June 24, 2008
The Lieutenant Governor in Council makes the Rural Utilities Amendment Regulation set out in the attached Appendix.
Rural Utilities Act
RURAL UTILITIES AMENDMENT REGULATION
1 The Rural Utilities Regulation (AR 151/2000) is amended by this Regulation.
2 Section 4 is amended by striking out “Name Regulation (AR 200/84)” and substituting “Cooperatives Regulation (AR 55/2002)”.
3 Section 6(1) is repealed and the following is substituted:
Functions and duties of the auditor
6(1) The auditor is to make a report to the members
(a) on the results of the audit with respect to the reserve account, and
(b) on the financial statement of the association
and that report must be laid before the membership at an annual meeting of the association.
4 Section 10(2) is repealed.
5 Section 11 is repealed and the following is substituted:
Distribution of reserve
11 Subject to section 15, the board may, with the approval of the Director, authorize the distribution of all or part of the reserve account
(a) in accordance with any by‑laws of the association that provide for a distribution of the reserve account, or
(b) where there are no by‑laws referred to in clause (a), equally among the members of the association.
6 Section 13 is amended
(a) in subsection (1)
(i) in clause (b) by adding “or transfers” after “sells”;
(ii) by adding “or transfer” after “proceeds of the sale”;
(b) in subsection (2)(b) by striking out “for utility services”.
7 Section 14(1)(a) is amended by striking out “Schedule 3 of the Energy Grant Regulation (AR 309/86)” and substituting “the Agriculture and Rural Development Grant Regulation (AR 58/98)”.
8 Section 15 is repealed and the following is substituted:
Sale of works
15 Where an association sells all of its works, the sale proceeds and the amount in the reserve account shall be distributed among the members on the basis of the number of utility service contracts held, and the distribution must be made
(a) in accordance with a method of distribution approved by the membership at a special general meeting of the association called to authorize the sale of the works, or
(b) where there is no method referred to in clause (a), equally for each service contract held.
9 Section 16 is amended
(a) in subsection (1) by striking out “may” and substituting “must”;
(b) in subsection (4)(c) by striking out “Name Regulation (AR 200/84)” and substituting “Cooperatives Regulation (AR 55/2002)”.
10 Section 20 is amended by striking out “2008” and substituting “2013”.
11 Schedule 2 is amended by striking out “Fee Regulation (AR 77/92)” and substituting “Cooperatives Regulation (AR 55/2002)”.
12 Schedule 3 is amended by repealing section 19(2) and (3) and substituting the following:
(2) The association shall at all times maintain theft insurance or fidelity insurance against loss or damage caused by officers, employees and directors who carry out the functions of employees.
(3) The association shall at all times maintain general liability insurance in an amount not less than $2 000 000 inclusive per occurrence insuring against bodily injury, personal injury and property damage, including loss of use of property.
(4) In this section, “theft insurance”, “fidelity insurance” and “general liability insurance” have the meaning given to them by the Classes of Insurance Regulation (AR 121/2001).