairs. 4..

(1) As soon as practicable after the commencement of this Act, there shall be transferred from the General Revenue Fund to the Trust Fund $1,500,000,000.

(2) The amount transferred pursuant to subsection (1) may be transferred in cash or other assets, but where assets other than cash are to be transferred, the Investment Com mittee shall, before any transfer is made, approve (

a) the assets to be transferred, (

b) the manner in which and the time or times at which the transfer is to be made, and (

c) the valuation of the assets or the method by which the assets are to be valued, and may impose such conditions relating to the transfer as the Investment Committee considers necessary.

(3) Where the Investment Committee is of the opinion that any asset to be transferred under subsection (1) (

a) will yield a reasonable return or profit to the Trust Fund, and (

b) will tend to strengthen and diversify the economy of Alberta, 2

2. Alberta Heritage Savings Trust Fund established. 3. Heritage Savings Trust Fund Investment Committee. 4. Transfer of $1,500,000,000 in assets from the General Revenue Fund to the Trust Fund. 2

the Investm'ent Committee may direct that the asset upon its transfer shall form part of the Alberta Investment Divi sdon of the Trust Fund as if the asset were the subject of an investment made pursuant to

section 6, subsection (1), clause (c).

(4) Assets other than cash that are transferred pursuant to subsection (1) and that do not form part of the Alberta Investment Division of the Trust Fund by virtue of a dir ection under subsection (3) shall consist only of assets within the classes enumerated in

section 9, subsection (1) and upon being transferred shall be deemed to be invest ments made under that section.

(5) The income of the Trust Fund accrues to and forms part of the Trust Fund. 5.

(1) After the commencement of this Act, (a) 30 per cent of the non-renewable resource revenue received in the 1976-77 fiscal year shall be trans ferred from the General Revenue Fund to the Trust Fund in accordance with this Act; (b) 30 per cent of the non-renewable resource revenue received in the 1977-78 fiscal year shall be trans ferred from the General Revenue Fund to the Trust Fund in accordance with this Act but only if the transfer is authorized by a Special Act enacted in that fiscal year; (c) 30 per cent of the non-renewable resource revenue received in the 1978-79 fiscal year and in each fiscal year thereafter shall be transferred from the General Revenue Fund to the Trust Fund in accord ance with this Act but only if, in the case of each fiscal year, the transfer is authorized by a Special Act enacted in the preceding fiscal year.

(2) The title of a Special Act shall be "The Alberta Heri tage Savings Trust Fund Special Appropriation Act" fol lowed by a reference to the fiscal year to which it relates.

(3) The President of the Executive Council or a member of the Executive Council designated by him for the purpose shall, with leave of the Assembly, (

a) introduce during the 1977-78 fiscal year a Bill for a Special Act relating to the 1977-78 fiscal year, and (

b) introduce during the 1977-78 fiscal year and dur ing each fiscal year thereafter a Bill for a Special Act relating to the next succeeding fiscal year.

(4) The Provincial Treasurer shall with respect to each month in· , (

a) the 1976-77 fiscal year, and 3

5. Transfer of 30 per cent of the non-renewable resource revenue from the General Revenue Fund to the Trust Fund, sub ject to approval by Special Act in the case of the 1977-78 and succeeding fiscal years. 3

(

b) each succeeding fiscal year in respect of which a Special Act is enacted, transfer 30 per cent of the non-renewable resource revenue received in the month from the General Revenue Fund to the Trust Fund as soon as practicable after the end of the month in which it is received. (5 ) Notwithstanding subsection (4), the Provincial Treasurer may, with respect to any month to which that subsection applies, estimate 30 per cent of the non-renew able resource revenue to be received in that month and transfer that sum from the General Revenue Fund to the Trust Fund during that month or as soon as practicable after the end of the month in respect of which the estimate is made.

(6) With respect to the 1976-77 fiscal year and each succeeding fiscal year in respect of which a Special Act is enacted, the Provincial Treasurer, depending upon whether the total of the sums transferred pursuant to subsections ( 4) and (5) is greater or less than 30 per cent of the non renewable resource revenue received in that fiscal year as shown in the public accounts for that fiscal year, shall (

a) transfer moneys from the General Revenue Fund to the Trust Fund, or (

b) transfer moneys from the Trust Fund to the Gen- eral Revenue Fund, so that the amount of the non-renewable resource revenue in the Trust Fund for that fiscal year is equal to 30 per cent of the non-renewable resource revenue received in that fiscal year.

(7) No interest is payable with respect to any money transferred pursuant to this

section to or from the General Revenue Fund or to or from the Trust Fund. G.

(1) The assets of the Trust Fund shall be used for the following purposes: (

a) the making of investm'ents in projects which will provide long term economic or social benefits to the people of Alberta but which will not by their nature yield a return to the Trust Fund; (

b) the making of investments by way of loans to (

i) the Crown in right of Canada, or (ii) the Crown in right of any other province of Canada, or (iii) any other person if the repayment of the loan and the payment of interest thereon by that person is guaranteed by the Crown in right of Canada or the Crown in right of any other province of Canada; (

c) the making of investments which, in the opinion of the Investment Committee, 4

6. Regulation of the use of assets of the Trust Fund and the formation of three Divisions of the Trust Fund. 4

(

i) will yield a reasonable return or profit to the Trust Fund, and (ii) will tend to strengthen and diversify the econ omy of Alberta.

(2) Investments referred to in subsection (1), clause (a) (

a) shall only be made if moneys are first appropriated from the Trust Fund by

an Act of the Legislature specifically for a purpos'e described in subsection (1), clause (a), (

b) shall not exceed 20 per cent of the assets of the Trust Fund, and (

c) shall form the Capital Projects Division of the Trust Fund.

(3) Investments referred to in subsection (1), clause (b) (

a) shall only be made with the approval of the Invest ment Committee, (

b) shall not exceed 15 per cent of the assets of the Trust Fund, and (

c) shall form the Canada Investment Division of the Trust Fund.

(4) Investments referred to in subs'ection (1), clause (c) (

a) shall be made in accordance with any directions contained in any resolution of the Legislative As sembly relating to such investments, (

b) shall only be n1ade with the approval of the Invest ment Committee, and (

c) shall form the Alberta Investment Division of the Trust Fund.

(5) For the purposes of this section, (

a) investments in the Capital Projects Division shall be deemed to be assets of the Trust Fund with a value equal to the amounts expended pursuant to Acts of the Legislature referred to in subsection ( 2), cIa use ( a) ; (

b) investments in the Canada Investment Division and the Alberta Investment Division and all other assets of the Trust Fund shall be valued at book value; (

c) the percentage limitations referred to in subsection (2), clause (

b) and subsection (3), clause (

b) shall be determined at the end of each fiscal year. 7. Where any investment is made under

section 6 with the approval of the Investment Committee, no disposition shall be made of that investment except with the approval of the Investment Committee. 5

7. Disposition of investments made under

section 6, subsection (3) or (4). 5

8. Any approval given by the Investment Committee under

section 6 or 7 may be made subject to such terms and conditions as the Committee considers necessary. 9.

(1) Notwithstanding

section 6, where any moneys in the Trust Fund have not been or are not being invested pursuant to that section, the Provincial Treasurer may in. vest and may re-invest those moneys in any or all of the following: (

a) the bonds, debentures or other evidences of in· debtedness of, or guaranteed as to the repayment of principal and interest by, the Government of Canada, the government of any province of Canada or any municipal corporation in Canada; (

b) the bonds, debentures or other evidences of indebted· ness of or guaranteed as to the repayment of princ ipal and interest by the government of a country other than Canada; (

c) the bonds, debentures or other evidences of indebted· ness of any agent of the Crown in right of Alberta; (

d) certificates of deposit, deposit receipts or other evidences of indebtedness given by a chartered bank or treasury branch in consideration of a deposit or deposits made with the bank or treasury branch; (

e) certificates of deposit, deposit receipts or other evidences of indebtedness which are unconditionally guaranteed by a chartered bank; (

f) the bonds, debentures or other evidences of indebted ness of or guaranteed by any corporation, if those bonds, debentures or other evidences of indebted ness are authorized investments under

section 63, subsection (1) of the Canadian and British Insur ance Companies Act; (

g) mortgages or hypothecs of real estate or leaseholds in Canada if the amount paid for the mortgage or hypothec together with the amount of indebtedness under any mortgage or hypothec on the real estate or leasehold ranking equally with or superior to t~e mortgage or hypothec in which the investment IS made does not exceed three-quarters of the value of the real estate or leasehold covered thereby; (

h) mortgages or hypothecs of real estate or leaseholds in Canada notwithstanding that the mortgage or hypothec exceeds the amount authorized under clause (

g) if the excess is guaranteed or insured by, or through an agency of, the Government of Canada or a province of Canada, or by an insurance company approved by the Treasury Board.

(2) The Provincial Treasurer may dispose of any invest ments made or deemed to be made under this section. 6

8. Terms and conditions on approvals. 9. Investment of assets of the Trust Fund not then forming part of any Division of the Trust Fund. 6

(3) Notwithstanding

section 28.4, subsection (1) of The. Financial Administration Act, the Provincial Treasurer shall transfer moneys from the Trust Fund to the Con solidated Cash Investment Trust Fund only where the moneys have not been invested or re-invested under sub section (1) or where the moneys have not been invested pursuant to

section 6. 10.

(1) Where any costs, expenses or other payments are directly attributable to the administration of the Trust Fund, the Provincial Treasurer may charge the cost, ex pense or payment to the Trust Fund.

(2) After the end of each fiscal year the Investment Commi ttee shall (

a) estimate an amount consisting of the fees, wages, salaries, costs, expenses or other payments incurred in connection with the administration of the Trust Fund and paid out of the General Revenue Fund in the preceding fiscal year, and (

b) authorize the Provincial Treasurer to transfer the amount estimated under clause (

a) from the Trust Fund to the General Revenue Fund. 11.

(1) The Provincial Treasurer shall, as soon as prac ticable after the end of each quarter of the 1977-78 and succeeding fiscal years, prepare a report summarizing the investments of the Trust Fund during the preceding quarter.

(2) When a quarterly report is prepared under sub section (1), the Provincial Treasurer shall forthwith furnish copies of the report to all members of the Legislative As sembly and to the Clerk of the Legislative Assembly and upon doing so shall make the report public. 12.

(1) The Provincial Auditor shall from time to time and at least once each year audit the accounts and financial transactions of the Trust Fund.

(2) The Provincial Treasurer shall, as soon as practi cable after the end of each fiscal year, prepare a report summarizing the operation of the Trust Fund during the preceding fiscal year and containing a financial statement, audited by the Provincial Auditor, showing (

a) transfers of cash and other assets to the Trust Fund during the preceding fiscal year, (

b) payments made fronl and income accrued to the Trust Fund for the preceding fiscal year, and (

c) the total moneys expended under Acts of the Legis lature referred to in

section 6 subsection (2), clause (

a) in respect of investme~ts in the Capital Projects Division of the Trust Fund. 7

10. Administration fees paid out of the Trust Fund. II. Quarterly reports by Provincial Treasurer. 12. Annual reports containing audited financial statements. 7

(3) When ,an annual report is prepared under sUbsection (2), the Provincial Treasurer shall forthwith furnish copies of it to all members of the Legislative Assembly and to the Clerk of the Legislative Assembly and upon doing so shall make the report public. 13.

(1) There is hereby established a select standing committee of the Legislative Assembly called the "Select Standing Committee on The Alberta Heritage Savings Trust Fund Act" consisting of 15 members.

(2) The members of the Select Standing Committee shall be appointed at the commencement of each session in the same way that members are appointed to other select stand ing committees of the Legislative Assembly.

(3) When a copy of an annual report is furnished to the Clerk of the Legislative Assembly pursuant to

section 12, subsection (3) the annual report shall be deemed to be referred to the Select Standing Committee for review and a report concerning the investments of the Trust Fund which may contain any recommendations of the Committee con cerning those investments.

(4) Where a motion is made in the Legislative Assembly for second reading of a Bill for a Special Act relating to the 1978-79 or any succeeding fiscal year, then, unless the Assembly by resolution otherwise directs, the debate on the motion shall be proceeded with only if the report of the Select Standing Committee relating to the preceding fiscal year has been tabled in the Assembly.

(5) The Select Standing Committee may, without leave of the Assembly, sit during any period when the Assembly is adjourned or after prorogation of a session of the Legislature. 1,4. The Financial Administration Act is amended (

a) as to

section 16.1 by adding the word "or" at the end 0 f clause (

e) and by adding the following clauses after clause (e): (

f) between accounts in the General Revenue Fund and the Alberta Heritage Savings Trust Fund, or (

g) between accounts in the Consolidated Cash In vestment Trust Fund and the Alberta Heritage Savings Trust Fund, or (

h) for the purpose of making investments under

section 9 of The Alberta Heritage Savings Trust Fund Act, (

b) by adding the following

section after

section 40.1: 40.2 The Provincial Treasurer shall, upon the direction of the Treasury Board, advance from the General Revenue Fund to the Alberta Heritage Sav- 8

13. Select Standing Committee of the Legislative Assembly to review the operation of the Trust Fund. 14. Amends

chapter 142 of the Revised Statutes of Alberta

Section 16.1 presently reads: 8

ings Trust Fund such sums as may be required upon such terms and conditions as the Treasury Board may impose. (

c) as to item 1 of the Schedule, by adding to the list of designated funds of the Provincial Treasurer the. following: (a.

l) Alberta Heritage Savings Trust Fund. 15. This Act comes into force on the day upon which it is assented to. 9

Disposition of investments made under

section 6, subsection )r (4). 5

8. Any approval given by the Investment Committ under

section 6 or 7 may be made subject to such ter: and conditions as the Committee considers necessary. ! 9.

(1) Notwithstanding

section 6, where any moneys it the Trust Fund have not been or are not being investe~ pursuant to that section, the Provincial Treasurer may in. vest and may re-invest those moneys in any or all of th( following: (

a) the bonds, debentures or other -evidences of in. debtedness of, or guaranteed as to the repaymentoi principal and interest by, the Government of Canada, the government of any province of Canad! or any municipal corporation in Canada; (

b) the bonds, debentures or other evidences of indebted. ness of or guaranteed as to the repayment of princ. ipal and interest by the government of a countrl other than Canada; (

c) the bonds, debentures or other evidences of indebted, ness of any agent of the Crown in right of Alberta (d) (e) (f) (g) (

h) certificates of deposit, deposit receipts or otheJ evidences of indebtedness given by a chartered banI or treasury branch in consideration of a deposit 0: deposits made with the bank or treasury branch certificates of deposit, deposit receipts or othe: evidences of indebtedness which are unconditionall: guaranteed by a chartered bank; the bonds, debentures or other evidences of indebted ness of or guaranteed by any corporation, if thos bonds, debentures or other evidences of indebted ness are authorized investments under

section 6~ subsection (1) of the Canadian and British Insu1 ance Companies Act; mortgages or hypothecs of real estate or leasehold in Canada if the amount paid for the mortgage Q hypothec together with the amount of indebtednee under any mortgage or hypothec on the real estal or leasehold ranking equally with or superior to tl mortgage or hypothec in which the investment i made does not exceed three-quarters of the value ( the real estate or leasehold covered thereby; mortgages or hypothecs of real estate or leasehoIC in Canada notwithstanding that the mortgage ( hypothec exceeds the amount authorized und! clause (

g) if the excess is guaranteed or insurE by, or through an agency of, the Government I Canada or a province of Canada, or by an insurant company approved by the Treasury Board.

(2) The Provincial Treasurer may dispose of any inves ments made or deemed to be made under this section. 6

Terms and conditions on approvals. Investment of assets of the Trust Fund not then forming

part lY Division of the Trust Fund. 6

(3) Notwithstanding

section 28.4, subsection (1) of Th Financial Administration Act, the Provincial Treasure: shall transfer moneys from the Trust Fund to the Co~ soli dated Cash Investment Trust Fund only where thl moneys have not been invested or re-invested under sub section (1) or where the moneys have not been investec pursuant to

section 6. 10.

(1) Where any costs, expens'es or other payment! are directly attributable to the administration of the Trusl Fund, the Provincial Treasurer may charge the cost, ex. pense or payment to the Trust Fund.

(2) After the end of each fiscal year the Investment Committee shall (

a) estimate an amount consisting of the fees, wages, salaries, costs, expenses or other payments incurred in connection with the administration of the Trust Fund and paid out of the General Revenue Fund in the preceding fiscal year, and (

b) authorize the Provincial Treasurer to transfer the amount estimated under clause (

a) from the Trust Fund to the General Revenue Fund. 11.

(1) The Provincial Treasurer shall, as soon as prac· ticable after the end of each quarter of the 1977-78 and succeeding fiscal years, prepare a report summarizing the investments of the Trust Fund during the preceding quarter.

(2) When a quarterly report is prepared under S?b section (1), the Provincial Treasurer shall forthwith furmsb copies of the report to all members of the Legislative As, sembly and to the Clerk of the Legislative Assembly and upon doing so shall make the report public. 12.

(1) The Provincial Auditor shall from time to tiI?~ and at least once each year audit the accounts and financla. transactions of the Trust Fund.

(2) The Provincial Treasurer shall, as soon as practi cable after the end of each fiscal year, prepare a repor1 summarizing the operation of the Trust Fund during tbl preceding fiscal year and containing a financial statement audited by the Provincial Auditor, showing (

a) transfers of cash and other assets to the Trust FUTII during the preceding fiscal year, (

b) payments made from and income accrued to th Trust Fund for the preceding fiscal year, and . (

c) the total moneys expended under Acts of the LeglE lature referred to in

section 6, subsection (2) clause (

a) in respect of investments in the Caplt~ Projects Division of the Trust Fund. 7

10. Administration fees paid out of the Trust Fund. 11. Quarterly reports by Provincial Treasurer. 12. Annual reports containing audited financial statements. 7

(3) When an annual report is prepared under subsectio (2), the Provincial Treasurer shall forthwith furnish cOPie~ of it to all members of the Legislative Assembly and to the Clerk of the Legislative Assembly and upon doing so shall make the report public. 13.

(1) There is hereby established a select standing committee of the Legislative Assembly called the "Select Standing Committee on The Alberta Heritage Savings Trust Fund Act" consisting of 15 members.

(2) The members of the Select Standing Committee shall be appointed at the commencement of each session in the same way that members are appointed to other select stand. ing committees of the Legislative Assembly.

(3) When a copy of an annual rep'Ort is furnished to the Clerk 'Of the Legislative Assembly pursuant to

section 12, subsecti'On (3) the annual rep'Ort shall be deemed to be referred t'O the Select Standing C'Ommittee f'Or review and a rep'Ort c'Oncerning the investments 'Of the Trust Fund which may c'Ontain any rec'Ommendati'Ons 'Of the C'Ommittee con· cerning those investments. ( 4) Where a m'Oti'On is made in the Legislative Assembly f'Or sec'Ond reading 'Of a Bill f'Or a Special Act relating to the 1978-79 'Or any succeeding fiscal year, then, unless the Assembly by res'Oluti'On 'Otherwise directs, the debate on the m'Oti'On shall be pr'Oceeded with 'Only if the report of the Select Standing Committee relating t'O the preceding fiscal year has been tabled in the Assembly.

(5) The Select Standing C'Ommittee may, without leave 'Of the Assembly, sit during any peri'Od when the Assembly is adj'Ourned 'Or after pr'Or'Ogation 'Of a session of the Legislature. 1,4. The Financial Administration Act is amended (

a) as to

section 16.1 by adding the word "or" at ~he end 0 I clause (

e) and by adding the /o1lowtng clauses alter clause (e): (

f) between acc'Ounts in the General Revenue Fund and the Alberta Heritage Savings Trust Fund, 'Or (

g) between acc'Ounts in the C'Ons'Olidated Cash In vestment Trust Fund and the Alberta Heritage Savings Trust Fund, 'Or (

h) f'Or the purp'Ose 'Of making investments u~der secti'On 9 'Of The Alberta Heritage Savtng~ Trust Fund Act, (

b) by adding the following

section after

section 40.1: 40.2 The Pr'Ovincial Treasurer shall, upon thE directi'On 'Of the Treasury B'Oard, advance. from thE General Revenue Fund t'O the Alberta Herltage Sav· 8

l3 Select Standing Committee of the Legislative Assembly to lrie~ the operation of the Trust Fund . • 14. Amends

chapter 142 of the Revised Statutes of Alberta '70.

Section 16.1 presently reads: 8

(

c) ings Trust Fund such sums as may be required UPOI such ~erms and conditions as the Treasury Boar~ may Impose. as to item 1 of the Schedule, by adding to the list 01 designated funds of the Provincial Treasurer th! following: (a.

l) Alberta Heritage Savings Trust Fund. 1,5. This Act comes into force on the day upon which it is assented to. 9 Title: 1976 (18th, 2nd) Bill 35, The Alberta Heritage Savings Trust Fund Act

Document details

Collection	Alberta — Bills
Citation	L18 S2 5607
Type	bill
Volume / chapter	L18 S2 5607
Language	en
Format	json
Source	PROVINCIAL
Identifier	8dedc300580fd9e45145f589269df548dad0b4fe

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