Bill 42, Eastern Ontario Economic Development Fund Act, 2006

Versions

Bill 42 2005

An Act to establish the
Eastern Ontario Economic
Development Fund Corporation

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

Purposes

1. The purposes of this Act are,

(a) to establish the Eastern Ontario Economic Development Fund Corporation which is required to establish and maintain the Eastern Ontario Economic Development Fund; and

(b) to allow the Corporation to use money in the Fund for the purpose of providing financial assistance to promote economic development in rural areas and smaller urban municipalities in Eastern Ontario that have limited financial resources and that are experiencing a population growth lower than that of the average for all municipalities in the Province.

Definitions

2. In this Act,

"Corporation" means the Eastern Ontario Economic Development Fund Corporation; ("Société")

"Fund" means the Eastern Ontario Economic Development Fund; ("Fonds")

"Minister" means the Minister of Municipal Affairs and Housing; ("ministre")

"rural areas and smaller urban municipalities in Eastern Ontario" means the region consisting of the City of Kawartha Lakes, the counties of Northumberland, Peterborough, Haliburton, Prince Edward, Hastings, Renfrew, Lennox and Addington, Frontenac, Leeds and Grenville, Lanark, the county of Stormont, Dundas and Glengarry and the county of Prescott and Russell, but not including cities with a population of more than 200,000 inhabitants. ("zones rurales et petites municipalités urbaines de l'Est de l'Ontario")

Corporation established

3. There is established a corporation known in English as the Eastern Ontario Economic Development Fund Corporation and in French as Société de gestion du Fonds de développement économique de l'Est de l'Ontario.

Board

4. (1) A board of directors consisting of not fewer than 12 persons shall administer the affairs of the Corporation.

Minister

(2) The Minister shall be a director and shall chair the board of directors.

Directors other than Minister

(3) Every director, except for the Minister, shall be appointed by order of the Lieutenant Governor in Council for the term stipulated in the order and shall be ordinarily resident in rural areas and smaller urban municipalities in Eastern Ontario.

Non-application of Corporations Act

5. The Corporations Act does not apply to the Corporation.

Objects

6. The objects of the Corporation are,

(a) to advise and make recommendations to the Lieutenant Governor in Council on any matter relating to the growth and diversification of the economy of rural areas and smaller urban municipalities in Eastern Ontario;

(b) to promote the economic development of rural areas and smaller urban municipalities in Eastern Ontario; and

Fund

7. (1) The Corporation shall establish and maintain a fund known as the Eastern Ontario Economic Development Fund.

Funding

(2) The Minister may make grants to the Corporation, out of the money appropriated by the Legislature to the Ministry of the Minister, for deposit into the Fund, subject to the conditions that the Lieutenant Governor in Council considers advisable.

Investments

(3) The Corporation may invest money deposited in the Fund in,

(a) securities issued or guaranteed by Ontario, any other province of Canada, Canada, the United Kingdom or the United States of America;

(b) securities issued or guaranteed by the International Bank for Reconstruction and Development payable in Canadian or United States currency;

(c) deposit receipts, deposit notes, certificates of deposits, acceptances and other similar instruments issued, guaranteed or endorsed by any bank named in Schedule I or II to the Bank Act (Canada); and

(d) other investments authorized by the Lieutenant Governor in Council.

Powers of Corporation

8. (1) Subject to this section, the Corporation may use any money deposited in the Fund to further its objects.

Grants and loans

(2) For the purpose of clause 6 (b), the Corporation may provide financial assistance by way of grant or loan to a person or body that carries on business in rural areas and smaller urban municipalities in Eastern Ontario or to a municipality located in that region.

Factors to consider

(3) Before providing financial assistance to a recipient under subsection (2), the Corporation shall consider whether, with respect to the municipality in which the recipient carries on business, if the recipient is not a municipality, or with respect to the municipality, if the recipient is a municipality,

(a) the average annual income of the inhabitants of the municipality is less than the average annual income of all inhabitants of Ontario;

(b) the total tax levied by the municipality on land divided by the number of inhabitants of the municipality is less than the average of the total tax levied by all municipalities in Ontario on land divided by the number of inhabitants of those municipalities; and

(c) the percentage increase, if any, in the population in the municipality in the immediately preceding year is less than the average percentage increase, if any, in the population in all municipalities in Ontario in the immediately preceding year.

Guarantees

(4) The Corporation may guarantee any loan that it makes under subsection (2).

Audit

9. The accounts and financial transactions of the Corporation shall be audited annually by the Auditor General.

Annual report

10. (1) After the end of each fiscal year, the Corporation shall prepare an annual report on its affairs.

Tabling

(2) The Minister shall,

(a) submit the report to the Lieutenant Governor in Council;

(b) lay the report before the Assembly if it is in session; and

Commencement

11. This Act comes into force on the day it receives Royal Assent.

Short title

12. The short title of this Act is the Eastern Ontario Economic Development Fund Act, 2005.

EXPLANATORY NOTE

The Bill enacts the Eastern Ontario Economic Development Fund Act, 2005.

The Act establishes the Eastern Ontario Economic Development Fund Corporation. The Corporation is required to establish and maintain the Eastern Ontario Economic Development Fund.

The Corporation can use money in the Fund to further its objects which include promoting the economic development of rural areas and smaller urban municipalities in Eastern Ontario, for example by providing financial assistance to persons or bodies that carry on business in that region or to municipalities that are located in that region. That region is defined to be the area covered by the City of Kawartha Lakes and the counties of Northumberland, Peterborough, Haliburton, Hastings and Renfrew, together with all points in Ontario east of that area, but excluding cities with a population of more than 200,000 inhabitants.