Bill 8 - Fiscal Transparency and Accountability Act

BILL 8

Fiscal Transparency and Accountability Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

Definitions

1 The following definitions apply in this Act.

“expenses”, in relation to a particular fiscal year, means the expenses of the Province for that fiscal year as reported in the most recent Public Accounts. (charges)

“first fiscal year” means the fiscal year commencing on the first day of April next following the commencement of this section. (premier exercice financier)

“fiscal year” means the period commencing on April 1 in one year and ending on March 31 in the next year. (exercice financier)

“GDP”, in relation to a particular year, means the nominal Gross Domestic Product for the Province as set out for that year in the most recent version of the Provincial and Territorial Economic Accounts published by Statistics Canada under the authority of the Statistics Act (Canada) or, if that figure is not available, the projected Gross Domestic Product published by the Department of Finance in its most recent fiscal update. (PIB)

“general election” means a general election as defined in the Political Process Financing Act. (élection générale)

“Minister” means a Minister appointed under section 2 of the Executive Council Act. (ministre)

“net debt”, in relation to a particular fiscal year, means the net debt of the Province in that fiscal year as reported in the most recent Public Accounts. (dette nette)

“publish” means to make public by or through any media. (publier)

“revenue”, in relation to a particular fiscal year, means the revenue of the Province for that fiscal year as reported in the most recent Public Accounts. (recettes)

“scheduled general election” means a scheduled general election as defined in the Elections Act. (élections générales programmées)

PART 1

FISCAL ACCOUNTABILITY

Division A

Deficit and Debt Reduction

Objectives

2 The following objectives shall govern the Province’s fiscal policies:

athe Province’s annual deficit for the first fiscal year shall be at least $125,000,000 less than the deficit reported in the Public Accounts for the preceding fiscal year;

bthe Province’s annual deficit for each fiscal year after the first fiscal year shall be at least $125,000,000 less than the deficit reported in the Public Accounts for the preceding fiscal year until the deficit is eliminated;

cafter the fiscal year in which the deficit is eliminated, the Province’s net debt for each subsequent fiscal year shall be at least $125,000,000 less than the net debt for the preceding fiscal year;

dthe Province’s net debt-to-GDP ratio shall be at or below 35% within five fiscal years after the fiscal year in which the deficit is eliminated; and

equarterly fiscal updates during a fiscal year shall include a statement of the actual year-to-date expenses and revenue to the end of the quarter to which the update relates.

Multi-year fiscal plan

3( 1) In each fiscal year, the President of Treasury Board shall table with the Main Estimates a multi-year fiscal plan that addresses the fiscal year to which the Main Estimates relate and at least two subsequent fiscal years.

3( 2) A multi-year fiscal plan shall include the following information:

aan estimate of the Province’s revenues and expenses for the period addressed by the plan;

ban estimate of the annual deficit or surplus for each fiscal year addressed by the plan; and

cif, when the Main Estimates are tabled, the President of Treasury Board is projecting a deficit for the fiscal year prior to the year to which the Main Estimates relate, a deficit reduction plan to implement the measures set out in section 6.

Revenue contingency

4( 1) When the Main Estimates are tabled, if the President of Treasury Board is projecting a surplus of less than $50,000,000 for the fiscal year to which the Main Estimates relate, the Main Estimates shall include a revenue contingency that is equal to that projected surplus.

4( 2) When the Main Estimates are tabled, if the President of Treasury Board is projecting a surplus of $50,000,000 or greater for the fiscal year to which the Main Estimates relate, the Main Estimates shall include a revenue contingency of $50,000,000.

In-year fiscal management

5( 1) If, during the course of a fiscal year, the estimated deficit increases for that fiscal year, the President of Treasury Board shall present to the Treasury Board options for addressing the Province’s deteriorating financial position.

5( 2) If, during the course of a fiscal year, the government proposes a new program, service or other initiative that was not provided for in the Main Estimates for that fiscal year, the program, service or initiative shall require Treasury Board approval before proceeding, and the expenses related to the program, service or initiative shall be funded from a reduction in other expenses of the Province or from new revenue to the Province.

5( 3) If the political party forming the government after a general election is not the political party that formed the government before that election, subsection (2) does not apply to a program, service or initiative proposed by the new government during the fiscal year in which the election is held.

Deficit reduction measures

6( 1) When a deficit is reported in the Public Accounts for a fiscal year, in the subsequent fiscal year, the following shall be reported:

aa deficit that is at least $125,000,000 less than the deficit reported in the Public Accounts for the preceding fiscal year; or

ba surplus.

6( 2) When a surplus is reported in the Public Accounts for a fiscal year, a surplus shall be reported in the subsequent fiscal year.

Extraordinary events

7( 1) An expense or change in revenue shall not be included when determining whether the measures set out in section 6 have been implemented for a fiscal year if the expense or change in revenue is the result of any of the following events or circumstances:

a a natural or other disaster;

bCanada is at war or under apprehension of war;

can extraordinary event that, in the opinion of the Secretary to Treasury Board, has had a material effect on the Province’s financial situation; or

da change in accounting practices or policies.

7( 2) An expense may be excluded under subsection (1) only if the net effect of all expenses described in subsection (1) is to increase the deficit for the fiscal year by more than $20,000,000 or to reduce the surplus for the fiscal year by more than $20,000,000.

7( 3) A determination by the Secretary to Treasury Board that an expense or change in revenue described in subsection (1) has occurred is conclusive for the purposes of this Act that the expense or change in revenue has occurred and in the amount stated in the determination.

7( 4) A determination under subsection (3) shall be included in the Public Accounts and shall include the following information:

ain the case of an expense, a description of the expense, including why it occurred, and the amount of the expense; and

bin the case of a change in revenue, a description of the change, including why it occurred, and the amount of the change.

Compliance with deficit reduction measures

8( 1) On the tabling of the Public Accounts under the Financial Administration Act, for each fiscal year that a deficit is reported, the Auditor General shall examine the information set out in the Public Accounts and shall determine, for the fiscal year to which the Public Accounts relate, whether there is a deficit that is at least $125,000,000 less than the deficit reported in the Public Accounts for the preceding fiscal year.

8( 2) The Auditor General shall include the determination made under subsection (1) in the opinion given in accordance with section 11 of the Auditor General Act.

Ministerial accountability

9( 1) Despite section 6 of the Executive Council Act, for the fiscal year commencing April 1, 2019, and for each subsequent fiscal year until the deficit is eliminated, an amount determined under subsection (2) shall be withheld from the annual salary otherwise payable to each Minister.

9( 2) The amount withheld under subsection (1) shall be one of the following:

aif the person is a Minister at the beginning of the fiscal year, $2,500; or

bif the person is a Minister for a portion of the fiscal year, an amount calculated as follows:

(A/365) × $2,500

where

A = the number of days remaining in the fiscal year from the day on which the person was appointed as a Minister.

9( 3) The amount to be withheld shall be distributed equally over the remaining pay periods in the fiscal year.

9( 4) If the report of the Auditor General indicates that the deficit reduction measures set out in section 6 have been implemented in respect of a fiscal year, the amount withheld under subsection (1) for that fiscal year is payable to the Minister, without interest.

9( 5) If the report of the Auditor General indicates that the deficit reduction measures set out in section 6 have not been implemented in respect of a fiscal year, the amount withheld under subsection (1) for that fiscal year shall be paid into the Consolidated Fund.

Amendment of deficit reduction measures

10 Section 6 may be substantively amended only if not less than two-thirds of the members of the Legislative Assembly who are present and vote at third reading of the Bill containing the amendment vote in favour of that Bill.

Suspension of deficit reduction measures

11( 1) The President of Treasury Board may recommend to the Lieutenant-Governor in Council that the applicability of sections 6, 8 and 9 be suspended for any fiscal year if the President of Treasury Board is of the opinion that an economic or financial crisis has occurred that makes it unreasonable for those sections to apply in that fiscal year.

11( 2) On the recommendation of the President of Treasury Board, the Lieutenant-Governor in Council may issue an order that sections 6, 8 and 9 do not apply in the fiscal year set out in the order.

Division B

Fiscal Reporting

Laying Main Estimates before Legislative Assembly

12( 1) Not later than March 31 of each year, the President of Treasury Board shall lay before the Legislative Assembly the Main Estimates for the next fiscal year.

12( 2) The Main Estimates shall include estimates of the following:

athe difference between revenue and expenses for the fiscal year to which the Main Estimates relate, exclusive of a change in revenue or an expense referred to in section 7; and

bthe ratio of net debt-to-GDP for the fiscal year to which the Main Estimates relate.

Laying Capital Estimates before Legislative Assembly

13 Not later than December 31 of each year, the President of Treasury Board shall lay before the Legislative Assembly the Capital Estimates for the next fiscal year.

Information to be included in Public Accounts

14 In addition to the information set out in subsection 41(3) of the Financial Administration Act, the Public Accounts shall include the following information:

athe difference between revenue and expenses for the fiscal year to which the Public Accounts relate, exclusive of a change in revenue or an expense referred to in section 7; and

bthe ratio of net debt-to-GDP for the fiscal year to which the Public Accounts relate.

Examination by Auditor General

15 The Auditor General shall examine the information referred to in section 14 to be included in the Public Accounts and shall express an opinion as to whether the information is fairly presented in accordance with the provisions of this Act.

Publishing fiscal updates

16( 1) The President of Treasury Board shall publish quarterly fiscal updates that contain revised forecasts of the economic situation and financial condition of the Province, including a statement of actual and projected expenses and revenue for the current fiscal year.

16( 2) Beginning with the first quarter of the first fiscal year, the quarterly fiscal updates referred to in subsection (1) shall be published in accordance with the following schedule:

a within 60 days after the end of the first quarter of the fiscal year; and

bwithin 45 days after the end of the second and third quarters of the fiscal year.

Financial reporting in year of scheduled general election

17( 1) At least 60 days before the day a scheduled general election is to be held, the President of Treasury Board shall publish the financial statements of the Province for the previous fiscal year with respect to which the Auditor General has given an opinion in accordance with section 11 of the Auditor General Act.

17( 2) At least 90 days before the day a scheduled general election is to be held, the President of Treasury Board shall publish an updated version of the multi-year fiscal plan tabled with the Main Estimates for the current fiscal year.

17( 3) An updated multi-year fiscal plan published under this section shall also include general information to assist a registered political party in complying with its obligation under Part 2 to prepare disclosure statements with respect to its election commitments.

Prebudget consultation

18 Each year the President of Treasury Board shall provide details as to how the public may participate in prebudget consultations.

PART 2

TRANSPARENCY IN ELECTION COMMITMENTS

Division A

Costing of Election Commitments

Purposes

19 The purposes of this Part are the following:

ato increase transparency with respect to and accountability for election commitments made by registered political parties;

bto provide electors with information on the financial consequences of election commitments made by registered political parties; and

cto promote an atmosphere in which the public does not expect the fulfilment of election commitments for which the cost has not been disclosed in accordance with this Act.

Definitions

20 The following definitions apply in this Part.

“chief agent” means a chief agent as defined in the Elections Act. (agent principal)

“cost estimate” means a disclosure statement containing an estimate of the financial consequences of an election commitment. (estimation des coûts)

“election commitment” means a statement that, due to the nature of the statement, creates a reasonable expectation with electors that a registered political party, if it forms the government, will implement the policy, program, service or initiative referred to in the statement. (engagement électoral)

“financial consequences” means an increase or a reduction in expenses or revenue. (répercussions financières)

“leader commitment” means an election commitment made by the leader of a registered political party that (engagement d’un chef)

ais published by any person, and

bif implemented, will have material financial consequences.

“maximum cost statement” means a disclosure statement setting out the maximum cost that the registered political party commits to with respect to an election commitment if it forms the next government. (énoncé des coûts maximaux)

“official representative” means an official representative as defined in the Elections Act. (représentant officiel)

“ordinary polling day” means the ordinary polling day as defined in the Elections Act. (jour ordinaire du scrutin)

“party commitment” means an election commitment of a registered political party (engagement d’un parti)

athat is included in its election platform, or

bthat is published.

“registered political party” means a registered political party as defined in the Elections Act. (parti politique enregistré)

“Supervisor” means the Supervisor of Political Financing referred to in section 4 of the Political Process Financing Act or a person who is delegated by the Supervisor under section 11 of that Act. (Contrôleur)

Application

21( 1) Subject to subsection (2), this Part applies to an election commitment that is made before a scheduled general election.

21( 2) This Part applies only to an election commitment that is a party commitment or a leader commitment.

Disclosure of election commitment cost

22( 1) A registered political party that makes an election commitment on or after the ninetieth day before the ordinary polling day shall publish and file with the Supervisor one of the following disclosure statements:

aa cost estimate;

bsubject to subsection (2), if the election commitment is a new or expanded program or service, a maximum cost statement; or

ca statement that an estimate of the financial consequences of the election commitment has not been prepared.

22( 2) If a registered political party indicates that an election commitment for which a maximum cost statement has been prepared will also increase or reduce revenue, the registered political party shall also publish and file under subsection (1) one of the following:

aa cost estimate with respect to the increase or reduction in revenue; or

ba disclosure statement described in paragraph (1)(c).

22( 3) If a registered political party publishes and files a disclosure statement described in paragraph (1)(c), the disclosure statement shall include one of the following statements:

aa statement that insufficient information was available to the registered political party to enable it to prepare a cost estimate;

ba statement that the election commitment will not have financial consequences for the Province; or

ca statement that the registered political party declines to prepare a cost estimate or a maximum cost statement with respect to its election commitment.

22( 4) The official representative of a registered political party shall ensure that a disclosure statement is published and filed as required under this section, and the official representative may designate, in writing, the chief agent of the registered political party to fulfil the official representative’s obligations under this subsection.

22( 5) If a political party becomes a registered political party after the ninetieth day before the ordinary polling day, this section applies to all election commitments made by the political party on or after the ninetieth day before the ordinary polling day.

22( 6) This section applies to an election commitment made by a registered political party before the ninetieth day before the ordinary polling day if the registered political party restates or otherwise affirms that election commitment on or after the ninetieth day before the ordinary polling day.

22( 7) A disclosure statement shall

abe in the format prescribed by and be prepared in accordance with the regulations, and

binclude any other information or documents prescribed by regulation.

22( 8) A cost estimate shall include a statement from an accountant in the format and content prescribed by, and prepared in accordance with, the regulations.

Additional requirements of disclosure statement

23( 1) A disclosure statement under section 22 shall include the sum of the following amounts:

athe estimates of the financial consequences of all election commitments for which a cost estimate has been published and filed; and

bthe maximum cost of all election commitments for which a maximum cost statement has been published and filed.

23( 2) A disclosure statement may deal with more than one election commitment and, in that case, such a disclosure statement shall include a disclosure statement as required under subsection 22(1) with respect to each election commitment and may include the sum of the amounts indicated in all the cost estimates and maximum cost statements included in the disclosure statement.

23( 3) With respect to an election commitment that will have financial consequences for the operating budget of the Province as provided for in the Main Estimates, a cost estimate or a maximum cost statement shall include the anticipated financial consequences of the election commitment for the fiscal year in which the election commitment is made and each of the four subsequent fiscal years.

23( 4) With respect to an election commitment that will have financial consequences for the capital budget of the Province as provided for in the Capital Estimates, a cost estimate shall include the following information:

athe estimated total capital expenditures related to the election commitment; and

bthe estimated capital expenditures related to the election commitment in the fiscal year in which the election commitment is made and in each of the four subsequent fiscal years.

23( 5) With respect to an election commitment that will have financial consequences for the capital budget of the Province as provided for in the Capital Estimates, a maximum cost statement shall include the following information:

athe maximum total capital expenditures related to the election commitment; and

bthe maximum capital expenditures related to the election commitment in the fiscal year in which the election commitment is made and in each of the four subsequent fiscal years.

23( 6) A computational, clerical or typographical error or any error of a similar nature in a disclosure statement does not constitute a violation of or a failure to comply with this section.

Timing of disclosure statement

24 A disclosure statement shall be published and filed with the Supervisor as follows:

asubject to paragraph (c), with respect to an election commitment made on or after the ninetieth day before the ordinary polling day, but before the day on which the writs of election are issued, no later than the day on which the writs of election are issued;

bwith respect to a party commitment made on or after the day on which the writs of election are issued, the day on which the commitment is made;

cwith respect to a leader commitment made on or after the second day before the day on which the writs of election are issued, no later than the third day following the day on which the commitment is made;

ddespite paragraph (c), with respect to a leader commitment made on or after the third day before the ordinary polling day, the day on which the commitment is made; and

ewith respect to an election commitment made by a political party referred to in subsection 22(5) before it becomes a registered political party, no later than the seventh day following the day on which the political party becomes a registered political party.

Inspection of disclosure statements

25( 1) When the Supervisor receives a disclosure statement that is filed under this Act, the Supervisor shall review it to determine if it has been prepared in accordance with this Act and the regulations and whether it includes the information or documents prescribed by regulation.

25( 2) If the Supervisor determines that a disclosure statement complies with this Act and the regulations, the Supervisor shall, within two business days of receiving the disclosure statement,

aprepare a certificate of compliance in the form and manner approved by the Supervisor, and

bmake the certificate of compliance and the disclosure statement available for public examination by publishing them on the Elections New Brunswick website.

25( 3) If the Supervisor determines that a disclosure statement is not in compliance with this Act and the regulations, the Supervisor shall, within two business days after receiving the disclosure statement, provide a notice to the official representative who filed the disclosure statement and the notice shall direct the party to correct any document that does not comply and to file a new disclosure statement within 24 hours.

Application for declaration of non-compliance

26( 1) An application under this section may be instituted against a registered political party in its own name and, for the purposes of the application, the registered political party is deemed to be a person.

26( 2) Within 30 days after the day on which the writs of election are returnable, a registered political party may apply by Notice of Application to a judge of The Court of Queen’s Bench of New Brunswick for a declaration that a registered political party has violated or failed to comply with section 22, 23 or 24.

26( 3) An application under this section shall include the following information:

athe name of the registered political party against which the declaration is sought; and

bthe election commitment that it is alleged has given rise to a violation or failure to comply with section 22, 23 or 24.

26( 4) To the extent that they are not inconsistent with this Act and the regulations, the Rules of Court apply to an application under this section.

Remedies for non-compliance

27 On hearing an application under section 26, if the judge is satisfied that the registered political party has violated or failed to comply with section 22, 23 or 24, the judge shall issue a declaration to that effect and impose a fine in an amount fixed by regulation, and may make an order for costs and the recovery of any expense incurred that the judge considers appropriate.

Division B

Legislative Library Research Support

Definitions

28 The following definitions apply in this Division.

“department” means a portion of the public service of the Province specified in Part 1 or Part 4 of the First Schedule of the Public Service Labour Relations Act, but does not include the Office of the Premier. (ministère)

“Director” means the Director of the Legislative Library appointed under the Legislative Library Act. (directeur)

“record” means a record as defined in the Right to Information and Protection of Privacy Act. (document)

Provision of research services

29( 1) During the six-month period before the ordinary polling day for a scheduled general election, the Legislative Library shall provide research services to registered political parties in order to assist them in meeting their obligations under this Part.

29( 2) When providing information to registered political parties, the Director is not restricted to providing only information that is accessed in accordance with this Act and shall take reasonable steps to access relevant information from other available sources.

Access to information

30( 1) The Director is entitled to request and receive from a department any records in the custody or under the control of that department that the Director requires to assist a registered political party in meeting its obligations under this Part.

30( 2) The right to request and receive records under subsection (1) does not extend to the following:

aa record that contains information that is excepted from disclosure under Division B or C of Part 2 of the Right to Information and Protection of Privacy Act, but if that information can reasonably be severed from the record, the Director has a right to request and receive information from the remainder of the record;

bthe records, information and other documents referred to in paragraphs 4(a) to (k) of the Right to Information and Protection of Privacy Act; and

cany other record for which access or disclosure is prohibited or restricted by an Act of the Legislature.

30( 3) A request under subsection (1) may be made to the Clerk of Executive Council, the deputy head of a department or a person designated by a deputy head to receive those requests and shall be made in writing or by electronic means.

30( 4) Not later than the one hundred and twentieth day before the ordinary polling day for a scheduled general election, the Clerk of the Executive Council shall provide to the Director the name of the deputy head of each department and of any person designated by a deputy head to receive requests under subsection (1).

Confidentiality of requests and sources

31( 1) When the Director makes a request under section 30, the Director shall not disclose the identity of the registered political party for which the Director is requesting the records or any other information respecting the registered political party.

31( 2) When the Director provides information received under section 30 to a registered political party, the Director may disclose only that it was received from a department and may not identify the department or any other information with respect to the source.

31( 3) When a request is received under section 30, a person shall limit the disclosure of any information relating to that request, including that a request has been received, to those persons who require the information for the purpose of replying to the request, and in no case shall a person disclose the information to any member of the Executive Council or to a person employed under subsection 18(1) of the Civil Service Act.

31( 4) A person who violates or fails to comply with subsection (1), (2) or (3) commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence.

Timing of response

32( 1) When a request under section 30 is received by a departmental official more than 60 days before the ordinary polling day, he or she shall respond in writing to the request within seven days after receiving the request.

32( 2) When a request under section 30 is received by a departmental official no more than 60 days before the ordinary polling day, he or she shall respond in writing to the request within three business days after receiving the request.

Designation by Director

33( 1) The Director may designate one or more employees of the Legislative Library to act on the Director’s behalf for the purposes of this Division.

33( 2) A designation under subsection (1) shall be in writing and a copy shall be provided to the Clerk of the Executive Council.

PART 3

MISCELLANEOUS PROVISIONS

Review of Act

34( 1) The President of Treasury Board shall complete a review of this Act every five years after April 1, 2022, and the review shall include consideration of the fiscal objectives for the next five years.

34( 2) Section 10 does not apply to an amendment arising out of a review conducted in accordance with subsection (1).

Regulations

35 The Lieutenant-Governor in Council may make regulations

aprescribing the format and content of a disclosure statement for the purposes of subsection 22(7), including prescribing information or documents to be included with a disclosure statement;

bprescribing the format and content of a statement from an accountant for the purposes of subsection 22(8), including incorporating by reference accounting standards and practices applicable to its preparation and modifying those standards and practices;

cgoverning the engagement and use of an accountant to prepare a statement referred to in paragraph (b), including prescribing who will be responsible for engaging the accountant;

dgoverning expenses incurred by a registered political party in having a statement referred to in paragraph (b) prepared, including prescribing a maximum amount that a registered political party will be reimbursed for those expenses;

efixing the amount of a fine for the purposes of section 27;

fdefining words or expressions used, but not defined, in this Act.

PART 4

CONSEQUENTIAL AMENDMENTS, REPEAL AND COMMENCEMENT

Legislative Library Act

36 Section 2(1.1) of the Legislative Library Act, chapter 185 of the Revised Statutes, 2011, is amended by striking out “Part 1 of the Transparency in Election Commitments Act” and substituting “Part 2 of the Fiscal Transparency and Accountability Act”.

Political Process Financing Act

37 Subsection 67(2) of the Political Process Financing Act, chapter P-9.3 of the Acts of New Brunswick, 1978, is amended in paragraph (f.01) by striking out “Part 1 of the Transparency in Election Commitments Act” and substituting “Part 2 of the Fiscal Transparency and Accountability Act”.

Repeal

38 The Transparency in Election Commitments Act, chapter 1 of the Acts of New Brunswick, 2018, is repealed.

Commencement

39 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.