The Destination Saskatchewan Programs Regulations
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- Ami Douglas
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1 1 The Destination Saskatchewan Programs Regulations Repealed by Saskatchewan Regulations 40/98 (effective May 13, 1998). Formerly Chapter G-5.1 Reg 25 (effective November 17, 1989). NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.
2 2 Table of Contents PART I Title, Interpretation and Establishment of Programs 1 Title 2 Interpretation 3 Programs established PART II Destination Development, Market Development and Planning and Research Incentive Programs 4 Interpretation of Part 5 Financial assistance 6 Eligible projects 7 Eligible applicants 8 Eligible costs 9 Minimum equity 10 Maximum grant 11 Application 12 Enrolment and approval 13 Letter of offer 14 Agreement 15 Payment PART III Tourism Industry Incentive Program 16 Interpretation of Part 17 Financial assistance 18 Eligible applicants 19 Eligible costs 20 Maximum grant 21 Application PART IV General 22 False or misleading statement 23 Recovery of overpayment
3 3 CHAPTER The Government Organization Act PART I Title, Interpretation and Establishment of Programs Title 1 These regulations may be cited as The Destination Saskatchewan Programs Regulations. Interpretation 2 In these regulations: (a) agreement means an agreement entered into pursuant to section 14; (b) approved means approved by the minister; (c) business means an individual, corporation, co-operative, partnership or association that carries on a tourism enterprise in the expectation of earning a profit; (d) consortium means any combination of three or more public or private sector applicants who intend to implement the same marketing activity; (e) development project means a project that involves the construction or enhancement of a building, structure, facility or other permanent fixture for the purpose of attracting, holding or providing services to tourists; (f) fiscal year means the period commencing on April 1 in one year and ending on March 31 in the following year; (g) internationally or nationally significant travel generator means a development project or tourism attraction or event that, in the opinion of the minister, will have the ability to attract significant numbers of tourists from: (i) more than two provinces, other than Saskatchewan, or territories of Canada; or (ii) countries other than Canada; (h) marketing activity means an activity that is designed primarily to attract tourists from outside Saskatchewan, and includes: (i) a direct mail program; (ii) media advertising; (iii) a direct selling program; (iv) the development of sales aids, including brochures, displays, posters and other means of communicating information; and (v) creating and selling tourism packages;
4 4 (i) minimum equity means the minimum equity required pursuant to section 9; (j) minister means the member of the Executive Council to whom for the time being the administration of these regulations is assigned; (k) non-profit organization means an organization: (i) whose members associate for the purpose of developing and promoting tourism to a specific event or attraction or to a region, corridor or sector of Saskatchewan; and (ii) whose activities are carried out without the expectation of earning a profit; (l) private sector means individuals, corporations, partnerships, cooperatives and associations that are not within the meaning of public sector as defined in clause (o); (m) program means a program established pursuant to section 3; (n) proposed project means an undertaking that is the subject of an application for approval as an eligible project; (o) public sector means governments, government departments and agencies and bodies corporate that have a majority of directors employed or appointed by a government; (p) regionally significant travel generator means a development project or tourism attraction or event that, in the opinion of the minister, will have the ability to attract significant numbers of tourists from: (i) at least one province, other than Saskatchewan, or territory of Canada or one state of the United States; and (ii) any part of Saskatchewan other than the area within an 80- kilometre radius of the place in which the project, attraction or event is located; (q) specially-themed small business means a tourism enterprise that: (i) is undertaken in the expectation of earning a profit; (ii) in the opinion of the minister, is intended to derive not less than 50% of its gross revenues from tourists; (iii) is part of a cluster of attractions and services with a common theme and character; (iv) in the opinion of the minister, directly reinforces the main theme of an area that contains: (A) an internationally or nationally significant travel generator; or (B) a regionally significant travel generator; and
5 5 (v) is located in close proximity to a major attraction or service; (r) study includes: (i) a study conducted for the purpose of determining whether a proposed development project or marketing activity is feasible; (ii) a study conducted to produce a tourism destination strategy; (iii) a study conducted to produce a tourism development concept; and (iv) a market study; (s) tour operator means a business that creates and operates its own tour programs or package tours, and includes a tour wholesaler; (t) tourist means an individual who travels at least 80 kilometres from his or her normal place of residence or business to a place that is the subject of a development project or marketing activity. 89 Nov 24 cg-5.1 Reg 25 s2. Programs established 3 The following programs are established as Destination Saskatchewan Programs: (a) the destination development incentive program; (b) the market development incentive program; (c) the planning and research incentive program; (d) the tourism industry incentive program. 89 Nov 24 cg-5.1 Reg 25 s3. PART II Destination Development, Market Development and Planning and Research Incentive Programs Interpretation of Part 4 In this Part: (a) eligible applicant means an eligible applicant within the meaning of section 7; (b) eligible costs means eligible costs within the meaning of section 8; (c) eligible project means an eligible project within the meaning of section Nov 24 cg-5.1 Reg 25 s4. Financial assistance 5 The minister may provide financial assistance in accordance with these regulations, in any amount that the minister considers appropriate, not exceeding the maximum prescribed in section 10, to an eligible applicant who: (a) is enrolled in a program pursuant to section 12;
6 6 (b) enters into an agreement with the minister with respect to an eligible project approved by the minister that is to be implemented and operated by the applicant; and (c) in the case of an eligible project that is a development project, has an equity in the project that is not less than the minimum equity prescribed in section Nov 24 cg-5.1 Reg 25 s5. Eligible projects 6(1) Subject to subsections (4) and (5), development projects that are: (a) internationally or nationally significant travel generators; (b) regionally significant travel generators; or (c) specially-themed small businesses; are eligible projects for the purposes of the destination development incentive program. (2) Marketing activities are eligible projects for the purposes of the market development incentive program. (3) Studies are eligible projects for the purposes of the planning and research incentive program. (4) The following development projects are not eligible projects: (a) fitness or health centres; (b) local arenas; (c) shopping centres; (d) stadiums; (e) curling rinks; (f) roller skating rinks; (g) local recreation projects. (5) The following development projects are eligible projects only if, in the opinion of the minister, they are part of the same phase of a larger development project: (a) ski hills; (b) campgrounds; (c) golf courses; (d) taverns, bars and nightclubs; (e) coin-operated amusement services. 89 Nov 24 cg-5.1 Reg 25 s6.
7 7 Eligible applicants 7(1) Subject to subsection (2) and section 9, applicants from the private sector and the public sector are eligible to apply for financial assistance with respect to eligible projects mentioned in clauses 6(1)(a) and (b) and subsections 6(2) and (3). (2) The Government of Saskatchewan, the Government of Canada and their departments and agencies are not eligible applicants. (3) Subject to section 9, only applicants that are businesses are eligible to apply for financial assistance with respect to eligible projects mentioned in clause 6(1)(c). 89 Nov 24 cg-5.1 Reg 25 s7. Eligible costs 8(1) Subject to subsection (2), eligible costs include: (a) with respect to development projects: (i) the actual cost of expenditures to be made by the applicant directly to another person for the design, construction or enhancement of a building, structure or facility or the purchase of furnishings for a building, structure or facility; and (ii) financing costs related to the expenditures described in subclause (i); (b) with respect to marketing activities, the actual cost of expenditures to be made by the applicant directly to another person for marketing activities; and (c) with respect to studies, the actual cost of expenditures to be made by the applicant directly to an approved consultant. (2) The following costs are not eligible costs: (a) costs incurred prior to the receipt of an application by the minister; (b) payments to be made by the applicant to any government other than the Government of Saskatchewan; and (c) with respect to development projects: (i) operating costs; (ii) maintenance costs; and (iii) costs involved in acquiring or leasing land. 89 Nov 24 cg-5.1 Reg 25 s8. Minimum equity 9(1) For the purposes of clause 5(c), an applicant is required to have an equity in the eligible project that is equal to or greater than 20% of the capital costs and other start-up costs of the project. (2) For the purposes of subsection (1), an equity: (a) consists of the difference between:
8 8 (i) the total of: (A) the applicant s: (I) share capital; (II) proprietor s capital accounts; and (III) partner s capital accounts; (B) the applicant s earned, contributed or other surplus; (C) the applicant s deficit accounts; and (D) in the case of an applicant that is a corporation, loans to the applicant by its shareholders, if the loans are subordinated to other liabilities for a period specified by the minister; and (ii) any amounts within the scope of subsection (1) that, in the opinion of the minister, unreasonably inflate the net worth of the applicant; and (b) does not include any financial assistance provided to the applicant by the Government of Saskatchewan or the Government of Canada or any assets acquired with that financial assistance. 89 Nov 24 cg-5.1 Reg 25 s9. Maximum grant 10(1) Subject to subsection (2), the maximum amount of financial assistance that may be granted to an applicant pursuant to this Part is: (a) in the case of a development project that is an internationally or nationally significant travel generator, where the applicant is: (i) not a business, 60% of eligible costs; and (ii) a business, 30% of eligible costs; (b) in the case of a development project that is a regionally significant travel generator, where the applicant is: (i) not a business, 60% of eligible costs; and (ii) a business, 30% of eligible costs; (c) in the case of a development project that: (i) is a specially-themed small business; and (ii) has a value ranging between $200,000 and $500,000; 20% of eligible costs; (d) in the case of a marketing activity:
9 9 (i) 50% of the costs, to a maximum of $50,000, of those marketing activities of a consortium, tour operator or non-profit organization that, in the opinion of the minister, are intended, and have the potential, to increase: (A) the number of tourists travelling to Saskatchewan; or (B) the expenditures of tourists travelling to and through Saskatchewan; (ii) 90% of the costs, to a maximum of $9,000, of coordinating the marketing activities described in subclause (i); (iii) 25% of the costs, to a maximum of $5,000, of engaging the services of an approved consultant to coordinate the marketing activities of a non-profit organization that are intended to increase: (A) the number of tourists from outside Saskatchewan attending an event being held within Saskatchewan; or (B) the expenditures of tourists from outside Saskatchewan attending an event held within Saskatchewan; (e) in the case of a study: (i) 50% of the eligible costs of a feasibility study; and (ii) 90% of the eligible costs of other studies. (2) The maximum amount of financial assistance that may be granted to an applicant pursuant to any provision of subsection (1) is $100,000, except where otherwise specifically provided. 89 Nov 24 cg-5.1 Reg 25 s10. Application 11 An eligible applicant may apply for enrolment in a program and approval of a proposed project by submitting to the minister: (a) an application on a form supplied by the minister; and (b) any information and supporting material that the minister may require for the purposes of these regulations. 89 Nov 24 cg-5.1 Reg 25 s11. Enrolment and approval 12 Where the minister is satisfied that: (a) an applicant is: (i) an eligible applicant; and (ii) capable of implementing and operating the proposed project; and (b) the proposed project is:
10 10 (i) an eligible project; and (ii) likely to be of significant economic benefit to Saskatchewan; the minister may enroll the applicant in the program that the minister considers most applicable to the proposed project and approve the proposed project. 89 Nov 24 cg-5.1 Reg 25 s12. Letter of offer 13 Where the minister enrolls an applicant in a program and approves an eligible project, the minister shall notify the applicant by sending to the applicant a letter of offer setting out: (a) the amount of financial assistance, not exceeding the maximum set out in section 10, that the minister is prepared to provide to the applicant if the applicant enters into an agreement with the minister and complies with the terms and conditions of the agreement and with these regulations; and (b) the terms and conditions to be incorporated in the agreement. 89 Nov 24 cg-5.1 Reg 25 s13. Agreement 14 An applicant who intends to proceed with an approved eligible project and apply for payment of financial assistance pursuant to section 15 shall enter into an agreement with the minister incorporating: (a) the terms and conditions set out in the letter of offer sent to the applicant; and (b) any other terms and conditions that the minister considers appropriate. 89 Nov 24 cg-5.1 Reg 25 s14. Payment 15(1) An applicant who proceeds with an approved eligible project after entering into an agreement may apply to the minister for payment of the financial assistance: (a) after the project is completed; or (b) in the case of an applicant other than a business applicant, prior to completion of the project. (2) The minister may require an applicant for payment to provide: (a) any financial information that the minister may specify; (b) copies of receipts or other evidence of expenditures made with respect to eligible costs; (c) an opportunity to examine the eligible project that is the subject of the application; or
11 11 (d) any combination of the things described in clauses (a) to (c). (3) Where the minister is satisfied that the applicant has complied with the terms and conditions of the agreement and these regulations, the minister may pay to the applicant: (a) in the case of an eligible project that is completed, the total amount of the financial assistance specified in the agreement; (b) in the case of an applicant: (i) that is not a business; and (ii) whose eligible project is not completed; not more than 60% of the total amount of the financial assistance specified in the agreement; and (c) in the case of an eligible applicant: (i) that is a business; and (ii) whose eligible project is not completed; not more than 60% of the total amount of the financial assistance specified in the agreement, on the basis of paid invoices. (4) Where a payment is made to an applicant pursuant to clause (3)(b), the applicant may apply for payment of the balance of the financial assistance specified in the agreement on completion of the eligible project, and subsections (2) and (3) apply, with any necessary modification, to that application. 89 Nov 24 cg-5.1 Reg 25 s15. PART III Tourism Industry Incentive Program Interpretation of Part 16 In this Part: (a) eligible applicant means an eligible applicant within the meaning of section 18; (b) eligible costs means eligible costs within the meaning of section Nov 24 cg-5.1 Reg 25 s16. Financial assistance 17(1) In this section, recognized means recognized by the minister. (2) The minister may provide financial assistance to an eligible applicant, in any amount that the minister considers appropriate, not exceeding the maximum prescribed in section 20, for the purposes of: (a) promoting travel to a recognized region or along a recognized travel corridor;
12 12 (b) encouraging standards of operation for or training in a recognized sector of tourism; or (c) promoting awareness of a recognized sector of tourism, travel corridor or region; on the basis of a business plan submitted by the applicant and approved by the minister. (3) Financial assistance pursuant to subsection (2) may be provided to an eligible applicant not more than once in each fiscal year. 89 Nov 24 cg-5.1 Reg 25 s17. Eligible applicants 18 Non-profit organizations that, in the opinion of the minister: (a) are not in competition with other non-profit organizations with respect to the purposes described in subsection 17(2); and (b) have established a program to address at least one of the following: (i) greater market information; (ii) common product standards; (iii) training or education; (iv) an annual conference; or (v) the coordination of marketing activities; are eligible to apply for financial assistance pursuant to section Nov 24 cg-5.1 Reg 25 s18. Eligible costs 19 Eligible costs include: (a) the employment of staff, not including consultants or directors; (b) program and membership development; (c) newsletters; (d) the lease of special equipment for program delivery; (e) staff meetings and expenses for the purposes of program delivery; (f) the lease of premises for an office and the utility costs of that office; and (g) programs for: (i) establishing product standards; (ii) education and training; (iii) business development; (iv) market information development; and (v) membership development and services. 89 Nov 24 cg-5.1 Reg 25 s19.
13 13 Maximum grant 20 The maximum amount of financial assistance that may be granted to an applicant in any fiscal year pursuant to section 17 is 60% of eligible costs to a maximum of $36, Nov 24 cg-5.1 Reg 25 s20. Application 21 An eligible applicant may apply for financial assistance pursuant to section 17 by submitting to the minister: (a) an application on a form supplied by the minister; (b) a business plan; and (c) any other information and supporting material that the minister may require for the purposes of these regulations. 89 Nov 24 cg-5.1 Reg 25 s21. PART IV General False or misleading statement 22 Where, in the opinion of the minister, an applicant has made a false or misleading statement on any form or in any information or document provided to the minister pursuant to these regulations, the minister may: (a) in any case to which Part II applies, cancel the enrolment of the applicant; and (b) declare that any payment to the applicant pursuant to these regulations is an overpayment to the applicant. 89 Nov 24 cg-5.1 Reg 25 s22. Recovery of overpayment 23 Where: (a) the minister has made a declaration pursuant to section 22; or (b) for any reason, an applicant has received an overpayment of the financial assistance to which the applicant is entitled pursuant to an agreement; the amount of the overpayment is a debt due to Her Majesty in right of Saskatchewan and, in addition to any other manner in which it may be recovered, may be recovered by deducting the amount of the overpayment from any grants, financial assistance or tax credits to which the applicant would otherwise be entitled pursuant to any other program, Act or regulation of the Government of Saskatchewan providing for payments to that applicant. 89 Nov 24 cg-5.1 Reg 25 s23. REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN S PRINTER Copyright 1996
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