2019 Legislative Session: 4th Session, 41st Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE DAVID R. P. EBY

ATTORNEY GENERAL

BILL 36 – 2019

GAMING CONTROL AMENDMENT ACT, 2019

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

Province of British Columbia, enacts as follows:

SECTION 1: [Gaming Control Act,

section 2] increases the maximum number of directors of the lottery corporation to 11.

Section 2 (1) of the Gaming Control Act, S.B.C. 2002, c. 14, is amended by striking

out " not more than 9 directors " and substituting " not more than 11 directors ".

SECTION 2: [Gaming Control Act, Division 4 of

Part 2] provides for the sharing of annual provincial gaming revenue with the BC First Nations

Gaming Revenue Sharing Limited Partnership.

2 The following Division is added to

Part 2:

Division 4 – First Nations Revenue Sharing

Definitions for this Division

14.1

(1) In this Division:

"actual net income of the lottery corporation" , in relation to a fiscal year, means

the net income of the lottery corporation as reported in the audited financial statement

for the fiscal year submitted by the lottery corporation under

section 11

(

a) less the amount, as reported in the audited financial statement in which the

net income of the lottery corporation is reported, that the lottery corporation makes

provision for in that fiscal year for any payments it is obliged to make under agreements

entered into in respect of lotteries under

section 7 (1) (c), and

(

b) as otherwise adjusted in accordance with the long-term agreement;

"annual revenue sharing entitlement" has the same meaning as in the interim agreement;

"estimated net income of the lottery corporation" , in relation to a fiscal year, means

the estimated net income of the lottery corporation for the fiscal year as presented

to the Legislative Assembly in the main estimates under the Budget Transparency and Accountability Act ;

"interim agreement" means the Interim BC First Nations Gaming Revenue Sharing and

Financial Agreement dated August 2, 2019, as amended from time to time, between the

government, the partnership, the First Nations Summit, the British Columbia Assembly

of First Nations and the Union of British Columbia Indian Chiefs;

"long-term agreement" means an agreement, as amended from time to time, respecting

the sharing of annual provincial gaming revenue between the government, the partnership,

the First Nations Summit, the British Columbia Assembly of First Nations and the Union

of British Columbia Indian Chiefs, but does not include the interim agreement;

"partner" means a limited partner of the partnership;

"partnership" means the BC First Nations Gaming Revenue Sharing Limited Partnership

or its successors or assigns.

(2) The minister must publish in the Gazette the interim agreement, the long-term

agreement and any agreement amending the interim agreement or the long-term agreement.

Application

14.2

(1) Subject to subsection (2), this Division applies

(

a) if there is a long-term agreement in effect, and

(

b) during the period beginning on April 1, 2021 and ending on the earlier of the

following dates:

(

i) March 31, 2045;

(ii) the date on which the long-term agreement referred to in paragraph (

a) is terminated.

(2) The obligations to make payments under sections 14.3 and 14.4 do not apply during

any period in which payments are suspended in accordance with the long-term agreement.

Partnership's entitlement to lottery corporation revenue

14.3

(1) For each fiscal year beginning on or after April 1, 2021, the lottery corporation

must pay to the partnership, by paying to the government on behalf of the partnership,

7% of the actual net income of the lottery corporation for the fiscal year.

(2) The following payments for each fiscal year discharge the obligation of the lottery

corporation to make payments to the partnership under subsection (1) in that fiscal

year:

(

a) the payments under sections 13 and 14 into the consolidated revenue fund;

(

b) the minister's payments under

section 14.4.

(3) For certainty, the government is not, under this Division, an agent of the partnership.

Annual payments to partnership

14.4

(1) On or before April 30 of each fiscal year beginning on or after April 1, 2021,

the minister must pay from the consolidated revenue fund to the partnership 7% of

the amount that is equal to the estimated net income of the lottery corporation for

the fiscal year less any adjustment under subsection (4) for the second preceding

fiscal year.

(2) For each fiscal year beginning on or after April 1, 2021, if the actual net income

of the lottery corporation for the fiscal year exceeds the estimated net income of

the lottery corporation for that fiscal year, the minister must pay from the consolidated

revenue fund to the partnership the amount that is equal to 7% of the difference between

the actual net income of the lottery corporation for that fiscal year and the estimated

net income of the lottery corporation for that fiscal year.

(3) A payment under subsection (2) for a fiscal year must be made on or before the

earlier of the following dates:

(

a) the date that is 60 days after the public accounts for the fiscal year are made

public under the Budget Transparency and Accountability Act ;

(

b) the date specified in the long-term agreement.

(4) For each fiscal year beginning on or after April 1, 2023, if the actual net income

of the lottery corporation for the second preceding fiscal year is less than the estimated

net income of the lottery corporation for the second preceding fiscal year, the amount

payable under subsection (1) for the fiscal year must be reduced by the amount that

is equal to 7% of the difference between the actual net income of the lottery corporation

for the second preceding fiscal year and the estimated net income of the lottery corporation

for the second preceding fiscal year.

(5) At the partnership's written request in relation to a payment for a fiscal year,

the minister must pay from the consolidated revenue fund directly to a partner that

partner's share determined in accordance with the long-term agreement, in which case

the payment to the partnership under subsection (1) or (2) must be reduced by an amount

equal to the minister's payment to the partner.

One-time adjustment for interim agreement overpayment

14.5

(1) This

section applies if the amount of $196 840 000 exceeds the total of the partnership's

annual revenue sharing entitlements for the fiscal years beginning on April 1, 2019

and April 1, 2020.

(2) For the fiscal year beginning on April 1, 2022, the amount otherwise payable

under

section 14.4 (1) for that fiscal year is reduced by the amount of the excess

referred to in subsection (1) of this section.

Application of Financial Administration Act

14.6

Despite the Financial Administration Act , sections 21 (3), 27 (1) (

a) and 45 (1) of the Financial Administration Act do not apply to an appropriation under

section 14.4 of this Act.

Commencement

This Act comes into force on the date of Royal Assent.

Explanatory Notes

SECTION 1: [Gaming Control Act,

section 2] increases the maximum number of directors of the lottery corporation to 11.

SECTION 2: [Gaming Control Act, Division 4 of

Part 2] provides for the sharing of annual provincial gaming revenue with the BC First Nations

Gaming Revenue Sharing Limited Partnership.

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c) Queen’s Printer, Victoria, British Columbia, Canada