Object

2  The object of this Act is to provide incentives in order to stimulate the creation of new industries in British Columbia.

1985-57-2.

 Zones and the regulation of zones

3  (1)  The Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers to be necessary or advisable and to be ancillary to the purposes of this Act, including regulations as follows:

(a) establishing or enlarging special enterprise zones comprised of land or of land and improvements

(i)  in which one or more of the government, the development corporation, or a company wholly owned by the development corporation, owns the fee simple interest, or

(ii)  of which one or more of the government, the development corporation, or a company wholly owned by the development corporation, is lessee under a lease granted by the owner of the fee simple interest if the owner consents in writing to the establishment as, or inclusion in, the zone of the land or land and improvements;

(b) including a highway in a zone, or excluding a highway from a zone;

(c) removing from a zone land or land and improvements not held by a special enterprise under a lease from a zone administrator or, if the land or land and improvements comprises the entire zone, disestablishing that zone;

(d) in respect of a zone, exercising any powers that a municipality, municipal council, regional district or regional board has under any enactment;

(e) conferring on a zone administrator in respect of a zone it administers rights or powers that a municipality, municipal council, regional district or regional board has under prescribed provisions of any enactment;

(f) imposing on a zone administrator in respect of a zone it administers obligations and duties that a municipality, municipal council, regional district or regional board has under prescribed provisions of any enactment;

(g) requiring that a zone or part of it must for the purpose of prescribed provisions of any enactment be treated, despite section 4, as if the land in it and any improvements on that land were in a municipality or regional district while remaining under the jurisdiction of the zone administrator of that zone and retaining its character as land or land and improvements in a zone in all other respects;

(h) designating persons to exercise rights and powers and perform obligations, duties and functions of a municipal or other official referred to in any provision of an enactment that is prescribed for purposes of a regulation made under paragraphs (d) to (g);

(i) respecting grants under section 15;

(j) without limiting paragraph (i), and despite the Assessment Act, determining, or prescribing methods of determining, assessed values of land and improvements in a zone for the purposes of section 15, and prescribing rates, formulas and methods of calculation to be used in calculating the grants;

(k) if the area of a municipality, regional district, improvement district or of any prescribed statutory district is reduced or increased by the operation of section 4, imposing conditions the Lieutenant Governor in Council considers appropriate on a zone administrator, the municipality, regional district, improvement district or other statutory district;

(l) prescribing the criteria for admission of a company to a zone as a special enterprise;

(m) imposing duties on zone administrators;

(n) prescribing the circumstances in which leases of land in a zone may be granted to or held by persons other than special enterprises;

(o) defining words and expressions used in but not defined by this Act.

(2)  Despite paragraph (d) of the definition of "regulation" in the Regulations Act, if the word "regulation" or "regulations" is used in a regulation under subsection (1) (e) in conferring a power on a zone administrator, an instrument of the zone administrator exercising the power is a regulation for the purposes of the Regulations Act.

1985-57-3.

 Special status of zones

4  (1)  Land or land and improvements established as, or included in, a zone by a regulation under section 3 (1) (a), or a highway included in a zone by a regulation under section 3 (1) (b), becomes rural area and ceases to be part of a municipality, regional district, improvement district or any prescribed statutory district, and the municipality, regional district, improvement district or prescribed statutory district ceases to have any jurisdiction over the land, land and improvements, or highway.

(2)  If land in a zone is subdivided and part of it is dedicated as highway on a subdivision plan deposited in the land title office on or after the date this section comes into force, the part dedicated is included in the zone as a highway, without the necessity of a regulation under section 3 (1) (b).

(3)  Subsection (1) does not affect the operation of any bylaw, resolution or other regulatory instrument of a municipality, regional district, improvement district or statutory district in respect of land, land and improvements or a highway not established as, or included in, a zone.

(4)  Land or land and improvements disestablished as, or removed from, a zone by a regulation under section 3 (1) (c), or a highway excluded from a zone by a regulation under section 3 (1) (b),

(a) ceases to be a zone or part of a zone, as the case may be, and

(b) resumes the status it had, immediately before establishment as, or inclusion in, the zone, as land, land and improvements or a highway in, and within the jurisdiction of, a municipality, regional district, improvement district or other statutory district.

(5)  If land or land and improvements has been established as a zone, or included in a zone, by a regulation under section 3 (1) (a) (ii), as soon as the land or land and improvements ceases to be leased to one or more of the government, the development corporation or a company wholly owned by the development corporation it

(a) ceases to be a zone or part of a zone, as the case may be, and

(b) resumes the status it had, immediately before establishment as, or inclusion in, the zone, as land or land and improvements in, and within the jurisdiction of, a municipality, regional district, improvement district or other statutory district.

(6)  No person is entitled to compensation or damages in consequence of land, land and improvements or a highway, by the operation of this section, becoming a zone or part of a zone or ceasing to be a zone or part of a zone and resuming its former status.

(7)  A certificate of the minister to the effect that land or land and improvements referred to in subsection (5) has ceased, on a day named in the certificate, to be leased to one or more of the government, the development corporation or a company wholly owned by the development corporation is conclusive evidence of those facts.

(8)  If, by the operation of this section, land, land and improvements or a highway resumes its former status as land, land and improvements or a highway in, and within the jurisdiction of, a municipality, regional district, improvement district or other statutory district, the bylaws, resolutions and other regulatory instruments of the municipality, regional district, improvement district or other statutory district extend to the land, land and improvements, or highway affected.

1985-57-4.

 Zone approval board

5  (1)  The Lieutenant Governor in Council must establish a Special Enterprise Zone Approval Board consisting of one or more members appointed by the Lieutenant Governor in Council, and may set the terms and conditions of appointment of the members and their remuneration.

(2)  A member of the zone approval board must be reimbursed for actual reasonable expenses necessarily incurred in the performance of duties.

1985-57-5.

 Zone administrator

6  (1)  Subject to subsection (2), the development corporation must administer the zones.

(2)  The Lieutenant Governor in Council may by regulation designate a company incorporated under the Company Act and wholly owned by the development corporation to be the administrator of one or more zones.

(3)  A zone administrator has, in respect of a zone it administers, the following powers:

(a) inside the zone, or outside the zone if the zone administrator considers it necessary or advisable for the provision of services of any kind to the zone, to provide, construct, acquire, operate or maintain any service, utility, facility or work that a municipality, municipal council, regional district, regional board or other statutory district is empowered to provide, construct, acquire, operate or maintain under any enactment;

(b) to contract with a municipality, regional district or other statutory district or any person for the provision, construction, acquisition, operation or maintenance of a service, utility, facility or work referred to in paragraph (a);

(c) to make capital payments to a municipality, regional district or other statutory district, including payments in respect of debt for the development outside the zone of facilities necessary for the provision within the zone of any service, utility, facility or work.

1985-57-6.

 Development corporation

7  (1)  Subject to this Act and the Development Corporation Act, the development corporation may for the purposes of this Act exercise all the powers it has under the Development Corporation Act.

(2)  The development corporation may incorporate under the Company Act companies in which the development corporation holds all the shares, in order that those companies may serve as zone administrators.

(3)  For the purposes of section 51 of the Land Act a company described in subsection (2) must be treated as if it were a Crown corporation.

(4)  In case of a conflict between this Act and the Development Corporation Act, this Act prevails.

1985-57-7.

 Municipal services

8  (1)  Pending an agreement or other outcome of negotiations between a zone administrator and a municipality, regional district or other statutory district for

(a) continuation or resumption of services that the municipality, regional district or other statutory district was providing to land, land and improvements or a highway immediately before its establishment as, or inclusion in, a zone, or

(b) the provision of services that the municipality, regional district or other statutory district was not providing to land, land and improvements or a highway immediately before its establishment as, or inclusion in, a zone,

the Lieutenant Governor in Council may by order require the municipality, regional district or other statutory district to continue, resume or provide services, designated in the order, to the zone according to standards that the Lieutenant Governor in Council may specify.

(2)  The municipality, regional district or other statutory district must comply with an order made under subsection (1) until either

(a) the zone administrator and the municipality, regional district or other statutory district enter into an agreement for the services referred to in the order, or

(b) the outcome is determined pursuant to subsection (3).

(3)  The Lieutenant Governor in Council may, by order, on the initiative of the Lieutenant Governor in Council or on the application of a zone administrator, municipality, regional district or other statutory district

(a) determine any matter or matters remaining outstanding respecting the continuation, resumption or provision of services to a zone, and

(b) require the zone administrator to pay compensation that the Lieutenant Governor in Council considers adequate and reasonable to the municipality, regional district or other statutory district for the services to the zone.

(4)  An order under subsection (3) is binding on the zone administrator and the municipality, regional district or other statutory district.

1985-57-8.

 Application for admission to a zone

9  (1)  A company that

(a) is incorporated under the Company Act,

(b) has not previously carried on business, and

(c) has no permanent establishment outside a zone,

may apply in the prescribed form to a zone administrator for admission to a zone as a special enterprise.

(2)  An applicant under subsection (1) must include with its application

(a) a plan of business operations describing, in detail satisfactory to the zone administrator, the applicant's intended activities in the zone,

(b) a declaration of an authorized person in a form and containing substance satisfactory to the zone administrator that

(i)  the applicant is eligible under this Act to apply for admission to the zone as a special enterprise,

(ii)  the declarant believes that the applicant would not without the incentives under this Act be likely to locate in British Columbia in order to carry out its intended activities, and

(iii)  the declarant believes that the applicant meets the criteria prescribed under section 3 (1) (l) for admission to the zone as a special enterprise, and

(c) a statement of the facts on which the declaration referred to in paragraph (b) is based.

1985-57-9.

 Preliminary approval

10  (1)  If an applicant under section 9 has complied with the requirements of that section, and the zone administrator

(a) considers that without the incentives under this Act the applicant would not be likely to locate in British Columbia in order to carry on its intended activities, and

(b) is satisfied, after making reasonable inquiries, that the applicant meets the criteria prescribed under section 3 (1) (l) for admission to the zone as a special enterprise,

the zone administrator may recommend to the zone approval board that the application be allowed to proceed.

(2)  The zone approval board may direct that the application be allowed to proceed or that it be rejected, or may refer the application back to the zone administrator for further inquiries.

1985-57-10.

 Admission as special enterprise

11  (1)  If the zone approval board directs that an application be allowed to proceed, the zone administrator may

(a) propose a lease of land, improvements, or both, suitable for the intended activities of the applicant in the zone,

(b) specify the terms and conditions to be adhered to by the applicant during the term of the lease in order for the applicant to maintain its status as a special enterprise, and

(c) negotiate the other terms and conditions of the proposed lease,

and then, on completion of each of the following requirements, the applicant is admitted to the zone as a special enterprise:

(d) the applicant has contracted in the lease, as a condition of maintaining its status as a special enterprise, to adhere to the terms and conditions specified under paragraph (b), which terms and conditions may be approved by the zone approval board as originally specified or as amended by agreement between the parties to the lease;

(e) the zone administrator, the applicant and any other intended party to the lease have executed it;

(f) the applicant has taken possession of the land, improvements, or both, described in the lease.

(2)  Nothing in subsection (1) prevents the parties from amending any terms and conditions of a lease, but any amendment of a term or condition referred to in subsection (1) (d) is of no effect until approved by the zone approval board.

1985-57-11.

 Assignment of zone leases

12  (1)  It is a condition of every lease of land, improvements, or both, in a zone, that is granted by a zone administrator whether the condition is set out in the lease or not, that the lessee must not assign its interest in the lease, other than by way of mortgage, without the prior written approval of the zone administrator.

(2)  If a special enterprise assigns its interest in a lease of land, improvements, or both, in a zone, other than by way of mortgage, the assignor ceases to be a special enterprise.

(3)  Despite the zone administrator's approval to an assignment of a lessee's interest in a lease of land, improvements, or both, in a zone, the assignee is not admitted to the zone as a special enterprise until each of the following requirements has been completed:

(a) the assignee has applied for admission to the zone as a special enterprise in compliance with section 9;

(b) the zone administrator has recommended to the zone approval board that the assignee be admitted to the zone as a special enterprise;

(c) the zone approval board has approved the admission of the assignee to the zone as a special enterprise.

(4)  Despite any provision of this Act, for so long as the terms and conditions referred to in section 11 (1) (d) continue to be complied with, a special enterprise does not cease to be a special enterprise only because of

(a) a transmission or assignment of its interest in a lease of land, improvements, or both, in a zone, to a trustee in bankruptcy, receiver or receiver-manager, or

(b) the commencement and continuation of foreclosure proceedings in respect of a mortgage of the interest of the special enterprise in a lease of land, improvements, or both, in a zone.

1985-57-12.

 Other zone tenants

13  (1)  It is a condition of every lease of land, improvements, or both, in a zone, that is granted by a zone administrator to a special enterprise, whether the condition is set out in the lease or not, that on any assignment, other than by way of mortgage, of the lessee's interest in the lease to an assignee who

(a) does not apply under section 9 for admission to the zone as a special enterprise, or

(b) does apply under section 9 for admission to the zone as a special enterprise but is not approved under section 12 (3) (c) by the zone approval board

the lessee must pay, in each calendar year during the term of the lease, the rent that is otherwise payable under the lease plus an additional amount of rent calculated under subsection (4).

(2)  It is a condition of every lease of land, improvements, or both, in a zone, that is granted by a zone administrator to a special enterprise, whether the condition is set out in the lease or not, that, if the special enterprise ceases to be a special enterprise, the lessee must pay, in each calendar year during the term of the lease, the rent that is otherwise payable under the lease plus an additional amount of rent calculated under subsection (4).

(3)  A zone administrator may, with the approval of the zone approval board, enter into a lease of land, improvements, or both, in a zone with a person who is not a special enterprise or consent to an assignment of such a lease, but must not do so unless the lease requires the payment of rent in an amount no less than the sum of

(a) the rent the zone administrator would require in a lease of the same premises to a special enterprise, and

(b) a yearly amount calculated under subsection (4).

(4)  The additional rent referred to in subsections (1) or (2), or the amount referred to in subsection (3) (b), as the case may be, must be no less than the total of the grants in place of taxes payable under section 15 (2) to (4).

1985-57-13.

 When special enterprise status ceases

14  (1)  Subject to subsection (2), a company ceases to be a special enterprise on the expiry or other termination of the lease under which it holds the lessee's interest in land, improvements, or both, in a zone.

(2)  If a lease of land, improvements, or both, in a zone to a special enterprise is extended or renewed, during or on completion of its term or within a prescribed period afterwards, the company does not cease to be a special enterprise until the expiry or other termination of the extended or renewed lease.

(3)  A special enterprise ceases to be a special enterprise when it

(a) departs from the terms and conditions referred to in section 11 (1) (d) without an exemption under subsection (4),

(b) establishes a permanent establishment outside a zone, or

(c) provides services outside a zone.

(4)  The zone approval board may, after a recommendation by the zone administrator, grant an exemption referred to in subsection (3) (a), but it must not grant the exemption unless it considers that the special enterprise requesting the exemption continues to meet the criteria prescribed under section 3 (1) (l).

(5)  If the zone approval board considers that, despite the special enterprise's departure from the terms and conditions referred to in section 11 (1) (d), it continued at all times since that departure to meet the entry criteria prescribed under section 3 (1) (l), the zone approval board may, in granting the exemption referred to in subsection (4), stipulate that the exemption takes effect on and from the date of the special enterprise's departure from the terms and conditions referred to in section 11 (1) (d).

(6)  If the zone approval board stipulates as set out in subsection (5), the special enterprise exempted under that section is conclusively deemed to have remained a special enterprise at all material times up to and including the date of the exemption.

1985-57-14.

 Grants in place of taxes

15  (1)  The development corporation must annually pay to a municipality, in respect of land in a zone that, immediately before its establishment as a zone or inclusion in a zone, was within the boundaries of the municipality, a grant in place of taxes which must be the product of the total assessed value of land in the zone and the municipality's tax rate for residential property imposed under section 359 (1) (a) of the Local Government Act or section 373 of the Vancouver Charter, as the case may be, for the year for which the grant is made.

(2)  If land, improvements, or both, in a zone, is leased to a tenant other than a special enterprise, the development corporation must annually,

(a) if, immediately before its establishment as or inclusion in a zone, the land leased or the land having on it the leased improvements, was land in rural area, pay to the Minister of Finance and Corporate Relations a grant in place of taxes in respect of the land, improvements, or both,

(i)  for school purposes, under the School Act, as the case may be, and

(ii)  for other purposes, under the Taxation (Rural Area) Act, and

(b) if, immediately before its establishment as or inclusion in a zone, the land leased or the land having on it the leased improvements, was land in a municipality,

(i)  pay to the Minister of Finance and Corporate Relations a grant in place of taxes in respect of the land, improvements or both, for school purposes, under the School Act, as the case may be, and

(ii)  pay to the municipality a grant in place of taxes in respect of the land, improvements, or both, for municipal purposes, under the Local Government Act or Vancouver Charter.

(3)  The grant in place of taxes payable to the Minister of Finance and Corporate Relations under subsection (2) (a) or subsection (2) (b) (i) or, subject to subsection (4), to a municipality under subsection (2) (b) (ii), must be the sum of

(a) the assessed value of the land leased to the tenant referred to in subsection (2), multiplied by a prescribed rate, and

(b) the assessed value of the improvements leased to the tenant referred to in subsection (2), multiplied by a prescribed rate,

and the Lieutenant Governor in Council may prescribe different rates for the purposes of subsection (2) (a) (i) or (ii) or (2) (b) (i) or (ii).

(4)  The grant in place of taxes payable to a municipality under subsection (2) (b) (ii) must be reduced by

(a) the portion of the grant in place of taxes payable to the municipality under subsection (1) that is attributable to the land, improvements, or both, leased to the tenant referred to in subsection (2), and

(b) the portion of the payments, made under section 6 (3) (b) by a zone administrator to the municipality pursuant to a contract referred to in that section, that is attributable to the land, improvements, or both, leased to the tenant referred to in subsection (2).

(5)  Despite this section, if the property taxes levied for any year are either paid or due and payable in respect of land, improvements, or both, established as, or included in, a zone during that year, then no grant in place of taxes must be paid under this section for that year in respect of that land, those improvements, or both that land and those improvements.

1985-57-15; 1989-61-216; 1999-37-279; 2000-7-191.

 Discretion and protection

16  (1)  The zone approval board or a zone administrator has an absolute discretion to make a recommendation, to give a direction, to give an approval or grant an exemption authorized by this Act, or to refuse to do any of those things, including a discretion to refuse even if satisfied that criteria established by this Act or the regulations have been met.

(2)  No action lies

(a) in respect of a recommendation, direction, approval or exemption made, given or granted by the zone approval board or by a zone administrator, or

(b) in respect of a refusal by the zone approval board or by a zone administrator to make, give or grant a recommendation, direction, approval or exemption,

unless the recommendation, direction, approval, exemption or refusal was made, given, granted or done recklessly or in bad faith.

(3)  No member of the zone approval board and no director, officer or employee of a zone administrator is personally liable for anything done or omitted in good faith in the exercise or purported exercise of any right or power conferred by or under this Act.

(4)  If a director, officer or employee of the development corporation performs any functions, duties or services to or in a zone administered by a zone administrator other than the development corporation, subsections (2) and (3) apply to that director, officer or employee of the development corporation as if he or she were a director, officer or employee of the zone administrator.

1985-57-16.

 Property tax exemption

17  Subject to sections 18 and 19, all land or land and improvements in a zone is exempt from real property taxes under any enactment including, without limiting this section, the Assessment Authority Act, the British Columbia Transit Act, the Hospital District Act, the Islands Trust Act, the Library Act, the Local Services Act, the Local Government Act, the Municipal Finance Authority Act, the Park (Regional) Act, the School Act, the Taxation (Rural Area) Act, the University Endowment Land Act and the Vancouver Charter.

1985-57-17; 1989-61-216; 2000-7-191.

 Non-exempt real property in zones

18  (1)  In this section, each of the expressions, "railway corporation", "tramway corporation", "electric light corporation", "electric power corporation", "telephone corporation", "telegraph corporation", "closed circuit television corporation", "gas corporation", "water corporation" and "pipe line corporation", has the meaning it has in the Assessment Act.

(2)  Nothing in this Act operates to exempt from real property taxes under any enactment, land, improvements, or both, that are owned by, or are the property of, a railway, tramway, electric light, electric power, telephone, telegraph, closed circuit television, gas, water or pipe line corporation and are located in, on, under or above, or laid in, on or under

(a) highways in a zone, or

(b) land in a zone,

and for all real property taxation purposes under any enactment the land, improvements, or both, must be treated as land, improvements, or both, in the municipality, regional district or other statutory district in which the land, improvements, or both, were located at the time of the establishment of any zone where the land, improvements, or both, are located.

1985-57-18.

 Esquimalt and Nanaimo Railway belt

19  This Act does not affect the operation of the Esquimalt and Nanaimo Railway Belt Tax Act, and nothing in this Act operates to exempt any person or real property from any tax that is payable under that Act.

1985-57-19.

 Taxes accrued at time zone established

20  (1)  The establishment of land or land and improvements as a zone or the inclusion of land or land and improvements in a zone does not extinguish the liability of any person to a taxing authority for any real property tax on land, improvements, or both, that has been imposed by the taxing authority before the establishment as or inclusion in the zone of the land, improvements, or both, and interest, penalties and other charges authorized by the enactment under which the taxes are imposed, despite any other provision of this Act, continue to be authorized under that enactment.

(2)  Payment of any outstanding taxes, interest, penalties and other charges described in this section may be enforced by the taxing authority against the taxpayer or against the land, improvements, or both, subject to the tax as if the land, improvements, or both, taxed had not been established as or included in the zone.

1985-57-20.

 Commencement

4  Sections 1 to 3 come into force by regulation of the Lieutenant Governor in Council.

1985-57-30.