Bill C-263

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First Reading

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SUMMARY
Short Title
Federal-Provincial Fiscal Arrangements Act
Terminology

Second Session, Forty-third Parliament,

69 Elizabeth II, 2020-2021

HOUSE OF COMMONS OF CANADA

BILL C-263
An Act to amend the Federal-Provincial Fiscal Arrangements Act (equalization)

FIRST READING, February 1, 2021

Mr. Kmiec

432073

SUMMARY

This enactment amends the Federal-Provincial Fiscal Arrangements Act to require the Minister of Finance, at the request of the government of a province following a referendum on equalization in that province, to report on the Minister’s intention or refusal to enter into discussions with the governments of the provinces and on the discussions that were held, if applicable.

It also provides for consultations to be held with provincial governments prior to any amendment to that Act that would change the method of calculation of the fiscal equalization payments that may be paid under that Act, and for the publication of information respecting those consultations.

It also removes the per capita limit of $60 applicable to fiscal stabilization payments that may be paid to a province. Lastly, it provides for the publication of information respecting the details of the calculation of the fiscal equalization payments and of all amounts paid under the Act.

Available on the House of Commons website at the following address:

www.ourcommons.ca

2nd Session, 43rd Parliament,

69 Elizabeth II, 2020-2021

HOUSE OF COMMONS OF CANADA

BILL C-263

An Act to amend the Federal-Provincial Fiscal Arrangements Act (equalization)

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 Equalization and Transfers Fairness Act.

L.‍R.‍, c. F-8; 1995, c. 17, s. 45

Federal-Provincial Fiscal Arrangements Act

2 Section 1 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

Short title

1 This Act may be cited as the Insertion start Equalization and Transfers Insertion end Act.

3 The Act is amended by adding the following before section 3.‍91:

Discussions following a referendum

3.‍901 (1) When the government of a province, following a referendum relating to fiscal equalization payments, requests that the Government of Canada reassess, in consultation with the governments of the provinces, the method of calculation of the fiscal equalization payments, the Minister shall cause to be tabled in each House of Parliament, within 90 days after the day on which the request is made or, if the House is not then sitting, on any of the first 15 days of the next sitting of the House, a report stating

(a) the Minister’s intention to enter into discussions with the governments of the provinces about the method of calculation of the fiscal equalization payments; or
(b) the Minister’s refusal to enter into discussions with the governments of the provinces about the method of calculation of the fiscal equalization payments and the reasons for that refusal.
End of inserted block

Report on discussions

(2) If the Minister enters into discussions with the governments of the provinces, the Minister shall cause to be tabled in each House of Parliament, within 120 days after the day on which the request referred to in subsection (1) is made or, if the House is not then sitting, on any of the first 15 days of the next sitting of the House, a report setting out

(a) the steps that the Minister took to discuss with the governments of the provinces the method of calculation of the fiscal equalization payments;
(b) the details of the discussions, including a list of the persons consulted by the Minister; and
(c) the steps that the Minister plans to take to address the issues raised during the discussions.
End of inserted block

Consultations

3.‍902 (1) The Minister shall not cause to be introduced in Parliament a bill that would change the method of calculation of the fiscal equalization payments that may be paid under this Part unless the Minister has consulted with all provincial governments.

Publication

(2) The Minister shall publish all relevant information respecting the consultations referred to in subsection (1) on the website of the Department of Finance and shall ensure that the information is kept up to date.

4 Section 3.‍91 of the Act is amended by adding the following after subsection (2):

Publication

(3) The Minister shall publish the details of the calculations referred to in subsection (1) on the website of the Department of Finance as soon as feasible after the completion of each calculation.

5 (1) The portion of subsection 6(1) of the Act before the formula is replaced by the following:

Computation of payments

6 (1) The fiscal stabilization payment that may be paid to a province for a fiscal year is the amount determined by the formula

(2) Subsections 6(8) to (10) of the Act are repealed.

6 The Act is amended by adding the following after section 41:

Publication

Publication of amounts authorized

42 The Minister shall publish the details of all amounts authorized to be paid under this Act on the website of the Department of Finance as soon as feasible after the payment of such amounts.

Terminology

Replacement of “Federal-Provincial Fiscal Arrangements Act”

7 Every reference to the “Federal-Provincial Fiscal Arrangements Act” is replaced by a reference to the “Equalization and Transfers Act” in the following provisions:

(a) in the Canada Health Act,
- (i) the definition cash contribution in section 2, and
- (ii) subsection 22(3);
(b) in the Excise Tax Act,
- (i) the definition sales tax harmonization agreement in subsection 123(1),
- (ii) subparagraph (b)‍(i) of the definition specified Crown agent in subsection 123(1),
- (iii) clause 200(4)‍(a)‍(i)‍(C),
- (iv) the definition aboriginal government in subsection 295(1),
- (v) clause 295(5)‍(d)‍(i)‍(B), and
- (vi) section 300.‍1;
(c) paragraph (a) of the definition refund of tax in subsection 2(1) of the Tax Rebate Discounting Act;
(d) in the Income Tax Act,
- (i) the portion of subsection 152(10) before paragraph (a),
- (ii) the definition aboriginal government in subsection 241(10), and
- (iii) subsection 241(11);
(e) in the Greenhouse Gas Pollution Pricing Act,
- (i) paragraph (c) of the definition government entity in subsection 107(1), and
- (ii) paragraph 165(5)‍(a);
(f) in the Softwood Lumber Products Export Charge Act, 2006,
- (i) subparagraphs 84(6)‍(d)‍(i) and (vii), and
- (ii) the description of D in the formula in subsection 99(1.‍4);
(g) in the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act,
- (i) the definition fiscal equalization payment in section 4,
- (ii) section 17,
- (iii) the definition fiscal equalization payment in section 18, and
- (iv) section 31;
(h) subsection 14(2) of the Canada Border Services Agency Act;
(i) in the First Nations Goods and Services Tax Act,
- (i) subsection 3(1.‍1),
- (ii) subparagraphs 4(9)‍(a)‍(ii) and (b)‍(i),
- (iii) paragraphs 5(2)‍(e) and (f), and
- (iv) subsection 5(5),
- (v) subsection 16(1);
(j) in the Excise Act, 2001,
- (i) the definition aboriginal government in subsection 211(1), and
- (ii) subparagraph 211(6)‍(e)‍(vii);
(k) subsection 26(1) of the Budget Implementation Act, 2000;
(l) in the Canada Revenue Agency Act,
- (i) subsection 63(2), and
- (ii) section 64;
(m) paragraph 212(4)‍(a) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act; and
(n) paragraph 207(4)‍(a) of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act.

Published under authority of the Speaker of the House of Commons