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Bill S-38

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S-38
First Session, Thirty-seventh Parliament,
49-50-51 Elizabeth II, 2001-2002
SENATE OF CANADA
BILL S-38
An Act declaring the Crown’s recognition of self-government for the First Nations of Canada

first reading, February 6, 2002

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 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 in areas of national concern;
(c) they do not override the Constitution of Canada;
(d) they may be limited by the First Nation’s constitution;
(e) in certain areas, such as environment and citizenship, they are specifically limited; and
(f) 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, 37th Parliament,
49-50-51 Elizabeth II, 2001-2002
senate of canada
BILL S-38
An Act declaring the Crown’s recognition of self-government for the First Nations of Canada
Preamble
WHEREAS history records that the Crown entered into legal relations with certain Nations, Tribes or bodies of Indians;
WHEREAS the Parliament of Canada subsequently passed certain laws in relation to Indians and lands reserved for Indians;
WHEREAS some of these laws have created a cumbersome, expensive and inefficient system of administration over Indians and their lands;
WHEREAS it is proper, just and in the public interest that such Nations, Tribes or bodies of Indians be free to administer, regulate and manage their own communities, lands and resources and exercise the appropriate tools of governance over their lands and peoples;
AND WHEREAS it is in the common interest that First Nations, exercising their inherent powers over their lands, languages, identities, cultures, economies and communities, continue to shape Canada recognizing the universal principles of respect, tolerance, sharing, mutuality and reciprocity;
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 Self-Government Recognition Act.
Interpretation
Definitions
2. (1) The definitions in this subsection apply in this Act.
“aboriginal lands”
« terre autochtone »
“aboriginal lands”, with respect to a First Nation, means those lands to which the First Nation holds aboriginal title, and includes
(a) any tracts of lands that have been reserved by the First Nation exclusively for itself within its territory 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;
(b) lands acquired or owned by the First Nation, before or after it came under this Act, that are declared by the Governor in Council to be its lands;
(c) lands acquired by or restored to the First Nation, before or after it came under this Act, pursuant to a claim against the Crown or any other person or a settlement of such a claim; and
(d) lands acquired by the First Nation, before or after it came under this Act, as compensation for the expropriation or ceding of any land referred to in paragraph (a), (b) or (c);
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, inalienable interest that
(a) existed before the arrival of Europeans in Canada;
(b) does not originate in a grant from any other sovereign or government;
(c) is perpetual and passes from generation to generation;
(d) is subject to the jurisdiction and inherent powers of the First Nation;
(e) includes any reversionary interest, if any, that the Crown might otherwise have or claim; and
(f) is collectively owned by the members of the First Nation.
“citizen”
« citoyen »
“citizen”, with respect to a First Nation, means a person recognized by the First Nation as a member of the First Nation and, with reference to a matter or circumstance before the First Nation came under this Act, includes a member of the community that comprises the First Nation.
“community”
« collectivité »
“community” means a body of indigenous people, or a subgroup thereof,
(a) for whose use and benefit land has been reserved within the meaning of section 91(24) of the Constitution Act, 1867; and,
(b) that is recognized as a nation, tribe, band or other body of indigenous people
(i) by any treaty or agreement with the Crown,
(ii) under the Indian Act or by any other Act of Parliament, or
(iii) by any order of a court of competent jurisdiction.
“constitution”
« Constitution »
“constitution” means the constitution of a First Nation and includes both a written and an unwritten constitution by which a First Nation governs itself.
“First Nation”
« première nation »
“First Nation” means a community that has come under this Act and, in relation to a time before the community came under this Act, means that community at that time.
Application to communities
(2) This Act shall be read in respect of each community that comes under this Act as a special Act applying to that community.
Aboriginal title – principles and purpose
(3) In interpreting this Act, it shall be recognized that lands that are held in aboriginal title, subject to this Act, are
(a) except as provided in this Act, 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) intended to provide a permanent and safe place in the Canadian Confederation for First Nations peoples, 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 recognize the inherent rights and powers of the peoples of the First Nations of Canada over their lands, languages, identities, cultures, economies and communities, so that they may fully and freely exercise the jurisdiction and powers inherent in their status.
PART 1
SELF-GOVERNMENT
Preliminaries
Reference and approval
4. (1) When a community proposes to come under this Act, the community must, by way of a referendum, refer the proposal, together with a draft constitution, to the electors of the community for their approval.
Electors of a community
(2) An elector of a community in a referendum referred to in subsection 4(1) is
(a) for a community that maintains its own membership list, a natural person 18 years of age or older who at the time of the referendum is on the membership list of the community as maintained by the community;
(b) for a community that does not maintain its own membership list, a natural person 18 years of age or older who at the time of the referendum is on the membership list of the community as maintained by the Government of Canada for the community and authenticated by the community; and
(c) for a community that operates under customary law, a natural person who at the time of the referendum would be entitled to vote in a referendum according to the custom of the community.
Community records prevail
(3) For greater certainty, if the membership records of a community differ from those of the Government of Canada, the records of the community prevail unless otherwise ordered by a court of competent jurisdiction.
Preliminary requirements
(4) A proposal must contain, as a minimum, the following information:
(a) the identification of the community;
(b) the name proposed for the community when it comes under this Act;
(c) a description of the reserves and other lands that constitute the territory of the community;
(d) details of the treaties and agreements previously entered into between the Crown in any right and the community, or on its behalf;
(e) a general description of the tribal patrimony and other resources available to the community and the manner, in general terms, by which it is anticipated that the community will finance itself immediately and in the future;
(f) the approximate number of electors qualified to vote on the proposal;
(g) the name of the person who will be appointed electoral officer to conduct the referendum on the proposal, and the names of a reasonable number of persons to act as replacement electoral officers in case the electoral officer is unable to conduct the referendum; and
(h) the names of the electors who will be the governing body when the community comes under this Act.
Proposed constitution
(5) The draft constitution accompanying the proposal may be a copy of the sample constitution set out in Schedule 1, or a different constitution that must be consistent with this Act and that must make provision for
(a) the recognition of a body of elders and any other body, society or person that forms part of the tradition of the community;
(b) a citizenship code that, having regard to section 41, includes the requirements for citizenship and the procedure for determining whether a person is a citizen;
(c) a governing body and its composition, principal administrative officer, tenure of office, powers, duties and procedures;
(d) the procedure by which the laws of the First Nation are to be enacted and promulgated;
(e) a system of reporting, through audits or otherwise, by which the governing body and its members are financially accountable to the citizens;
(f) the amendment of the constitution by the citizens;
(g) the rules and procedures relating to the selection and tenure of the members of the governing body, including transitional provisions and provisions for the holding of referendums;
(h) the procedures for calling annual general and other assemblies of the citizens and the matters to be placed before them for approval or deliberation; and
(i) other matters provided for in Schedule 1 relating to government, citizens or lands.
Defects and omissions
(6) A defect or omission that is not of a substantial nature in the draft constitution or in any other document or matter that precedes the holding of a referendum on a proposal does not invalidate the referendum or its outcome.
Community coming under Act
Effect of approval
5. (1) When a proposal for a community to come under this Act and a draft constitution have been referred to the electors of the community and more than fifty per cent of all the electors approve the proposal and the draft constitution,
(a) the community comes under this Act as a self-governing polity
(i) on the day specified therefor in the proposal or ninety days after the referendum if the proposal contains no specified day,
(ii) under the name approved by the referendum, and
(iii) with the constitution approved by the referendum; and
(b) the persons who are members of the governing body of the community on the date of the referendum shall forthwith notify the President of the Queen’s Privy Council for Canada, who shall cause a notice of the approval of the proposal to be published in the Canada Gazette.
First Nation
(2) The community in respect of which a referendum is approved as described in subsection (1) is a First Nation under this Act, with effect from the day it becomes self-governing in accordance with subparagraph (1)(a)(i).
Capacity and powers
6. A First Nation is a body politic with perpetual succession and all the powers, rights and privileges necessary for the performance of the functions that are described in its constitution or this Act or that are ancillary or incidental thereto.
Transitional Provisions
Provisional governing body
7. (1) Subject to the constitution, the persons who are members of the governing body of the community immediately before the community comes under this Act are the first governing body of the First Nation.
Presumed election
(2) A member of the governing body referred to in subsection (1) is deemed to have been duly selected or elected, pursuant to and subject to the constitution, as a member of the first governing body of the First Nation for a five-year term commencing on the day on which the member last took office on the governing body before the community came under this Act.
Officers and employees
(3) The persons who are officers and employees of the community immediately before the community comes under this Act are deemed to be the duly appointed officers and employees of the First Nation until confirmed or removed by its governing body.
Legislative Powers
Legislative powers
8. (1) A First Nation is hereby recognized as having the power to make laws respecting the First Nation and its citizens, lands, language, identity, culture and economy, and in particular, without limiting the generality of the foregoing, to make laws respecting the subject-matters enumerated in Schedule 2, subject to any restrictions placed on the law-making power in its constitution.
Manner of making laws
(2) Unless otherwise provided for in the constitution, the laws of a First Nation shall be enacted by the governing body of the First Nation.
Statutory Instruments Act
9. The Statutory Instruments Act does not apply to a law or to the constitution of a First Nation, or to any rules or resolutions of the governing body of the First Nation.
Territorial application
10. A law of a First Nation applies only within the territory comprising the lands of the First Nation, unless otherwise provided for in this Act or in a law of the First Nation made in relation to a subject matter in items 12 to 19, 21 or 36 of Schedule 2.
Punishments
11. (1) A maximum fine or maximum term of imprisonment imposed by or under any law of a First Nation may not exceed the maximum fine and maximum term of imprisonment provided by section 787 of the Criminal Code for offences punishable on summary conviction for which no specific penalty is provided.
Prohibition order
(2) For the avoidance of doubt and without limiting the generality of subsection (1), when a law of a First Nation is contravened and a conviction entered, the court in which the conviction has been entered, and any court of competent jurisdiction thereafter, may, in addition to any other remedy and to any penalty imposed by the law, make an order prohibiting the continuation or repetition of the offence by the person convicted, whether or not the additional order is requested by the First Nation.
Ownership of fines, etc.
12. Every fine, penalty, victim surcharge, tax or forfeiture and interest thereon imposed under a law of a First Nation or pursuant to this Act in respect of the First Nation belongs to the First Nation.
Prosecutions
13. A First Nation has exclusive jurisdiction in relation to the laying of charges and the prosecution of persons who contravene its laws.
Summary jurisdiction re laws of First Nation
14. Subject to the establishment of any court or tribunal pursuant to paragraph 38 of Schedule 2, or an equivalent provision in a constitution not based on Schedule 1, a provincial court of summary jurisdiction in a province in which a First Nation is situated has jurisdiction with respect to the enforcement of the laws of the First Nation and with respect to matters arising from those laws.
Provincial court jurisdiction re this Act
15. Subject to the establishment of any court or tribunal pursuant to paragraph 38 of Schedule 2, or an equivalent provision in a constitution not based on Schedule 1, a provincial court of competent jurisdiction in a province in which a First Nation is situated has jurisdiction with respect to this Act and the laws of the First Nation and with respect to matters arising from this Act or those laws.
PART 2
ABORIGINAL TITLE AND MONEYS
Aboriginal title vests
16. Aboriginal title in the aboriginal lands of a First Nation is recognized in the First Nation on the day the First Nation comes under this Act, subject to the rights, interests and conditions referred to in section 17.
Saving of interests
17. (1) The recognition of the aboriginal title in respect of the aboriginal lands of a First Nation under section 16 does not operate to affect any lawfully acquired rights, obligations or interests in those lands at the time the First Nation comes under this Act, except to replace references to the Crown with references to the First Nation.
Presumption
(2) All instruments evidencing existing rights or obligations referred to in subsection (1), in this section called “existing rights”, shall be presumed to be instruments issued by a First Nation in respect of the existing rights until those instruments are replaced by instruments issued in respect of the existing rights by the First Nation to the holders of the existing rights.
Effect of new instrument
(3) When a First Nation issues an instrument to a holder of existing rights pursuant to subsection (2), the instrument conveys the existing rights unchanged, unless changes in the terms and conditions of the existing rights are agreed upon by the holder of the rights and the First Nation.
Saving
(4) This section does not terminate any accrued rights of the Government of Canada or a First Nation, including, without limiting the generality of the foregoing, any accrued rights in respect of operations conducted on aboriginal lands of the First Nation before the First Nation came under this Act.
Audited accounting
(5) After a First Nation comes under this Act, the First Nation may, at any time, request the Government of Canada in its capacity as a legal agent acting on behalf of the First Nation to provide a full and complete audited accounting in respect of all transactions involving reserves, interests pertaining to reserves, or any other assets of the First Nation, excluding moneys, in order to facilitate the early and orderly discharge of the responsibilities of the Crown in respect of those transactions.
Rights limited
18. No citizen of a 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 the aboriginal lands and assets of the First Nation, except to the extent that an interest in those lands or assets has been granted or transferred by the First Nation to the citizen in conformity with subsections 19(3), (4) and (5).
Non-alienability of aboriginal lands
19. (1) Subject to sections 18 and 28, aboriginal lands of a First Nation cannot be alienated.
Protection against expropriation
(2) Notwithstanding any other Act, no interest in the aboriginal lands of a First Nation, or any portion thereof, may be expropriated by the Crown or any entity other than the First Nation.
Power of First Nation over its lands
(3) A First Nation has the full and exclusive power 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, but may not exercise any of those powers except in conformity with the constitution and laws of the First Nation.
Consent of governing body
(4) No encumbrance of any interest in the aboriginal lands of a First Nation by way of lease, mortgage or otherwise, nor any licence in respect of those lands, is valid unless it is made with the express written consent of the governing body of the First Nation.
Constitutional restrictions
(5) For greater certainty, the constitution of a First Nation may prohibit or restrict the encumbrance of the aboriginal lands of the First Nation.
Additional lands
(6) The constitution of a First Nation may provide for lands owned by the First Nation that are not aboriginal lands to be designated and made aboriginal lands by a referendum approved by no less than eighty percent of those voting.
Registration under First Nation law
20. (1) A First Nation may by law authorize the registration of estates and interests in the aboriginal lands of the First Nation specified in the law and, for that purpose, may apply any laws of the province in which the First Nation is situated.
Registration generally
(2) All estates and interests in the aboriginal lands of a First Nation that are not subject to a law made pursuant to subsection (1) continue to be registrable in the Reserve Land Register maintained pursuant to section 21 of the Indian Act.
Status of aboriginal lands of the First Nation
21. For greater certainty, aboriginal lands of a First Nation are lands reserved for the Indians within the meaning of section 91(24) of the Constitution Act, 1867.
Community moneys
22. (1) For greater certainty,
(a) on the day that a community comes under this Act as a First Nation, it becomes the beneficial owner of all moneys that were held by the Crown for the use and benefit of the community immediately prior to that day; and
(b) a First Nation is the beneficial owner of all moneys that are received by the Crown, for the use and benefit of the community constituting the First Nation, after the community comes under this Act.
Responsibility for moneys
(2) A First Nation is not responsible for the moneys described in subsection (1), and the Crown remains responsible for those moneys until the control of the moneys has, after a suitable accounting, been transferred to the First Nation.
No citizen claim on moneys
(3) No citizen has, by reason only of citizenship in a 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 First Nation.
Situs of moneys
(4) All moneys beneficially owned by a First Nation and all accretions thereto are deemed always to be situated on the aboriginal lands of the First Nation.
Audited accounting of moneys
(5) In this section, a “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 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.
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) and with such modifications as the circumstances require, to a First Nation and its citizens as if the references in that section to a band or a reserve included First Nations and the aboriginal lands of First Nations respectively.
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 also a reference to this Act.
Application to Indian corporation
(3) Section 87 of the Indian Act applies in respect of an Indian corporation as though it were an Indian.
Definition of Indian corporation
(4) In this section and in sections 24, 25, 27 and 36, “Indian corporation” means a corporation incorporated under a law of Canada or a province, or under a law of a First Nation, that carries on business exclusively on the aboriginal lands of the First Nation and of which each shareholder is either
(a) the First Nation, a citizen, another community or a member of another community, or any combination thereof, or a body corporate that is controlled by, or the shares of which are beneficially or legally owned by, any of them or any combination of them; or
(b) a person who holds all the shares of the corporation for the benefit of the First Nation, a citizen, another community or a member of another community, or any combination of them.
Exemption from legal process
24. Subject to this Act, to the constitution and laws of a 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 First Nation and no personal property situated on those lands and belonging to the First Nation, a citizen, another community, an Indian within the meaning of the Indian Act, or an Indian corporation may be mortgaged or otherwise encumbered as security, or be subject to any mode of civil execution, except in favour of the First Nation, a citizen, another community, an Indian within the meaning of the Indian Act, or an Indian corporation.
Conditional sales
25. A person who sells anything to a First Nation, a citizen, another community, an Indian within the meaning of the Indian Act, or an Indian corporation under an agreement 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
26. For the purposes of sections 22 to 25, personal property is deemed always to be situated on lands of the First Nation if it was
(a) purchased for the use and benefit of the First Nation or its citizens
(i) by the Crown in right of Canada with First Nation moneys or with moneys appropriated by Parliament, or
(ii) by a First Nation with its moneys or with moneys appropriated by Parliament; or
(b) given to citizens or to the First Nation under a treaty or agreement between the First Nation and the Crown, or in satisfaction of a claim.
Void transactions
27. Every transaction purporting to pass title to, or any interest in, any property that is deemed to be situated on the aboriginal lands of a First Nation is void unless the transaction is entered into with the consent of the First Nation or is entered into between citizens, an Indian corporation or any combination of those parties.
PART 3
ORGANIZATIONAL OPTIONS
Division or amalgamation
28. (1) A First Nation may authorize the division of the First Nation or its amalgamation with any other community of Indians that has come under this Act.
Approval of electors
(2) A division of a First Nation or the amalgamation of the First Nation may be effected only with the approval of the First Nation electors, as defined by the constitution of the First Nation, in a referendum in which at least eighty per cent of all the qualified electors vote in favour of the division or amalgamation.
Confederation plan
29. (1) A First Nation may be party to a plan, in this section called a “confederation plan”, to establish a body politic to become the recipient of delegated administrative and legislative powers from communities that have come under this Act and are parties to the confederation plan.
When plan effective
(2) A confederation plan becomes effective when the governing bodies of the parties thereto have obtained an amendment to their respective constitutions to effect the plan.
Capacity
(3) The body politic established pursuant to subsection (1) has the capacity and powers of a natural person.
Duration of plan
(4) During the term of a confederation plan, a First Nation may not exercise any of the powers delegated by it for the purposes of the plan except as provided for in its constitution as amended for the purposes of the plan.
PART 4
GENERAL
Administration
Existing rights
30. (1) For greater certainty,
(a) subject to the constitution or any law of a First Nation, 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 pertain to a First Nation, its citizens or any other aboriginal peoples of Canada;
(b) nothing in this Act abrogates or derogates from any existing or future claim of the First Nation; and
(c) nothing in this Act nor any action taken under it is a waiver of
(i) the status of citizens as Indians within the meaning of section 91(24) of the Constitution Act, 1867, or
(ii) any existing aboriginal or treaty rights of any First Nation or its members.
Binding on Crown
(2) This Act binds the Crown in right of Canada or a province.
Remedial in nature
(3) This Act is declared remedial for the purposes of section 12 of the Interpretation Act.
Canadian Human Rights Act
(4) The Canadian Human Rights Act does not apply in respect of anything done under this Act.
No liability as member of governing body
31. (1) No individual is personally liable for any debt, obligation or act of a 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 First Nation, and the individual knowingly consents to, authorizes or engages in the contravention.
No liability as citizen
(2) No individual is personally liable for any debt, obligation or act of a First Nation by reason only of being a citizen.
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 any band, tribe or nation of Indians, and the regulations made thereunder, do not apply to a First Nation, its citizens, aboriginal lands, moneys or assets.
Application of other legislation
(2) Subject to this Act and the constitution of a 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 and as they read on the day the First Nation comes under this Act, apply to the First Nation;
(b) section 114, paragraphs 115(a), (b) and (c) and sections 116 to 122 of the Indian Act apply to the First Nation as if the references in those sections to the Minister, a band or a reserve were, respectively, references to the governing body of the First Nation, the First Nation or lands of the First Nation;
(c) sections 42 to 50 of the Indian Act apply, with such modifications as the circumstances require, to the First Nation and its citizens in the absence of any law of the First Nation in relation to the matters provided for in those sections;
(d) section 51 of the Indian Act applies in respect of the property of dependent adult citizens until the provisions of that section are replaced by laws of the First Nation that are no less favourable in respect of the adult dependent citizen than the provisions of the Indian Act;
(e) sections 52 and 52.2 to 52.5 of the Indian Act apply in respect of the property of minor children of citizens until the provisions of those sections are replaced by laws of the First Nation that are no less favourable in respect of the minor children than the provisions of the Indian Act;
(f) section 87 of the Indian Act applies to the First Nation, its citizens, aboriginal lands of the First Nation and the property of its citizens; and
(g) sections 5 to 7 of the Indian Act apply in respect of the registration of citizens as Indians and the determination of which citizens are entitled to be so registered.
References to Indian Act
(4) A reference to a provision of the Indian Act in subsections 32(3) to (8) is a reference to the provision as it reads on the coming into force of this Act.
Incorporating statutory provisions
33. (1) A 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 First Nation.
Expression
(2) A law of a First Nation that incorporates a provision of an Act referred in subsection (1) may modify the provision to the extent necessary to express the law in language compatible with the laws of the First Nation but without changing the substance of the provision.
Effect of law
(3) When the provision of an Act referred to in subsection (1) is incorporated into a law of the First Nation, the law has the same effect as if it were expressly embodied in this Act.
Amendment and repeal
(4) After its making, a law described in subsection (1)
(a) may be repealed at any time by the 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 subsections (2) and (3) apply to any amendment of that law.
Laws of Canada of general application
34. (1) Except to the extent that it is inconsistent with a provision of this Act, a law of the Parliament of Canada applies to a First Nation, its citizens and its aboriginal lands, subject to the terms of any treaty, treaty right or land claims agreement.
Idem
(2) Subject to the terms of any treaty, treaty right or land claims agreement, a law of the Parliament of Canada does not apply to a First Nation, its citizens or its aboriginal lands, or to Indians within the meaning of the Indian Act, to the extent that the law is inconsistent with the constitution of the First Nation or a law of the First Nation, unless that law
(a) deals with a distinct subject matter that, by its inherent nature, is of concern to Canada as a whole and is beyond local or provincial control; or
(b) serves a compelling and substantial purpose of national significance consistent with the Crown’s ongoing fiduciary relationship with First Nations and interferes as little as possible with the law-making authority of the First Nation to produce the necessary result, or is of a temporary and extraordinary nature and intended to deal with an emergency.
Provincial laws of general application
(3) A law of general application of a province applies to Indians and citizens of a First Nation on lands of the First Nation within the province only to the extent that any such law is not inconsistent with a term of a treaty with or treaty right of the First Nation, with this or any other Act of Parliament, with the constitution or a law of the First Nation, or with any applicable land claims agreement.
Saving by-laws
35. Except to the extent of any inconsistency with this Act, with any law of a 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 comes under this Act continues in force as a law of the First Nation until it is replaced by a law enacted pursuant to this Act.
Indian Oil and Gas Act
36. Unless a law of a First Nation otherwise provides, the Indian Oil and Gas Act and regulations made thereunder apply to the First Nation, its lands, its governing body, its citizens and its agents, whether incorporated or not, and to an Indian corporation wholly owned by the First Nation.
Canada Lands Survey Act
37. Unless a law of a First Nation otherwise provides, the Canada Lands Survey Act and regulations made thereunder apply to lands of the First Nation.
Environment
38. The environmental standards established by or under any Act of Parliament apply in respect of the lands of a First Nation, until the First Nation enacts its own environmental laws, subject to section 39.
First Nation environmental standards
39. A First Nation may, by law,
(a) apply the environmental standards of the province in which the First Nation is situated; or
(b) establish other environmental standards for the lands of the First Nation, if the environmental standards so established are no less stringent and no less protective of the environment than the least stringent of the environmental standards referred to in section 38 and the standards of the province referred to in paragraph (a).
Saving
Declaration of non-applicability
40. (1) If the governing body of a First Nation requests by resolution that the Governor in Council do so, the Governor in Council may, by order, declare any of sections 11 to 15, subsections 19(1) and (2) and sections 24 and 25 not applicable to the First Nation or a citizen.
Application of declaration
(2) A declaration made under subsection (1) may apply to the First Nation generally or in respect of a specified transaction, and indefinitely or for a stated period.
Revocation
(3) A declaration made under subsection (1) may, with the approval of the First Nation, be revoked at any time by order of the Governor in Council.
Saving citizenship rights
41. (1) A person who had a right to membership or citizenship in the community comprising a First Nation immediately before that community first acquired or assumed control of its membership or citizenship from the Minister of Indian Affairs and Northern Development under this Act, the Indian Act or any other Act of Parliament, may not be deprived of citizenship by reason only of a situation that existed, or an action that was taken, before the community first acquired or assumed control of its membership or citizenship 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 Nations.
Consequential Amendments
R.S., c. F-24
Fishing and Recreational Harbours Act
1994, c. 35, s. 34
42. 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 Self-Government Recognition Act;
R.S., c. 44 (4th Supp.)
Lobbyists Registration Act
2000, c. 7, s. 24
43. 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 Self-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
44. 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 Self-Government Recognition Act, if it levies and collects a real property tax or a frontage or area tax in respect of lands of the First Nation, as defined in that Act,
R.S., c. P-21
Privacy Act
1994, c. 35, s. 39
45. 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 First Nation under the First Nations Self-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)
DRAFT SAMPLE CONSTITUTION
Interpretation
1. The definitions in this section apply in this Constitution.
“Act”
« Loi »
“Act” means the First Nations Self-Government Recognition Act.
“citizen”
« citoyen »
“citizen” means a citizen of the First Nation.
“elector”
« électeur »
“elector” means a natural person who is
(a) 18 years of age or over;
(b) a citizen; and
(c) not otherwise disqualified, pursuant to the Act or this constitution, 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.
Citizenship
Citizenship rules
2. (1) Citizenship is determined by the membership rules of the First Nation that are in force immediately before the day on which the First Nation comes under this Act, with such modifications as the circumstances require and without abrogating or derogating from existing aboriginal or treaty rights.
Must be an Indian
(2) No person may be a citizen who is not registered or entitled to be registered as an Indian.
Citizens of other bands
(3) No citizen of another community or another First Nation may be a citizen of the First Nation.
Amendment to Constitution
When amendment effective
3. (1) Subject to subsections (2) and (4), an amendment to the Constitution is effective and in force on the day it is approved by a majority of the electors of the First Nation in a referendum held for that purpose or on such later date as is set out in the amendment.
Percentage of vote required
(2) Where a provision of the Constitution requires approval for any purpose by a percentage of electors greater than a majority of electors, including the percentage itself required for approval, 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 member of the governing body of the First Nation is restricted to changing any future term of a member of that body, and requires the approval of seventy-five per cent of the electors.
Petition re amendment
(4) If the governing body of the First Nation receives a petition signed by eighty per cent of the electors of the First Nation requesting that a referendum be held in relation to a proposed amendment to the Constitution, the governing body shall forthwith order a referendum to determine the matter.
Drafting petitioned amendment
(5) The governing body may redraft the amendment proposed in the petition mentioned in subsection (4), but must do its best to ensure that its draft 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 governing body of the First Nation shall forthwith notify the President of the Queen’s Privy Council for Canada, who shall cause the Constitution, the amendment or any laws passed pursuant thereto to be published in the Canada Gazette.
Governing Body
Composition
5. (1) The governing body of the First Nation may be called a Council and its members may be called councillors. They are referred to hereinafter as “Council” and “councillors” respectively, and shall be selected in accordance with the provisions of the Constitution and the laws of the First Nation.
Chief
(2) One of the councillors shall be the principal administrative officer of the First Nation and may be designated Chief, and is referred to hereinafter as the “Chief”.
Number of councillors
(3) The number of councillors, including the Chief, shall be five.
How elected
6. The Chief and the councillors of the First Nation must be elected by a majority of the votes cast by electors in an election held pursuant to this Constitution.
Ineligible candidates
7. (1) No candidate is eligible for election as Chief or councillor unless
(a) the candidate is an elector of the First Nation;
(b) all debts owed to the First Nation by the candidate are in good standing;
(c) no court has convicted the candidate in criminal proceedings for theft, fraud, bribery or breach of trust; and
(d) the nomination of the candidate is petitioned by two persons who are themselves 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 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, the Council may call a by-election at its discretion to fill the vacancy, but must 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 thirty days before the date on which an election is to be held.
Disqualification
(2) The Electoral Officer must not be a citizen 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 at the election or any elector who voted or attempted to vote in the election may lodge an appeal to 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), forward 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 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.
General assembly of First Nation
11. (1) The Council shall call a general assembly of the citizens at least once in each calendar year.
Special assembly of First Nation
(2) The Council shall call a special assembly of the citizens within thirty days of the receipt of a petition duly signed by at least twenty-five per cent of the citizens calling for such an assembly, but no petition may be received by the Council for this purpose within six months of a previous special assembly.
Proceedings and minutes
12. (1) 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.
Agenda
(2) The Council shall place on the agenda for a meeting of the Council any item submitted by a citizen at least seven days before the meeting.
Functions and Duties
Function of Council
13. (1) The First Nation acts 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 Council or the actions of any of the members of Council, 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.
Commencement of law
14. (1) A law of the First Nation comes into force on the day on which it is enacted, or on such day as is specified therefor by the laws of the First Nation.
Promulgation of laws
(2) The laws of the First Nation shall be published and made generally available to its citizens by any expedient means.
First Nation Money
Holding First Nation money
15. (1) First Nation money is money held by the First Nation for the use and benefit of the First Nation and may be held only in the following forms:
(a) deposits in financial institutions;
(b) treasury bills;
(c) bankers’ acceptances;
(d) guaranteed investment certificates;
(e) bonds; and
(f) cash.
Classification of money
(2) First Nation money is classified as capital and revenue.
Capital
(3) 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; and
(d) proceeds, including royalties, from the sale of non-renewable resources.
Revenue
(4) Revenue consists of First Nation money that is not capital.
No longer First Nation money
(5) 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.
Holding by First Nation
(6) For greater certainty, money is held by the First Nation when the First Nation is vested with legal title to the money.
Spending authority
(7) The Council may only expend First Nation money or commit itself, by contract or otherwise, to expend First Nation money only when the expenditure is authorized or ratified by this Constitution, a law or a Council resolution.
Validity of contracts
(8) A failure by the Council to follow the procedures prescribed by subsection (7) does not affect the validity of any contract.
Revenue expenditures
16. First Nation revenue expenditures include but are not limited to
(a) expenditures in 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) expenditures by way of contributions to First Nation housing programs;
(c) expenditures for community services, including sports, emergency assistance, burials and recreation grants;
(d) expenditures for jointly funded programs;
(e) expenditures by way of supplements to First Nation programs;
(f) expenditures for economic development;
(g) expenditures for First Nation planning;
(h) expenditures for charitable donations;
(i) expenditures by way of provision for asset replacement;
(j) expenditures by way of 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 citizenship list of the First Nation;
(k) expenditures for making loans to, investments in, or contributions to corporations or trusts; and
(l) expenditures for 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, investment.
First Nation capital
17. 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 as new lands of the First Nation or as an addition to lands of the First Nation;
(d) the purchase for the First Nation of the interest of a citizen 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 citizenship 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; and
(j) any other purpose that, in the opinion of the Council, is for the benefit of the First Nation and is deemed in its nature to be a capital expenditure, including, without limiting the generality of the foregoing, investment.
Unfettered discretion
18. In making investments of capital or revenue, the Council has unfettered discretion in their selection, and is not limited to investments authorized by any applicable legislation other than the laws of the First Nation and this Constitution.
Financial Accountability
Fiscal year of First Nation
19. 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
20. (1) The First Nation, by resolution,
(a) shall, before the beginning of each fiscal year, adopt a budget for that fiscal year; and
(b) may, if it deems necessary in the course of the fiscal year, adopt supplementary budgets for that fiscal year.
Presumed budget
(2) 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
21. (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) permit 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 citizen, and that citizen’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 citizen is 18 years of age;
(b) the citizen is mentally competent; and
(c) the citizen’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
22. (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, 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 must conform to generally accepted accounting principles.
Separate capital and revenue accounting
(3) The financial statement must show the expenditure and balance of capital and revenue separately.
Appointment of auditor
23. (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 must be independent of the First Nation and must 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 a province in which the First Nation is 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 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
24. (1) The auditor shall, within six months after the completion of the financial statement, prepare and submit to the Council a report on the First Nation’s 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
(2) Where the auditor has not been able to prepare the report within the period mentioned in subsection (1), the auditor shall notify the Council of the reasons for the delay.
Duty to inform auditor
25. 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 section 24 and that the officers, employees, agents or former auditors are reasonably able to furnish.
Federal transfer payments
26. Federal transfer payments must 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 citizen 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
Protected transactions
28. (1) The following transactions, involving interests in aboriginal lands of the First Nation, require approval by eighty per cent of the votes cast by the resident and non-resident electors of the First Nation, voting on separate referendums held for the purpose of approving any of these transactions and in each of which a majority of the voters participated:
(a) a mortgage or charge;
(b) the grant of an interest for a term exceeding ninety-nine years; and
(c) the grant to a citizen of any interest other than a grant for personal residential purposes.
Authorizing transactions
(2) Subject to subsection (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 lands of the First Nation.
Exception
29. Notwithstanding paragraphs 16(l) and 17(j), the Council may not distribute First Nation money to the citizens of the First Nation if such 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 such distribution, unless such distribution has been approved by eighty per cent of the votes cast by the resident and non-resident electors of the First Nation, voting on separate referendums held for the purpose of approving that distribution and in each of which a majority of the voters participate.

SCHEDULE 2
(Section 8)
LEGISLATIVE POWERS OF A FIRST NATION
1. Rules and procedures relating to the selection and term of the governing body, elections and referendums.
2. Practice and procedures of the First Nation.
3. Labour, employment and human rights.
4. Exercise of the First Nation’s powers.
5. The management of the First Nation.
6. Lands of the First Nation.
7. Property, money and accounts of the First Nation.
8. Intellectual property.
9. The raising of money for the purposes of the First Nation by any means, including taxation and licensing.
10. The administration of funding relationships.
11. Businesses, trades, occupations and professions.
12. Health and hygiene.
13. Marriage, divorce and matrimonial property.
14. Social and welfare matters.
15. Custody and placement of children of citizens, whether or not the children are resident on the lands of the First Nation.
16. Adoption of children of and by citizens, whether or not the children are resident on the lands of the First Nation.
17. Administration of moveable property, wherever situated, and of interests, in lands of the First Nation, of persons who, being minors or dependent adult persons, are ordinarily resident on lands of the First Nation and are citizens or minor children of citizens.
18. Devolution, by will or intestate succession, of interests in lands of the First Nation and the personal property, wherever situated, of persons who are ordinarily resident on lands of the First Nation; and with respect to that interest and property, jurisdiction and authority over the validity, construction and proof of wills, the administration of estates and all matters and causes testamentary.
19. Education of citizens, wherever resident, and other persons resident on lands of the First Nation.
20. The environment.
21. The issuance of licences for hunting, fishing, trapping and harvesting.
22. Utilities and services.
23. Transportation.
24. Traffic.
25. Observance of law and order, public order, safety and security.
26. Trespass and nuisance.
27. Culture, traditional knowledge, customs and traditions.
28. Public games, gaming, sports and amusements.
29. Recreation.
30. Natural resources.
31. Infrastructure.
32. Animals.
33. Weapons.
34. Intoxicants.
35. Local institutions.
36. Trusts held for the benefit of citizens and the variation of any such trusts, wherever the trusts or the citizens are situated.
37. The establishment of offences and the penalties therefor.
38. The administration of justice, including the establishment and designation of courts and tribunals of criminal and civil jurisdiction.
39. Policing.
40. The creation of bodies corporate and politic to carry out government, administrative, education, health or other functions.
41. 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.
42. Any other matters, activities or things relating to the First Nation, its citizens, lands of the First Nation, moneys, property interests, or other tribal patrimony.
Published under authority of the Senate of Canada