Bill 56 (Legislature 17, Session 2)

L17 S2 5190

Alberta — Bills

1973 Bill 56 Second Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 56 The Financial Administration Amendment Act, 1973 THE PROVINCIAL TREASURER First Reading .............................. . Second Reading ... Third Reading Printed by QUEEN'S PRINTER for the Province of Alberta, EDMONTON

Bill 56 BILL 56 1973 THE fiNANCIAL ADMINISTRATION AMENDMENT ACT, 1973 (Assented to , 1973) HER MAJESTY, by and with the advice and consent of the Legislative As,sembly of Alberta, enacts as follows: 1. The Financial Administration Act is hereby amended.

Section 16 is struck out and the following sections are su bstituted: 16.

(1) Any portion of the General Revenue Fund not required for expenditure may be invested and re-invested in any of the ,classes of securities in which moneys in the Consolidated Cash Investment Trust Fund may be invested under

section 28.6.

(2) The Treasurer n1ay dispose of any securities acquired under subsection (1). 16.1 Any transfer of moneys (

a) for the purlpose of purchasing securities under sec tion 16, 28.6 or 86, or (

b) into or between accounts in the General RevenuE'~ Fund, or (

c) between accounts in the General Revenue Fund and accounts in the Consolidated Cash Investment Trust Fund, or (

d) between accounts in the Consolidated Cash Invest ment Trust Fund, or (

e) between aecounts in the Consol,idated Cash Invest ment Trust Fund and accounts of depositors under

Part 2A, may be made by a bank, treasury branch or other similar institution in accordance with directions given from time to time by the Treasurer and is subj'ect to audit under

section 58.1.

Explanatory Notes 1. This Bill will amend

chapter 142 of the Revised Statutes of Alberta 1970. 2.

Section W presently reads: 16.

(1) The Lieutenant Governor in Council may direct the Treasurer to invest any portion of ,the General Revenue Fund not presently re quired for expenditure (

a) in securities of the Government of Canada or of any of the prov inces of Canada, or (

b) in any securities the payment of which is guaranteed by the Gove'rnment of Canada or any of the provinoes' of Canada, or (

c) in securities ·of any city, town, village, municipal district, county, school division, school district or hospital district in Alberta, or (

d) in securities issued or guaranteed by the International Bank for Reconstruction and Development established by the agreement for an International Bank for Rec·ons.truction and DeveLopment approved by the Bretton Woods Agreement Act (Canada), if the securitries are payable in the currency of Canada or the United States of America, or (

e) in certificates of deposit, deposit receipts or other evidences of indebtedness given by a bank ,or treasury branch in consideration of a deposlit or deposits made with the bank or treasury branch. (:2) \\'henever it is necessary to meet expenditure the Treasurer may dispose of any investments made pursuant to' subsection (1) in the man ner, on the terms and in the amounts he considers most to the public advantage.

The new secHon 16 will make the power to invest the surplus money of the Generail Revenue Fund uniform with the power to invest the proposed Consolidated Gash Investment Trust Fund and sinking funds, the only other powers of investment in the Aat. The new sec'tion W.1 will permit the classes of transfers specified to be made by automatic bank transfer instead of by cheque or order. The oruly automa'tic transd'er of funds outside the system will be for a purchase of securitie1s. Automatic transfers will be subject to post-'audit under neW

section 58.1.

3. The following

Part is added after

section 28:

PART 2A, CONSQUD,ATE-DCASH iNVESTMEN1" TRUST FUND 28.1.

(1) In this Part, (a) "Crown agency" means 0) any '0orporation that is, by its Act of incorpor ation, an agent of the Crown in right of Al berta, or (ii) any corporation or unincorporated board, com mission, ,council, lOr other body that is not part of a department or other part of the public service of Alberta, all of whose members are 'apP.ointed or designated, either in the,ir per- (sonal names or by their names iQf office, by

an Act, by an order .of the Lieutenant Governor in Coundl 'Or by a Minister of the Crown in right of Alberta, or by any combination thereof; (b) "depositor" means (

i) the Treasurer, lOr (Ii) a Minister of the Crown, Crown agency or other person or body 'Of persons named in the

Schedule to this Act or whose name is added to the

Schedule to this Act pursuant to

section 28.3; (c) "designated fund", with reference to a depositor, means (

i) a fund or account held or maintained by the depositor that is described or specified by name and shown opposite ,the name of the depositor in the

Schedule to this Act, or (ii) the moneys or investments, or both, of the depositor shown opposite the nan1e of the de posi tor in the

Schedule to this Act, or (iii) in the case of a depositor added to the

Schedule pursuant to

section 28.3, (

A) a fund or account held or maintained by the depositor that is described or specified by name ,in the regulation under that sec tion as a designated fund of that depositor, or (

B) any moneys or investments, or both, of the depositor specified in the regulation under that

section as a designated fund of that depositor; (d) "Investment Fund" means the Consolidated Cash Investment Trust Fund; (e) "securities" mean bonds, debentures, debenture stock, shares .of capital stock, rights in respect of 2

3. This new PaI'lt provides for the establishment of rthe Con solidated Oash Investment Trust Fund under the trusteeship of the Provincial Treasurer. Tihirs wHl enable surplus money in the hands of Ministe!rs or Government officia1s and agencies to be consolidated and invested under sktlled man'agement at the gre3.test return consiSltent with sound financiraJl pra'ctice. Only those Minisrters or offici'als, agencies and funds in, or added to the

Schedule are bound, and no money can be trans ferred inlto the Fund if, by the ordinary Law, such transfer would be a breach of trust. Any money in the Fund, including net ea'rnings, is available to the contributing MiniSlterr, official or 'agency on demand. 2

such shar€s, trust certificates, guaranteed invest ment certificates or receipts, certificates of deposit, deposit receipts, bills or notes.

(2) A reference to a fund or account that is a designated fund described or specified by name in the

Schedule or in a regulation made pursuant to

section 28.3 shall be read as referring to the moneys in that fund or account and any investments made from moneys in that fund or account. 28.'2 This Part does not apply to, and no regulation shall be made under

section 28.3, subsection (2) so as to affect, any fund, account and moneys or investments held by a depositor in trust (

a) where there is an exprelss trust 'or direction, whether in

an Act or 'Otherwise, for the investment of the moneys or funds so held in trust, or (

b) where the trust would, except for this Part, be breached if any of the HlOneys or funds were trans ferred to the Investment Fund. 28.3

(1) The Treasurer shall establish and maintain a fund called the "Consolidated Calsh Investment Trust Fund" of which he shall be the trustee.

(2) Subject to subsection (3), the Lieutenant Governor in Council may by regulation (

a) am'end the

Schedule by adding any Minister of the Crown, Crown agency or other person or body of persons as a depositor, and specifying the fund, account, moneys or investments (whether held in trust or otherwise) that are the designated funds of that depositor, or (

b) amend the

Schedule with respect to any depositor by adding to, striking out or altering or replacing the description of, any of the designated funds of that depositor, 'Or (

c) amend the

Schedule by striking out any deposi~or and the designated funds of that devositor .

(3) A regulation shall not be made under subsection (2) (

a) to add to the

Schedule as a depositor any person or body of persons other than a ~.1:inister of the Crown or a Crown agency, or (

b) to change the designated funds of a depositor that is a person or body of persons other than a Minister of the Crown or a Crown agency, except with the prior consent of that person or body of persons. ( 4) Where any person or body of persons, other than a Minister of the Crown or a Crown agency, is added to the 3

28.2 Part not to affect ;trusts. 28.3 E,sitablishment of Investment Fund and amendments Ito the Schedule. 3

Schedule as a depos,itor pursuant to subsection (2), the Lieu tenant Governor in Council sham, upon being required by notice to do sO' hythat person 'Or body of pe~sons, by regu lation amend the

Schedule (

a) by removing that person 'Or body a,s a depositor, or (

b) by removing any designated fund 'Of the deplOsitor sp€Iciiied in the notice. 28.4

(1) The Treasurer shall transfer to the Investment Fund any moneys in (

a) the General Revenue Fund not invested under sec tion 16, and (

b) any other designated funds of the Treasurer, that are n'Ot then required for expenditure.

(2) Upon being directed by the Treasurer to do SIQ, a depositor shall transf'er to the Investment Fund any speci fied portion of the money,s in a designated fund of the depositor that are not then required for expenditure, but, if the deposit'Or objects to the direction 'Or to the amount specified in the direction, the matter shall be referred to the Treasury Board for determinatiQn.

(3) A depositor, on his own initiative, may transfer to the Investment Fund any portion of the moneys in a desig nated fund held by him and not then required for expendi ture. 28.5

(1) Where ~ depositor, 'Other than the Treasurer, has power to invest money in a designated fund then, notwithstanding the provisions of any other Act, (

a) that depositor's power to invest money and to ex change, sell and dispos'e of such investments may be exercised 'Only with the approval of the Treasur er, and (

b) that deposHor sh~l1, at the direction of the Treas urer, sell, exchange, replace or otherwise dispose of investments in the depositor's designated fund.

(2) Where the Treasurer refuses to approve a proposed investment or a proposed exchange, sale or disposal of an investment pursuant to subs,ection (1), 'Or where the de positor 'Objects to a direction of the Trea,surer under sub section (1) ,clause (b), the matter shall be referred to the Treasury Board for determination. 28.'6

(1) Notwithstanding the provisions of The TnlS tee Act, the Treasurer shall invest and may re-invest the Investment Fund in any or all of the following: (

a) securities of the Government of Canada or of the government of any province of Canada; 4

28.4 Transfer Ito the Inves!tment Fund of depositorls moneys not then required for expe,nditure. 28.5 Regulation of depositor's inve:stments in a designated fund. 28.6 Investment of moneys in Investment Fund.

(

b) securities the payment of the principal and interest of which is guaranteed by the Government of Can~ ada or the government of any province of Canada; (

c) securities of any Crown agency; (

d) securities of any city, town, village, municipal district, county or hospital district in Alberta or of the board of trustees of any school district or school division in Alberta; (

e) securities issued or guaranteed by the International Bank f'0r Recons,truction and Development ,estab lished by the agreement for an International Bank for Reconstruction and Development approved by the Bretton vVoods Agreement Act (Canada), if the securities are payable in the currency of Canada or the United Shutes of America; (

f) certifricates of deposit, deposit receipts or other evidences 'Of indehtedness given by a bank or treasury branch in consideration of a deposit or deposits made with the bank or treasury branch.

(2) Notwithstanding the provisi'0ns of The Trustee Act and in addition to his powers under subsection (1), the Treasurer may invest and re-invest moneys in the Invest ment Fund in securities of any 'Other class authorized by regulations 'Of the Lieutenant Governor in Council but sub ject to any limitations prescribed by the regulations.

(3) The Treasurer may dispose of any securities pur chased under this section. 28.7

(1) All moneys received by the Investment Fund, including earnings, shall be credited forthwith to the In vestment Fund in one or more accounts in a bank, treasury Ibranch or 'Other similar insti1tution, and such moneys shall be used only in accordance with the provisions of this Part.

(2) No moneys shall be credited to an account referred to in subsection (1) other than moneys received by the Fund pursuant to this Part.

(3) All dividends, interest, proceeds of the sale of secur ities and other receipts and all brokerage fees, taxes, oosts of purchasing securities and other disbursements of the Investment Fund shall be paid into, paid out of or charge abl'e against, the account or accounts kept under subsection (1), and the profit or l'0ss, subject to (

a) any administrative directive made by the Treasury Board, 'Or (

b) any regulati'Ons made by the Lieutenant Governor in Council, shall be allocated to each depositor in prop'Ortion to his net contributions in the Investment Fund. S

28.7 Administration of Investment Fund. 5

(4) The Treasurer shall keep proper books and accounts for the Investment Fund, including a separate account for each fund or class of funds contributed by each depositor and sh'Owing his participation in the Investment Fund, in cluding all deposits, all withdrawals, and the net earned revenue allocated under subsection (3). ( 5) As soon as practicable after the 'end of ea:ch month, the Treasurer shall render to each depositor a true state ment 'Of his account in the Investment Fund. 28.8

(1) The Treasurer shall transfer from the Invest ment Fund to any designated fund of the Treasurer, to the extent 'Of the participation of the designated fund in the Investment Fund, any m'Oneys that then are required by the Treasurer for expenditure.

(2) Upon being directed by a depositor to do so, the Treasurer shall transfer from the Investment Fund to the designated fund of the depositor specified in the direction, to the extent of the participation 'Of the designated fund in the Investment Fund, any moneys that are then required by the depositor for expenditure.

Section 33 is amended (

a) by striking out subsection (4) and by substituting the foUowing:

(4) All cheques and orders shall be (

a) issued by mail to the payee, 'Or (

b) delivered to the payee by any other means appr'Oved by the Treasurer. (

b) by adding the following subsection:

(6) A purchas'e of securities by transfer under secti'On 16.1, 'Clause (

a) is not subject to this Part.

Section 40 is struck out and the folloiwing is sub stituted: 40. The Treasurer may advance to any department any sum required as an acc'Ountable advance for the purpose 'Of making refunds for moneys deposited, or required to be deposited, in the General Revenue Fund, but each such advance shall be fully accounted for by that department and any unexpended balance shall be repayable to the Treasurer on demand by him. 6. The following

section is added after

section 40: 40.1

(1) In this section, "Cr'Own agency" has the mean ing given to it by

section 28.1, subsection (1), clause (a). 6

28.8 Trans[e!l" out orf 'LnvestmelJ1lt Fund of moneY's Tequired fo·r expenditure by a depositor. 4.

Section 33 (4) presently reads:

(4) All completed cheques or orders shall with all dispatch be for ward€d by the Treasury Department by mail or delivered to the per sons entitled thereto. The object of new !SIUbsection (4) is to elliminate any OPPODtu nilties f'Or the unlawful conversion of Governmen1t disbursements. The new subsection ('6) excepts a purcha'se of securities made by aUJ1;omatlic bank ,tr,ansrfeT.

Section 40 presently readrs: 40. The Treasurer, without any further autho'rity than is provided by this section, may from time to time advance to any department or part thereof any sum required as' an acoountable advance fOT the purpose of making refunds for moneys deposited or required to be deposited in the General Revenue Fund. The new

section 40 makes all depaiftmental advances repayable on demand. 6. This new

section makes advances out of the General Revenue Fund to Government agencies and earnings ret'ained by such agencies liable to the payment of intere'st. 6

(2) Notwithstanding the prOVISIons of any other Act or any order of the Lieutenant Governor in Council, a Crown agency shall pay interest to the Treasurer upon (

a) any advance frOln the General Revenue Fund to the Crown agency, and (

b) any earnings of the Crown agency not remitted to the General Revenue Fund as soon as practicable after the close of the Crown agency's fiscal year, at the rate or rates to be fixed by the Treasury Board.

(3) In the case of a Crown agency in existence at the commencement of this section, the interest payable under subsection (2) shall he computed from April 1, 1973.

(4) Notwithstanding subsection (2), the Treasury Board may exempt a Crown agency from the payment of all or any interest under this section. 7. Sectio'n 42 is amended by striking out subsection (2) and by substituting the, following:

(2) Every advance made under subsection (1) ,shall be fully accounted for with proper vouchers for all disburse ments made and every unexpended balance shall be repay able to the Treasurer on den1and by him. 8. The following

section is added after

section 58: 58.1 The Auditor shall exam,ine, check and audit (

a) the accounts of the Consolidated Cash Investment Trust Fund under

section 28.7, subsection (4), and (

b) all transfers and directions under

section 16.1.

Section 86 is struck out and the following is substi tuted therefor: 86.

(1) Subj'ect to any special provisions relating there to, moneys in any sinking fund created for the repayment of any loans or securities issued may be invested and re-invested in any of the classes of securities in which moneys in the Consolidated Cash Investment Trust Fund may be invested under

section 28.6.

(2) The Treasurer may dispose of any securities pur chased under .subsection (1). 10. The following

Schedule is added at the end of the Act: 7

7. Sedion 42, subsection (2) presently reads:

(2) Every advance shall be fully ace-ounted for wHh proper vouchers for all disbursements made. and any unexpend,ed balance shall be re turned before the close of the current fis:cal year during which the ad vance was made. This amenJdmentt makes expense advances repayable on demand instead of before the close of the fiS'ea~ year. 8. This new

section extends the post-audirt to the Consclidated Calsh Investment Truslt Fund and tc auto:ma,t;ilc bank wansfers. 9. Secrt:!iorn 816 1 presently reads: 86. Subject t'O any special provisions relating thereto, money in any sinking fund created fair ,the repayment of any loans ra[sed lOr securities issued may from time to time be invested (

a) in securities of the Government of Canada or of any of .the prov inces of Canada, or (

b) in securities the payment of whlich is guaranteed by the Govern ment of Canada ,or of any of the pro:vinces of Canada, or (

c) in securities of any dty, town, village, county, municipal district, county school division, school district or hOlspital district in Al berta, or (

d) in securities issued or guaranteed by the International Bank for Reconstruction and Development established by the agreement for an International Bank for Reconstruction and Development approved by the Bretton Woods Agreement Act, (Canada), if the securities are payable in the currency of Canada or .the "United States ,of America, or (

e) in certifkates of depos'it, deposit receipts or other evidences of indebtedness given by a bank or treasury branch in consideration of a deposit or deposits made w:Lth the bank or ,treasury branch. Th~is amendment makes the power to invest sinking funds uni form with the powers to :rnveslt the Consolidalted Ca.sh Investment Trust Fund and surplus mcney in the General Revenue Fund. 10. The Sclhedule set's out the Ministers and Government offi cials and ,agencies ,and funds,accounts, moneYis and invesltments sUibject to the Consol~dated Oash IrnvesltJrnent Truslt Fund upon the coming into force 'Of the Bill. 7

SCHEDULE (Sections 28.1 (

c) and 28.3) CONSOLIDATED CASH INVESTMENT TRUST FUND DEPOSITORS AND DESIGNATED FUNDS Depositor 1. Provincial Treasurer Designated Fund (

a) Gene'ral Revenue Fund. (

b) General Trust Account. (

c) Sinking fund under sec- tion 74 of The Financial Administration Act. (

d) Sinking funds under any other Acts and maintain ed by the Treasurer. (

e) Central Registry A,ssur ance Fund under The Chattel Security Regi tries Act. (

f) Homestead Lease Loan Fund under The Home stead Lease Loan Act. (

g) Metis Population Better ment Trust Account -

Part I (General), under

section 1 of Alberta Reg ulation 112/60. (

h) Metis Population Better ment Trust A0count -

Part II (Local), under

section 2 of Alberta Reg ulation 112/60. 0) Municipal Loans Revolv ing Fund under The MUr nicipal Capital Expendi ture Loans Act. (

j) Public Service Pension Account under The Pub lic Service Pension Act. (

k) Pension and Allowance A0count.

(1) School Foundation Pro gram Fund under

section 129 'Of The School Act. (

m) Students Loan Fund u~ der The Students F~ nance Act. (

n) EducationaJI Opportun ity Fund under The Students Finance Act. 8

2. Attorney General 3. Miinilster of the Environment 4. Minilster of Lands and Forests 5. Minis.ter of Municipal Affairs 6. A,lherta Environmental Research Trust 7. A'lherta Health Oare Insur!ance Commis,sion

(0) Bond redemption a(,counts. (

p) Coupon 'a10colUnts. (

q) Arthur Lewis Sifton Es,tate. (

r) MNdred Rowe Weston ESltate. (

a) Fines and Costs Distri butionT'rust Account un der The

Summary Con victions Act. (

a) Stock advance fund under

section 98 of The Water Resources Act. (

a) Wildlif'e Damage Fund under

section 9 (2) of The Wildlife Act. (

b) Fish and Wildlife Habi tat Fund under secti'On 10 (2) 'Of The Wildlife Act. (

a) Alberta Planning Fund under

section 11 (1) 'Of The Planning Act. (

a) All m'Oneys and invest ments of the Trust. (

a) All moneys of the Commission. 8. Alberta Hospital Services (

a) Commisls.ion. AlI moneys and inves.t ments of tJhe Commission, d'lJJClluding sinking funds. 9. A'Lberla Municipal Financing Corporation (

a) All moneys and invest m'ents of the Corporation, including the deposit ac count under

section 28 (1) 'Of The Alberta M~mi cipal Financing Corpora tion Act. 10. Alberta Resou:t~ces (

a) All moneys and invest ments 'Of the C'Orporation, including sinking funds and reserve funds. Railway Corporation 11. Board 'Of Tirustees under (

a) The Wheat Board Money Trust Act. All moneys and invest ments held by the Board of Trustees. 11. This Act comes into !OYfce, on a date to be fixed by Proclamation. 9 Title: 1973 (17th, 2nd) Bill 56, The Financial Administration Amendment Act, 1973

Document details

Collection	Alberta — Bills
Citation	L17 S2 5190
Type	bill
Volume / chapter	L17 S2 5190
Language	en
Format	json
Source	PROVINCIAL
Identifier	e8929eb2e2482a0af7bf226e1f16de9f07c857c8

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