Alberta Record

· Order in Council / Red Tape Reduction Act proclamation · enacted

Order in council red tape reduction act proclamation

This Order in Council proclaims sections 15(5) and (6)(b) of the Red Tape Reduction Statutes Amendment Act, 2022, into force on December 10, 2024, thereby activating specific legislative amendments.

Moderate impactInstitutional independenceLocal autonomyThe public, directly

What changed

  • Sections 15(5) and (6)(b) of the Red Tape Reduction Statutes Amendment Act, 2022, are proclaimed into force.
  • The effective date for these specific legislative provisions is established as December 10, 2024.
  • Establishes a new regulatory framework (section 14.1) for rural electrification associations (REAs) to sell all their works to another REA.
  • Requires a written sale agreement between the selling and purchasing REAs, subject to specific content requirements, including terms for member loans and reserve account transfers.
  • Mandates approval of the sale agreement by extraordinary resolution at a general meeting of members for both the selling and purchasing associations.
  • Requires the purchasing association to disclose reasonably expected costs related to the purchase to its members at the approval meeting.
  • Stipulates that all members of the selling association automatically become members of the purchasing association upon the sale's completion.
  • Extends the sunset clause for section 20 of the Rural Utilities Regulation from September 30, 2025, to September 30, 2030.

Why it matters

  • Activates specific amendments within the Red Tape Reduction Statutes Amendment Act, 2022, thereby altering existing statutory frameworks.
  • Represents a formal step in the implementation of legislative changes aimed at reducing administrative burdens.
  • The full scope of impact depends on the specific content of the proclaimed sections, which are not detailed in this Order in Council.
  • Increases member oversight and democratic control over significant asset transfers by requiring extraordinary resolution from both selling and purchasing REAs.
  • Standardizes the process for the sale of all works by REAs, providing a clear governance framework for such transactions.
  • Ensures continuity of membership for individuals affected by the sale of an REA's works, maintaining their connection to the utility.
  • Provides a structured mechanism for the transfer of financial assets, specifically reserve accounts, during the sale process.
  • Extends the duration of a specific regulatory provision, indicating a longer-term policy direction for rural utilities.

Other governance concerns

  • The OIC itself is a procedural act; any governance concerns would arise from the specific content of the proclaimed sections of the Red Tape Reduction Statutes Amendment Act, 2022.
  • Enhanced member approval for asset sales
  • Standardized governance for rural utility asset transfers
  • Clarity on membership status post-sale

Primary sources (3)