Members' Handbook
CAPITAL ACCOMMODATIONS
81. CAPITAL ACCOMMODATION ALLOWANCE
Members who do not live within commuting distance of the Capital are eligible for reimbursement for either actual rent for rental accommodation in the Capital or the actual cost of hotel accommodation in the Capital. In both cases, certain other authorized expenses incurred by the Member while in the Capital on business as a Member will also be reimbursed.
The following expenses are an example of what may be reimbursed under this allowance where a Member chooses to rent accommodation:
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utilities (e.g. power, heat, water, sewage);
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cable television;
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monthly telephone connection charges (does not include long distance charges);
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internet service;
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parking that is used in conjunction with the accommodation;
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cost of furniture purchased or rented for use in accommodation; and
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tenant’s all-risk insurance related to the accommodation.
Where a Member chooses to use hotel accommodation, expenses for parking used in conjunction with the hotel may be reimbursed.
A Member may choose to rent accommodation on a yearly or monthly basis, or to rent hotel accommodation from time to time when in Yellowknife. Expenses for hotel accommodation will be reimbursed from the Capital Accommodation Allowance only for the period of time in which the Member is in the Capital on Business as a Member.
Members will be reimbursed for expenses under the Capital Accommodation Allowance when the Member has sworn a Statutory Declaration of Residence in accordance with Section 73. The Legislative Assembly may reimburse Members for accommodation expenses incurred while in the Capital on Business as a Member for the period following their election and prior to having sworn a Statutory Declaration of Residence. All reimbursements made during this time will be made from the Member’s Capital Accommodation Allowance and will be recovered from the Member’s indemnities and allowances if an acceptable Statutory Declaration of Residence is not filed.
The maximum amount a Member may be reimbursed under the Capital Accommodation Allowance is set out in Section 6 of the Indemnities, Allowances and Expense Regulations. Members become personally responsible for any expenses incurred in excess of this amount. The Board of Management is authorized to review the allowance from time to time and make any increases or decreases deemed necessary.
Amounts paid under the Capital Accommodation Allowance are fully accountable and expenses will be reimbursed only upon the production of receipts, invoices or other satisfactory documentation. Expenses will only be reimbursed if they relate to rental or hotel accommodation. Expenses relating to accommodation that is owned by a Member or the spouse or relative of a Member will not be reimbursed (refer to Section 81.4 of this Handbook, Financial Interest, for further details).
Members are encouraged to lease furnished apartments, however, with the approval of the Board of Management, Members may use residual room in their Capital Accommodation Allowance to purchase furniture for their rental accommodation. Furniture will be purchased by the Legislative Assembly and the cost will be charged to the Member’s Capital Accommodation Allowance over a period not greater than the Member’s remaining term in the current Legislative Assembly. The furniture is the property of the Legislative Assembly. Members’ and Precinct Services will work with each Member to factor a cost of living contingency when calculating the residual room to consider reasonable rent or lease fee increases. Should expenses exceed the allowable allowance due to increases in rent or lease costs, the member can request the Board of Management approve these additional costs. Members should refer to Section 111 of this Handbook for further details on the disposal of furniture and other equipment.
Members are not permitted to sublet any portion of a rental accommodation that is partially or wholly reimbursed from the Member’s Capital Accommodation Allowance.
Members should note that each agreement for rental or hotel accommodation is between the Member and the landlord or hotel. The Legislative Assembly is not a party to any such agreement and any obligations entered into are the responsibility of the Member. Any damage to hotel or rental property is the responsibility of the Member and not the Legislative Assembly.
A Member may request that an expense be paid directly to the person to whom payment is owed. Where an expense is normally prepaid, the Member can claim reimbursement or request direct payment at the time the payment is due. In either case, the appropriate supporting documentation (a receipt, invoice, copy of the rental agreement, etc.) must be provided to Members’ and Precinct Services before the claim or request will be processed.
81.1 CAPITAL EXPENSE ALLOWANCE
Members who do not live within commuting distance of the capital are eligible to receive an annual allowance of $7,778. As a non-taxable, non-accountable allowance, no proof of expenses is required for payment. The allowance will be paid directly to Members on a monthly basis.
The Capital Expense Allowance is to cover the following expenses while in the capital on constituency business or business as a Member.
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Meals and incidental expenses
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Local ground transportation expenses
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Basic household expenses associated with maintaining a temporary residence in the capital
Eligible Members will receive this allowance once they have sworn a Statutory Declaration of Residence in accordance with Section 73 of this Handbook. Eligible Members will be paid this allowance retroactive to polling day.
The Capital Expense Allowance will be automatically adjusted each year by the percentage increase or decrease in the Consumer Price Index between the previous calendar year and the calendar year before that.
81.2 RELOCATION COSTS
Members who establish secondary residences may be reimbursed for relocation costs from their principal residence to their secondary residence, and back to their principal residence when they cease to hold office. The reimbursement amounts are the same as those provided to senior managers in the public service. This entitlement is pursuant to s. 12.1 of the Indemnities, Allowances and Expense Regulations.
81.3 RENTAL ACCOMMODATION ARRANGEMENTS
Members’ and Precinct Services will pay rental accommodation directly to the landlord on a monthly basis. A copy of the lease must be filed with Members’ and Precinct Services and it is the obligation of the Member to notify Members’ and Precinct Services immediately if the lease is amended or terminated.
A Member may also request that the amount required for a damage deposit be advanced from their Capital Accommodation Allowance. The Member must make this request in writing to Members’ and Precinct Services. The Member may request that the amount be reimbursed to the Member or be paid directly to the landlord. The damage deposit will be recovered through payroll deductions in equal payments over six months.
Members are encouraged to include a one-month termination clause in all rental accommodation agreements. When the resignation, death or expulsion of a Member occurs, reimbursement under the Capital Accommodation Allowance would be made for the rental or hotel accommodation, and any other authorized expenses, for the month following the month in which the eligibility ceases, if the Member were obligated to make those payments under a lease or other contract. This provision does not include reimbursement in cases where the Member has depleted their Capital Accommodation Allowance or has had a change in their residency status.
If a Member who has established a secondary residence later sells or gives up the lease on their principal residence, the Member’s eligibility for the Capital Accommodation Allowance ends 30 days after the sale of the principal residence or the day the lease ends, whichever applies. This is pursuant to section 12.2 of the Indemnities, Allowances and Expense Regulations.
Pursuant to section 12.21 of the Indemnities, Allowances and Expense Regulations, in an election year, eligibility for reimbursement under the Capital Accommodation Allowance ceases on the day the Assembly is dissolved. However, the Legislative Assembly will reimburse Members for the lease cost and allow the Member to continue to access their rental accommodation during the election period on the condition that it is not used for election campaign purposes and the amount of the reimbursement is not greater than 1/12 of the annual Capital Accommodation Allowance. Effective polling day, those Members who are reelected or acclaimed, are again eligible for reimbursement under the Capital Accommodation Allowance, provided they swear a Statutory Declaration of Residence in accordance with the provisions of Section 73 of this Handbook. Those Members who do not seek re-election or who are not re-elected, will be allowed a grace period to vacate their accommodation. They will be allowed to access the Capital Accommodation Allowance up to the end of the month following the month in which their eligibility ceases. For those Members who do not seek re-election, the date eligibility ceases is the close of nominations. For those Members who are not re-elected, the date eligibility ceases is polling day. The exception to this would be in the case of a Member of the Executive Council not seeking re-election or not being re-elected. In that case, the date eligibility ceases is when they are replaced in their role as a Member of the Executive Council. The monthly maximum reimbursement during this period will not exceed 1/12th of the annual Capital Accommodation Allowance.
81.4 FINANCIAL INTEREST
Under the Legislative Assembly and Executive Council Act and the Indemnities, Allowances and Expense Regulations, Members will not be reimbursed for any accommodation expenses when certain persons have a financial interest in the rental or hotel accommodation agreement for which a Member is seeking reimbursement.
If any Member, or the spouse or relative of any Member, has a financial interest in the agreement, or in a corporation that has a financial interest in the agreement, expenses incurred under the agreement will not be reimbursed. This applies if the Member knew, or ought reasonably to have known, of the existence of that person’s interest. An interest in a corporation that provides a public utility or cable television or that is listed on a Canadian stock exchange is not deemed to be a financial interest.
The definition of “spouse” under the Legislative Assembly and Executive Council Act includes persons who are cohabiting outside of marriage. Refer to Section 1 of the Legislative Assembly and Executive Council Act for the definition of “spouse”.
Under Section 8 of the Indemnities, Allowances and Expense Regulations, a ‘relative’ of a Member is:
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a child, grandchild, brother, sister, parent or grandparent of the Member or of the Member’s spouse; and
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and the spouse of any of the above persons.
Section 8 of the Regulations sets out the circumstances in which a person will be considered to have a financial interest in an agreement. The term “financial interest” encompasses both a direct interest and a beneficial interest in the agreement.
Example: Mr. A, a Member of the Legislative Assembly, stays in a motel in the capital, owned by his father-in-law, Mr. B. Mr. B, as Mr. A’s father-in-law, is a relative of a Member and has a direct interest in the motel accommodation contract. Mr. A’s claim for reimbursement of his accommodation expenses will be denied.
Example: Ms. C, a Member of the Legislative Assembly, rents an apartment in a building managed by Mr. D, but owned by Ms. E. Mr. D enters the rental contract on behalf of Ms. E. Mr. D is no relation to Ms. C and is not a Member of the Legislative Assembly. Ms. E, on the other hand, is the spouse of a Member of the Legislative Assembly. Ms. C is aware of the fact that Ms. E is the owner of the apartment building. Although not a signatory to the contract, Ms. E, the spouse of a Member, has a beneficial interest in the rental contract. Ms. C’s claim for reimbursement of her rental expenses will be denied. If Ms. C did not know and could not have reasonably been expected to know that Ms. E was the owner of the apartment building, her claim for reimbursement of rental expenses would be allowed.
The term “financial interest in the contract or arrangement” also includes a beneficial interest in real property (land and buildings) where the real property is the subject matter of the contract or arrangement.
Example: Mr. F is the owner of a house in the capital. He is also the brother of Mr. G. Mr. G is a Member of the Legislative Assembly. Mr. F rents the house to Mr. H, who is neither a Member of the Legislative Assembly, nor related to a Member of the Legislative Assembly. Mr. H, in turn, rents the house to Mr. G. Although Mr. F is not a party to the rental contract and does not have a beneficial interest in the contract, he does have an interest in the house which is the subject matter of the rental contract. As a result, Mr. G’s claim for reimbursement of rental expenses will be denied.
The term ‘financial interest in a corporation’ includes both an interest in shares and an interest in the debt of a corporation, other than a public corporation or a corporation that provides a public utility or cable television service.
Example: Mr. I, a Member of the Legislative Assembly, has transferred his shares in a real estate development company, Realco, to a blind trust. Realco owns a hotel in the capital. Mr. I stays at the hotel owned by Realco when he is in the capital. Mr. I, a Member of the Legislative Assembly, holds a beneficial interest in the shares of a corporation that has a financial interest in the hotel accommodation contract. As a result, Mr. I’s claim for reimbursement of hotel accommodation expenses will be denied.
Example: Mr. J, a Member of the Legislative Assembly, has rented furniture for his apartment in the capital from a local furniture rental company, Furnitureco. Mr. K, who is Mr. J’s son, has recently invested in Furnitureco through a bond. Mr. K, a relative of a Member of the Legislative Assembly, has an interest in the debt of a corporation that has a financial interest in the furniture rental contract. As a result, Mr. J’s claim for reimbursement of furniture rental expenses will be denied.
In order to avoid the risk of being denied reimbursement for an accommodation expense, Members should seek advice from the Clerk or Law Clerk if there is any doubt as to whether a spouse or relative of any Member has a financial interest in an accommodation agreement.
81.5 EXPENDITURE MANAGEMENT
Members will receive a monthly expenditure management statement showing the expenses that have been charged against their Capital Accommodation Allowance to date and commitments made to the fiscal year end. Interim statements will be provided upon reasonable request and Members may contact Members’ and Precinct Services at any time to request the current balance in their Capital Accommodation Allowance.
A Member who exceeds their Capital Accommodation Allowance at any time, in any fiscal year, will be personally responsible for the excess expenditures. Where money is owed to the Legislative Assembly, the Member must reimburse the Assembly by issuing a personal cheque payable to the Government of Northwest Territories or the full amount of the expenditure will be recovered from the Member’s indemnity or set off against any other entitlements due to the Member or former Member
81.6 TABLING OF REPORT
Each fiscal year, the Speaker must table in the House a detailed report identifying the total amounts paid to each Member in the previous fiscal year from the Capital Accommodation Allowance. The report will detail the types of expenses reimbursed and the amounts paid.