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Bill S-16

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S-16
First Session, Thirty-eighth Parliament,
53 Elizabeth II, 2004
SENATE OF CANADA
BILL S-16
An Act providing for the Crown’s recognition of self-governing First Nations of Canada

first reading, October 27, 2004

THE HONOURABLE SENATOR ST. GERMAIN

2539

SUMMARY
This enactment recognizes the powers of First Nations peoples inhabiting lands reserved for their communities to exercise the jurisdiction and powers inherent in their status.
It provides for a process whereby a First Nation community may opt to come under its provisions by following the steps provided, and recognizes the jurisdiction of First Nations that do so. A referendum must be held on the subject and the proposal, including a constitution, must be put before the electors. The constitution must provide at least for accountability and for limits on the law-making powers of the First Nations government. The enactment applies only to recognized land-based indigenous communities.
First Nations lands are named aboriginal lands. They include reserve lands, lands acquired or owned by a First Nation before or after it comes under the Act that are declared by the Governor-in-Council to be its lands, treaty or land claim lands confirmed through negotiation or through the successful assertion of a claim, and any lands acquired by the First Nation before or after it comes under the Act as compensation for the expropriation of other land.
The enactment recognizes the jurisdiction of First Nations to legislate in specified fields, and reconciles that jurisdiction with the jurisdiction exercised by federal and provincial governments. The limits of a First Nation’s jurisdiction are set out in its constitution, and its law-making powers are limited by several factors, including the following:
(a) except in very limited areas, they are applicable only on the lands of the First Nation;
(b) they do not override federal laws related to compelling legislative objectives consistent with the fiduciary relationship between the Crown and aboriginal people;
(c) they may be limited by the First Nation’s constitution;
(d) in certain areas, such as environment, they are specifically limited; and
(e) the penalties that may be established are limited.
The First Nation has exclusive jurisdiction over its own laws in relation to the laying of charges and the prosecution of persons who contravene its laws. The enactment sets forth the relationship between the First Nation and the province in which it is situated. It also provides for the management of the First Nation’s land and finances.
The enactment contains a draft sample constitution, but a different constitution may be adopted, provided it is consistent with the Act and covers specified subject matters. The constitution must be approved by the people, and may be amended only by them according to its terms. A First Nation’s government cannot amend its constitution.

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1st Session, 38th Parliament,
53 Elizabeth II, 2004
senate of canada
BILL S-16
An Act providing for the Crown’s recognition of self-governing First Nations of Canada
Preamble
WHEREAS the Royal Proclamation of 1763 recognizes that there were self-governing peoples living in the territory of Canada before Europeans arrived;
AND WHEREAS history records that the Crown entered into legal relations with certain nations, tribes and bodies of Indians;
AND WHEREAS these relations were premised not on conquest and unilateral control, but on principles established by treaties with the Crown, allowing for co-existence and the occupation of territory by the First Nations and by those who came after them, in the settlement that resulted in the establishment of the Dominion of Canada;
AND WHEREAS Parliament subsequently passed certain laws in relation to Indians and lands reserved for the Indians;
AND WHEREAS some of these laws have created a cumbersome, expensive and inefficient system of administration over Indians and their lands;
AND WHEREAS by subsection 35(1) of the Constitution Act, 1982, the aboriginal and treaty rights of the aboriginal peoples of Canada are recognized and affirmed;
AND WHEREAS Canada would be strengthened by a renewed relationship with the First Nations that reconciles Canadian sovereignty with indigenous self-determination and self-government;
AND WHEREAS Parliament wishes to recognize a permanent and safe place in Canada for self-governing First Nations and their lands, so that they may enjoy peaceful and good relations with those with whom they agree to share their traditional lands and territories;
AND WHEREAS Parliament wishes to affirm the responsibility of the Government to ensure that First Nations are free from molestation and from incursion into, interference with or dispossession of their lands by any government or person;
NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the First Nations Government Recognition Act.
INTERPRETATION AND APPLICATION
Definitions
2. (1) The definitions in this subsection apply in this Act.
“aboriginal lands”
« terres autochtones »
“aboriginal lands”, with respect to a First Nation, means
(a) lands to which the First Nation has established aboriginal title;
(b) lands reserved for the Indians of the First Nation within the meaning of Class 24 of section 91 of the Constitution Act, 1867;
(c) any tracts of lands that have been reserved for the First Nation exclusively and to which legal title is vested in the Crown in trust, including reserves, surrendered lands and designated lands within the meaning of the Indian Act;
(d) lands acquired or owned by the First Nation, before or after it became recognized under this Act, that are declared by the Governor in Council to be the First Nation’s lands;
(e) lands restored to the First Nation, before or after it became recognized under this Act, pursuant to a claim against the Crown or any other person or a settlement of such a claim;
(f) lands for which the First Nation held title by treaty or royal proclamation before or after it becomes recognized under this Act;
(g) lands acquired by the First Nation, before or after it becomes recognized under this Act, as compensation for the expropriation, taking or ceding of any lands referred to in any of paragraphs (a) to (f); and
(h) lands designated and made aboriginal lands under section 21,
and, for greater certainty, aboriginal lands of a First Nation designated for administration by any body corporate and politic created under the laws of the First Nation do not cease to be aboriginal lands of the First Nation merely by reason of that designation.
“aboriginal title”
« titre autochtone »
“aboriginal title”, with respect to land, means a First Nation’s permanent interest in land that
(a) existed before the time the Crown asserted sovereignty over the territory where the land in question is located;
(b) does not originate in a grant from any other sovereign or government;
(c) is perpetual and passes from generation to generation;
(d) is inalienable except under section 17;
(e) includes any reversionary interest that the Crown might otherwise have or claim; and
(f) is held collectively by the members of the First Nation.
“elector”
« électeur »
“elector”, in respect of a recognized First Nation, means a member of the First Nation who is an elector under the constitution of the First Nation;
“First Nation”
« première nation »
“First Nation” means
(a) any body of indigenous people for whose use and benefit land has been reserved within the meaning of Class 24 of section 91 of the Constitution Act, 1867;
(b) any body of indigenous people who have aboriginal lands and are recognized as a nation, tribe, band or other body of aboriginal people by
(i) any treaty or agreement with the Crown, to which section 35 of the Constitution Act, 1982 applies,
(ii) the Indian Act or any other Act of Parliament, or
(iii) an order of a court of competent jurisdiction made on application by the body.
“First Nation corporation”
« société de la première nation »
“First Nation corporation” means a corporation incorporated under a law of Canada or a province, or under a law of a recognized First Nation, that has its head office on and carries on its business principally on the aboriginal lands of the recognized First Nation and of which the majority of the shares are held by
(a) the recognized First Nation, a member, another First Nation or a member of it, or any combination thereof, or a body corporate that is controlled by, or all the shares of which are beneficially or legally owned by, any of them or any combination of them; or
(b) a person who holds the shares of the corporation for the benefit of the recognized First Nation, a member, another First Nation or a member of it, or any combination of them.
“member”
« membre »
“member”, with respect to a recognized First Nation, means a member of the First Nation under its constitution.
“recognized First Nation”
« première nation reconnue »
“recognized First Nation” means
(a) a First Nation recognized under subsection 5(1); or
(b) two or more First Nations that become a single recognized First Nation by amalgamation under Part 3.
Special Act
(2) This Act shall be read in respect of each recognized First Nation as a special Act applying to that First Nation.
Aboriginal lands — principles and purpose
(3) Aboriginal lands of a First Nation, subject to this Act, are
(a) except as provided in section 17, inalienable by the First Nation that holds them;
(b) entitled to the protection of the Government of Canada from incursion, molestation or interference by any other government or person; and
(c) to provide a permanent and safe place in Canada for the First Nation’s people, so that they may live in peace and harmony, and in a spirit of mutual respect and tolerance, with the many people of other cultures who have come to Canada.
STATEMENT OF PURPOSE
Purpose
3. The purpose of this Act is to implement a framework and mechanism for the meaningful recognition of the rights and powers of recognized First Nations, and their governments, institutions and other bodies.
PART 1
SELF-GOVERNMENT
Proposal to Electors
Approval by referendum
4. (1) A First Nation that proposes to become a recognized First Nation must submit a proposal for self-government to its electors for approval by referendum.
Proposal
(2) A proposal shall consist of
(a) a constitution that specifies the manner in which the First Nation will be governed; and
(b) the information required under subsection (5).
Interpretation
(3) For the purposes of this section,
(a) the electors are the members of the First Nation who are eighteen years of age or more on the day of the referendum; and
(b) the members of a First Nation are
(i) for a First Nation that maintains its own membership list, the natural persons who are on that membership list, and
(ii) for a First Nation that does not maintain its own membership list, the natural persons who are on the membership list maintained by the Government of Canada and are confirmed by the First Nation,
and if a membership list maintained by a First Nation differs from a membership list maintained by the Government of Canada, the list of the First Nation prevails unless otherwise ordered by a court of competent jurisdiction.
No proxies
(4) No person may vote by proxy in a referendum under this Part, but a proposal may provide for a mailed ballot.
Information provided
(5) A proposal under subsection (1) shall, in addition to the proposed constitution, contain the following information:
(a) the identification of the First Nation;
(b) the name proposed for the First Nation when it becomes recognized under this Act;
(c) a description of the aboriginal lands of the First Nation that is sufficient to determine their boundaries;
(d) details of the treaties and agreements previously entered into between the Crown in any right and the First Nation, or on its behalf;
(e) a description of the tribal patrimony and other resources to which the First Nation has established its right and the expenses and sources of revenue it anticipates in the future;
(f) a copy of any report received from the Auditor General under subsection (8) and any statement required under subsection (9);
(g) the approximate number of electors eligible to participate in the referendum; and
(h) the name of the person who will be appointed as an election officer to conduct the referendum, and the names of a reasonable number of persons to act as replacement election officers in case the election officer is unable to conduct the referendum.
Proposed constitution
(6) The constitution mentioned in subsection (2) shall be either the model constitution in Schedule 1 or a constitution that
(a) provides for the determination of membership of the recognized First Nation;
(b) determines the qualifications of electors of the First Nation;
(c) provides for
(i) a governing body for the First Nation, comprised of electors, and
(ii) the appointment or election of an elector to fill a vacancy in the body if a member of the body becomes unable or unwilling to act;
(d) establishes rules and procedures relating to the selection and tenure of the members of the governing body;
(e) provides for a body of elders or other persons and the manner in which they are to participate in the governance of the First Nation;
(f) prescribes the subject matters on which the First Nation may legislate, which may be all or any of the matters in Schedule 2;
(g) establishes rules and procedures by which the laws of the First Nation are to be enacted and published;
(h) prescribes a system of financial management and accountability whereby
(i) the accounts of the First Nation are maintained, and its financial statements prepared annually, in accordance with generally accepted accounting principles, and
(ii) the financial statements
(A) are audited, in accordance with generally accepted auditing standards by an independent auditor who is a member in good standing of an association of auditors incorporated under the laws of Canada or a province,
(B) include a statement of the remuneration and expenses paid to each member of the governing body, and
(C) are made publicly available within six months after the end of the fiscal year, and a copy provided to any person requesting one on payment of a reasonable fee;
(i) provides for procedures for redress of grievances and dispute resolution;
(j) prescribes procedures for calling annual general meetings and other assemblies of the electors and the matters to be placed before them for approval or deliberation;
(k) prescribes a process for the amendment of the constitution of the First Nation by its electors;
(l) prescribes the decisions that may be made by the governing body and those that must be made by the electors;
(m) provides that no vote may be exercised by proxy; and
(n) provides for any other matter that the proponents wish to include relating to the governance of the First Nation.
Proposed constitution referred to Auditor General
(7) The First Nation shall submit the proposed constitution to the Auditor General of Canada before it is presented to the electors.
Report on compliance with Act
(8) The Auditor General shall examine the constitution submitted under subsection (7) and report to the First Nation, within 90 days after receiving it,
(a) giving an opinion whether the proposed constitution has proper provisions for good governance;
(b) giving an opinion whether the proposed constitution complies with subsection (6); and
(c) if the opinion is that the proposed constitution does not provide for good governance or does not comply with subsection (6), stating the reasons it does not so provide or comply and suggesting changes that would provide for good governance and make the proposed constitution comply with subsection (6).
Report and statement to electors
(9) If the Auditor General has given an opinion that a constitution submitted does not provide proper provisions for good governance or does not comply with subsection (6), the First Nation may
(a) propose it to the electors amended in accordance with changes suggested under paragraph (8)(c), or
(b) propose it with none or some of the suggested changes to the electors, in which case the First Nation must also provide a statement of the reasons all the suggested changes were not made.
Information 60 days before vote
(10) The First Nation shall provide copies of the proposed constitution, any report received under subsection (8) and any statement prepared under subsection (9), to all of the electors of the First Nation not less than 60 days before the day set for the referendum.
Defects and omissions
(11) A defect or omission that is not of a substantial nature in the proposed constitution or in any other document or matter that precedes the holding of a referendum does not invalidate the referendum or its outcome.
Recognition of a First Nation
Effect of approval
5. (1) When a proposal for a First Nation to become a recognized First Nation has been referred to the electors of the First Nation, and
(a) the number of electors who have voted in the referendum is not less than two thirds of all the electors,
(b) not less than two thirds of all those who have voted have approved the proposal and
(c) the resultant number approving the proposal is not less than fifty per cent of all the electors,
the First Nation becomes a recognized First Nation governed under the constitution approved by the referendum, and is recognized as a self-governing political entity.
Effective date and name
(2) The recognition is effective on the day specified therefor in the proposal, and under the name approved by the referendum.
Notice to Governor in Council
(3) When a proposal is approved under this section, the election officer named in paragraph 4(5)(h) shall forthwith send a notice of the approval of the proposal to the President of the Queen’s Privy Council for Canada, who shall cause the notice to be published in the Canada Gazette.
Capacity and powers
6. A recognized First Nation is a self-governing body politic under this Act, with legal personality and perpetual succession, and with the capacity to exercise its inherent rights, powers and privileges and perform the functions described in its constitution and this Act.
Transitional Provisions
Governing body
7. (1) The governing body of the First Nation in office immediately before it becomes a recognized First Nation, becomes the first governing body of the recognized First Nation for a period not exceeding six months from the day the First Nation becomes recognized; and the recognized First Nation shall select a governing body pursuant to its constitution to replace the first governing body before the expiry of that six month period.
Officers and employees
(2) The persons who are officers and employees of the First Nation immediately before the First Nation is recognized under this Act are deemed to be the duly appointed officers and employees of the recognized First Nation until confirmed or removed by its governing body.
Duties and obligations of Crown
(3) Except as otherwise specified by this Act, all existing legal and equitable duties and obligations of the Crown owed to the First Nation prior to its recognition under this Act continue to be owed to the First Nation after its recognition under this Act.
Existing duties continue
(4) Except as otherwise specified by this Act, all existing legal and equitable duties that are owed to the Crown by the First Nation prior to its recognition under this Act continue to be owed by the First Nation after its recognition under this Act.
Existing rights not affected
(5) Rights of the Crown or any person in the aboriginal lands of the First Nation that exist immediately before the First Nation is recognized under this Act, whether arising by law, grant or contract, are not affected by the recognition and continue according to their terms.
Legislation
Legislative powers
8. (1) Subject to subsection (2), a recognized First Nation possesses the power to make laws respecting the First Nation and its members, lands, language, identity, culture, economy and obligations that are within those subject-matters enumerated in Schedule 2 that are included in its constitution, subject to any restrictions placed on the legislative power in the constitution.
Limitation
(2) Subsection (1) does not establish a right to make laws respecting those matters reserved to Parliament by section 91 of the Constitution Act, 1867, except as specifically provided in Schedule 2.
Manner of making laws
(3) The laws of a recognized First Nation shall be enacted in the manner provided for in its constitution.
Territorial application
9. (1) A law of a recognized First Nation applies only within the aboriginal lands of the First Nation, unless otherwise provided for in this section.
Certain laws apply to members outside lands
(2) Despite subsection (1), a recognized First Nation may make laws in relation to a subject-matter in items 14, 15 or 18 to 22 of Schedule 2 that is included in its legislative powers under its constitution, that apply to its members while they are within or outside its aboriginal lands.
Application to all persons on aboriginal lands
(3) A law of a recognized First Nation may be made applicable to its members and to any other person with respect to their acts or omissions within the aboriginal lands of the First Nation.
Publication
10. (1) A recognized First Nation shall make its constitution and other laws available to the public by either or both of :
(a) making them freely available on the Internet;
(b) making them available for scrutiny by the public during normal business hours at the main office of the governing body of the First Nation and providing copies on request at a reasonable charge per page.
Statutory Instruments Act
(2) The Statutory Instruments Act does not apply to a law or to the constitution of a recognized First Nation, or to any rules or resolutions of the governing body of the First Nation.
Administration of Justice
Members of court
11. A law of a recognized First Nation establishing a court or tribunal of criminal or civil jurisdiction pursuant to item 12 of Schedule 2 shall provide for
(a) security of tenure for members of the court or tribunal sufficient to ensure their independence and the appearance of independence from the governing body of the First Nation;
(b) a system of remuneration, if any, that is independent of any assessment by the governing body, the members of the First Nation or any member of the court or tribunal;
(c) a fair and impartial mechanism to remove a member of the court or tribunal in the event of serious misconduct;
(d) the application of the rules of evidence in civil or criminal matters in the same manner as in the province in which the First Nation is wholly or partially situated or, in the case of a federal offence, the application of the rules of evidence for offences under the Criminal Code or other federal statutes creating summary conviction offences; and
(e) a system for the prosecution of charges by the First Nation or, where the First Nation does not act, by an informant or by the Attorney General of Canada.
Jurisdiction
12. (1) Subject to the constitution of a recognized First Nation or the establishment of any court or tribunal by the First Nation, a federal court of competent jurisdiction or a court of competent jurisdiction in a province in which the First Nation is wholly or partially situated, as the case may be, has jurisdiction with respect to the enforcement of the laws of the First Nation.
Appeal
(2) A decision of a court or tribunal established by a First Nation may be appealed to
(a) the Federal Court of Appeal; or
(b) the Court of Appeal of the province in which the First Nation is wholly or partially situated.
Fines, penalties, etc.
13. Every fine, penalty, victim surcharge, tax or forfeiture and interest thereon imposed under a law of a recognized First Nation or pursuant to this Act in respect of the First Nation belongs to the First Nation.
PART 2
TITLE AND MONEYS
Aboriginal title vests
14. Title to lands held by Her Majesty in right of Canada in which a First Nation has a beneficial interest at the time it becomes a recognized First Nation, shall be transferred to the recognized First Nation, to be held as its aboriginal lands.
Saving of interests
15. (1) Section 14 does not affect any rights, obligations or interests in those lands lawfully acquired prior to the recognition of the First Nation.
Presumption
(2) Every instrument evidencing existing rights, obligations or interests referred to in subsection (1) is presumed to be an instrument issued by the recognized First Nation in respect of those rights, obligations or interests until replaced by another such instrument issued by the First Nation.
Effect of new instrument
(3) When a recognized First Nation issues an instrument to a holder of existing rights, obligations or interests under subsection (2), the instrument conveys the rights, obligations and interests unchanged, unless changes are agreed upon by that holder and the recognized First Nation.
Saving
16. Section 14 does not terminate any accrued rights of Her Majesty in right of Canada or a First Nation before it became recognized, including, without limiting the generality of the foregoing, any accrued rights in respect of operations conducted on aboriginal lands of a First Nation before it became recognized.
Non-alienability of aboriginal lands
17. (1) No interest in any part of the aboriginal lands of a recognized First Nation can be alienated unless
(a) a referendum is held proposing the approval of the alienation, specifying the part of the lands and the interest in it to be alienated, the person to whom the interest is to be transferred and the terms and conditions of the proposed transfer; and
(b) the proposal is approved in the referendum by no less than eighty percent of all the electors of the First Nation.
Registration under First Nation law
(2) A recognized First Nation may by law authorize the registration of estates and interests in its aboriginal lands specified in the law and, for that purpose, may apply any laws of the province in which the lands are situated.
Registration generally
(3) All estates and interests that are in the aboriginal lands of a First Nation after it becomes recognized under this Act and that are not subject to a law made pursuant to subsection (2) continue to be registrable in the Reserve Land Register maintained pursuant to section 21 of the Indian Act.
Rights limited
18. No member of a recognized First Nation has any right or power to claim any interest in or to dispose of, encumber, sever or require a transfer of any interest in its aboriginal lands and assets, except to the extent that an interest in those lands or assets has been granted or transferred by the First Nation to the member in the manner provided in section 17.
Protection against expropriation
19. Notwithstanding any other Act of Parliament, no interest in the aboriginal lands of a recognized First Nation, or any portion thereof, shall be expropriated by the Crown or any other entity.
Power of First Nation over its lands
20. (1) Subject to section 24, a recognized First Nation has the full and exclusive power, in conformity with its constitution and laws, to encumber any of its aboriginal lands and any rights or interests therein and to permit persons to occupy, use or reside on those lands or otherwise exercise any rights in respect of those lands.
Validity of encumbrance
(2) No encumbrance of any interest in the aboriginal lands of a recognized First Nation by way of lease, mortgage or otherwise, nor any licence in respect of those lands, is valid unless it conforms with its constitution and laws.
Existing rights
(3) No encumbrance made under subsection (1) may affect rights mentioned in subsection 15(1) or section 16.
Additional lands
21. (1) Subject to subsection (2) the constitution of a recognized First Nation may provide for lands it owns that are not aboriginal lands to be designated and made aboriginal lands by a referendum in which the designation is approved by the electors in the number and majority specified in subsection 5(1).
Exception
(2) The constitution of a recognized First Nation may not allow for lands to be designated and made aboriginal lands if
(a) the lands are not contiguous with other aboriginal lands of the First Nation;
(b) the lands are located within a municipality; or
(c) as a result of the lands becoming aboriginal lands, the aboriginal lands of and other lands owned by the recognized First Nation would completely surround any lands that are not aboriginal lands of the First Nation and are not otherwise owned by it.
Definition of “municipality”
(3) In subsection (2), “municipality” means a city, town, village or other such locality that is a local authority under the laws of the province in which it is located, but does not include a county or region.
Provincial consent
(4) Despite subsection (2), the constitution may allow lands described in paragraphs (2)(a) and (b) to be designated and made aboriginal lands if the Lieutenant Governor in Council of the province in which the lands are situated consents.
Community moneys
22. (1) Moneys held by the Crown for the use and benefit of a First Nation shall be subjected to a suitable accounting and then transferred to the First Nation promptly after it becomes a recognized First Nation.
Responsibility for moneys
(2) The Crown remains responsible for moneys referred to in subsection (1) until the control of the moneys has been transferred to the recognized First Nation.
No member claim on moneys
(3) No member has, by reason only of membership in a recognized First Nation, any claim to, or any power to dispose of, encumber, sever or require a transfer of any interest in, any of the moneys of the recognized First Nation.
Situs of moneys
(4) All moneys transferred by the Crown to be beneficially owned by a recognized First Nation and all accretions thereto are deemed always to be situated on the aboriginal lands of the First Nation.
Definition of “suitable accounting”
(5) In this section, “suitable accounting” means a full and complete accounting, by means of an audit conducted by an independent auditor in accordance with generally accepted auditing standards of the Canadian Institute of Chartered Accountants or other accredited institute, of all moneys, including interest thereon, received, disbursed or held, or that should have been received, disbursed or held, for the use and benefit of the First Nation before it became a recognized First Nation.
Property exempt from taxation
23. (1) Section 87 of the Indian Act, as it reads on the coming into force of this Act, applies, subject to subsections (2) and (3) of this section and with such modifications as the circumstances require, to a recognized First Nation, its aboriginal lands and its members and to any body politic established by it.
References in Act
(2) For the purpose of subsection (1), the reference in section 87 of the Indian Act to section 83 of that Act is deemed also to be a reference to this Act.
Application to First Nation corporation
(3) Section 87 of the Indian Act applies in respect of a First Nation corporation as though it were an Indian.
Limitation on encumbrance of property
24. Subject to this Act, to the constitution and laws of a recognized First Nation, and to any agreement to the contrary in respect of personal property to which the governing body of the First Nation has given its written consent, no interest in the aboriginal lands of the recognized First Nation and no personal property situated on those lands and belonging to the First Nation, a member, another First Nation, an Indian within the meaning of the Indian Act, or a First Nation corporation shall be mortgaged or otherwise encumbered as security, or be subject to any mode of civil execution, except in favour of the recognized First Nation, a member, another First Nation, an Indian within the meaning of the Indian Act, or a First Nation corporation.
Void transactions
25. Every transaction purporting to pass title to, or any interest in, any personal property of a recognized First Nation that is, or is deemed to be, situated on the aboriginal lands of the First Nation is void unless the transaction is entered into between members of the First Nation, a First Nation corporation or any combination of those parties.
Conditional sales
26. A person who sells any personal property to a recognized First Nation, or to a member, an Indian within the meaning of the Indian Act, or a First Nation corporation, under an agreement made under the laws of a province whereby a right of property or right of possession to the thing remains wholly or in part in the seller, may exercise the seller’s rights under the agreement notwithstanding that the thing is situated on land referred to in section 24.
Situs of moneys
27. For the purposes of sections 22 to 26, personal property is deemed to be situated on aboriginal lands of a recognized First Nation if it was
(a) purchased for the use and benefit of the First Nation or its members
(i) by the Crown with First Nation moneys or with moneys appropriated by Parliament, or
(ii) by the First Nation with its moneys or with moneys appropriated by Parliament; or
(b) given to members or to the First Nation under a treaty or agreement between the First Nation and the Crown, or in satisfaction of a claim.
PART 3
ORGANIZATIONAL OPTIONS
Division or amalgamation
28. (1) A recognized First Nation may authorize the division of the First Nation or its amalgamation with any other First Nation.
Approval of electors
(2) A division of a recognized First Nation may be effected only with the approval of the First Nation electors, in a referendum in which the division is approved by the electors in the number and majority specified in subsection 5(1).
Amalgamation of First Nations
(3) An amalgamation of recognized First Nations may be effected only with the separate approval of the electors of each recognized First Nation, in a referendum in which the amalgamation is approved by the electors in the number and majority of electors specified in subsection 5(1).
Amalgamation with First Nation that is not recognized
(4) An amalgamation of a recognized First Nation and a First Nation that is not recognized under this Act may be effected only with
(a) the approval of the electors of the recognized First Nation in a referendum in which the amalgamation is approved by the electors in the number and majority specified in subsection 5(1); and
(b) the approval of the electors of the unrecognized First Nation in a referendum in which the amalgamation is approved by the electors, as defined in subsection 4(3), in the number and majority specified in subsection 5(1).
Confederation
29. (1) Any two or more recognized First Nations may, by an agreement ratified through a law passed by each First Nation involved, establish a confederation of First Nations, to which the recognized First Nations that are parties to the agreement delegate legislative and administrative powers.
Confederation legislative powers
(2) A confederation established under subsection (1) has the power to make laws in relation to those matters that are delegated to it by the recognized First Nations that established it.
Capacity
(3) A confederation of First Nations is a body politic with legal personality and perpetual succession and has the powers, rights and privileges held by the First Nations that establish it and that are delegated to it under subsection (2).
Other provisions
(4) The provisions of this Act that apply to a recognized First Nation apply, with the necessary modifications, to a confederation of First Nations.
PART 4
GENERAL
Rights and Liabilities
Existing rights
30. (1) For greater certainty,
(a) nothing in this Act abrogates or derogates from any existing legal or equitable right, aboriginal or treaty right, Royal Proclamation right, or other right, power or freedom that pertains to a First Nation or a recognized First Nation, its members or any other aboriginal peoples of Canada;
(b) nothing in this Act abrogates or derogates from any existing or future claim of a recognized First Nation;
(c) nothing in this Act nor any action taken under it is a waiver of
(i) the status of members as Indians within the meaning of Class 24 of section 91 of the Constitution Act, 1867, or
(ii) any existing aboriginal or treaty rights of any First Nation or its members; and
(d) nothing in this Act authorizes a recognized First Nation to enact a law that is inconsistent with the Constitution of Canada.
Binding on Crown
(2) This Act is binding on Her Majesty in right of Canada or a province.
Canadian Human Rights Act
(3) Notwithstanding the Canadian Human Rights Act, a law of a recognized First Nation may make a distinction on the basis of race or national or ethnic origin in the manner in which membership in the First Nation is determined.
No liability as member of governing body
31. (1) No individual is personally liable for any debt, obligation or act of a recognized First Nation by reason only of being a member of its governing body unless the debt, obligation or act is in contravention of this Act, the constitution or a law of the recognized First Nation, and the individual knowingly consents to, authorizes or engages in the contravention.
No liability as member
(2) No individual is personally liable for any debt, obligation or act of a recognized First Nation by reason only of being a member of the First Nation.
General Provisions Respecting Laws
Indian Act
32. (1) Except as otherwise provided in this Act, the provisions of the Indian Act or any other Act specifically applicable to Indians or lands reserved for Indians and the regulations made thereunder, do not apply to a recognized First Nation or to its members, aboriginal lands, moneys or assets.
Application of other legislation
(2) During any time that a recognized First Nation has no provision in its laws or constitution for a matter covered by any of the following provisions, the following provisions apply to the recognized First Nation:
(a) the Indian Band Election Regulations, the Indian Referendum Regulation, or the Indian Band Council Procedure Regulations, as the case may be, made under the Indian Act;
(b) section 114, paragraphs 115(a), (b) and (c) and sections 116 to 122 of the Indian Act as if the references in those sections to the Minister, a band or a reserve were, respectively, references to the governing body of the recognized First Nation, the recognized First Nation or aboriginal lands of the recognized First Nation;
(c) sections 42 to 50 of the Indian Act, with such modifications as the circumstances require; and
(d) sections 5 to 7, 51, 52 and 52.2 to 52.5 of the Indian Act.
References to Indian Act
(3) A reference in subsection (2) to a provision of the Indian Act or a regulation made under it is a reference to the provision as it reads on the coming into force of this Act.
Incorporating statutory provisions
33. (1) A recognized First Nation may incorporate in its laws any provision of the Indian Act or of any other Act of Parliament that is
(a) specifically applicable to Indians or the lands reserved for Indians; and
(b) not within the legislative power of the recognized First Nation.
Modification
(2) A law of a recognized First Nation that incorporates a provision of an Act referred to in subsection (1) may modify the provision to the extent necessary to express the law in language compatible with the laws of the recognized First Nation but without changing the substance of the provision.
Amendment and repeal
(3) After its making, a law described in subsection (1)
(a) may be repealed at any time by the recognized First Nation, and
(b) may be amended only to reflect any changes made by Parliament in the provision of the Act that was incorporated in the law,
and subsection (2) applies to any amendment to that law.
Provincial laws of general application
34. (1) Except as otherwise provided in this Act, a law of general application of a Province applies to a recognized First Nation subject to and except to the extent that it is inconsistent with,
(a) any treaty, treaty right, aboriginal right or land claims agreement affecting it;
(b) the laws and constitution of the recognized First Nation; and
(c) this Act or any other Act of Parliament.
Federal laws of general application
(2) An enactment of Parliament applies to a recognized First Nation, except to the extent it is inconsistent with any treaty, treaty right, aboriginal right or land claims agreement affecting it, or the laws and constitution of the recognized First Nation.
Conflict
35. Despite subsection 34(2), an enactment in force prior to the coming into force of this Act prevails in the event of conflict with a recognized First Nation law where the enactment pursues a compelling and substantial legislative objective in a manner consistent with the fiduciary relationship existing between aboriginal peoples and the Crown.
Saving by-laws
36. Except to the extent of any inconsistency with this Act, with any law of a recognized First Nation or with any provision of its constitution, a by-law of the First Nation that is in force immediately before the First Nation becomes a recognized First Nation, continues in force as a law of the recognized First Nation until it is replaced by a law enacted pursuant to this Act.
Indian Oil and Gas Act
37. Unless a law of a recognized First Nation otherwise provides, the Indian Oil and Gas Act and regulations made thereunder apply to the recognized First Nation, its lands, its governing body, its members and its agents, whether incorporated or not, and to a First Nation corporation wholly owned by the recognized First Nation.
Canada Lands Survey Act
38. Unless a law of a recognized First Nation otherwise provides, the Canada Lands Survey Act and regulations made thereunder apply to aboriginal lands of the recognized First Nation.
Environment
39. The environmental standards established by or under any Act of Parliament or the legislature of a province apply in respect of the aboriginal lands of a recognized First Nation until the recognized First Nation enacts its own environmental laws.
First Nation environmental standards
40. If a recognized First Nation enacts environmental standards, the standards must be no less stringent and no less protective of the environment than the least stringent of the environmental standards that would be otherwise applicable under federal or provincial law.
Bill affecting rights
41. (1) If a Minister of the Crown proposes to introduce in either House of Parliament a bill that contains a provision that amends this Act or would affect any right of a recognized First Nation in a manner that does not extend to other persons in Canada, the Minister shall, not less than 180 days before the proposed date of introduction, provide to a representative body designated by the recognized First Nation for the purpose of this section a draft or detailed description of those provisions.
Meeting
(2) The Minister or Deputy Minister of Indian Affairs and Northern Development shall meet with the representative body not less than 120 days before the proposed date of introduction of the bill to receive any comments the representative body may wish to make respecting the provisions referred to in subsection (1).
Reply
(3) Within 30 days after the meeting referred to in subsection (2), the Minister or Deputy Minister shall provide to the representative body a reply to any comments made under that subsection stating what changes, if any, will be made to the provisions in response to the comments and, if no change is to be made, stating the reasons.
Private Member’s Bill
(4) If the Minister of Indian Affairs and Northern Development is of the opinion that a bill, introduced in either House of Parliament by a member who is not a minister and which has passed second reading, contains provisions that amend this Act or would affect any right of a recognized First Nation in a manner that does not extend to other persons in Canada, the Minister shall provide to a representative body designated by the recognized First Nation for the purpose of this section a detailed description of those provisions and discuss with the body any changes that the Minister might propose as amendments respecting those provisions.
Negotiation
(5) The Minister or Deputy Minister involved under subsections (1) to (4) and the representative body shall negotiate in good faith to attempt to resolve any unresolved matter.
Statement before Parliament
(6) At the earliest opportunity after a bill described in subsection (1) is introduced or a bill described in subsection (4) has passed second reading in either House of Parliament, the Minister shall cause to be laid before both Houses of Parliament a statement that describes the steps taken under subsections (1) to (5) to reach agreement on the provisions referred to in subsection (1) or (4) and that lists the provisions that are still objected to by the representative body.
Exception
(7) This section does not apply to:
(a) a provision that a Minister has disclosed in general terms to the representative body referred to in subsection (1) and that the body has agreed to;
(b) a provision that amends this Act but has no substantive effect on the rights of First Nations or recognized First Nations or the members of either of them.
Saving
Saving membership rights
42. (1) A person who had a right to membership in a First Nation immediately before that First Nation became a recognized first Nation may not be deprived of membership by reason only of a situation that existed, or an action that was taken, before the First Nation assumed control of its membership from the Minister of Indian Affairs and Northern Development.
Saving aboriginal and treaty rights
(2) Subsection (1) does not apply where its application would abrogate or derogate from any existing legal or equitable rights, aboriginal or treaty rights, Royal Proclamation rights, or any other rights, powers or freedoms that pertain to the First Nation.
CONSEQUENTIAL AMENDMENTS
R.S., c. F-24
Fishing and Recreational Harbours Act
1994, c. 35, s. 34
43. The definition “agency” in section 2 of the Fishing and Recreational Harbours Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) a governing body within the meaning of the First Nations Government Recognition Act.
R.S., c. 44 (4th Supp.)
Lobbyists Registration Act
2000, c. 7, s. 24
44. Subsection 4(1) of the Lobbyists Registration Act is amended by adding the following after paragraph (d.2):
(d.3) members of a governing body within the meaning of the First Nations Government Recognition Act, persons on their staff or employees of such a governing body;
R.S., c. M-13
Payments in Lieu of Taxes Act
1994, c. 35, s. 37
45. The definition “taxing authority” in subsection 2(1) of the Payments in Lieu of Taxes Act is amended by adding the following after paragraph (b):
(b.1) a governing body within the meaning of the First Nations Government Recognition Act, if it levies and collects a real property tax or a frontage or area tax in respect of aboriginal lands of the First Nation, as defined in that Act,
R.S., c. P-21
Privacy Act
1994, c. 35, s. 39
46. Subsection 8(6) of the Privacy Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) a recognized First Nation under the First Nations Government Recognition Act.




Explanatory Notes
Fishing and Recreational Harbours Act
Clause 42: The definition “agency” in section 2 of the Fishing and Recreational Harbours Act reads as follows:
“agency”, in relation to a province, includes
(a) any incorporated or unincorporated city, town, municipality, village, township, rural municipality, regional district administration or local improvement district administration,
(b) any council of a band within the meaning of the Indian Act,
(c) the Council, within the meaning of the Sechelt Indian Band Self-Government Act, chapter 27 of the Statutes of Canada, 1986, and
(d) a first nation named in Schedule II to the Yukon First Nations Self-Government Act.
Lobbyists Registration Act
Clause 43: Subsection 4(1) of the Lobbyists Registration Act reads as follows:
4. (1) This Act does not apply to any of the following persons when acting in their official capacity, namely,
(a) members of the legislature of a province or persons on the staff of such members;
(b) employees of the government of a province;
(c) members of a council or other statutory body charged with the administration of the civil or municipal affairs of a city, town, municipality or district, persons on the staff of such members or officers or employees of a city, town, municipality or district;
(d) members of the council of a band as defined in subsection 2(1) of the Indian Act or of the council of an Indian band established by an Act of Parliament, persons on their staff or employees of such a council;
(d.1) members of a governing body under the constitution of a first nation named in Schedule II to the Yukon First Nations Self-Government Act, persons on their staff or employees of such a governing body;
(d.2) members of Nisga’a Government, as defined in the Nisga’a Final Agreement given effect by the Nisga’a Final Agreement Act, persons on the staff of those members or employees of the Nisga’a Nation, a Nisga’a Village or a Nisga’a Institution, as defined in that Agreement;
(e) diplomatic agents, consular officers or official representatives in Canada of a foreign government; or
(f) officials of a specialized agency of the United Nations in Canada or officials of any other international organization to whom there are granted, by or under any Act of Parliament, privileges and immunities.
Payments in Lieu of Taxes Act
Clause 44: The definition “taxing authority” in subsection 2(1) of the Payments in Lieu of Taxes Act reads as follows:
“taxing authority” means
(a) any municipality, province, municipal or provincial board, commission, corporation or other authority that levies and collects a real property tax or a frontage or area tax pursuant to an Act of the legislature of a province,
(b) any council of a band within the meaning of the Indian Act that levies and collects a real property tax or a frontage or area tax pursuant to an Act of Parliament,
(c) any band within the meaning of the Cree-Naskapi (of Quebec) Act, chapter 18 of the Statutes of Canada, 1984, that levies and collects a tax on interests in Category IA land or Category IA-N land as defined in that Act,
(d) the Council within the meaning of the Sechelt Indian Band Self-Government Act, chapter 27 of the Statutes of Canada, 1986, if it levies and collects a real property tax or a frontage or area tax in respect of Sechelt lands, as defined in that Act,
(e) a first nation named in Schedule II to the Yukon First Nations Self-Government Act, if it levies and collects a real property tax or a frontage or area tax in respect of settlement land, as defined in that Act, or in respect of lands in which an interest is transferred or recognized under section 21 of that Act, or
(f) the Nisga’a Nation or a Nisga’a Village, as defined in the Nisga’a Final Agreement given effect by the Nisga’a Final Agreement Act, if it levies and collects a real property tax or a frontage or area tax in respect of Nisga’a Lands, as defined in that Agreement.
Privacy Act
Clause 45: Subsection 8(6) of the Privacy Act reads:
(6) In paragraph (2)(k), “Indian band” means
(a) a band, as defined in the Indian Act;
(b) a band, as defined in the Cree-Naskapi (of Quebec) Act, chapter 18 of the Statutes of Canada, 1984;
(c) the Band, as defined in the Sechelt Indian Band Self-Government Act, chapter 27 of the Statutes of Canada, 1986; or
(d) a first nation named in Schedule II to the Yukon First Nations Self-Government Act.


SCHEDULE 1
(Section 4)
MODEL CONSTITUTION
Interpretation
1. The definitions in this section apply in this Constitution.
“Act”
« Loi »
“Act” means the First Nations Government Recognition Act.
“Council”
« conseil »
“Council” means the governing body of the First Nation.
“councillor”
« conseiller »
“councillor” means a member of the Council.
“elector”
« électeur »
“elector” means a member who is
(a) 18 years of age or over; and
(b) not otherwise disqualified, pursuant to this Constitution or a law of the First Nation, from voting at elections or referendums of the First Nation.
“Electoral Officer”
« directeur du scrutin »
“Electoral Officer” means the person appointed pursuant to section 9 of this Constitution.
“First Nation”
« première nation »
“First Nation” means (name of the First Nation).
“member”
« membre »
“member” means a member of the First Nation.
Membership
Membership
2. Until a law of the First Nation is passed that provides otherwise, membership is determined by the rules that are in force immediately before the day on which the First Nation is recognized under the Act, with such modifications as the circumstances require and without abrogating or derogating from existing aboriginal or treaty rights.
Amendment to Constitution
Amendments
3. (1) Subject to subsections (2) and (4), an amendment to the Constitution may be made with the approval of the electors in the number and majority specified in subsection 5(1) of the Act in a referendum held for that purpose, and is effective on the day it is approved or on such later date as is set out in the amendment.
Percentage of vote required for decisions
(2) Where a provision of the Constitution requires approval for any purpose by a percentage of electors greater than a majority of electors, an amendment to that provision may be made only with the approval of at least that same percentage of electors.
Change of term of office
(3) Any amendment to the Constitution dealing with the term of office of a councillor is restricted to changing any future term of a councillor, and requires the approval of the electors in the number and majority specified in subsection 5(1) of the Act.
Petition re amendment
(4) If the Council receives a petition signed by twenty-five per cent of the electors requesting that a referendum be held in relation to a proposed amendment to the Constitution, the Council shall forthwith order a referendum to determine the matter.
Drafting petitioned amendment
(5) The Council may redraft the amendment proposed in the petition referred to in subsection (4) providing the redrafted amendment gives effect to the intent of the petition.
Publication
Required publication
4. When the Constitution or an amendment to the Constitution comes into force, the Council shall forthwith notify the President of the Queen’s Privy Council for Canada, who shall cause the Constitution or amendment to be published in the Canada Gazette.
Governing Body
Composition
5. (1) The councillors shall be selected in accordance with the provisions of the Constitution and the laws of the First Nation.
First Council
(2) The first Council shall be the body referred to in subsection 7(1) of the Act, until replaced pursuant to an election under this Constitution, which the first Council shall call so that new Council is in office within six months after the First Nation becomes a recognized First Nation.
Chief
(3) One of the councillors shall be the principal officer of the First Nation and may be designated Chief, and is referred to hereinafter as the “Chief”.
Number of councillors
(4) The number of councillors, including the Chief, shall be five.
How elected
6. The Chief and the other councillors shall be elected by a majority of the votes cast by electors in an election held pursuant to this Constitution.
Elections of Councillors
Eligibility
7. (1) A member of the First Nation is eligible to be a candidate in an election of councillors if
(a) the member is an elector of the First Nation;
(b) all debts owed to the First Nation by the member are in good standing;
(c) no court has convicted the member in criminal proceedings for theft, fraud, bribery or breach of trust; and
(d) the nomination of the member is petitioned by two persons who are electors and who submit the petition to the Electoral Officer on or before the date set for the close of nominations, together with a statutory declaration sworn by the nominee attesting to the matters mentioned in paragraphs (a), (b) and (c).
Disqualification of councillor
(2) A councillor who ceases to be an elector, who becomes insolvent or who is convicted in criminal proceedings for theft, fraud, bribery or breach of trust thereupon ceases to be a councillor.
Calling elections
8. (1) The Council shall call an election of councillors to be held not later than five years from the date on which the last election for the Council was held.
By-elections
(2) If a vacancy occurs on the Council at any time except a time when an election has been called under subsection (1), the Council may call a by-election at its discretion to fill the vacancy, but shall call such a by-election forthwith if less than four years have expired since the previous election.
Appointing Electoral Officer
9. (1) The Council shall appoint an Electoral Officer not later than sixty days before the date on which an election is to be held.
Disqualification
(2) The Electoral Officer shall not be a member of the First Nation or an employee of the First Nation or the Council.
Appealing election result
10. (1) Within thirty days after an election, any candidate in the election or any elector who voted or attempted to vote in the election may file an appeal in any court of competent jurisdiction if the candidate or elector has reasonable grounds to believe that there was
(a) a corrupt practice in connection with the election; or
(b) a contravention of the Act, the Constitution, or any law of the First Nation that might have affected the result of the election.
Sending documents to Electoral Officer
(2) Upon the filing of an appeal, the appellant shall forward a copy of the appeal together with all supporting documents by registered mail to the Electoral Officer and to each candidate.
Written answers required
(3) Any candidate may, and the Electoral Officer shall, within fourteen days of the receipt of a copy of an appeal under subsection (1), submit to the court of competent jurisdiction, by registered mail, a written answer to the particulars set out in the appeal, together with any supporting documents relating thereto duly verified by affidavit.
The record
(4) All particulars and documents filed or submitted in accordance with this section form the record.
Relief
(5) The court may provide such relief as it sees fit, when it appears to the court that there was
(a) a corrupt practice in connection with the election; or
(b) a contravention of the Act, the Constitution, or any law of the First Nation that might have affected the result of the election.
Assemblies and Meetings
General assembly of First Nation
11. (1) The Council shall call a general assembly of the electors at least once in each calendar year.
Special assembly of First Nation
(2) The Council shall call a special assembly of the electors within thirty days of the receipt of a petition, duly signed by at least twenty-five per cent of the electors, calling for an assembly for a specified purpose, but no petition may be made for a purpose within six months of a previous special assembly held for substantially the same purpose.
Agenda
(3) The Council shall place on the agenda for a meeting of the Council any item submitted by an elector at least seven days before the meeting.
Proceedings and minutes
(4) The proceedings and minutes of Council meetings shall be recorded and maintained and, subject to any laws of the First Nation, shall be made available for inspection by electors and other persons authorized by the Council.
Voting
No proxies
12. (1) No elector may vote by proxy in an election, referendum or any other decision affecting the First Nation.
Mailed ballots
(2) The laws of the First Nation may permit voting by a mailed ballot.
Elders
Elders consulted
13. The persons recognized as elders by the Council shall have the collective right to be consulted regularly by and offer advice to the Council.
Functions and Duties
Function of Council
14. (1) The First Nation shall act through the Council in exercising its powers and carrying out its duties and functions.
Ratification of actions
(2) The Council may by resolution ratify, in whole or in part, the actions of the Council or the actions of any of the councillors, including decisions that have been made, expenses that have been incurred and contracts that have been entered into.
Delegation of functions
(3) The Council may by resolution authorize the Chief or any other designated person or body to perform and exercise any of its duties, powers and functions.
Officers, employees, etc.
(4) The Council may by resolution appoint officers, agents and employees of the First Nation and establish administrative and advisory bodies to assist in the administration of the affairs of the First Nation.
Laws
Legislative jurisdiction
15. (1) The First Nation may make laws in relation to the following subject matters:
(Here the Constitution shall specify all or any of the subject matters in Schedule 2 to the Act)
Readings
(2) Every proposed law of the First Nation shall be proposed to the Council by a councillor, shall be in writing and shall be passed by a majority of the Council at three separate readings, each of which must be on a separate day.
Open proceedings
(3) All proceedings of the Council at which debate on a motion to pass a law at any reading takes place shall be open for the public to attend and observe, subject to reasonable restrictions based on available space, good behaviour and public safety.
Rules of procedure
(4) The Council may make rules respecting its proceedings.
Witnesses
(5) The rules of the Council shall provide for conditions under which members of the First Nation may speak as witnesses during proceedings of the Council or any of its committees.
Publication
(6) The laws of the First Nation shall be published and made available to its members.
Commencement of laws
16. (1) A law of a First Nation comes into effect
(a) on passage at third reading by the Council,
(b) at some later date established in the laws of the First Nation, or
(c) on the date provided in the law.
Approval by electors
(2) Despite subsection (1), a law may specify that it be subject to being first approved by a majority or a special majority of the electors of the First Nation defined in the law.
Financial Provisions
Budget
17. (1) The expenditures for the annual budget of a First Nation shall be approved in a law of the First Nation and no expenditure of money of the First Nation shall be made or committed if the expenditure or commitment is not authorized by such a law.
Borrowing
(2) The First Nation shall not borrow money unless the borrowing is authorized by a law of the First Nation.
Holding First Nation money
18. (1) First Nation money is money held by the First Nation for the use and benefit of the First Nation.
Holding by First Nation
(2) For greater certainty, money is held by the First Nation when the First Nation is vested with legal title to the money.
Investments
(3) First Nation money shall be held only in the following forms:
(a) deposits in financial institutions;
(b) treasury bills;
(c) bankers’ acceptances;
(d) guaranteed investment certificates;
(e) bonds;
(f) cash.
Classification of money
(4) First Nation money is classified as capital and revenue.
Capital
(5) Capital consists of the following moneys:
(a) the capital funds transferred from the Government of Canada;
(b) the proceeds of the sale of any lands of the First Nation;
(c) the proceeds of the sale of any other capital assets held by the First Nation;
(d) the proceeds, including royalties, of the sale of non-renewable resources.
Revenue
(6) Revenue consists of First Nation money that is not capital.
No longer First Nation money
(7) For greater certainty, First Nation money ceases to be First Nation money upon its investment or expenditure, unless invested in or converted to
(a) deposits in financial institutions;
(b) treasury bills;
(c) bankers’ acceptances;
(d) guaranteed investment certificates;
(e) bonds; or
(f) cash.
Revenue expenditures
19. Expenditures from First Nation revenue may be made for but are not limited to
(a) the administration of First Nation programs and businesses, including, without restricting the generality of the foregoing, travel, promotion, professional fees, inventory purchases, accounts receivable, funding and other business expenses;
(b) contributions to First Nation housing programs;
(c) community services, including emergency assistance, burials, sports or recreation;
(d) jointly funded programs;
(e) supplements to First Nation programs;
(f) economic development;
(g) First Nation planning;
(h) charitable donations;
(i) asset replacement;
(j) payments made once in a lifetime, in an amount not exceeding one per capita share of the revenue held by the First Nation, to any living person whose name is deleted from the membership list of the First Nation;
(k) loans to, investments in, or contributions to corporations or trusts;
(l) any other purpose that in the opinion of the Council is for the benefit of the First Nation, including, without restricting the generality of the foregoing, the purchase of investments.
First Nation capital
20. First Nation capital may only be expended for
(a) the construction or improvement of roads, bridges and water courses on lands of the First Nation;
(b) the construction or improvement of outer boundary fences on lands of the First Nation;
(c) the purchase of land for use by the First Nation;
(d) the purchase for the First Nation of the interest of a member in lands of the First Nation;
(e) the purchase of machinery and equipment for the First Nation;
(f) the construction on, or in connection with, lands of the First Nation of such improvements or works as it considers will be of permanent value to the First Nation or will constitute a capital investment;
(g) the purpose of making a once-in-a-lifetime payment to any living person whose name is deleted from the membership list of the First Nation in an amount not exceeding one per capita share of the capital moneys held by the First Nation;
(h) the purpose of making loans to, investments in, or contributions to corporations or trusts;
(i) the purpose of meeting expenses necessarily incidental to the management of lands of the First Nation and other First Nation property;
(j) any other purpose that, in the opinion of the Council, is for the benefit of the First Nation and can reasonably be considered to be a capital expenditure, including, without limiting the generality of the foregoing, the purchase of investments.
Unfettered discretion
21. In making investments of capital or revenue, the Council has unfettered discretion in their selection, subject to any applicable legislation, the laws of the First Nation and this Constitution.
Financial Accountability
Fiscal year of First Nation
22. (1) The fiscal year of the First Nation begins on April 1 and ends on March 31 of the following year, unless otherwise provided by law.
Adoption of budget
(2) The First Nation shall, before the beginning of each fiscal year, by one or more resolutions of the Council, adopt a budget for that fiscal year and pass a law authorizing the expenditures and revenue measures necessary.
Supplementary budgets
(3) The First Nation may, if it deems it necessary, adopt one or more supplementary budgets in a fiscal year by the means described in subsection (2).
Presumed budget
(4) If the First Nation fails to adopt a budget for a fiscal year before the beginning of that fiscal year, the First Nation is deemed to have adopted a budget identical to the budget and any supplementary budgets of the previous fiscal year until a new budget is adopted.
Accounts and financial records
23. (1) Books of accounts and financial records of the First Nation shall be kept by the Council and must
(a) contain, as a minimum,
(i) an account of the moneys received and disbursed,
(ii) an account of revenues and expenditures,
(iii) a record of accounts payable and receivable,
(iv) an account of assets and liabilities,
(v) an account of all other transactions of the First Nation that may affect the financial position of the First Nation, and
(vi) a separate accounting for the expenditure and balance of capital and revenue;
(b) conform with generally accepted accounting principles; and
(c) be maintained in a form that is sufficiently consistent to allow a comparison between
(i) revenues and expenditures as shown in the books of accounts and financial records, and
(ii) the projected revenues and expenditures as shown in the budget and any supplementary budget.
Inspection of financial records
(2) Any member, and that member’s qualified legal representative and qualified accountant, may inspect the budget, the financial statements, the auditor’s report relating thereto and any annual report, if
(a) the member is 18 years of age;
(b) the member is mentally competent; and
(c) the member’s debts to the First Nation are in good standing.
Where to inspect
(3) A right of inspection may be exercised at the office of the Council or at such other place designated by law and may be exercised only during normal business hours or at such other times as is provided by law.
Number of inspections
(4) A right of inspection may not be exercised more than twice in each fiscal year in addition to the right to inspect the books and records at the annual general assembly.
Fee for inspections
(5) The First Nation may charge a service fee to cover the costs of supervision during inspections provided for by subsection (2), but no fee may be charged to inspect the books and records at the annual general assembly.
Preparation of financial statements
24. (1) Forthwith, but in any event not later than six months after the end of each fiscal year, the Council shall prepare a financial statement in comparative form, containing as a minimum
(a) a balance sheet; and
(b) a statement of revenues and expenditures, including all payments made to councillors, and a comparison of these with the amounts stated in the First Nation’s budget and any supplementary budget.
Accounting principles
(2) The financial statement shall conform to generally accepted accounting principles.
Separate capital and revenue accounting
(3) The financial statement shall show the expenditure and balance of capital and revenue separately.
Publication
(4) The financial statement shall be made publicly available and copies provided to any person for a reasonable fee.
Appointment of auditor
25. (1) The Council shall appoint an auditor to audit the accounts and transactions of the First Nation.
Tenure of auditor
(2) The auditor holds office until a new auditor is appointed.
Vacancy of auditor
(3) When a vacancy occurs during the term of the auditor, the Council shall forthwith appoint a new auditor.
Independence of auditor
(4) The auditor shall be independent of the First Nation and shall be a member in good standing, or a partnership whose partners are members in good standing, of the Canadian Institute of Chartered Accountants or the Certified General Accountants Association of (province in which the First Nation is wholly or partially situated).
Determining independence
(5) For the purposes of this section,
(a) independence is a question of fact; and
(b) a person is deemed not to be independent of the First Nation if that person or that person’s business partner
(i) is a business partner, an officer or an employee of the First Nation or participates in any of its business or financial interests or is a business partner of any officer or employee of the First Nation,
(ii) beneficially owns or controls, directly or indirectly, an interest in securities of the First Nation or any of its business or financial interests, or
(iii) has been a receiver, receiver manager, liquidator, or trustee in bankruptcy of the First Nation or any of its business or financial interests within two years of the proposed appointment as auditor of the First Nation.
Disqualification
(6) Subject to subsection (9), a person is disqualified from being an auditor of the First Nation if the person ceases to be independent of the First Nation, of its business or financial interests or of the officers of the First Nation.
Resignation required
(7) An auditor who becomes disqualified under this section shall, subject to subsection (9), resign forthwith after becoming aware of the disqualification.
Order of court
(8) An interested person may apply to a court of competent jurisdiction for an order declaring an auditor to be disqualified under this section and the office of auditor to be vacant.
Exception to disqualification
(9) An interested person may apply to a court of competent jurisdiction for an order exempting an auditor from disqualification under this section, and the Court may, if it is satisfied that an exemption would not unfairly prejudice the First Nation, make an exemption order on any terms the Court thinks fit, which order may have retrospective effect.
Auditor’s report
(10) The auditor shall, within six months after the completion of the First Nation’s financial statement, prepare and submit to the Council a report on the financial statement, stating whether, in the opinion of the auditor, the financial statement presents fairly the financial position of the First Nation in accordance with generally accepted accounting principles applied on a basis consistent with that applied in the previous fiscal year.
Delay of report
(11) Where the auditor has not been able to prepare the report within the period mentioned in subsection (10), the auditor shall notify the Council of the reasons for the delay.
Duty to inform auditor
(12) On demand of the auditor of the First Nation, the former auditors, or the present or former officers, employees or agents of the First Nation, shall furnish any
(a) information and explanations, and
(b) access to records, documents, books, accounts and vouchers of the First Nation
that are, in the opinion of the auditor, necessary to enable the auditor to make the report required under this section and that the officers, employees, agents or former auditors are reasonably able to furnish.
Federal Payments
Federal transfer payments
26. Federal transfer payments shall be budgeted and accounted for, and audited, in accordance with the terms of the agreement made in respect of the transfer of the funds.
Registration of Laws
Register of laws
27. (1) The Council shall maintain a general register of the laws of the First Nation in which are to be kept the originals of all First Nation laws.
No invalidity
(2) No law of the First Nation is invalid by reason only of a failure to be registered in compliance with subsection (1).
Right to obtain copies
(3) A member is entitled to obtain a copy of a law on payment of such reasonable fee as may be fixed by the Council.
Interests in Aboriginal Lands of the First Nation
Authorizing transactions
28. (1) The Council may by resolution authorize the granting of leases, licenses, permits, easements, rights of way or any other interests in or to the use of aboriginal lands of the First Nation.
Protected transactions
(2) Despite subsection (1), a transaction for the grant of a mortgage or charge, an interest for a term exceeding 50 years or the grant to a member of an interest for any purpose other than personal residence that involves interests in aboriginal lands of the First Nation, shall be approved in each of two separate referendums, one held for the resident and one for the non-resident electors of the First Nation, in each of which
(a) two thirds of those who voted approved the transaction; and
(b) the resultant number approving the transaction was not less than fifty per cent of all electors eligible to vote.
Distribution of Money
Exception
29. Notwithstanding paragraphs 19(j) and 20(g), the Council may not distribute First Nation money to the members of the First Nation if the distribution would, together with all the distributions made in the previous twenty-four months, exceed five percent of all of the First Nation money that is held at the time of the distribution, unless the distribution has been approved in each of two separate referendums, one held for the resident and one for the non-resident electors of the First Nation, in each of which
(a) two thirds of those who voted approved the distribution; and
(b) the resultant number approving the distribution was not less than fifty per cent of all electors eligible to vote.
Grievances and Disputes
Council hearing disputes
30. (1) The Council shall make rules that permit members to present grievances or disputes to the Council or a committee of the Council.
Recommendation
(2) The Council may recommend a solution to a grievance or dispute or decline to make a recommendation.

SCHEDULE 2
(Sections 4 and 8)
SUBJECT-MATTERS ON WHICH A FIRST NATION MAY LEGISLATE
1. Rules and procedures for referendums and elections of a governing body.
2. Exercise of the powers of the First Nation.
3. Practices and procedures of the governing body.
4. Provision for matters that must be determined or approved by a referendum.
5. Raising of revenue by any means including taxes and licences.
6. Authorization of expenditures.
7. Recording of and accounting for revenue and expenditures.
8. Management of lands and any other form of property.
9. Management of the business affairs of the First Nation.
10. Responsibility and liability of the governing body, other officers and employees.
11. Agreements, funding arrangements and other relationships with other jurisdictions.
12. The administration of justice, including the establishment and designation of courts and tribunals of criminal and civil jurisdiction.
13. The establishment of offences relating to the matters enumerated in this Schedule and punishments for committing them, including a fine not exceeding $10,000, a term of imprisonment not exceeding two years and any other punishment or alternative remedy, including restitution, that is available for summary convictions under the Criminal Code or to a summary conviction court judge under the law relating to summary convictions in a province.
14. Marriage, divorce, matrimonial status and matrimonial property.
15. Protection of minors and dependant adults and their property interests.
16. Culture, traditions and customs, and their preservation.
17. Health and hygiene.
18. Welfare and other social services.
19. Custody, placement and adoption of children by members, whether or not the children are members or children of members or of other persons residing on the lands of the First Nation.
20. Devolution by will or intestate succession and the administration of estates respecting
(a) any type of property, wherever situated, of members resident on the lands of the First Nation, and
(b) any type of property situated on the lands of the First Nation, of members, wherever they are resident.
21. Trusts for the benefit of members, and their variation.
22. Education on the lands of the First Nation and education of members within or outside those lands.
23. Natural resource management.
24. Infrastructure.
25. Environment.
26. Trespass and nuisance.
27. Public games, gaming, sports and amusements.
28. Recreation.
29. Animals.
30. Weapons.
31. Intoxicants.
32. Local institutions.
33. Policing.
34. The creation of bodies corporate and politic to carry out government, administrative, education, health or other functions.
35. The creation, operation and governance of companies, whether as bodies corporate, partnerships or any other organizational form, to carry on business on the lands of the First Nation.
36. Any other matters, activities or things relating to the First Nation, its members, lands, moneys or property interests, or relating to other tribal patrimony.
Published under authority of the Senate of Canada



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