Bill C-507: An Act to amend the Financial Administration Act (federal spending power)

C-507 Third Session, Fortieth Parliament, 59 Elizabeth II, 2010 HOUSE OF COMMONS OF CANADA BILL C-507 An Act to amend the Financial Administration Act (federal spending power) first reading, April 14, 2010 Mrs. Beaudin 402229 SUMMARY This enactment amends the Financial Administration Act in order to end federal spending in an area of provincial jurisdiction in the absence of a delegation of power or responsibility in that area. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca 3rd Session, 40th Parliament, 59 Elizabeth II, 2010 house of commons of canada BILL C-507 An Act to amend the Financial Administration Act (federal spending power) 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 Federal Spending Power Act. R.S., c. F-11 FINANCIAL ADMINISTRATION ACT 2. The Financial Administration Act is amended by adding the following after section 26: No payment out of CRF for certain expenditures 26.1 (1) Subject to subsection (2), no payment shall be made out of the Consolidated Revenue Fund in respect of expenditures relating to any of the subjects listed in section 92 and subsection 92A(1) of the Constitution Act, 1867 that are under provincial jurisdiction. Delegation (2) Payments may be made out of the Consolidated Revenue Fund if the government of the province concerned has expressly delegated to the federal government the power to incur the expenditures referred to in subsection (1) or the responsibility to administer the program associated with those expenditures, or both. Period and nature of delegation (3) Delegation under subsection (2) shall not be for a period longer than five years; it may be absolute or partial or may provide for the gradual withdrawal of the federal government from a field of exclusive provincial jurisdiction. Amount of payment (4) In the absence of the delegation referred to in subsection (2), where the federal government proposes incurring expenditures or administering a program, it shall make a payment to the province equivalent to the following amounts: (a) the amount that would have been spent in the province if the government of that province had delegated a power to the federal government under the terms of subsection (2), where applicable; and (b) the amount that would have been expended on the administration of the program if the government of that province had delegated a responsibility to the federal government under the terms of subsection (2), where applicable. Transfer of a taxation field (5) At the request of a province, the payment provided for in subsection (4) may be made in the form of a transfer of a taxation field. Agreement with province 26.2 Within 12 months after this Act receives royal assent, the government shall enter into an agreement with each of the provinces concerning the delegation referred to in subsections 26.1(2) and (3), the payment provided for in subsection 26(4) and any matter arising under this Act, including any terms and conditions for the transfer of staff, as the case may be. COMING INTO FORCE Coming into force 3. Section 2 of this Act shall come into force 12 months after this Act receives royal assent. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada