Thank you, Mr. Chair. With your indulgence, I will also speak to Bill 1, as it is the subject of this report. Thank you, Mr. Chair.

The Standing Committee on Government Operations is pleased to report on its review of Bill 1: the Western Canada Lottery Act.

Bill 1, sponsored by the Department of Municipal and Community Affairs, repeals the existing Western Canada Lottery Act, and replaces it with a new act to establish a Northwest Territories Lottery Commission under the direction of the Minister, with the authority to enter into agreements with the Western Canada Lottery Corporation, the Government of Nunavut, and retailers.

The act also establishes a Northwest Territories Physical Activity, Sport and Recreation Fund, pursuant to Part 7 of the Financial Administration Act. This special purpose fund, which will form an account within the consolidated revenue fund, will receive proceeds from the operation of lotteries by the WCLC. The commission will be responsible for the conduct, management, and operation of lotteries, while the Minister will administer the fund and distribute proceeds for purposes related to the promotion and delivery of physical activity sport and recreation programs.

Bill 1 received second reading in the Legislative Assembly on October 20, 2017, and was referred to the Standing Committee on Government Operations for review.

The committee held a public review of the bill on February 7, 2018. The committee received 11 written submissions and heard eight oral submissions. The hearing was extremely well-attended, and the standing committee wishes to thank members of the public for their attendance and input.

The Standing Committee on Government Operations concluded its review of Bill 1, Western Canada Lottery Act, on February 27, 2018, with the public hearing held here in the Legislative Assembly building.

At this hearing, the committee moved three motions to amend the bill. One of these motions was a non-substantive housekeeping motion; the other two motions amended the bill. One added a requirement for public year-end reporting on physical activity, sport, and recreation fund; the other removed multi-sport funding as an item for which the Minister may automatically disburse lottery funds.

The purpose of the proposed amendment is to signal that multi-sport activities will be funded, first and foremost, from the department's budget. This would not prevent the Minister from exercising the authority to supplement such funding with disbursements from the fund in appropriate circumstances.

Following the clause-by-clause review, a motion was carried to report Bill 1, Western Canada Lottery Act, as amended and reprinted, as ready for consideration in Committee of the Whole.

In addition to our review, the Standing Committee on Government Operations prepared a substantive report on the public comments that Members heard from the witness submissions, and also the written submissions. Committee members felt it was important to provide the substantive report as the issue of arts funding was a central topic of discussion around Bill 1, Western Canada Lottery Act.

The scope of Bill 1 did not allow for the committee to make amendments that would open up the lotteries for disbursements to arts programs; however, committee is very sensitive to the concerns of the public around arts funding, and has made recommendations to that extent.

This concludes my opening comments, Mr. Chair. Individual Members may have additional comments or questions as we proceed with consideration of committee's report. Thank you, Mr. Chair.