BILL NO. 72

(as introduced)

4th Session, 61st General Assembly
Nova Scotia
61 Elizabeth II, 2012



Priave Member's Bill



Capital Projects Review Act



The Honourable Jamie Baillie
Cumberland South



First Reading: May 2, 2012

Second Reading:

Third Reading:

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An Act to Provide for the
Independent Review of
Certain Capital Projects

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Capital Projects Review Act.

2 In this Act,

(a) "Board" means the Nova Scotia Utility and Review Board;

(b) "independent review" means a review required pursuant to this Act;

(c) "independent reviewer" means a person appointed to conduct an independent review;

(d) "public utility" has the same meaning as in the Public Utilities Act.

3 This Act binds Her Majesty in right of the Province.

4 Neither Her Majesty in right of the Province nor a public utility may expend money on a capital project to which Section 5 applies except as provided by this Act.

5 Every proposed capital project that requires

(a) an expenditure by Her Majesty in right of the Province that exceeds one hundred million dollars; or

(b) an expenditure by a public utility

is subject to independent review.

6 (1) Where a proposed capital project is subject to independent review, the Governor in Council shall appoint an independent reviewer to conduct the review.

(2) The independent reviewer must not

(a) be a person elected to public office pursuant to any Act of the Province or Canada;

(b) be a member of the public service of the Government of the Province or the Government of Canada;

(c) be an employee of a municipality within the Province; or

(d) have a pecuniary interest in, or be employed by a person having a pecuniary interest in, the proposed capital project being reviewed.

(3) Subject to Section 11, the Governor in Council may provide for the remuneration of and payment of expenses to the independent reviewer.

(4) Where the independent review is in respect of a proposed capital project that requires an expenditure by a public utility, the public utility shall pay the remuneration and expenses provided for under subsection (3).

7 (1) Where an independent reviewer is appointed to conduct an independent review of a proposed capital project pursuant to this Act, the independent reviewer shall

(a) conduct a cost-benefit analysis with respect to the proposed capital project; and

(b) consider other options that are likely to achieve the same objects as the proposed capital project at a lower cost or with a greater return on the amount invested, including, if applicable, those that do not involve the public utility.

(2) An independent reviewer shall retain such professional, technical and other advisers as the independent reviewer considers necessary for the purpose of the independent review.

(3) Subject to Section 11, the Governor in Council shall provide for the remuneration of and payment of expenses to any professional, technical or other advisers retained by the independent reviewer.

(4) Where the independent review is in respect of a proposed capital project that requires an expenditure by a public utility, the public utility shall pay the remuneration and expenses provided for under subsection (3).

8 (1) When the independent reviewer has completed the independent review required under this Act, the independent reviewer shall prepare a report summarizing the results of the review and containing the recommendation of the independent reviewer with respect to the proposed capital project.

(2) For greater certainty, where the independent reviewer, after considering the matters referred to in subsection 7(1), concludes that the expected costs of the proposed capital project outweigh the expected benefits of the proposed capital project, or that other options are likely to achieve the same objects as the proposed capital project at a lower cost or with a greater return on the amount invested, the report of the independent reviewer must recommend that the proposed capital project not proceed.

9 (1) The report of the independent reviewer must be submitted to the Premier, who shall forthwith table the report in the House of Assembly or, if the Assembly is not then sitting, file the report with the Clerk of the Assembly.

(2) A proposed capital project that is subject to independent review pursuant to this Act must not proceed until the report of the independent reviewer is tabled or filed in accordance with subsection (1).

10 Where a public utility makes an application pursuant to the Public Utilities Act in respect of a proposed capital project for which a report of an independent reviewer has been tabled or filed in accordance with subsection 9(2), the public utility shall furnish to the Board a copy of the report and the Board may, at its discretion, consider and rely on the report.

11 The moneys required for the purpose of this Act must be paid out of moneys appropriated for that purpose by the Legislature.

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This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2012 Crown in right of Nova Scotia. Created May 2, 2012. Send comments to legc.office@gov.ns.ca.