Bill C-28

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Disallowance of Tariff

Disallowance of tariff

13.08 The National Energy Board may disallow any tariff or any portion of any tariff that it considers to be contrary to any of the provisions of this Act or any order of the Board and may require a holder, within a time fixed by the Board, to substitute for it a tariff satisfactory to the Board or may establish other tariffs in lieu of the tariff or the portion so disallowed.

Suspension of tariff

13.09 The National Energy Board may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.

Discrimination

No unjust discrimination

13.1 A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality.

Burden of proof

13.11 If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.

No rebates, etc.

13.12 (1) No holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper shall

(a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination whereby a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or

(b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force.

Prosecution

(2) No prosecution shall be instituted for an offence under this section without leave of the National Energy Board.

Contracts Limiting Liabilities

Contracts limiting liability

13.13 (1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order of the National Energy Board.

National Energy Board may determine limits

(2) The National Energy Board may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.

Terms and conditions

(3) The National Energy Board may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder.

Transmission of Oil or Gas

Duty of holder of an operating licence or authorization under subsection 5(1)

13.14 (1) Subject to any exemptions or conditions that the National Energy Board may establish, a holder operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, incidental to the drilling for or production of oil offered for transmission by means of its pipeline.

Orders for transmission of commodities

(2) The National Energy Board may, by order, on any terms and conditions that it may specify in the order, require a holder operating a pipeline for the transmission of gas to receive, transport and deliver, according to its powers, gas and any other substance, including water, incidental to the drilling for or production of gas offered for transmission by means of its pipeline.

Extension of facilities

(3) If the National Energy Board finds that no undue burden will be placed on the holder by requiring the holder to do so and if it considers it necessary or desirable to do so in the public interest, the Board may require a holder operating a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for

(a) the receipt, transmission and delivery of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas offered for transmission by means of its pipeline;

(b) the storage of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and

(c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

Transmission and Sale of Gas

Extension of services of gas pipeline companies

13.15 (1) If the National Energy Board considers it necessary or desirable to do so in the public interest, it may direct a holder operating a pipeline for the transmission of gas to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline, if the Board finds that to do so will not place an undue burden on the holder.

Limitation on extension

(2) Subsection (1) does not empower the National Energy Board to compel a holder to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers.

Holder’s powers

13.16 A holder may, for the purposes of its undertaking and subject to the provisions of this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and regulate the time and manner in which it shall be transmitted and the tolls to be charged for the transmission.

Regulations

13.17 The Governor in Council may make regulations for the purposes of this Part, designating as oil or gas any substance resulting from the processing or refining of hydrocarbons or coal if that substance

(a) is asphalt or a lubricant; or

(b) is a suitable source of energy by itself or when it is combined or used in association with something else.

Consequential Amendments

R.S., c. 36 (2nd Supp.)

Canada Petroleum Resources Act

1994, c. 10, s. 18

151. Subsection 101(2) of the Canada Petroleum Resources Act is replaced by the following:

Privileged information or documentation

(2) Subject to this section, information or documentation is privileged if it is provided for the purposes of this Act or the Canada Oil and Gas Operations Act, other than Part 0.1 of that Act, or any regulation made under either Act, or for the purposes of Part II.1 of the National Energy Board Act, whether or not the information or documentation is required to be provided.

R.S., c. N-7

National Energy Board Act

152. Section 18 of the English version of the National Energy Board Act is replaced by the following:

General or particular orders

18. Where the Board may make or issue any order or direction or prescribe any terms or conditions or do any other thing in relation to any person, the Board may do so, either generally or in any particular case or class of cases.

153. Paragraph 25(b) of the Act is replaced by the following:

(b) a document purporting to be certified by the Secretary, or by any other person authorized by the Board to certify documents for the purposes of this section, and sealed with the seal of the Board stating that a valid and subsisting document of authorization has or has not been issued by the Board to a person or persons named in the certified document, is evidence of the facts stated in it, without proof of the signature or official character of the person appearing to have signed the document and without further proof.

PART 10

1991, c. 22

AMENDMENTS TO THE FARM INCOME PROTECTION ACT

154. (1) The definition “agreement” in section 2 of the Farm Income Protection Act is replaced by the following:

“agreement”
« accord »

“agreement”, unless the context indicates otherwise, means an agreement entered into under subsection 4(1);

(2) Section 2 of the Act is amended by adding the following in alphabetical order:

“financial institution”
« institution financière »

“financial institution” has the same meaning as in section 2 of the Bank Act;

155. Paragraph 8(2)(b) of the Act is replaced by the following:

(b) Fund No. 2, to which shall be credited all amounts paid in respect of that producer by Canada or a province.

156. The heading “CAISSES ET COMPTE” before section 13 of the French version of the Act is replaced by the following:

CAISSES ET COMPTES

157. The heading before section 15 of the Act is replaced by the following:

Net Income Stabilization Account in the Accounts of Canada

158. Subsection 15(1) of the Act is replaced by the following:

Establishment

15. (1) If an agreement that provides for the establishment and administration by the Government of Canada of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in the accounts of Canada, there shall be established in the accounts of Canada a Net Income Stabilization Account.

159. The Act is amended by adding the following after section 15:

Net Income Stabilization Accounts in Financial Institutions

Agreement with financial institutions

15.1 (1) If an agreement that provides for the establishment of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in financial institutions, the Minister may enter into an agreement with one or more financial institutions to provide for their holding of Net Income Stabilization Accounts of producers participating in the program.

Contents — terms and conditions

(2) An agreement with a financial institution must set the terms and conditions required for the holding of Net Income Stabilization Accounts including, but not limited to, the prescribed terms and conditions and the following terms and conditions:

(a) the financial institution may hold only one Net Income Stabilization Account in respect of any particular producer; and

(b) the financial institution may permit withdrawals to be made from a Net Income Stabilization Account only as provided for in the agreement.

Contents — additional provisions

(3) In addition to the terms and conditions required by subsection (2), an agreement with a financial institution must provide for

(a) the nature of the investments that may be held in a Net Income Stabilization Account;

(b) the account transactions that the financial institution must perform in accordance with the agreement;

(c) the information that must be submitted to the Minister by the financial institution in the periods specified in the agreement;

(d) the Minister’s right of access to and right to audit any records held by the financial institution that contain information relating to the Net Income Stabilization Accounts held by it and the manner in which those rights are to be exercised;

(e) the penalties that may be imposed if the financial institution does not comply with the agreement;

(f) the terms and conditions respecting the amendment, termination or expiry of the agreement; and

(g) the manner of transferring Net Income Stabilization Accounts held by the financial institution on the termination or expiry of the agreement.

Limit of one Account

(4) A particular producer may hold only one Net Income Stabilization Account at financial institutions at any time in respect of the program to which the Account relates.

Payments to Her Majesty

(5) A financial institution that holds a Net Income Stabilization Account of a particular producer shall, on the direction of the Minister, pay from the Account to Her Majesty in right of Canada or in right of a province

(a) any amount that is owing by the producer in respect of amounts paid into the Account in excess of the producer’s entitlement under the program to which the Account relates or any other program established under this Act;

(b) any administrative fees or penalties under the program to which the Account relates or any other program in respect of which amounts were paid into the Account; or

No assignments, etc.

(6) Except for the purposes of the Agricultural Marketing Programs Act, an amount in a Net Income Stabilization Account of a producer may not be assigned or given as security, and any transaction that purports to do so is void to that extent.

Exemption from attachment, etc.

(7) An amount in a Net Income Stabilization Account of a producer is exempt from attachment, seizure and execution, except in the case of a producer who has the status of a bankrupt, or if the attachment, seizure or execution is for the purpose of satisfying the provisions of an agreement or court order relating to separation or divorce that provides for the division of the Account into separate Net Income Stabilization Accounts.

160. Subsection 16(1) of the French version of the Act is replaced by the following:

Ouverture

16. (1) Est ouvert parmi les comptes du Canada un compte intitulé « caisse d’assurance-revenu » — appelé la caisse au présent article — dans le cas où l’accord prévoit que le fédéral administrera un régime d’assurance-revenu pour un produit agricole ou une catégorie de produits agricoles.

PART 11

FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS

R.S., c. F-8; 1995, c. 17, s. 45(1)

Amendments to the Federal-Provincial Fiscal Arrangements Act

2007, c. 29, s. 62

161. The description of D in the definition “total per capita fiscal capacity” in subsection 3.5(1) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

D is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act;

162. Section 3.7 of the Act is amended by adding the following after subsection (3):

Deemed election — Nova Scotia

(3.1) Nova Scotia is deemed, on the day on which this subsection comes into force, to have made the election under subsection (3) in respect of the fiscal year beginning on April 1, 2008.

163. The Act is amended by adding the following after section 3.7:

Additional fiscal equalization payment

3.71 (1) If a province makes the election under subsection 3.7(3), an additional fiscal equalization payment for the period referred to in subsection (3) may be paid to that province equal to the amount by which

(a) the aggregate of the following amounts:

(i) the aggregate of the fiscal equalization amounts computed under section 3.72 for that province for all fiscal years in the period,

(ii) the aggregate of the amounts that would be paid to that province for all fiscal years in the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, and

(iii) subject to subsection (2), the aggregate of the amounts, with respect to Newfoundland and Labrador, that would be paid to that province for all fiscal years in the period under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act, as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, and computed in accordance with subsection 174(3) of the Budget and Economic Statement Implementation Act, 2007 if the conditions described in that subsection are met,

is greater than

(b) the aggregate of the following amounts:

(i) the aggregate of the fiscal equalization payments paid to that province for the period,

(ii) the aggregate of the amounts paid to that province for the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, and

(iii) the aggregate of the amounts, with respect to Newfoundland and Labrador, paid to that province for the period under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act.

Deeming

(2) For each fiscal year for which subsection 3.72(4) applies to Newfoundland and Labrador by reason of paragraph 3.72(6)(a), the amount that would be paid to that province under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act is deemed to be zero for the purpose of subparagraph (1)(a)(iii).

Definition of “period”

(3) For the purpose of subsection (1), “period” means the period beginning on April 1 of the first fiscal year in respect of which the province makes the election under subsection 3.7(3) and ending on the earlier of

(a) in the case of

(i) Nova Scotia, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act, and

(ii) Newfoundland and Labrador, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act, and

(b) March 31, 2020.

Fiscal equalization amount

3.72 (1) For the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average of

(a) the greater of zero and the amount determined by the formula

(A - B) × C

where

A is the per capita equalization standard for that fiscal year,

B is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, and

C is the average annual population of that province for that fiscal year, and

(b) the amount determined by the formula

D × [(E - F) × G] / H

where

D is

(a) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and

(b) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035,

E is the five-province per capita equalization standard for that fiscal year determined under subsection (3),

F is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,

G is the average annual population of that province for that fiscal year, and

H is the aggregate of the amount for each of the provinces determined by the formula

(I - J) × K

where

I is the five-province per capita equalization standard for that fiscal year determined under subsection (3),

J is the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal year, and

K is the average annual population of the province for that fiscal year.

Clarification — paragraph (1)(a)

(2) For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure that

(a) the amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero:

A + (B / C)

where

A is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,

B is the fiscal equalization amount for that province for that fiscal year, and

C is the average annual population of that province for that fiscal year; and

(b) the aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal to

(i) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and

(ii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.

Clarification — paragraph (1)(b)

(3) For the purposes of paragraph (1)(b),

(a) the five-province per capita equalization standard for a fiscal year is the amount determined by the formula

(A + B + C + D + E ) / F

where

A is the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year,

B is the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year,

C is the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year,

D is the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of British Columbia for that fiscal year,

E is the product of the average annual population of Saskatchewan for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Saskatchewan for that fiscal year, and

F is the aggregate of the average annual population for that fiscal year of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan;

(b) if, for a province, the value determined for F in paragraph (1)(b) is greater than the value determined for E in that paragraph, the difference between those values in relation to that province is deemed to be zero; and

(c) if, for a province, the value determined for J in the description of H in paragraph (1)(b) is greater than the value determined for I in that description, the difference between those values in relation to that province is deemed to be zero.

Adjustment of revenue to be equalized

(4) Subject to subsections (5) and (6), if, for a fiscal year, the fiscal equalization amount for a province determined under subsection (1) is greater than zero and that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.

Nova Scotia

(5) For the purpose of calculating the additional fiscal equalization payment that may be paid to Nova Scotia under subsection 3.71(1),

(a) subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and

(b) subsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5).

Newfoundland and Labrador

(6) For the purpose of calculating the additional fiscal equalization payment that may be paid to Newfoundland and Labrador under subsection 3.71(1),

(a) subsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and

(b) subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5).

164. (1) Subsection 3.9(1) of the Act is amended by adding the following in alphabetical order:

“average annual revenue base”
« assiette annuelle moyenne »

“average annual revenue base” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula

(A + B + C) / 3

where

A is the revenue base for the fiscal year that is one year prior to that fiscal year;

B is the revenue base for the fiscal year that is two years prior to that fiscal year; and

C is the revenue base for the fiscal year that is three years prior to that fiscal year.

“national average rate of tax”
« taux d’imposition national moyen »

“national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces.

“revenue base”
« assiette »

“revenue base” means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.

“revenue source”
« source de revenu »

“revenue source” means any of the following sources from which provincial revenues are or may be derived:

(a) personal income taxes;

(b) corporation income taxes, and revenues derived from government business enterprises that are not included in any other paragraph of this definition;

(d) general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes;

(e) tobacco taxes;

(f) motive fuel taxes derived from the sale of gasoline;

(g) motive fuel taxes derived from the sale of diesel fuel;

(h) non-commercial motor vehicle licensing revenues;

(i) commercial motor vehicle licensing revenues;

(j) alcoholic beverage revenues;

(k) hospital and medical care insurance premiums;

(l) forestry revenues;

(m) conventional new oil revenues;

(n) conventional old oil revenues;

(o) heavy oil revenues;

(p) mined oil revenues;

(q) light and medium third tier oil revenues;

(r) heavy third tier oil revenues;

(s) revenues from domestically sold natural gas and exported natural gas;

(t) sales of Crown leases and reservations on oil and natural gas lands;

(u) oil and gas revenues other than those described in paragraphs (m) to (t);

(v) mining revenues;

(w) water power rentals;

(x) insurance premium taxes;

(y) payroll taxes;

(z) provincial and local government property taxes;

(z.1) race track taxes;

(z.2) revenues from lottery ticket sales;

(z.3) revenues, other than those described in paragraphs (z.1) and (z.2), from games of chance;

(z.4) miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government rev-enues from sales of goods and services, and miscellaneous local government taxes and revenues; and

(z.5) revenues of the Government of Canada from any of the sources referred to in this definition that are shared by Canada with the provinces.

“revenue to be equalized”
« revenu sujet à péréquation »

“revenue to be equalized” means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations.

2007, c. 29, s. 62

(2) Subsections 3.9(2) to (7) of the Act are replaced by the following:

Deduction in computing revenue to be equalized

(2) In computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition “revenue source” in subsection (1) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.

Municipal property taxes and miscellaneous revenues and taxes

(3) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources:

(a) in the case of the part of the revenue source referred to in paragraph (z) of the definition “revenue source” in subsection (1) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; and

(b) in the case of the part of the revenue source referred to in paragraph (z.4) of the definition “revenue source” in subsection (1) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year.

Adjustment of revenue to be equalized

(4) Subject to subsection (5), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.

Election

(5) In order for subsection (4) to apply to Nova Scotia or to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection (1), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner.

Validity of election

(6) An election under subsection (5) by Nova Scotia or Newfoundland and Labrador in respect of a fiscal year is not valid if it has made an election under subsection 3.7(3) for that fiscal year or any previous fiscal year or if it makes an election under subsection 3.7(3) for that fiscal year.

Effect of election under subsection (5)

(7) Despite any provision of the Canada-Newfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (5) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero.

2007, c. 29, s. 62

165. Sections 3.91 to 3.93 of the Act are replaced by the following:

Time of calculation — ss. 3.2 to 3.4

3.91 (1) At a time determined by the Minister, no later than three months before the beginning of a fiscal year, the Minister shall calculate

(a) the fiscal equalization payment that may be paid to a province under sections 3.2 to 3.4 for that fiscal year on the basis that the province makes an election under subsection 3.2(2) for that fiscal year; and

(b) the fiscal equalization payment that may be paid to the province under those sections for that fiscal year on the basis that the province does not make an election under that subsection for that fiscal year.

Deeming

(2) Subsection (1) applies to Nova Scotia and Newfoundland and Labrador as if sections 3.2 to 3.4 applied to each of those provinces.

Time of calculation — s. 3.6

(3) At a time determined by the Minister, no later than three months before the end of a fiscal year, the Minister shall calculate

(a) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that both make an election under subsection 3.9(5) for that fiscal year;

(b) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Nova Scotia makes an election under subsection 3.9(5) for that fiscal year;

(c) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Newfoundland and Labrador makes an election under subsection 3.9(5) for that fiscal year; and

(d) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that neither makes an election under subsection 3.9(5) for that fiscal year.

Cessation

(4) Subsection (3) ceases to apply in respect of Nova Scotia or Newfoundland and Labrador if section 3.6 ceases to apply in respect of that province.

Time of calculation — s. 3.72

(5) The fiscal equalization amounts referred to in section 3.72 for a fiscal year shall be calculated no later than three months before the end of the fiscal year.

Underpayment

3.92 If the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that province an amount equal to the underpayment.

Overpayment

3.93 If the Minister determines that the Minister has overpaid any amounts paid to a province under this Part, the Minister may recover the amount of that overpayment

(a) within the prescribed time and in the prescribed manner, from any amount payable under this Act to that province; or

(b) from that province as a debt due to Her Majesty in right of Canada.

166. The Act is amended by adding the following after section 3.95:

Day of election

3.96 An election under this Part is deemed to have been made on the day on which the election is received by the Minister.

Deeming — final computation

3.97 For the purpose of the Canada-Newfoundland Atlantic Accord Implementation Act and the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, the final computation of the amount of the fiscal equalization payment for a fiscal year is deemed to have been made on March 31 of that fiscal year.

2007, c. 29, s. 62

167. Sections 4.4 and 4.5 of the Act are replaced by the following:

Underpayment

4.4 If the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that territory an amount equal to the underpayment.

Overpayment

4.5 If the Minister determines that the Minister has overpaid any amounts paid to a territory under this Part, the Minister may recover the amount of that overpayment

(a) within the prescribed time and in the prescribed manner, from any amount payable under this Act to that territory; or

(b) from that territory as a debt due to Her Majesty in right of Canada.

1997, c. 10, s. 264(1); 2007, c. 29, s. 73

168. Paragraphs 40(a.2) to (b) of the Act are replaced by the following:

(a.2) providing for the provincial or territo-rial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in each paragraph of the definition “revenue source” in subsections 3.5(1), 3.9(1) and 4(1);

(a.3) amending the definition “revenue source” in subsection 3.9(1) by dividing a revenue source set out in a paragraph of that definition into two or more separate revenue sources;

(b) respecting the calculation and payment to a province of advances on account of any amount that may become payable to the province under this Act, an administration agreement, a reciprocal taxation agreement or a sales tax harmonization agreement and the adjustment, by way of reduction or set off, of other payments to the province because of those advances;

(b.1) respecting the recovery of overpayments;

2007, c. 29

Amendments to the Budget Implementation Act, 2007

169. Section 78 of the Budget Implementation Act, 2007 is repealed.

170. Section 83 of the Act and the heading before it are repealed.

171. Section 84 of the Act is replaced by the following:

Newfoundland and Labrador

84. (1) Sections 79 and 82 come into force, or are deemed to have come into force, on April 1 of the first fiscal year in respect of which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act.

Notice

(2) The Minister of Finance shall publish in the Canada Gazette the date on which sections 79 and 82 come into force.

Nova Scotia

(3) Section 81 comes into force, or is deemed to have come into force, on April 1, 2008.

1987, c. 3

Consequential Amendment to the Canada-Newfoundland Atlantic Accord Implementation Act

2004, c. 22, s. 6

172. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following:

Calculation

220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of

(a) the amount, if any, by which

(i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act,

is less than

(ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,

(iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or

(iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent

of the aggregate of

(v) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year immediately preceding the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, as if

(A) in the case where the province makes the election under subsection 3.2(2) of that Act for the fiscal year, the province made the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, or

(B) in the case where the province does not make the election under subsection 3.2(2) of that Act for the fiscal year, the province did not make the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, and

(vi) the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year immediately preceding the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year, as that paragraph read for that fiscal year,

is greater than

(ii) the aggregate of

(A) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, as if

(I) in the case where the province makes the election under subsection 3.2(2) of that Act for the fiscal year, the province made the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, or

(II) in the case where the province does not make the election under subsection 3.2(2) of that Act for the fiscal year, the province did not make the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, and

(B) the amount computed in accordance with paragraph (a) for the fiscal year.

Transitional Provisions

Calculation re fiscal year 2008-2009

173. If section 165 of this Act comes into force after a calculation has already been made under section 3.91 of the Federal-Provincial Fiscal Arrangements Act of the fiscal equalization payment that may be paid to a province under section 3.6 of that Act for the fiscal year beginning on April 1, 2008, the Minister of Finance may, under section 3.91 of that Act, as enacted by section 165 of this Act, recalculate the fiscal equalization payment that may be paid to the province under section 3.6 of the Federal-Provincial Fiscal Arrangements Act for that fiscal year.

Effect of election by Newfoundland and Labrador — fiscal year 2007-2008

174. (1) For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act,

(a) section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows:

(a) the amount, if any, by which

is less than

of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

is greater than

(ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.

(b) a reference to “average” in section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, except within the expression “national average per capita fiscal capacity”, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; and

(c) the definition “fiscal equalization payment” in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

(b) for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula

A + B + (C / F)

where

A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

Effect of election by Nova Scotia — fiscal year 2007-2008

(2) For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincal Fiscal Arrangements Act, the definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

(b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula

A + B + (C / F)

where

A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

Effect of election by Newfoundland and Labrador — fiscal year 2008-2009

(3) For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act,

(a) the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows:

of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) subparagraph 220(b)(i) of that Act shall be read as follows:

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

Explanatory Notes

Canada Petroleum Resources Act

Clause 151: Existing text of subsection 101(2):

(2) Subject to this section, information or documentation is privileged if it is provided for the purposes of this Act or the Canada Oil and Gas Operations Act or any regulation made under either Act, or for the purposes of Part II.1 of the National Energy Board Act, whether or not the information or documentation is required to be provided.

National Energy Board Act

Clause 152: Existing text of section 18:

18. Where under this Act the Board may make or issue any order or direction or prescribe any terms or conditions or do any other thing in relation to any person, the Board may do so, either generally or in any particular case or class of cases.

Clause 153: Relevant portion of section 25:

25. In any action or other proceedings

...

(b) a document purporting to be certified by the Secretary, or by any other person authorized by the Board to certify documents for the purposes of this section, and sealed with the seal of the Board stating that a valid and subsisting document of authorization under this Act has or has not been issued by the Board to a person or persons named in the certified document, is evidence of the facts therein stated, without proof of the signature or official character of the person appearing to have signed the document and without further proof thereof.

Farm Income Protection Act

Clause 154: (1) Existing text of the definition:

“agreement” means an agreement entered into pursuant to subsection 4(1);

(2) New.

Clause 155: Relevant portion of subsection 8(2):

(2) The account for each producer participating in a net income stabilization program shall be composed of

...

(b) Fund No. 2, to which shall be credited all other amounts paid in respect of that producer as or on account of contributions, interest and bonuses.

Clause 156: Existing text of the heading:

ACCOUNTS

Clause 157: Existing text of the heading:

Net Income Stabilization Account

Clause 158: Existing text of subsection 15(1):

15. (1) Where an agreement provides for the establishment and administration by the Government of Canada of a net income stabilization account program in respect of an agricultural product or class of agricultural products, there shall be established in the accounts of Canada a Net Income Stabilization Account.

Clause 159: New.

Clause 160: Existing text of subsection 16(1):

16. (1) Where an agreement provides for the establishment and administration by Canada of a revenue insurance program in respect of an agricultural product or class of agricultural products, there shall be established in the accounts of Canada an account, to be known as the Revenue Insurance Fund, in respect of that agricultural product or class.

Federal-Provincial Fiscal Arrangements Act

Clause 161: Existing text of the description:

D is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under the Canada-Newfoundland Atlantic Accord Implementation Act;

Clause 162: New.

Clause 163: New.

Clause 164: (1) New.

(2) Existing text of subsections 3.9(2) to (7):

(2) For the purposes of this section and sections 3.6 to 3.8, the following expressions have the same meaning as in subsection 4(2) of this Act as it read on March 13, 2004:

(a) “national average rate of tax”;

(b) “revenue base”;

(d) “revenue to be equalized”.

(3) In computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition “revenue source” referred to in subsection (2) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.

(4) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources:

(a) in the case of the part of the revenue source referred to in paragraph (z) of the definition “revenue source” referred to in subsection (2) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; and

(b) in the case of the part of the revenue source referred to in paragraph (z.4) of the definition “revenue source” referred to in subsection (2) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year.

(5) Subject to subsection (6), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for that fiscal year.

(6) In order for subsection (5) to apply to Nova Scotia or to Newfoundland and Labrador, in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” referred to in subsection (2), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner.

(7) Despite any provision of the Canada-Newfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (6) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero.

Clause 165: Existing text of sections 3.91 to 3.93:

3.91 The fiscal equalization payment that may be paid to a province for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins.

3.92 If the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may pay that province an amount equal to the underpayment.

3.93 If the Minister determines that the Minister has overpaid any amounts paid to a province for a fiscal year under this Part, the Minister may recover the amount of that overpayment from

(a) any amount payable under this Act to that province, in that fiscal year or as soon as possible after the end of that fiscal year; or

(b) that province as a debt due to Her Majesty in right of Canada.

Clause 166: New.

Clause 167: Existing text of sections 4.4 and 4.5:

4.4 If the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may pay that territory an amount equal to the underpayment.

4.5 If the Minister determines that the Minister has overpaid any amounts paid to a territory for a fiscal year under this Part, the Minister may recover the amount of that overpayment from

(a) any amount payable under this Act to that territory, in that fiscal year or as soon as possible after the end of that fiscal year; or

(b) that territory as a debt due to Her Majesty in right of Canada.

Clause 168: Relevant portion of section 40:

40. The Governor in Council may make regulations

...

(a.2) providing for the provincial or territorial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsections 3.5(1) and 4(1);

(a.3) providing for the provincial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsection 4(2) of this Act as it read on March 13, 2004;

(a.4) defining, for the purposes of sections 3.6 to 3.9, the expressions “national average rate of tax”, “revenue base” and “revenue to be equalized”;

(b) providing for the payment to a province of advances on account of any amount that may become payable to the province under this Act, an administration agreement, a reciprocal taxation agreement or a sales tax harmonization agreement, the adjustment, by way of reduction or set off, of other payments to the province because of those advances and the recovery of overpayments;

Budget Implementation Act, 2007

Clause 169: Existing text of section 78:

78. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following:

(a) the amount, if any, by which

is less than

of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year

is greater than

Clause 170: Existing text the heading and section 83:

Transitional Provisions

83. (1) For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act,

(a) section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows:

(a) the amount, if any, by which

is less than

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

is greater than

(b) a reference to “average” in section 220 of that Act, except within the expression “national average per capita fiscal capacity”, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; and

(c) the definition “fiscal equalization payment” in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

A + B + (C / F)

where

A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

(2) For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, the definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

A + B + (C / F)

where

A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

(3) For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act, as enacted by that section 62,

(a) the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows:

(b) subparagraph 220(b)(i) of that Act shall be read as follows:

(4) For the first fiscal year that begins after the coming into force of section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, as enacted by section 78 of this Act,

(a) the portion of paragraph 220(a) of that Act after subparagraph (iv) shall be read as follows:

of the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) subparagraph 220(b)(i) of that Act shall be read as follows:

(i) the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

(5) If Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, for the fiscal year beginning on April 1, 2008 and that province had made the election under subsection 3.7(1) of that Act, as enacted by that section 62, for the preceding fiscal year, subsection (4) does not apply.

Clause 171: Existing text of section 84:

84. (1) Sections 78, 79 and 82 come into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act.

(2) Section 81 comes into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which Nova Scotia makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act.

Canada-Newfoundland Atlantic Accord Implementation Act

Clause 172: Existing text of section 220:

(a) the amount, if any, by which

(i) the fiscal equalization payment that may be paid to Her Majesty in right of the Province for the fiscal year under Part I of the Fiscal Arrangements Act

is less than

of the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

(i) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year

is greater than

(ii) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.