Preamble
WHEREAS the mission of
the Heritage Fund is to provide prudent stewardship of the savings from
Alberta’s non‑renewable resources by providing the greatest financial
returns on those savings for current and future generations of Albertans;
THEREFORE HER MAJESTY,
by and with the advice and consent of the Legislative Assembly of Alberta,
enacts as follows:
Definitions
1 In this Act,
(a) “endowment
portfolio” means the endowment portfolio referred to in section 3;
(b) “Heritage
Fund” means the Alberta Heritage Savings Trust Fund referred to in section 2;
(c) “mineral
agreement” means an agreement as defined in the Mines and Minerals Act;
(d) “non‑renewable
resource revenue” means
(i) money received by the Crown under a mineral agreement or a
contract under section 9 of the Mines and
Minerals Act or under a reservation of royalty in letters patent conveying
title to a mineral,
(ii) money received by the Crown from or in connection with the
disposition of the Crown’s royalty share of a mineral,
(iii) fees paid to the Crown in connection with the issuance of a
mineral agreement,
(iv) money received by the Crown as a bonus to acquire a mineral
agreement, and
(v) money received by the Crown pursuant to a contract under which
the Crown agrees to accept that money instead of royalty otherwise payable
under one or more leases of oil sands rights issued under the Mines and Minerals Act;
(e) “Special
Act” with reference to any fiscal year means an Act of the Legislature
authorizing the transfer from the General Revenue Fund to the Heritage Fund of
a percentage of the non‑renewable resource revenue received in that
fiscal year;
(f) “Standing
Committee” means the Standing Committee established under section 6;
(g) “transition portfolio” means the transition
portfolio referred to in section 3.
1996 cA‑27.01 s1
Alberta Heritage Savings
Trust Fund
2(1) There is hereby continued the Alberta Heritage
Savings Trust Fund established under the Alberta
Heritage Savings Trust Fund Act, RSA 1980 cA-27.
(2) The
Minister of Finance shall hold, manage, invest and dispose of the assets of the
Heritage Fund in accordance with this Act.
(3) The Minister of Finance shall establish and
maintain a separate accounting record of the Heritage Fund.
RSA 2000 cA‑23
s2;2006 c23 s6
Investments by the
Heritage Fund
3(1) The investments and other assets of the
Heritage Fund shall be contained
(a) in
an endowment portfolio, and
(b) until
no later than December 31, 2005, in a transition portfolio.
(2) Investments
made under the endowment portfolio must be made with the objective of
maximizing long‑term financial returns.
(3) Investments
made under the transition portfolio must be made with the objective of
supporting the Government’s short‑term to medium‑term income needs
as reflected in the Government’s consolidated fiscal plan.
(4) Subject to the regulations, when making
investments the Minister of Finance shall adhere to investment and lending
policies, standards and procedures that a reasonable and prudent person would
apply in respect of a portfolio of investments to avoid undue risk of loss and
obtain a reasonable return that will enable the endowment portfolio and the
transition portfolio to meet their respective objectives.
RSA 2000 cA‑23
s3;2006 c23 s6
Agreements respecting
financial matters
4(1) The Minister of Finance may enter into
agreements providing for
(a) the
lending of securities acquired or held pursuant to this Act, and
(b) the
delivery to the Minister of Finance of collateral consisting of securities or
classes of securities or of letters of credit.
(2) The Minister of Finance may enter into
agreements or engage in other activities of a financial nature respecting
investment under this Act, including, without limiting the generality of the
foregoing, exchange agreements, futures agreements, option agreements, rate
agreements, any other financial agreements or any combination of the agreements
or activities referred to in this subsection.
RSA 2000 cA‑23
s4;2006 c23 s6
Consolidated Cash
Investment Trust Fund
5 The endowment portfolio and
the transition portfolio are designated as depositors in the Consolidated Cash
Investment Trust Fund under the Financial
Administration Act.
1996 cA‑27.01 s5
Standing Committee
6(1) There is hereby established a standing
committee of the Legislative Assembly called the “Standing Committee on the
Alberta Heritage Savings Trust Fund” consisting of 9 members of the Legislative
Assembly.
(2) The
membership of the Standing Committee shall include 3 members of the Legislative
Assembly who are not members of the governing party, but if there is
(a) an
insufficient number of non‑government members to fill the 3 positions on
the Standing Committee, or
(b) an
insufficient number of non‑government members who are willing to fill the
3 positions on the Standing Committee,
the resulting vacant
positions on the Standing Committee may be filled by members of the Legislative
Assembly who are members of the governing party.
(3) The
members of the Standing Committee shall be appointed at the commencement of
each session in the same way that members are appointed to other standing
committees of the Legislative Assembly.
(4) The
functions of the Standing Committee are
(a) to
review and approve annually the business plan for the Heritage Fund;
(b) to
receive and review quarterly reports on the operation and results of the
operation of the Heritage Fund;
(c) to
approve the annual report of the Heritage Fund;
(d) to
review after each fiscal year end the performance of the Heritage Fund and
report to the Legislature as to whether the mission of the Heritage Fund is
being fulfilled;
(e) to
hold public meetings with Albertans on the investment activities and results of
the Heritage Fund.
(5) The Standing Committee may, without leave of
the Assembly, sit during any period when the Assembly is sitting or when it is
adjourned or after prorogation of a session of the Legislature.
1996 cA‑27.01 s6
Business plan
7(1) The Minister of Finance shall for each fiscal
year prepare and provide to the Treasury Board a business plan for the Heritage
Fund.
(2) Once
the Treasury Board has advised the Minister of Finance that the Treasury Board
has approved the business plan, the Minister of Finance shall provide a copy of
the approved business plan to the Standing Committee for the Standing
Committee’s approval.
(3) On the Standing Committee’s giving its approval
of the business plan, the Minister of Finance shall incorporate the business
plan into the business plan prepared by the Minister of Finance under section
13 of the Government Accountability Act.
RSA 2000 cA‑23
s7;2006 c23 s6
Income of Fund
8(1) The income of the Heritage Fund accrues to and
forms part of the Heritage Fund.
(2) The net income of the Heritage Fund less the
amount allocated to the Heritage Fund under section 11 shall be transferred by
the Minister of Finance from the Heritage Fund to the General Revenue Fund
annually in a manner determined by the Minister of Finance.
RSA 2000 cA‑23
s8;2006 c23 s6
Transfer of
non-renewable resource revenue
9(1) A percentage of the non‑renewable
resource revenue received in each fiscal year shall be transferred from the
General Revenue Fund to the Heritage Fund in accordance with this Act, but only
if the transfer is authorized by a Special Act.
(2) The
title of a Special Act shall be the “Alberta
Heritage Savings Trust Fund Special Appropriation Act” followed by a
reference to the fiscal year to which it relates.
(3) The
President of the Executive Council or a member of the Executive Council
designated by the President of the Executive Council for the purpose shall,
with leave of the Assembly, introduce a Bill for a Special Act in respect of
each fiscal year.
(4) The Minister of Finance shall, with respect to
each fiscal year in respect of which a Special Act is enacted, transfer the
percentage authorized in accordance with subsection (1) of the non‑renewable
resource revenue received from the General Revenue Fund to the Heritage Fund in
a manner determined by the Minister of Finance.
RSA 2000 cA‑23
s9;2006 c23 s6
Transfers re Access to
the Future Fund
9.1 The Minister of Finance may transfer into
the Heritage Fund from the General Revenue Fund an amount not exceeding
$3 000 000 000 to be allocated to the account referred to in
section 4(4) of the Access to the Future Act in amounts and in a manner
considered appropriate by the Minister of Finance.
2005 c12 s16
Appropriated funds
9.2 There may be paid into the
Heritage Fund money appropriated by the Legislature.
2005 c12 s16
Other funds paid into
Heritage Fund
10(1) In this section, “previous Act” means the Alberta Heritage Savings Trust Fund Act,
RSA 1980 cA‑27.
(2) Notwithstanding section 14 of the Financial Administration Act, money
invested pursuant to section 6(1)(a) of the previous Act that is recovered
through the disposition of assets owned by the Crown shall be included in and
forms part of the Heritage Fund.
1996 cA‑27.01 s10
Inflation proofing
11(1) Subject to subsections (2) and (3), for the
fiscal year 1999‑2000 and subsequent fiscal years, the Minister of
Finance shall retain from the income of the Heritage Fund and allocate to the
endowment portfolio as soon as convenient after the end of each fiscal year an
amount equal to the value of the total equity of the Heritage Fund as recorded
in the financial statements of the Heritage Fund for March 31 of the fiscal
year multiplied by the percentage increase, if any, for that fiscal year in the
Canadian gross domestic product price index specified by the Minister of
Finance.
(2) If
the income of the Heritage Fund in a fiscal year is less than that required to
be allocated to the endowment portfolio under subsection (1), the Minister of
Finance shall allocate that income, if any, to the endowment portfolio as soon
as convenient after the end of that fiscal year.
(3) For
the purposes of subsection (1), if the percentage increase in the gross
domestic product price index specified by the Minister of Finance is a negative
number, that negative number shall be treated as if it were zero.
(4) Notwithstanding subsections (1), (2) and (3),
until the accumulated debt is eliminated in accordance with the Fiscal Responsibility Act, the Minister
of Finance is not required to retain the amounts required under subsections
(1), (2) and (3), but may retain any amounts that the Minister of Finance
considers advisable.
RSA 2000 cA‑23
s11;2006 c23 s6
Phasing out of
transition portfolio
12(1) The Lieutenant Governor in Council shall in
each fiscal year direct the Minister of Finance to allocate assets with a book
value of $1 200 000 000, or any greater amount that is
authorized by the Lieutenant Governor in Council, from the transition portfolio
to the endowment portfolio.
(2) Notwithstanding subsection (1), by December 31,
2005 all the assets of the Heritage Fund that remain allocated to the
transition portfolio shall be removed from the transition portfolio and
allocated to the endowment portfolio.
RSA 2000 cA‑23
s12;2006 c23 s6
Operating costs
13 The Minister of Finance may
charge a cost, expense or other payment to the Heritage Fund if in the opinion
of the Minister of Finance the cost, expense or other payment was incurred or
paid in respect of the Heritage Fund.
RSA 2000 cA‑23
s13;2006 c23 s6
Auditor
14 The Auditor General is the
auditor of the Heritage Fund.
1996 cA‑27.01 s14
Quarterly reports
15(1) The Minister of Finance shall, as soon as
practicable after the end of each of the first 3 quarters of every fiscal year,
prepare and provide to the Standing Committee a report on the activities of the
Heritage Fund and financial statements for the preceding quarter.
(2) When the Standing Committee is provided with a
quarterly report under subsection (1), the Standing Committee shall furnish
copies of the report to all members of the Legislative Assembly and to the
Clerk of the Legislative Assembly within 2 months after the conclusion of the
quarter for which the quarterly report was prepared and on doing so shall make
the report public.
RSA 2000 cA‑23
s15;2006 c23 s6
Annual reports
16(1) The Minister of Finance shall, as soon as
practicable after the end of each fiscal year, prepare and provide to the
Standing Committee an annual report of the Heritage Fund, including a financial
statement audited by the Auditor General.
(2) Once the Standing Committee has approved the
annual report provided to the Standing Committee under subsection (1), the
Standing Committee shall, on or before June 30 following the conclusion of the
fiscal year for which the annual report was made, furnish copies of it to all
members of the Legislative Assembly and to the Clerk of the Legislative
Assembly and on doing so shall make the report public.
RSA 2000 cA‑23
s16;2006 c23 s6
Regulations
17 The Lieutenant Governor in
Council may make regulations respecting the investments that may be made under
this Act.
1996 cA‑27.01 s17
