Thank you, Mr. Handley. I will call upon the deputy chair of AOC for comments. Mr. Roland.

Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight reviewed Bill 6, An Act to Amend the Financial Administration Act, at its meeting on May 6, 2002. This bill amends the Financial Administration Act to clarify the authority of the Government of the Northwest Territories to indemnify members of the public service.

Mr. Chairman, currently indemnification for employees and former employees is contained in policy and collective agreements. Indemnification is the agreement by the Government of the Northwest Territories to provide legal counsel and associated costs to employees who may be sued while they are properly carrying out the duties associated with their jobs. The Financial Administration Act has been found to be deficient in providing the authority for the government to indemnify public service employees and indemnities. To be effective, it must be contained in an enactment.

This amendment will also provide that all indemnities that have been made in the past for employees will be deemed to have been legally made and it will provide for the indemnification of future public service employees.

Members questioned the Minister regarding the impact of this amendment and its retroactive nature to the Government of the Northwest Territories. The Minister assured the committee that it was expected that the amendment would have minimal impact, since the legislative changes would be consistent with the current practice and will ensure that the Financial Administration Act clearly provides authority to the government to indemnify its current and future employees.

Members also received assurances that indemnities will not apply for unlawful acts of an employee, but only for acts or omissions in the course of and within the scope of his or her employment. Members may have further questions for the Minister during the review of the bill.

The committee would like to thank the Honourable Joe Handley, Minister responsible for the Financial Management Board Secretariat, his officials and those of the Department of Justice who appeared before the committee to present the bill and respond to questions raised by the committee.

Mr. Chairman, these amendments were passed by the committee and this concludes the committee's comments on Bill 6, An Act to Amend the Financial Administration Act. Thank you, Mr. Chairman.

Thank you, Mr. Roland. Would the Minister care to bring in any witnesses? Mr. Handley.

Yes, Mr. Chairman.

Does the committee agree?

Sergeant-at-Arms, please escort the witnesses in. Mr. Handley, for the record, could you please introduce your witnesses?

Thank you, Mr. Chairman. Mr. Chairman, with me are Lew Voytilla, secretary to the Financial Management Board; and Diane Buckland, legislative counsel with the Department of Justice.

Thank you, Mr. Handley. At this time I will open the floor to general comments. General comments? Are we ready to go clause-by-clause?

Agreed. We are going to tab 6 in your binders. Bill 6, An Act to Amend the Financial Administration Act, clause 1.

Clause 2.

Clause 3.

Clause 4.

Bill as a whole?

Does the committee agree that Bill 6 is now ready for third reading?

Bill 6 is now ready for third reading. I would like to thank the Minister and his witnesses for appearing. As previously agreed, we will go on to Bill 11, An Act to Amend the Liquor Act. Does the Minister have any opening comments? Mr. Handley.

Thank you, Mr. Chairman. The purpose of Bill 11, An Act to Amend the Liquor Act, is to address a conflict between the Liquor Act and regulations under the Lotteries Act with respect to gambling in licensed premises. This conflict was brought to my attention last year. Charitable organizations that have been holding raffles for years in their premises to raise funds for community causes may have been doing this in violation of the Liquor Act.

• Bill 11 was introduced to deal with this conflict. The intent of the bill is not to encourage gambling or otherwise to legitimize new forms of gambling in licensed premises, but to legitimize existing practices. Specifically, the bill would:• allow raffle tickets to be sold or drawn in licensed premises; and
• • allow service clubs which hold a liquor license (such as the Elks, Royal Canadian Legion) to sell or draw raffle tickets and to sell Nevada tickets in their licensed premises.

Mr. Chairman, at present, the Liquor Act prohibits gambling in licensed premises. However, the regulations under the Lotteries Act allow for the issuance of lottery permits to charitable or religious organizations to conduct and manage lottery schemes. The lotteries regulations prohibit the sale or consumption of liquor in an area where licensed gambling is being held, except in the case of raffle, Nevada tickets or sports lotteries held by religious or charitable organizations.

The lotteries regulations were put into place to regulate gambling while at the same time assisting service clubs and charitable or religious organizations in raising funds through various forms of raffle lotteries. Service clubs and charitable and religious organizations perform a very useful function in our communities and contribute greatly to the volunteer effort among our residents.

Under Bill 11, all licensed premises would be treated the same with respect to the sale of raffle tickets. The bill does not distinguish between types of licensed premises and would allow raffle tickets to be sold in all licensed premises. The raffle would have to be licensed under the Lotteries Act. However, Bill 11 would allow service clubs but not other licensed premises to continue to sell Nevada tickets in their licensed premises. Since access to service clubs' licensed premises is restricted to members and guests only, allowing these organizations to continue to sell Nevada tickets in their licensed premises is less problematic than allowing more widespread sales in licensed premises. Again, Mr. Chairman, these changes to the Liquor Act will only legitimize existing practices.

Mr. Chairman, in response to recommendations and comments received, an important provision of Bill 11 would allow communities that have been delegated authority under the Lotteries Act to impose more restrictive regimes if they wish to do so. I recognize that residents should have the ability to control events within their communities and to reflect community priorities. Organizations wishing to conduct all forms of raffles or lotteries or to sell Nevada tickets will have to obtain a license under the Lotteries Act to do so.

Mr. Chairman, I will be glad to answer any questions that committee members may have regarding this bill. Thank you.