Northern Economic Development Regulations, D-12.11 Reg 2

1 NORTHERN DEC-1O2N.1O1M RICE DGE 2V ELOPMENT The Northern Economic Development Regulations being Chapter D-12.11 Reg 2 (effective September 13, 1995) as amended by Saskatchewan Regulations 4/1999, 34/2000 and 110/2003; and by the Statutes of Saskatchewan, 2000, c.50. NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation. 2 D-12.11 REG 2 NORTHERN ECONOMIC DEVELOPMENT Table of Contents PART I PART III Short Title and Interpretation RDCS 1 Title 13 Interpretation of Part 2 Interpretation 14 Application 15 Financial assistance PART II 16 Maximum amount Loans and Grants 17 RDC records 3 Eligible applicants 18 Advances 4 Eligible projects 4.1 Additional eligible projects PART IV 5 Application General 6 Northern Review Board 19 Effect of misleading information 7 Conditional approval 20 Sale 8 Letter of offer 21 Recovery of overpayment 9 Agreement 22 Repealed 10 Restrictions on loans 11 Restrictions on grants 12 Payment 3 NORTHERN DEC-1O2N.1O1M RICE DGE 2V ELOPMENT CHAPTER D-12.11 REG 2 The Department of Economic Development Act, 1993 PART I Short title and Interpretation Title 1 These regulations may be cited as The Northern Economic Development Regulations. Interpretation 2 In these regulations: (a) Repealed. 17 Oct 2003 SR 110/2003 s3. (b) “eligible applicant” means an eligible applicant pursuant to section 3; (c) “eligible project” means, subject to section 4.1, a project located in northern Saskatchewan that meets the requirements set out in section 4; (d) “financial assistance” means financial assistance by way of loan or grant pursuant to these regulations; (e) “First Nations organization” means any corporation consisting exclusively of Indian bands or members of Indian bands that maintains an office in northern Saskatchewan; (f) “Indian band” means an Indian band within the meaning of the Indian Act (Canada) that is located within northern Saskatchewan, and includes the council of the band; (g) “local government” means a town, northern village, northern hamlet or northern settlement as defined in The Northern Municipalities Act; (h) “Northern Review Board” means the Northern Review Board appointed by the minister; (i) “northern Saskatchewan” means the area comprising the Northern Administration District continued pursuant to The Northern Municipalities Act, and includes the local governments located within that area; (j) “operating costs” means any costs, except capital costs, that are incurred to earn revenue after the first day that any revenue is earned; (k) “pre-operating costs” means any costs, except capital costs, that are incurred prior to the day that any revenue is earned; (l) “project” means a proposal to commence, continue, expand or diversify economic development activity in northern Saskatchewan. 22 Sep 95 cD-12.11 Reg 2 s2; 29 Jan 99 SR 4/1999 s3; 9 Jun 2000 SR 34/2000 s2; 17 Oct 2003 SR 110/2003 s3. 4 D-12.11 REG 2 NORTHERN ECONOMIC DEVELOPMENT PART II Loans and Grants Eligible applicants 3 The following are eligible applicants: (a) an individual who: (i) is legally entitled to remain in Canada; (ii) has resided in northern Saskatchewan for at least 10 years or one- half of his or her life, whichever is less; and (iii) immediately prior to receiving any assistance, has maintained his or her primary residence in northern Saskatchewan; (b) a corporation or partnership: (i) more than half of which is owned by persons described in clause (a) who reside in northern Saskatchewan; (ii) a majority of whose employees reside in northern Saskatchewan; and (iii) that maintains an office in northern Saskatchewan; (c) a local government, Indian band or First Nations organization. 22 Sep 95 cD-12.11 Reg 2 s3. Eligible projects 4(1) The following are eligible projects for financial assistance by way of grant: (a) projects involving applied research and development of northern products and services; (b) pilot or demonstration projects for new economic development or business activities; (c) projects involving opportunity identification and development; (d) projects involving new market promotional material; (e) projects involving the preparation of bids and proposals for northern economic development opportunities and special events, but only to the extent of the professional costs related to those projects; (f) projects related to the establishment of new joint ventures, but only to the extent of the professional costs related to those projects; (g) projects involving economic feasibility studies, business planning, business management assistance or marketing and promotion strategies; (h) projects by a tourism association or organization, or by a consortium of tourism business operators, promoting tourism in northern Saskatchewan; (i) projects encouraging and fostering youth entrepreneurs and youth business skills; (j) projects involving the advancement of business skills, management skills or community organizational development skills. 5 NORTHERN DEC-1O2N.1O1M RICE DGE 2V ELOPMENT (2) The following are eligible projects for financial assistance by way of loan: (a) projects involving the provision by a business of goods and services relating to mining or other resource sector development; (b) projects involving the provision by a business of products or services that contribute to the diversification of the northern Saskatchewan economy; (c) projects involving retail or service opportunities that the minister considers to be essential to communities in northern Saskatchewan; (d) projects involving traditional northern Saskatchewan production activities; (e) projects involving low risk investment opportunities in the northern resource development sector. 22 Sep 95 cD-12.11 Reg 2 s4; 29 Jan 99 SR 4/1999 s4. Additional eligible projects 4.1 The minister may deem a project located outside northern Saskatchewan to be an eligible project for financial assistance if: (a) in the minister’s opinion, the project offers significant investment, employment or other economic development opportunities to northern Saskatchewan; and (b) the project meets the requirements set out in subsection 4(1) or (2), as the case may be. 29 Jan 99 SR 4/1999 s5. Application 5 An applicant who wishes to apply for a loan or a grant shall: (a) apply in a form acceptable to the minister; and (b) provide the minister with any information that the minister requires to determine whether the applicant is an eligible applicant and whether the project is an eligible project that meets the requirements set out in these regulations. 22 Sep 95 cD-12.11 Reg 2 s5. Northern Review Board 6(1) Before conditionally approving an application for a loan or grant pursuant to this Part, the minister: (a) may request a recommendation from the Northern Review Board if the application is for a total amount of $25,000 or less; (b) shall request a recommendation from the Northern Review Board if the application is for a total amount greater than $25,000. (2) An applicant who has applied to the minister for a loan or grant in a total amount of $25,000 or less and whose application is initially declined by the minister may apply to the Northern Review Board to make a recommendation to the minister. 6 D-12.11 REG 2 NORTHERN ECONOMIC DEVELOPMENT (3) In a recommendation, the Northern Review Board may give its opinion as to: (a) whether the applicant and the project meet the requirements set out in these regulations; (b) what reasonable terms and conditions, consistent with The Department of Economic Development Act, 1993 and these regulations, should be attached to the loan or grant. (4) No recommendation of the Northern Review Board is binding on the minister. 22 Sep 95 cD-12.11 Reg 2 s6. Conditional approval 7 The minister may conditionally approve financial assistance by way of loan or grant for an applicant if the minister is satisfied that: (a) the applicant has complied with these regulations and is: (i) an eligible applicant; (ii) capable of implementing and operating the project; and (b) the project for which the application is made: (i) is an eligible project; (ii) complies with these regulations; and (iii) is likely to be of significant economic benefit to northern Saskatchewan. 22 Sep 95 cD-12.11 Reg 2 s7. Letter of offer 8 Where the minister gives a conditional approval pursuant to section 7, the minister shall send the applicant a letter of offer setting out: (a) the amount of financial assistance that the minister is prepared to provide to the applicant if the applicant enters into an agreement pursuant to section 9; and (b) the terms and conditions. 22 Sep 95 cD-12.11 Reg 2 s8. Agreement 9 An eligible applicant who intends to proceed with a project that has been conditionally approved shall enter into an agreement with the minister incorporating: (a) the terms and conditions set out in the letter of offer sent to the applicant; and (b) any other reasonable terms and conditions consistent with The Department of Economic Development Act, 1993 and these regulations. 22 Sep 95 cD-12.11 Reg 2 s9. 7 NORTHERN DEC-1O2N.1O1M RICE DGE 2V ELOPMENT Restrictions on loans 10(1) The maximum term of a loan is 10 years. (2) The amount of the loan is not to exceed an amount that results in the eligible applicant’s total indebtedness to the Crown in right of Saskatchewan pursuant to any program administered by the Department of Economic Development equalling $250,000. (3) The rate of interest on a loan is to be the rate established by the minister. (4) The total indebtedness outstanding to the Crown in right of Saskatchewan in loans made pursuant to this Part is not to exceed $16,000,000. 22 Sep 95 cD-12.11 Reg 2 s10. Restrictions on grants 11(1) The maximum amount of a grant pursuant to this Part is an amount equal to 70% of the total costs of an eligible project. (2) An eligible applicant is not to receive more than $25,000 in grants pursuant to this Part in any one fiscal year of the Government of Saskatchewan. (3) For the purposes of subsection (1), “total costs” of an eligible project include pre-operating costs, operating costs and capital as estimated by the minister. 22 Sep 95 cD-12.11 Reg 2 s11; 17 Oct 2003 SR 110/2003 s4. Payment 12(1) No part of a loan or grant authorized pursuant to this Part is payable to or on behalf of an eligible applicant until the minister is satisfied that: (a) the eligible project meets the requirements of government authorities having jurisdiction over the project or the eligible applicant; (b) the eligible applicant has the right to occupy and use the land required for the eligible project; (c) the eligible applicant has obtained or has made the necessary arrangements to obtain the goods and services required to begin the eligible project; (d) the eligible applicant has made or will make an equity contribution towards the project in the form of cash, unencumbered assets or directly related physical labour contributed by the applicant as approved by the minister, in an amount of not less than 10% of the total cost of the project; (e) in the case of a project that is located on an Indian reserve: (i) there is a band council resolution that allows the eligible applicant to undertake the project; and (ii) there is a band council resolution that allows the Crown in right of Saskatchewan access onto the reserve to remove, if necessary, non-fixed collateral; and 8 D-12.11 REG 2 NORTHERN ECONOMIC DEVELOPMENT (f) the applicant has provided any financial information and evidence of expenditures requested by the minister. (2) In the case of a grant, where the minister is satisfied that the applicant has complied with the terms and conditions of the agreement and these regulations, the minister may pay the applicant: (a) in the case of a project that has been completed, the total amount of the financial assistance specified in the agreement; (b) in the case of a project that has not been completed, not more than 90% of the total amount of the financial assistance specified in the agreement. (3) Where a payment has been made to an applicant pursuant to clause (2)(b), the minister may pay the balance of the financial assistance specified in the agreement on completion of the eligible project. 22 Sep 95 cD-12.11 Reg 2 s12. PART III RDCS Interpretation of Part 13 In this Part: (a) “eligible expenses” mean eligible expenses as determined by the minister; (b) “eligible RDC” means a regional development corporation that meets the following requirements: (i) it must have a signed agreement between its members and the minister setting out any terms and conditions required by its members and the minister; (ii) its members must each meet the requirements set out in section 3; (iii) it must have at least one member that is a northern municipality within the meaning of The Northern Municipalities Act; (iv) it must comply with any other reasonable requirements set by the minister; (c) “regional development corporation”, or “RDC”, means a corporation within the meaning of The Non-profit Corporations Act, 1995 that has as its purpose the furthering of economic development in northern Saskatchewan. 17 Oct 2003 SR 110/2003 s5. 9 NORTHERN DEC-1O2N.1O1M RICE DGE 2V ELOPMENT Application 14 An RDC that wishes to apply for financial assistance must: (a) apply in a form acceptable to the minister; and (b) provide the minister with any information that the minister requires to determine if the RDC is an eligible RDC. 17 Oct 2003 SR 110/2003 s5. Financial assistance 15 The minister may provide financial assistance by way of grant to an eligible RDC. 17 Oct 2003 SR 110/2003 s5. Maximum amount 16 The maximum amount of any grant payable to an eligible RDC pursuant to this Part is 80% of eligible expenses, to a maximum of $72,000 per year, for the period covered by the agreement mentioned in subclause 13(b)(i). 17 Oct 2003 SR 110/2003 s5. RDC records 17(1) Every RDC that receives financial assistance pursuant to this Part must provide reports to the minister in a form acceptable to the minister and at the times required by the minister. (2) Every RDC that receives financial assistance pursuant to this Part must keep proper books and records of its costs and performance in a manner that is satisfactory to the minister. (3) The books and records maintained by an RDC pursuant to this section are subject at all reasonable times to examination or audit by the minister. 17 Oct 2003 SR 110/2003 s5. Advances 18 If the minister is satisfied that an eligible RDC has complied with this Part, including all reporting requirements set out in section 17, the minister may pay to the RDC up to six months’ eligible expenses in advance, based on the budget provided by the RDC. 17 Oct 2003 SR 110/2003 s5. 10 D-12.11 REG 2 NORTHERN ECONOMIC DEVELOPMENT PART IV General Effect of misleading information 19 If financial assistance has been provided to any person or organization on the basis of false or misleading information, the entire amount of the financial assistance is deemed to be an overpayment and is repayable at the request of the minister. 22 Sep 95 cD-12.11 Reg 2 s19. Sale 20 If any recipient of financial assistance proposes to dispose of the assets or goodwill of a project with respect to which financial assistance is given: (a) the recipient shall inform the minister in writing of the proposal; and (b) the minister may require repayment of all or part of the amount of the financial assistance. 22 Sep 95 cD-12.11 Reg 2 s20. Recovery of overpayment 21(1) Every person or organization who has received financial assistance and who has failed to comply with these regulations or with the agreement to which that person’s or organization’s financial assistance is subject is deemed to have received an overpayment in the amount of the assistance received by the person or organization. (2) Where the minister has made a determination pursuant to section 19, or for any reason a person or organization has received an overpayment of the financial assistance to which the applicant is entitled, the amount of the overpayment is a debt due to the Crown in right of Saskatchewan. (3) An overpayment is to be repaid in accordance with any terms and conditions respecting overpayments that may be contained in the agreement respecting the financial assistance that was overpaid. (4) An overpayment, in addition to any other manner in which it may be recovered, may be recovered by deducting the amount of the overpayment from any grants, financial assistance or tax credits to which the recipient of the overpayment would otherwise be entitled pursuant to any other program, Act or regulation of Saskatchewan providing for payments to the applicant. 22 Sep 95 cD-12.11 Reg 2 s21. 22 Repealed. 2000, c.50, s.35. REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN’S PRINTER Copyright©2003