Definitions

1   In this Act:

"authority" means the British Columbia Educational Institutions Capital Financing Authority or the British Columbia School Districts Capital Financing Authority;

"board of education" means a board or a francophone education authority as defined in the School Act;

"educational institution" means an institution as defined in the College and Institute Act.

Acts repealed

2   The following Acts are repealed:

(a) the Educational Institution Capital Finance Act, R.S.B.C. 1996, c. 105;

(b) the School District Capital Finance Act, R.S.B.C. 1996, c. 413.

Transfer of authorities' assets and liabilities

3   (1) On and after April 1, 1998, the assets and liabilities of the authorities become the assets and liabilities of the government.

(2) On and after April 1, 1998, a reference to an authority in any commercial paper, contract, lease, licence, permit or other instrument or document is deemed to be a reference to the government.

(3) The Minister of Finance and Corporate Relations may make payments out of the consolidated revenue fund, without an appropriation other than this subsection, for the payment of liabilities transferred to the government under this section.

Restructuring of school and educational institution debt

4   (1) The debt obligations owed to the authorities are released and any debentures evidencing the debt obligations are cancelled.

(2) The sinking funds established for repayment of the debt obligations referred to in subsection (1) are deemed to be held for the benefit of the government.

(3) The obligations of boards of education and educational institutions, including those that arise under an enactment or a bylaw, to make payments into sinking funds established for the repayment of the debt obligations owed to an authority are released.

(4) The debt obligations owed by boards of education and educational institutions to the government under the certificate of approval program are released.

Transitional — School Act

5   (1) Despite section 110 (2) of the School Act, the reference in that section to March 30 is deemed to be a reference to April 30 with respect to the estimate made by the Minister of Education in 1998.

(2) Despite section 114 of the School Act, the Minister of Finance and Corporate Relations is not required to pay grants for debt service expenses under that section with respect to the period from April 1, 1998 to June 30, 1998 in so far as those expenses relate to debt obligations owed to an authority, or owed to the government under the certificate of approval program.

(3) Despite section 156 (7) of the School Act, the Minister of Finance and Corporate Relations may

(a) recover a debt service surplus of a board of education as determined by the Minister of Education for the 1997/98 fiscal year by subtracting the amount of the surplus from the grant payable to the board under section 114 of the School Act during the period from April 1, 1998 to June 30, 1998, and

(b) fund a debt service deficit of a board of education as determined by the Minister of Education for the 1997/98 fiscal year out of the consolidated revenue fund during the period from April 1, 1998 to June 30, 1998, without an appropriation other than this subsection.

Transitional regulations

6   (1) The Lieutenant Governor in Council may make regulations considered necessary or advisable to more effectively bring this Act into operation and to facilitate the transition from the operation of the Acts repealed by this Act.

(2) A regulation under subsection (1) may be made effective retroactively to a date on or after April 1, 1998.

Commencement

20   This Act is deemed to have come into force on April 1, 1998 and is retroactive to the extent necessary to give it effect on and after that date.