British Columbia Order in Council — Order under Insurance for Crops The Minister to sign the Canada-British Columbia Crop Insurance Agreement - Amending Agreement No (O.C. 589/2000)

O.C. 589/2000

British Columbia — Orders in Council

Presiding Mem Cr o ve ouncil PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Cdtincit•No. 589 , Approved and Ordered APR 2 0 2000 Lieutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council. orders that approval is given to the Minister of Agriculture, Food, and Fisheries on behalf of the Province, to sign the Canada-British Columbia Crop Insurance Agreement - Amending Agreement No. 2, substantially in the form attached. Minister Agricu turc, Food and Fisheries (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Insurance for Crops Act (RSBC 1996, c. 229. s.

I) MAR 22 '00 11:31PM MAF/AGRI.RISK MGMT. P.3/13 CANADA-BRITISH COLUMBIA CROP INSURANCE AGREEMENT AMENDING AGREEMENT No. 2 THIS AMENDING AGREEMENT is made BETWEEN: THE GOVERNMENT OF CANADA (referred to as "Canada"), as represented by the Minister of Agriculture and Agri-Food (referred to as the "Federal Minister"), OF THE FIRST PART - and - THE GOVERNMENT OF BRITISH COLUMBIA (referred to as "the Province"), as represented by the Minister of Agriculture, Food and Fisheries (referred to as the "Provincial Minister"), OF THE SECOND PART.

WHEREAS the Farm Income Protection Act, S.C. 1991, c. 22, authorizes the Federal Minister, with the approval of the Governor in Council, to enter into an agreement with a Province for the purpose of providing for the establishment of a Crop Insurance program;

WHEREAS the Insurance for Crop Act, R.S.B.C. 1996, c. 229, which is referred to as the "Provincial Act", makes provision for the operation of a Crop Insurance program and authorizes the Provincial Minister, with the approval of the Lieutenant Governor in Council, to enter into an agreement with Canada for that purpose;

WHEREAS the Federal Minister and the Provincial Minister entered into an agreement for the operation of a Crop Insurance program in the Province of British Columbia on January 21, 1998, and an amending agreement No. 1 on March 29, 1999, which together are referred to as the Agreement;

WHEREAS the Federal Minister and the Provincial Minister have the appropriate authorities to enter into this Amending Agreement; and Canada-British Columbia Crop Insurance Agreement • Amendment No. 2 21/20'd 06t72, T98 EIS? UN11079>1 dUN 'D'8

MAR 22 '00 11:31PM mAF/AGRI.RISK MGMT. P.4/13 - 2 -

WHEREAS the Federal Minister and the Provincial Minister have agreed to further amend the Agreement: (

a) to allow for Canada and the Province to make premium contributions for the 1999 and 2000 crop years to the optional coverage level (Tier 2), (

b) to separate the Crop Insurance Fund ilto the following two accounts, (

c) to stipulate that the Province is wholly responsible for any deficit financing, (

d) to allow for either party to terminate the Agreement by giving two years' written notice, and (

e) to include minor revisions to other terms and conditions of the Agreement. THEREFORE the parties agree as follows: I. Subsection 1.(:l4) is revoked and the following substituted therefor: "1.(14) "Minimum Premium" means a payment made by Producers that is deposited into the minimum premium account which shall be accounted for icparately within the Crop Insurance Fund." 2. Subsection 1.(i 6) is revoked and the following substituted therefor: "1.(16) "Premiums" means the amount of money assessed by the Province that must be levied in a crop year to allow the Insurance program to be self-sustaining" 3.

Subsection 1.(19) is revoked and the following substituted therefor: "1419) "Production year" means the year beginning on November 1 and ending on October 31 in which the Crop is expected to be harvested." Canada-British Columbia Crop Insursnce Agreement - Amendment No. 2 ...13 : hO'd 06PL 198 OS? UN11013A dOW *3'8 b2:01 000E-TE-dU14

MOP 22 '02 11I32AM MAF/AGRI.RISK MGMT, P.5/13 - 3 - 4. Subsection 1.(24) is revoked and the following substituted therefor: "1.(24) "Tier 1 and Tier 2 Coverage": "Tier 1 Coverage" means the 60 percent Coverage level, Rider and extended coverage that is cost-shared equally by Canada and the Province. The details of this coverage are set out in the Operational Document. "Tier 2 Coverage" means coverage for anything not covered in Tier 1.

Premiums arc paid 100 percent by Producers except in the 1999 and 2000 Production years when, for designated benefits under this coverage, the Producer will pay 55 percent of the designated Premiums and Canada and the Province will cost-share equally 45 percent of the designated Premiums. The details of this coverage including the designated benefits and designated Premiums are set out in the Operational Document." 5. Subsection 10.(1) is revoked and the following substituted therefor: "10.

(1) Canada shall pay to the Province, providing that the Insurance program meets the requirements of the Regulations and the Producers have paid the required Minimum Premium: (

a) in respect of each Fiscal year an amount equal to 50 percent of all Premiums for Tier 1 Coverage, for the Production year ending within the Fiscal year; and (

b) in respect of the 1999-2000 and 2000-01 Fiscal years an amount equal to 22.5 percent of designated Premiums for Tier 2 Coverage for the Production year ending within the Fiscal year." 6. Paragraph 10.(3)(

a) is revoked and the following substituted therefor: "10.(3)(

a) Canada shall pay Contributions for Premiums to the Province for the Insurance program once the Minimum Premium has been collected from Producers providing the Responsible officer delivers to the Federal Minister, not more frequently than monthly, a claim Canada-British Columbia cop Insurance Agreement • Amendment No. 2 .../4 2T/SO'd OSPL T98 OSE 0141013>i Ali,4 SE:OT 000E-T-Nt-Iw

MAR 22 '00 11:32Pm mAF/AGRI.RISK MGmT. P.6/13 - 4 - containing the following information based on the Production year ending within the Fiscal year: (

i) the total Premiums payable by Producers, by the Province and Canada during the period of the claim and cumulatively by crop for coverage under Tier 1 and Tier 2 (separated into those excluding designated Premiums and those including designated Premiums); (ii) the total Minimum Premium collected during the period of the claim; and (iii) other information as may be required and that is set out in the Operational Document; Or (

b) Canada shall pay to the Province advances for Premiums to the insurance program not more frequently than monthly, on the basis of the budget and cashflow statements referred to in subsection11.(2)." 7. Subsection I0.(6) is revoked and the following substituted therefor: "10.

(6) Canada shall pay to the Province in respect of each Fiscal year an amount equal to 50 percent of the administrative expenses incurred by the Province in that Fiscal year in respect of the administration of the Insurance program for Tier 1 and Tier 2 Coverage. Canada shall pay to the Province advances for these administrative expenses not more frequently than monthly, on the basis of the budget and cashflow statements referred to in subsection 11.(2).

Administrative expenses eligible for payment by Canada shall be net of any administrative revenues as defined in subsection 10.(7) and shall not include amounts accounted for in the minimum premium account as set out in paragraph 11.(6)(b)." Canada British Columbia Crop Insurance Agreement - Amendment No. 2 .../5 ET'90'd 06V2, 19B OSE UNM013A 3tiW .D.E1 SE:0T 000E-12-80W

nrt cc uu rolr.mk,K1.mlzr■ P. 7/1.3 - 5 - 8. Subsection 10.(7) is revoked and the following substituted therefor: "10.

(7) Administrative revenue is any revenue earned by the Province in the course of operating the Insurance program, including, without limitations, late filing penalties and monies received from the sale of assets, data or technology but excluding Premiums and interest therefrom, amounts deposited into the minimum premium account as set out in paragraph 11.(6)(b), reinsurance indemnities for crop losses, advances to the indemnity account, charges on overdue accounts and interest on ti.: foregoing exclusions." 9. Subsection 11.(1) is revoked and the following substituted therefor: "11.

(1) The Province shall pay: (

a) in respect of each Fiscal year an amount equal to 50 percent of all Premiums for Tier 1 Coverage for the Production year ending within a Fiscal year of the Insurance program, and 50 percent of the administrative expenses incurred in that Fiscal year in respect of the administration of the Insurance program for Tier 1 and Tier 2 Coverage. Administrative expenses eligible for payment by the Province shall be net of any administrative revenues as defined in subsection 10.(7) and shall not include amounts accounted for in the minimum premium account as set out in paragraph 11.(6)(b); and (

b) in respect of thel 999-2000 and 2000-01 Fiscal years, an amount equal to 22.5 percent of designated Premiums for Tier 2 Coverage for the Production year ending within the Fiscal year." 10. Subsection 1 1 .(2) is revoked and the following substituted therefor: "11.

(2) Prior to March 1, a budget for the following Fiscal year, approved by the Responsible officer, shall be provided to Canada. Prior to August 1, a budget for the current Fiscal year, approved by the Provincial Legislature, shall be provided to Canada by the Responsible officer. For each three-month period ending on the last day of June, September, December and March of each year, the Responsible officer Canada•British Columbia Crop Insurance Agreement • Amendment No. 2 Z. /22'd 06t71. t3a OS?. ON11013A 3tiW 'D'Ef SE : 0 t 000E- I 2-HUW

MAR 22 '00 11:33AM MAF/AGRI.RISK MGMT. P. 9/13 - 6 - shat I provide Canada with a cashflow statement certified by the Responsible officer by the 15th day of the month following each period. The budget and cashflow statements shall contain the following: (

a) for prior quarters, the actual Premiums collected and, for subsequent quarters, the projections of Premiums to be collected, cumulatively for the year, from Producers, the Province and Canada based on the Production year ending within the Fiscal year; (

b) for prior quarters, the actual Indemnities paid and Reinsurance indemnities for crop losses received and, for subsequent quarters, the projections of Indemnities to be paid and Reinsurance indemnities for crop losses to be received, cumulatively for the year based on the Production year ending within the Fiscal year; (

c) for prior quarters, the actual reinsurance premiums for crop loss liabilities paid and, for subsequent quarters, the projection of the reinsurance premiums for crop loss liabilities, cumulatively for the year based on the Production year ending within the Fiscal year; and (

d) for prior quarters, the actual administrative expenses incurred by category and the Administrative Revenue received by the Province in the administration of the Insurance Program and, for subsequent quarters, the projections of administrative expenses to be incurred by category and Administrative Revenue to be received, cumulatively for the year and distributed between the Province and Canada based on the Fiscal year." 11. Subsection 11.(6) is revoked and the following substituted therefor: "11.

(6) The Province shall establish and maintain a Crop Insurance fund with an indemnity account and a minimum premium account as follows: (

a) Canada's share of Premiums, the Province's share of Premiums, Producers' share of Premiums, reinsurance indemnities far crop Canada•8ritish CoItuabla 0-op Insurance Agreement . Amendment No. 2 ...17 £t/80'd 0672, 198 OS UN1' 013M dUW .D.8 92:01 000E-1E-dUW

. MAR 22 '00 11:33AM MAF/AGRI.RISK MGMT. P.9/13 - 7 - losses, advances by Canada or the Province to cover crop losses, charges on overdue accounts and interest therefrom shall be deposited into the indemnity account; the indemnity account shall only be used to: (

i) pay indemnities under Insurance contracts; (ii) pay the premiums for reinsurance of any portion of the crop loss liabilities of the Province under the Insurance Program; and (iii) repay those amounts not derived from Premium receipts that went paid or advanced to the indemnity account by the Province or Canada for the payment of indemnities under Insurance contracts; (

b) Minimum Premium, reinsurance reimbursements for loss settlement costs paid by the minimum premium account and interest therefrom shall be deposited into the minimum premium account; the minimum premium account shall only be used to: (

i) pay loss settlement costs eligible for reimbursement in accordance with the Province's reinsurance policy, (ii) pay the premiums for reinsurance of any portion of loss settlement costs under the Insurance program, and (iii) other third party loss settlement costs; (

c) for reporting purposes, the minimum premium account shall be reported to Canada twice a year, based on the Production year, in the prescribed form which is set out in the Operational Document: (

i) by April 30 for the current Production year using forecasted figures for amounts to be received and expended from the account, and Canaria-British Columbia Crop Insurance Agreement - Amendment No. 2 .../8 1-A1'd o'r,c dt41-13A dIJW .D.8 92:01 000E-T2-6W

MAR 22 '00 11:33AM MAF/AGRI.RISK MGMT. P.10/13 - 8 - (ii) by November 30 following the end of the current Production year using actual amounts received and expended from the account." 12. Subsection 11.(7) is revoked and the following is substituted therefor: "11.

(7) By June 30 of each year, the Province shall provide the Federal Minister with audited financial statements and an audited reconciliation of the minimum premium account based on the Production year ending within the previous Fiscal year and with an audited reconciliation of administrative expenses incurred in the Fiscal year ending within the previous Production year. The details for reporting the foregoing requirements shall be set out in the Operational Document."

Section 12 is revoked and the following substituted therefor: "12. The Province shall be responsible for funding 100 percent of any deficits in the indemnity account. The terms and conditions for handling any costs of deficit financing for the indemnity account shall be set out in the Operational Document." 14. Subsection 20.(1) is revoked and the following substituted therefor: "20.

(1) This Agreement may be terminated as follows: (

a) by both parties at any date mutually agreed upon in writing, (

b) by the Province upon providing notice in writing to Canada of its intent to terminate two complete Fiscal years prior to termination, or (

c) by Canada upon providing notice in writing to the Province of its intent to terminate two complete Fiscal years prior to termination." Canada-British Columbia Crop Insurance Agreement • Amendment No. 2 •••/9 Mi'd Of;t,:, 198 OSE UNMO1DA AUW 8 9E :OT 000E-I2-dOW

MHK GC 11;..14HM MR./HGNI..R.L5K MGMT. P.11/13 -9 - 15. Subsection 20.(3) is revoked and the following substituted therefor: "20.

(3) If this Agreement is terminated and a new agreement is entered into, any surplus or deficit in the indemnity account that is outstanding at the time of termination shall not be extinguished and provision shall be made for the continuation of the surplus or deficit in the new agreement." 16. Subsection 20.(4) is revoked and the following substituted therefor: "20.

(4) If this Agreement is terminated and no new agreement is entered into, any surplus or deficit in the indemnity account shall be the responsibility of the party that holds the account." 17. Subsection 20.(6) is added to the Agreement: "20.

(6) If this Agreement is terminated and a new agreement is entered into, any remaining balance in the minimum premium account shall not be extinguished and provision shall be made for the continuation of the balance in the new agreement." 18. Subsection 20.(7) is added to the Agreement: "20.

(7) If this Agreement is terminated and no new agreement is entered into, any remaining balance in the minimum premium account shall be deducted from any administrative expenses not yet charged to Canada or the Province. Any amount remaining that is not deducted from administrative expenses shall be paid equally to Canada and the Province." 19. Sections 21 and 22 of the Agreement are revoked. 20. In all other respects the Agreement is hereby ratified and confirmed and is in full force and effect. 21 This Amending Agreement is to be read together with and forms part of the Agreement.

Canada-Ilritish Columbia Crop Insurance Agreement - Amendment No. 2 .../1 0 I 9 U i UNMOTJA =i1d14 .7).8 000E-TZ-ddW

21'd 74101 - 10- 22. This Amending Agreement is effective April 1, 1997.

IN WITNESS WHEREOF this Agreement has been executed on behalf of Canada by the Minister of Agriculture and Agri-Food and on behalf of British Columbia by the Minister of Agriculture, Food and Fisheries. Signed in counterpart; all counterparts taken together shall constitute one Agreement. Witness Date Minister of Agriculture and Agri-Food Witness Date Minister of Agriculture, Food and Fisheries Canada-British Columbia Crop Insurance Agreement • Amendment No. 2 (LI'd ubrL 190 OSE.' UNM013A dtikl ,L2:01 000E—TE-60W

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 589/2000
Type	order_in_council
Volume / chapter	arc oic 0589 2000
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	f55217807bfc228e30cb1a0a2d69deb6f9424d4c

Source file is stored in the law ingest library (pdf).