An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act (S.C. 2023, c. 16)

19 Subsection 45(2) of the Act is replaced by the following:

Marginal note:2018, c. 27, par. 414(u)(E)

• 20 (1) Paragraphs 49(a) to (c) of the Act are replaced by the following:

  • (a) assist First Nations and entities referred to in subsection 50.1(1) in developing the capacity to meet their financial management requirements;

  • (a.1) assist First Nations and entities referred to in subsection 50.1(1) in developing and implementing laws and by-laws respecting financial administration;

  • (b) assist First Nations and entities referred to in paragraphs 50.1(1)(a) to (c) in their dealings with different levels of governments respecting financial management, including matters of accountability and shared fiscal responsibility;

  • (c) assist First Nations and entities referred to in paragraphs 50.1(1)(a) to (c) in the development, implementation and improvement of financial relationships with financial institutions, business partners and different levels of governments, to enable the economic and social development of First Nations and of those entities;

• Marginal note:2018, c. 27, par. 414(u)(E)

  (2) Paragraphs 49(g) to (i) of the Act are replaced by the following:

  • (g) provide monitoring and reporting services respecting financial management systems and financial performance;

  • (g.1) provide First Nations and entities referred to in subsection 50.1(1) with monitoring and reporting services respecting the implementation of laws and by-laws respecting financial administration and the compliance of those laws and by-laws with applicable standards;

  • (h) provide services respecting the co-management and third-party management of local revenues and other revenues;

  • (i) provide advice, policy research and review and evaluative services on the development of fiscal arrangements between different levels of governments and First Nations, as well as on the development of fiscal arrangements between different levels of governments and entities referred to in paragraphs 50.1(1)(a) to (c);

  • (j) develop, implement, test and evaluate, as well as conduct research with respect to, proposals and pilot projects related to the purposes set out in the other paragraphs of this section;

  • (k) assist First Nations, entities referred to in subsection 50.1(1), other levels of government and public and private organizations in the development and implementation of fiscal and economic proposals that contribute to responding to the Truth and Reconciliation Commission of Canada’s Calls to Action and to implementing the United Nations Declaration on the Rights of Indigenous Peoples; and

  • (l) collect data, publish statistical information and conduct research and analysis on matters related to the purposes set out in the other paragraphs of this section.

21 The Act is amended by adding the following after section 50:

Marginal note:2018, c. 27, s. 398

• 22 (1) Paragraphs 50.1(1)(c) and (d) of the English version of the Act are replaced by the following:

  • (c) an Indigenous group that is a party to a treaty, land claims agreement or self-government agreement with Canada or with a province, or an entity established under, or as a result of, such a treaty or agreement;

  • (d) an entity — owned or controlled by one or more First Nations or entities referred to in paragraph (a), (b) or (c) — whose mandate is primarily to promote the well-being or advancement of Indigenous people; or

• Marginal note:2018, c. 27, s. 398

  (2) Paragraph 50.1(1)(e) of the Act is replaced by the following:

  • (e) a not-for-profit organization established to provide public services to Indigenous groups or Indigenous persons, including services with respect to social welfare, infrastructure, housing, recreational or cultural activities, health or education.

23 The Act is amended by adding the following after section 50.1:

Marginal note:2018, c. 27, par. 414(v)(E)

24 Section 51 of the Act is replaced by the following:

Marginal note:2018, c. 27, par. 414(v)(E)

• 25 (1) Subsection 52(1) of the Act is replaced by the following:

  Marginal note:Imposed co-management — local revenues

  • 52 (1) The Board may, on giving notice to the council of a First Nation, require the First Nation to enter into a co-management arrangement in respect of the First Nation’s local revenues, including its local revenue account,

    • (a) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues; or

    • (b) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

• Marginal note:2018, c. 27, par. 414(v)(E)

  (2) The portion of subsection 52(2) of the Act before paragraph (e) is replaced by the following:

  • Marginal note:Powers

    (2) Under the co-management arrangement, the Board may

    • (a) recommend amendments to a law of the First Nation made under any of paragraphs 5(1)(a) to (f) or subsection 9(1);

    • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its local revenues;

    • (c) recommend improvements to the First Nation’s financial management system with respect to its local revenues;

    • (d) recommend changes to the delivery of programs and services paid for out of the First Nation’s local revenues;

• Marginal note:2018, c. 27, par. 414(v)(E)

  (3) Paragraph 52(2)(f) of the Act is replaced by the following:

  • (f) with respect to local revenues, exercise any powers delegated to the Board under a law of the First Nation or under an agreement between the First Nation and the Board or the First Nation and the First Nations Finance Authority.

• Marginal note:2018, c. 27, par. 414(v)(E)

  (4) The portion of subsection 52(3) of the Act before paragraph (d) is replaced by the following:

  • Marginal note:Termination by Board

    (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

    • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues;

    • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by local revenues, the First Nation has remedied the default;

    • (c) the co-management arrangement is no longer required; or

• Marginal note:2018, c. 27, par. 414(v)(E)

  (5) Subsection 52(5) of the Act is replaced by the following:

  • Marginal note:Notice

    (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.

26 The Act is amended by adding the following after section 52: