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The Manitoba Telephone Act
This is an unofficial archived version of The Manitoba Telephone Act
as enacted by SM 1987-88, c. 9 on July 17, 1987.

R.S.M. 1987, c. T40

The Manitoba Telephone Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

1

In this Act,

"board" means the board for the establishment of which provision is made in section 12; ("conseil")

"chairman" means the chairman of the board for whose appointment provision is made in section 12; ("président")

"commission" means The Manitoba Telephone System to which reference is made in section 11; ("Société")

"data processing" means a process whereby a computer is used to manipulate information, including the functions of storing, retrieving, sorting, merging, calculating and transforming data according to programmed instructions and those activities required to support this process; ("traitement des données")

"fiscal year" means the period from April 1 in one year to March 31 in the next year; ("exercice")

"general manager" means the general manager of The Manitoba Telephone System for whose appointment provision is made in section 13; ("directeur général")

"land" means real property of whatsoever nature or kind and includes tenements, hereditaments, and appurtenances, leaseholds, and any estate, term, easement, right or interest in, to, over, under or affecting land, including rights-of-way, and waters, water rights, water powers, and water privileges; ("biens-fonds")

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")

"municipality" means a city, town, village, rural municipality or local government district, and includes The City of Winnipeg, and also includes a school district, school area, or school division; and "municipal" has a corresponding meaning; ("municipalité")

"owner" includes a mortgagee, lessee, tenant, occupant, or any person entitled to any estate or interest in property, land, or works, and a guardian, committee, executor, administrator, or trustee in whom property, land, or works, or any estate or interest therein is vested; ("propriétaire")

"property" includes any and all property, moving, immovable, real, personal, mixed, tangible or intangible; ("biens")

"recording equipment" means any equipment, device, apparatus, or contrivance, whereby spoken words can be recorded on tape, wire, discs, cylinders, or records, or on any other material or thing, from which those spoken words can be subsequently reproduced; ("appareil d'enregistrement")

"system" means a telecommunication system and data processing system and includes all the works owned, held or used for the purposes thereof or in connection therewith or with the operation thereof; ("réseau")

"telecommunication" means the transmission, emission, or reception of signs, signals, writing, images, sounds or intelligence of any nature by wire, radio, visual or other electro-magnetic systems; ("télécommunications")

"telegraph" includes telegraph by wire or radio transmission; ("télégraphe")

"telephone" means any instrument or device into which messages may be spoken or introduced for transmission over the commission's system by wire, without wires, or by radio transmission or by which such messages may be recorded, heard or seen; ("téléphone")

"terminal attachment" means any equipment, device or contrivance capable of transmitting, routing or receiving messages or signals through the telephone services offered by the commission through the system, but does not include a passive telephone answering device; ("matériel de raccordement")

"works" means any land, plant, equipment, supplies, buildings, rights, franchises, easements, assets, and property of every kind, owned, held, or used, for the purpose of, or in connection with, the construction, maintenance, or operation, of a system. ("ouvrages")

EXTENSION OF SYSTEM

Acquirement of telephone systems.

2

The minister, with the approval of the Lieutenant Governor in Council, may purchase, lease, expropriate, or otherwise acquire, within the province, any system.

Valuation in expropriation proceedings.

3

Expropriation proceedings shall be under The Expropriation Act, and where a system is expropriated, the price shall be fixed at the actual value of the property, having regard to the reasonable cost of its original construction, and making due allowance for deterioration and wear and tear and other proper allowances, but not allowing anything for franchise or prospective profits.

Withdrawal from purchase.

4

At any time within three months after the price has been fixed and determined as provided in section 3, the minister, with the approval of the Lieutenant Governor in Council, may, by notice in writing to the owner, withdraw from the purchase, first paying him all costs of proceedings under section 3.

EXPROPRIATION GENERALLY

Right to expropriate.

5

The minister may, for and on behalf of the commission and without the consent of the owner, enter upon, take, use, and expropriate any land or any interest therein; and, without restricting the generality of the foregoing, he may so enter upon, take, use, and expropriate any easement, right-of-way, privilege, or licence over, upon, across, along, or under any land, that he deems necessary for the purposes of the commission.

Application of The Expropriation Act.

6

The Expropriation Act applies, with such modifications as the circumstances require, to any expropriation under this Act.

Vesting of land, title to, and sale thereof.

7

Title to all land, or any interest therein, acquired for the purpose of the commission under this Act, is vested in the Crown; and, when not required for the purposes of the commission, such land, or any part thereof or any interest therein, may be sold by the commission.

Execution of conveyance.

8

When land not required for the purposes of the commission is sold by the commission, a transfer thereof under The Real Property Act or a deed or grant of the land, as the case requires, in favour of the person to whom the land is to be conveyed, may be executed on behalf of the Crown by the minister.

Cancellation of easements, rights-of-way, etc.

9

Notwithstanding sections 7 and 8, where an easement, right-of-way, privilege, or licence, taken under this Act is no longer required for the purposes of the commission, the minister may cancel and terminate it by filing a written notice of the cancellation and termination in the land titles office for the land titles district in which the land is situated; and, upon filing of such a notice, the easement, right-of-way, privilege, or licence shall terminate and be at an end.

Exercise of expropriation powers.

10

Any exercise by the minister of the power conferred upon him to acquire and expropriate any land or interest therein, without the consent of the owner or person interested therein, shall be deemed an acquisition and expropriation by Her Majesty in right of the province of land required for a public work or purpose of the government; and The Expropriation Act applies, with such modifications as the circumstances require, to any such expropriation, and in respect of any such expropriation the minister has the powers conferred upon, and shall discharge the obligations imposed upon, the minister under The Expropriation Act.

THE COMMISSION

Continuation.

11(1)

The Manitoba Telephone System is continued as a body corporate consisting of the commissioners appointed under section 12.

Effect of use of former name.

11(2)

Where the name: "The Manitoba Telephone Commission" appears in any Act of the Legislature or in any regulation, by-law, contract, order, bond, or debenture, or in any other document issued or executed by or on behalf of, or relating to, the commission, it shall be conclusively deemed to refer to, and to mean, "The Manitoba Telephone System".

Appointment of board.

12(1)

The affairs of the commission shall be administered by a board consisting of not fewer than four nor more than nine commissioners appointed by order of the Lieutenant Governor in Council who subject as herein provided, shall fix their terms of office.

Designation of chairman and vice-chairman.

12(2)

The Lieutenant Governor in Council shall designate one of the commissioners to be chairman of the board and one of them to be vice-chairman.

Terms of office of other commissioners.

12(3)

Unless he sooner dies, resigns, or is removed from office each of the commissioners shall, subject to subsection 13(1), hold office for such term as is specified in the order in council by which he is appointed.

Salaries of commissioners.

12(4)

The salaries of the commissioners shall be determined by the Lieutenant Governor in Council, and shall be part of the operating expenses of the commission.

Duties and powers of vice-chairman.

12(5)

When the office of chairman is vacant, or in the absence of the chairman from the province, or during his incapacity, from any cause, to act, or at the request of the chairman or the minister, the vice-chairman shall act as chairman of the board and while so acting, has the same power with respect to calling meetings of the board as the chairman has under section 17, and shall preside at all such meetings.

References to chairman.

12(6)

Except as herein otherwise provided, all references herein to the chairman apply and refer to the vice-chairman when acting as chairman as provided in subsection (5).

Vacancies in board.

12(7)

Where a vacancy occurs in the membership of the board, the Lieutenant Governor in Council may, by order in council, appoint a person to fill the vacancy.

Appointment of member of board.

12(8)

In case of the death, illness, or absence from the province, of a member of the board, or of his inability from any cause to act, the Lieutenant Governor in Council may, by order in council, appoint another person to act temporarily in his stead for such period as is stated in the order; and a person so appointed shall, during the period for which he is appointed, have all the powers, and perform all the duties, of a commissioner.

Appointment of general manager.

13(1)

The Lieutenant Governor in Council shall appoint a suitable person to be general manager of The Manitoba Telephone System and, notwithstanding section 12, the person so appointed shall hold office during the pleasure of the Lieutenant Governor in Council whether or not he is also chairman of the board as hereinafter provided.

Chairman may be general manager.

13(2)

The commissioner appointed to be chairman of the board may also be appointed to be the general manager.

Duties and designation of general manager.

13(3)

The general manager shall devote his whole time and attention to the business and affairs of the commission, and has powers and duties as herein provided, and has supervision and control of its employees, and, if he is also chairman of the board, shall be designated, and may designate himself: "Chairman and General Manager", or "Chairman", or "General Manager" as circumstances or the case requires or as he, in his discretion in each case, deems suitable.

Designation of assistant general manager.

14(1)

The board shall designate an executive officer of the commission as assistant general manager.

Duties and powers of assistant general manager.

14(2)

When the office of general manager is vacant, or in his absence from the province, or during his incapacity, from any cause, to act, or at the request of the general manager or the minister the person designated by the board as assistant general manager shall carry on the general operations of the commission, and the authority and powers conferred on the general manager under subsection 18(1) shall devolve on, and be exercised by, the assistant general manager.

References to general manager.

14(3)

Except as herein otherwise provided, all references herein to the general manager apply and refer to the assistant general manager when acting as general manager as provided in subsection (2).

Authority for M.L.A. to be a member of commission.

15

Notwithstanding The Legislative Assembly Act, a member of the Legislative Assembly, who may also be a member of the Executive Council, may be a commissioner and a member of the board, and may accept from the commission salary or remuneration under this Act; and he does not thereby vacate or forfeit his seat, or incur any of the penalties imposed by The Legislative Assembly Act for sitting and voting as a member of the Legislative Assembly.

Principal offices of commission.

16

The principal offices of the commission shall be in the City of Winnipeg.

Meetings of the board.

17(1)

Meetings of the board shall be held at the call of the chairman, at such place, and upon such notice, as to him seems proper.

Meetings on request of commissioners.

17(2)

The chairman shall call a meeting of the board immediately upon being requested so to do in writing by a majority of the other commissioners.

Quorum.

17(3)

A majority of the commissioners, including the chairman or vice-chairman, constitutes a quorum at any meeting of the board.

Chief executive officer of the commission.

18(1)

The general manager is the chief executive officer of the commission, and, unless otherwise provided herein,

(a) if so directed by the board, may

(i) sign all orders, regulations or directions issued by the authority of the board, and

(ii) together with the secretary, or such other officer of the commission as the board may specify, execute on behalf of the commission all contracts and agreements authorized by the board; and

(b) may act for, on behalf of, and in the name of, the board and the commission in the execution, performance, and carrying out, or any act, matter, or thing that is within the power of the board or of the commission, as the case may be, subject only to such express directions and decisions as may have been given or made by resolution of the board passed at a regularly held meeting thereof.

Evidential value of certain documents.

18(2)

Any order, regulation, direction, or other document whatsoever purporting to be signed by the authority of the board, if not signed by the general manager may, unless otherwise provided herein, be signed by the chairman or, in his absence, the vice-chairman.

Proof of documents.

18(3)

Any order, regulation, direction, contract, or other document signed by the chairman, vice-chairman, general manager, assistant general manager, or secretary shall be admitted as evidence of the contents thereof without any proof of the signature of any of them, or of the authority of the chairman, vice-chairman, general manager, assistant general manager or the secretary, as the case may be, to sign it.

Keeping of minutes.

19(1)

The board shall keep at the offices of the commission full and complete minutes and records of all business transacted at its meetings.

Public nature of minutes and records.

19(2)

All such minutes and records are hereby declared to be of a public nature, and are admissible in evidence by the mere production thereof by the chairman, or by any member of the board or by any employee of the commission authorized by the board to produce them.

No personal liability.

20

Neither the chairman or vice-chairman, nor any commissioner, nor the general manager, assistant general manager or any other officer or employee of the commission, nor any one acting under the instructions of any of them or under the authority of this Act or the regulations, is personally liable for any loss or damage suffered by any person by reason of anything in good faith done, caused, permitted, or authorized to be done, or omitted to be done, by him or them, pursuant to, or in the exercise of, or supposed exercise of, the powers given by this Act or the regulations.

Board control of system, and power.

21

The board shall control, maintain, and operate, the system of the commission and

(a) may obtain the services of such engineers, accountants, and other professional persons as the board deems necessary for the proper and convenient transaction of the business of the commission, and fix their remuneration;

(b) shall appoint such officers, and employees as the commission deems necessary for the transaction of its business including, without restricting the generality of the foregoing, a secretary and a comptroller, and prescribe their duties and fix their remuneration;

(c) shall regulate the installation and maintenance of telephone service to subscribers, classify subscribers, and fix standards of service to be furnished;

(d) shall prepare, from time to time, schedules of rates for approval by The Public Utilities Board;

(e) shall keep the accounts of the commission and collect the revenue thereof;

(f) may, upon such terms and conditions as the board deems proper, acquire by purchase, lease, licence, or otherwise, any property, real or personal, including without limitation, equipment, machinery, apparatus, lands and interests therein, and works; and hold, develop, use, maintain, operate, and improve any such property or construct buildings, structures, improvements, or works thereon, and sell, lease, or otherwise dispose of, any of them or any part thereof, and, without restricting the generality of the foregoing, purchase or otherwise acquire easements, rights-of-way, licences, or privileges that the board deems necessary for the purpose of the commission;

(g) shall authorize and cause to be made and executed such contracts and agreements as may be necessary to exercise and carry out the powers conferred on the commission;

(h) may, by resolution, delegate to any officer or other employee of the commission authority to sign, on behalf of the commission, any contract, agreement, or other document;

(i) shall, on behalf of the commission, perform, execute, and carry out, all the duties, powers, and functions imposed or conferred upon the board or upon the commission by this Act; and, for that purpose, may do all and any acts and things that are necessary for or incidental to the performance, execution, or carrying out, of any such duty, power, or function, including the passing of such by-laws and resolutions as the board may deem advisable;

(j) may, on behalf of the commission, pass such by-laws and resolutions, not contrary to law or this Act, as it deems necessary or advisable for the conduct of the affairs of the commission, and, without limiting the generality of the foregoing, with respect to the time and place of the calling and holding of all meetings of the board, procedure in all things to be followed at such meetings, and generally with respect to the conduct in all other particulars of the affairs of the commission.

Power to establish subsidiary under Corporations Act.

22(1)

The commission, with the approval of the Lieutenant Governor in Council, may cause to be incorporated under The Corporations Act a corporation as a subsidiary to the commission for the purpose of operating and maintaining any part or segment of the system or for carrying on any business related to the maintenance and operation of the system.

Investment in corporation.

22(2)

Upon the establishment of a corporation in accordance with subsection (1), the commission may acquire shares in the capital stock of the corporation and in consideration for the acquisition thereof may, with the approval of the Lieutenant Governor in Council, transfer to the corporation property and assets of the commission related to the part or segment of the system to be operated by the corporation or related to the business to be carried on by the corporation.

Capacity of natural person.

23

Subject to the provisions of this Act, the commission and any corporation incorporated under section 22 as a subsidiary to the commission, have the capacity and the rights, powers and privileges of a natural person, including

(a) the capacity to exercise, subject to the approval of the Lieutenant Governor in Council, its powers beyond the boundaries of the province to the extent to which the laws in force where the powers are sought to be exercised permit;

(b) the capacity to perform all acts and do all things necessary to carry out and attain their purposes and objects; and

(c) the capacity to exercise the rights vested in them and to perform the duties imposed upon them by or under this Act or any other Act of the Legislature;

and, subject to the approval of the Lieutenant Governor in Council, may accept extra-provincial powers and rights.

Method of exercising powers of commission.

24

The commission may exercise any of its powers either by by-law or resolution of the board.

Terms and conditions of service.

25(1)

The commission shall establish the terms and conditions under which its service is furnished, and shall publish those terms and conditions in its directories.

Current directory.

25(2)

The telephone service supplied by the commission to any person is subject to the terms and conditions published in the current exchange directory of the commission in which the telephone used is listed.

REVENUE AND BORROWING

Collection of revenue.

26

The income and revenue of the commission, whether arising from the operations of the commission or otherwise, shall be collected by the commission.

Authority for temporary borrowings.

27(1)

With the approval of the Lieutenant Governor in Council, the commission may, from time to time, borrow or raise money for temporary purposes by way of overdraft, line of credit, or loan, or otherwise upon the credit of the commission, in such amounts, not exceeding in the aggregate the sum of $25,000,000. of principal outstanding at any time, upon such terms, for such periods, and upon such other conditions, as the commission may determine.

Guarantee.

27(2)

The government may, on such terms as may be approved by the Lieutenant Governor in Council, guarantee the payment of the principal and interest on any borrowings of the commission under this section.

Approval of Minister of Finance.

27(3)

The commission shall not borrow or raise money under this section, otherwise than

(a) by way of overdraft with a bank; or

(b) by sale of its short term notes to a bank in lieu of borrowing by overdraft;

unless it has obtained the prior approval of the Minister of Finance, who, at the request of the commission, may act as its agent in the borrowing or raising of the money.

Temporary advances by government

27(4)

To the extent permitted by any Act of the Legislature, the Lieutenant Governor in Council may authorize the Minister of Finance to advance moneys to the commission for its temporary purposes, out of the Consolidated Fund; and every such advance shall be repaid by the commission to the Minister of Finance at such times, and on such terms, as the Lieutenant Governor in Council may direct, together with interest thereon at such rate per annum as may be approved by the Lieutenant Governor in Council from time to time.

Loans by government.

27(5)

To the extent permitted by any Act of the Legislature the Lieutenant Governor in Council may authorize the raising by way of loan, in the manner provided by The Financial Administration Act, of such amounts as the Lieutenant Governor in Council may deem requisite for any of the purposes of the commission; and any such amounts may be advanced to, and paid over by the Minister of Finance to, the commission, and shall be repaid by it to the Minister of Finance at such times, and on such terms, as the Lieutenant Governor in Council may direct, together with interest thereon at such rate per annum as may be approved by the Lieutenant Governor in Council from time to time.

Power of commission to borrow and mortgage.

28(1)

Subject to the approval of the Lieutenant Governor in Council, and subject to subsection (2), the commission, may

(a) raise money by way of loan on the credit of the commission;

(b) limit or increase the amount to be raised;

(c) issue notes, bonds, debentures, or other securities of the commission;

for the purposes of the commission; and, through the Minister of Finance, who shall be its agent in that behalf, it may

(d) sell or otherwise dispose of the notes, bonds, debentures, or securities, for such sums, and at such prices, as are deemed expedient;

(e) raise money by way of loan on any such securities;

(f) pledge or hypothecate any such securities as collateral security; and

(g) do any of those things.

Limitation on borrowing powers.

28(2)

The powers conferred on the commission under subsection (1) may be exercised only

(a) for the repayment, refunding, or renewal, of the whole or part of any loan or advance made to the commission by the government, or of notes, bonds, debentures, or other securities issued by the commission; or

(b) in cases to which clause (a) does not apply, only to the extent permitted by this Act or any other Act of the Legislature.

Reissue of redeemed securities.

28(3)

Where securities have been pledged or hypothecated by the commission as security for a loan and the loan has been paid off, the securities are not thereby extinguished, but are still alive, and may be reissued and sold or pledged as if the former pledging had not taken place.

Form of securities.

28(4)

The notes, bonds, debentures, and other securities the issue of which is authorized by this section shall be in such form, and shall bear such rates of interest, and shall be payable as to principal, interest, and premium, if any, at such times and places, in the currencies of such countries, in such amounts, and in such manner in all respects as the Lieutenant Governor in Council may determine.

Form of securities.

28(5)

The notes, bonds, debentures and other securities authorized by subsection (1) shall bear the seal of the commission which may be impressed thereon or may be engraved, lithographed, printed, or otherwise mechanically reproduced thereon, and, together with any coupons attached thereto, shall bear the manual, engraved, lithographed, printed, or otherwise mechanically reproduced signatures of the chairman and of the secretary of the commission; and any such mechanically reproduced seal and signatures shall, for all purposes, be valid and binding upon the commission if the note, bond, debenture, or other security bearing it, or to which the coupon bearing it is attached, is countersigned by an officer appointed by the commission for that purpose, notwithstanding that the person whose signature is so reproduced may not have held office at the date of the notes, bonds, debentures, or other securities or at the date of the delivery thereof and notwithstanding that the person who holds any such office at the time when any such signature is affixed is not the person who holds that office at the date of the notes, bonds, debentures, or other securities or at the date of the delivery thereof.

Proof that issue required for purposes of commission.

28(6)

A recital or declaration, in the resolution or minutes of the commission authorizing the issue or sale of notes, bonds, debentures, or other securities to the effect that the amount of the notes, bonds, debentures or other securities so authorized is required for the purposes of the commission is conclusive evidence of that fact.

Guarantee by government.

29(1)

The government may, on such terms as may be approved by the Lieutenant Governor in Council, guarantee the payment of the principal, interest, and premium, if any, of any notes, bonds, debentures, and other securities issued by the commission; and the form and manner of any such guarantee shall be such as the Lieutenant Governor in Council may approve.

Signature of guarantee and liability of government.

29(2)

The guarantee shall be signed by the Minister of Finance, or such other officer or officers as may be designated by the Lieutenant Governor in Council; and, upon being signed, the government is liable for the payment of the principal, interest, and premium, if any, of the notes, bonds, debentures, and securities guaranteed, according to the tenor thereof.

Discharge of liability.

29(3)

In a case to which subsections (1) and (2) apply, the Lieutenant Governor in Council may discharge the liability resulting from the guarantee out of the Consolidated Fund, or out of the proceeds of securities of the government issued and sold for the purpose; and in the hands of a holder of any such notes, bonds, debentures, or securities, of the commission, a guarantee so signed is conclusive evidence that the terms of this section have been complied with.

Signature of Minister of Finance.

29(4)

The signature of the Minister of Finance or of any such officer or officers for which provision is made in subsection (2) may be engraved, lithographed, printed, or otherwise mechanically reproduced; and the mechanically reproduced signature of any such person shall be conclusively deemed, for all purposes, the signature of that person and is binding upon the Government of Manitoba notwithstanding that the person whose signature is so reproduced may not have held office at the date of the notes, bonds, debentures, or other securities or at the date of the delivery thereof and notwithstanding that the person who holds any such office at the time when any such signature is affixed is not the person who holds that office at the date of the notes, bonds, debentures, or other securities or at the date of the delivery thereof.

Authority to raise loans in other currencies.

30

Where this Act or any other Act enacted before or after the coming into force of this section, authorized the commission to borrow or raise by way of loan a specific or maximum number of dollars, by the issue and sale of notes, bonds, debentures, or other securities, it authorizes the borrowing or raising by way of loan in whole or in part, of the same number of dollars of the currency of the United States; and if the amount of the loan is raised in whole or in part, by the issue and sale of notes, bonds, debentures, or other securities payable in the currency of any country other than Canada or the United States, the Act authorizes the raising of an equivalent amount in that other currency calculated in accordance with the nominal rate of exchange between the Canadian dollar and the currency concerned on the business day next preceding the day on which the Lieutenant Governor in Council authorizes the issue of the notes, bonds, debentures, or other securities, as that nominal rate is determined by any bank in Canada.

BANKING AND AUDIT

Banking.

31

The commission, with the approval of the Lieutenant Governor in Council, may make such banking arrangements as it deems necessary for the conduct of its affairs.

Accounting records.

32(1)

The commission shall establish and maintain adequate accounting records.

Fiscal year.

32(2)

The fiscal year of the commission ends on March 31 in each year.

Audit.

33(1)

The accounts of the commission shall, at least once in each year, be audited and reported on by an auditor (who may be the Provincial Auditor) appointed by the Lieutenant Governor in Council; and the cost thereof shall be paid by the commission.

Special audit.

33(2)

Notwithstanding subsection (1), and in addition thereto, the Lieutenant Governor in Council or the Provincial Auditor, may at any time order an audit or investigation into the affairs of the commission and the making of a report thereon.

Funds and expenditures.

34

Except in the case of trust funds, all funds, whether from income and revenue, borrowings, advances from the government or otherwise, coming into the hands of the commission, form one fund from which the commission may make any and all expenditures necessary or expedient for the purposes and objects of the commission.

DEPRECIATION AND OTHER RESERVES

Reserves and funds for amortization.

35(1)

The commission shall establish and maintain, and may adjust as required, such reserves and funds as are sufficient, in the opinion of the commission, to provide for the amortization of the cost to it of its property and works (whether as a whole or in its component parts) during the period or remaining period, of the useful life thereof, and for the meeting of extraordinary contingencies, and such other requirements and purposes as in the opinion of the commission are proper.

Use of reserves and funds.

35(2)

The reserves and funds created pursuant to subsection (1) may be used or employed by the commission

(a) towards the reservation and setting aside of the sinking fund referred to in section 36;

(b) towards the renewal, reconstruction, or replacement of depreciated, damaged, or obsolescent property and works;

(c) towards the meeting of extraordinary contingencies, and for such other requirements or purposes, as the commission in its discretion deems proper; and

(d) subject to the approval of the Lieutenant Governor in Council, towards the cost of construction of new works and extension, improvements, developments, or additions, to any property and works of the commission.

SINKING FUNDS

Establishment of sinking fund.

36(1)

The board shall reserve and set aside, out of the reserves or funds of the commission established and maintained under section 35 and out of such other revenues and funds of the commission as may be available for such purposes,

(a) such annual or other periodic amounts as may be required to be reserved and set aside as a sinking fund under any agreement or undertaking entered into, or assumed, by the commission or the responsibility for the performance or implementation of which is an obligation of the commission, relative to the repayment of moneys raised or borrowed by the commission; and

(b) such additional annual or other periodic amounts as the Lieutenant Governor in Council may from time to time direct to be reserved and set aside as a sinking fund for the repayment of any other moneys raised or borrowed by, or advanced to, the commission and applied to the cost of acquisition or construction of property and works of the commission, or indebtedness assumed by the commission or the liability for the repayment of which is an obligation of the commission, in respect of the cost of any property or works of the commission, or otherwise.

Minimum annual amount for sinking fund.

36(2)

Subject to subsection (7), the aggregate of the amounts so reserved and set aside as a sinking fund in each fiscal year under subsection (1) shall be not less than

(a) 1% of the advances, borrowings, and assumptions of indebtedness or indebtedness for which the commission is liable, mentioned in subsection (1) that are outstanding as at March 31 of the fiscal year next preceding the fiscal year in which the sinking fund payment is made; and

(b) an amount in each fiscal year equal to interest at the rate of 4% per year on the total sinking fund balances as at March 31 in the next preceding fiscal year.

Payment to Minister of Finance.

36(3)

The moneys reserved and set aside in each fiscal year for sinking fund purposes under subsections (1) and (2) shall be paid to the Minister of Finance as trustee for the commission before the end of that fiscal year.

Sinking fund trust accounts.

36(4)

The Minister of Finance shall establish appropriate sinking fund trust accounts, in which shall be included

(a) the moneys and investments made from the moneys reserved and set aside by the commission, and from interest earnings thereon, held by the Minister of Finance at the time this Act comes into force; and

(b) the moneys paid to the Minister of Finance under subsection (3).

Investment by Minister of Finance.

36(5)

The Minister of Finance shall invest and keep invested the moneys and investments so held by the Minister of Finance, in securities authorized by The Financial Administration Act for the investment of funds, and shall apply them towards the repayment of advances made to, and moneys raised or borrowed or liability for which is assumed by, the commission, or liability for the repayment of which is an obligation of the commission and to which reference is made in subsection (1), as they fall due; and the Minister of Finance shall pay to the commission all interest earned from the investment of the moneys so reserved and set aside and paid to and held by the Minister of Finance.

Repayments to the government.

36(6)

The commission in addition to the payments provided for under subsections (1) and (2), may pay to the Minister of Finance such moneys as it may have available for application on advances made by the government to the commission or assumed by the commission or liability for the repayment of which is an obligation of the commission.

Omission of sinking fund payments in certain cases.

36(7)

Subject to subsection (1), and notwithstanding subsection (2), the Lieutenant Governor in Council may direct that in respect of any moneys advanced to, or borrowed by, the commission pursuant to section 27 for the temporary purposes of the commission, no amounts need be reserved or set aside as a sinking fund.

APPLICATION OF REVENUES

Application of revenues.

37(1)

The commission shall apply its revenues towards payment of its operating, maintenance, and administration expenses, and of the interest and other charges on any debt incurred by it, or on any advances made to it by the Minister of Finance, and towards the establishment and maintenance of the reserves and funds referred to in section 35, and to the reservation and setting aside of the sinking fund referred to in section 36, and towards all other obligations of the commission.

Investment of additional moneys.

37(2)

The commission may pay to the Minister of Finance, for investment for the commission, such additional moneys as are available for that purpose and as are not immediately required for the purposes and object of the commission.

Additional moneys held in trust.

37(3)

Moneys paid to the Minister of Finance for investment pursuant to subsection (2) are held in trust and the interest earnings thereon shall be credited to the account of the commission in the Consolidated Fund; and such earnings, either alone or with the principal sum invested for the commission by the Minister of Finance hereunder, or any part thereof, shall be paid over to the commission by the Minister of Finance on the request of the commission.

TAXATION

Exemption from municipal taxation.

38(1)

The commission and the lands, personal property, and business of the commission are not liable to taxation, and shall not be taxed, by any municipality or by any other authority.

Grant in lieu of municipal taxes.

38(2)

The commission, as an operating expense, shall make annually to any municipality in which lands or personal property of the commission are situated, or in which the commission carries on business, such grant towards the cost of municipal and school services as the Lieutenant Governor in Council may approve.

RATES

Approval of rates by Public Utilities Board.

39(1)

Rates for telephone service supplied by the commission shall be approved by The Public Utilities Board under The Public Utilities Board Act.

Consideration to be observed by board.

39(2)

On any application for an increase or decrease in rates or for any variation of such rates, The Public Utilities Board on such application shall, in fixing a rate or rates, take into consideration, among other relevant factors,

(a) the amount required to provide sufficient moneys to cover operating, maintenance, and administration expense;

(b) interest and expenses on debt incurred for the purposes of the commission by the government;

(c) interest on debt incurred by the commission;

(d) reserves for replacement, renewal, and obsolescence, or works of the commission;

(e) such other reserves as are necessary for the maintenance, operation, and replacement, or works of the commission;

(f) and such other payments as are required to be made out of revenue.

POWER OF ENTRY

Entry for inspection and repair.

40(1)

Subject to subsections (3), (4), and (5), the duly authorized agents or employees of the commission may, between the hours of eight o'clock in the forenoon and five o'clock in the afternoon on any day that is not a holiday, enter on the land or into the building of any subscriber or other person to inspect, repair, or remove, any telephone or telephone appliance or equipment or any property of the commission, on the land or in the building.

Offence and penalty.

40(2)

Subject to subsections (3), (4), and (5), any person who refuses to permit a duly authorized agent or employee of the commission to enter on any land or into any building between the hours mentioned in subsection (1) for the purposes of removing a telephone or telephone appliances or equipment of the commission or obstructs any such agent or employee in the execution of his duties, is guilty of an offence and is liable, on summary conviction, to a fine of $50., and in default of payment thereof to imprisonment for a term not exceeding one month.

Wearing or production of badge or identification card.

40(3)

A duly authorized agent or employee of the commission to whom reference is made in subsections (1) and (2) shall

(a) wear, conspicuously attached to his clothing, a badge on which are legibly inscribed

(i) the name of the commission; and

(ii) a number by which the wearer can readily be identified as such an agent or employee;

or, in lieu thereof,

(b) carry with him an identification card setting forth

(i) the name of the commission; and

(ii) his own name and a description of himself sufficient to identify him as such an agent or employee of the commission.

Production of badge or card.

40(4)

On demand, a duly authorized agent or employee shall exhibit, produce, or show to the occupant or person in charge of any land or building on or into which he seeks to enter, as provided in subsection (1), the badge or card required under subsection (3) to be worn or carried.

Effect of failure to produce badge or card.

40(5)

If a duly authorized agent or employee of the commission seeking to enter on or into any land or building fails to comply with subsection (4), he is not entitled to enter thereon or therein; and the occupant or person in charge thereof is not guilty of an offence under subsection (2) in refusing to permit him to enter thereon or therein.

Form of identification card.

40(6)

An identification card to which reference is made in clause (3)(b) shall be in a form prescribed by the board, and shall be signed by the general manager or by an officer of the commission authorized by him in writing for that purpose.

Erection of lines.

41(1)

The commission has, and always has had, authority, power, and right to erect, construct, lay, and maintain its poles, wires, mains, conduits, cables, and pipes anywhere, on, under, over, across, or along any public highway, street, or lane in the province, notwithstanding any rights or powers before or after the coming into force of this Act given to, or conferred upon, any person or municipality by any Act of the Legislature.

Restrictions on exercise of power.

41(2)

Where the commission enters upon, or so uses, any highway, street, lane, or public place, it shall restore the highway, street, lane, or public place as far as possible to its former condition; and it shall not permit or sanction the interference with the public right of travel or in any way obstruct or permit the obstruction of, the entrance to any door or gateway, or the free access to any building existing at the date of construction.

Limitation of liability.

41(3)

Where the commission erects and maintains pole lines upon any public highway, street, lane, or public place under the authority conferred by this section, if any of the wires or cross arms attached to the poles project over private land adjoining the highway, street, lane, or public place, the commission is liable with respect thereto only for actual physical damage caused thereby.

Dispute as to use of highway.

41(4)

In case of any dispute arising with respect to the use of highways under this section between the commission and any municipality, The Public Utilities Board may determine the dispute.

Penalty for breaking wires.

42

Every person who breaks or damages any telephone wire, not being lower than the height required by law, or who breaks or damages any pole, underground conduit, or cable, being the property of, or under the control of, the commission, is liable to the commission for the amount of the damage and for all losses and expenses occasioned thereby.

WIRE TAPPING PROHIBITED

Connection of terminal attachments.

43(1)

No person other than the commission shall connect to the system any terminal attachment except

(a) a terminal attachment authorized under the regulation to be connected to the system for the purposes of residential extension telephone sets: and

(b) a terminal attachment authorized to be connected to the system under an agreement between the commission and the person making the connection.

Meaning of "connected".

43(2)

For the purposes of this section any terminal attachment shall be conclusively deemed to be connected to the system if it is attached, fixed or placed to, on. over, under or adjacent to, any wiring or instrument forming part of or attached to the system in such a manner as to be able to be used for transmitting, routing or receiving messages or signals through the telephone services offered by the commission through the system.

Power to disconnect unauthorized terminal attachments.

43(3)

Where

(a) a terminal attachment is connected to the system in contravention of subsection (1); or

(b) a terminal attachment is connected to the system in contravention of terms and conditions set out in the general tariff of the commission or otherwise than in the manner set out in the general tariff of the commission;

the commission may disconnect the terminal attachment from the system and where the commission has disconnected a terminal attachment in premises from the system and the terminal attachment is reconnected in the same premises, the commission may discontinue providing telephone services to the premises.

Prohibition of the use of listening devices.

43(4)

Except in the case of employees of the commission using such equipment as the commission may supply to its employees for service reasons or purposes, no person in the province shall use any equipment, device, apparatus, or contrivance, for the purpose of intercepting and listening to messages passing along, over, or through, the lines or wires of the system of the commission whether the equipment, device, apparatus, or contrivance works by being directly attached to the wires or any other part of the lines or equipment of the system of the commission or by induction, or by any other means.

Proof of use of listening devices.

43(5)

Evidence of the possession by any person of any equipment, device, apparatus, or contrivance, capable of being used for intercepting and listening to messages passing along, over, or through, the telephone lines or wires of the system of the commission, or under such circumstances that it is capable of being so used, is in any prosecution under this section, admissible as prima facie proof that the equipment, device, apparatus, or contrivance, was being used for that purpose.

Offence and penalty.

43(6)

Any person who violates subsection (4) is guilty of an offence and is liable, on summary conviction, to a fine of not less than $200. or more than $2,000., and in default of payment, to imprisonment for a term not exceeding six months, or to imprisonment for a term not exceeding six months without the option of a fine, or to both.

Authorization of interconnection of systems.

44(1)

The commission shall not permit or enter into any agreement respecting the interconnection of the system with any other telecommunication carrier system without the prior approval of the Lieutenant Governor in Council.

Exception.

44(2)

Subsection (1) does not apply to any interconnection of the system with another telecommunication carrier system where the interconnection

(a) exists on the coming into force of this section; or

(b) is contemplated under an agreement in effect on the coming into force of this section.

CLEARING RIGHTS-OF-WAY

Clearing of obstacles.

45

The commission, its agents, servants, or employees may

(a) enter upon any land, either public or private, that adjoins the public highway, road allowance, or right-of-way, or lands used or required for the lines or works of the commission, for the purpose of felling or removing therefrom any trees or branches thereof, or removing any other structures, erections, or obstructions, that interfere, or may in the opinion of the commission interfere, with the proper workings of the lines or works of the commission; and

(b) fell or remove any such trees, branches, structures, erections, or obstructions from any public highway, street, lane, or place on or under which the lines or works of the commission are, or are about to be, erected or laid.

Compensation for damage.

46(1)

Subject as herein provided, where the commission, its agents, servants, or employees, by exercising the powers conferred by section 45, causes damage to the property of any person, the commission shall pay compensation therefor; and the amount thereof shall be determined in accordance with the procedure set out in The Expropriation Act, and the provisions of that Act apply, with such modifications as the circumstances require.

Limitation on liability for compensation.

46(2)

The commission is not liable to pay compensation for any trees or branches of trees felled or removed or for any structure, erection, or obstruction removed under this section if the trees, branches, structure, erection, or obstruction is or are on a public highway, street, or lane.

Costs incurred by reason of street improvements.

47(1)

Where, by reason of anything done or omitted to be done by any municipality or other authority, it is necessary to take up, remove, or change the location of, any poles, wires, conduits, cables, or other works of the system of the commission placed on or under a public highway, street, or lane, the costs and expenses incurred thereby shall, subject to subsection (2), be paid to the commission, by the municipality or other authority forthwith on being notified by the commission of the amount of those costs and expenses.

Appeal to Public Utilities Board.

47(2)

Where such a municipality or other authority considers the amount excessive, it may apply to The Public Utilities Board, and that board, after hearing the application, shall determine the amount to be paid.

Lines, poles on closed highways.

47(3)

Where any public highway, street, or lane, or any part thereof, on or under which the commission has erected any lines, poles, cables, or ducts is closed by the Crown or by any municipality or other authority, the commission may leave the lines, poles, cables, and ducts on the part so closed, and shall have the same rights with respect thereto as though the public highway, street, or lane, or any part thereof, had not been closed.

GENERAL

Institution of legal proceedings.

48

All actions and other proceedings by or against the commission for the enforcement of any contract or for the recovery of damages for any tort or breach of contract, or for the trial of any right in respect of property under the control of the commission, or for the prosecution of any offence under this Act or relating to the system of the commission shall be instituted in the name of The Manitoba Telephone System.

Annual report.

49

The commission shall annually, after the end of its fiscal year, make a report to the minister, showing the revenues and expenditures during its last preceding fiscal year, together with a full and complete statement of the reserve funds of the commission and an audited balance sheet of its financial transactions during the period, and also such other information as the Lieutenant Governor in Council requires.

Tabling of annual report.

50(1)

The minister shall lay a copy of the report of the commission before the Legislative Assembly forthwith, if it is then in session, and if not, then within 15 days after the commencement of the next ensuing session thereof.

Report referred to Committee.

50(2)

Upon being laid before the Legislative Assembly, the report of the commission stands permanently referred to the Standing Committee on Public Utilities and Natural Resources of the Legislative Assembly.

Contracts with members of Legislative Assembly.

51

The making with the commission by a member of the Legislative Assembly of a contract for telephone connection or telephone service does not operate to forfeit or vacate his seat in the assembly or affect his right to sit or vote therein.

Agency of Crown.

52

The commission is an agent of Her Majesty in right of the province.

Limitation on telecommunication carrier system.

53

Notwithstanding any Act of the Legislature, or any charter of any corporation, or any contract or franchise entered into or granted, no person shall provide a telecommunication carrier service in any municipality or in any locality in unorganized territory without the approval of the Lieutenant Governor in Council unless, on July 1, 1980, that person was providing a telecommunication carrier service in that municipality or locality.

Ownership by commission.

54(1)

The commission shall own and control all apparatus, equipment, contrivances, devices, wires, cables and fibre optics used for transmitting, controlling, securing, encoding, decoding, emitting, modifying or receiving telecommunications through the system whether connected to or used in conjunction with the system except

(a) in accordance with an agreement between the commission and another person having ownership and control of the apparatus, equipment, contrivances, devices, wires, cables or fibre optics;

(b) such apparatus, equipment, device, wire, cable or fibre optics which are authorized under the regulations to be owned and controlled by a person other than the commission and to be connected to or used in conjunction with the system;

(c) terminal attachments authorized under section 43 to be connected to the system by persons other than the commission.

Limitation on ownership.

54(2)

No person shall own or control any apparatus, equipment, contrivance, device, wire, cable or fibre optic used for transmitting, controlling, securing, encoding, decoding, emitting, modifying or receiving telecommunications through the system whether connected to or used in conjunction with the system except

(a) in accordance with an agreement between the commission and another person having ownership and control of the apparatus, equipment, contrivances, devices, wires, cables or fibre optics;

(b) such apparatus, equipment, device, wire, cable or fibre optics which are authorized under the regulations to be owned and controlled by a person other than the commission and to be connected to or used in conjunction with the system;

(c) terminal attachments authorized under section 43 to be connected to the system by persons other than the commission.

Regulations.

55

The Lieutenant Governor in Council may make regulations

(a) for the purposes of section 43, authorizing classes of terminal attachments to be connected to the system by persons other than the commission for the purposes of residential extension telephone sets;

(b) for the purposes of section 54, authorizing classes of apparatus, equipment, devices, wires, cables and fibre optics which may be owned and controlled by a person other than the commission and be connected to or used in conjunction with the system.

Agreement for connection or joint operation with municipal or other system.

56

The commission may enter into any agreement with any municipality or person providing for connection, inter-communication, joint operation, reciprocal use, or transmission of business, as between any system owned and operated by the municipality or person and the commission, and for such subsequent division of receipts, expenditures, or profits, or such payment of compensation or of other adjustment as is necessary for the purpose of the agreement.

Contracts with the commission to enure to the use of the Crown.

57

All contracts respecting works or property, real or personal, under the control of the commission, entered into by the commission or by any other person duly authorized for the purpose enures to the use of the Crown in right of the province.

Offensive action punishable.

58

No person shall use profane, obscene or abusive language over the lines of the system of the commission or use any telephone of the system

(a) for annoying, or interfering with the use of a telephone by, a subscriber or any other person;

or

(b) for any unlawful purpose; or

(c) to assist in the carrying out of any unlawful purpose;

and any person who contravenes this section is guilty of an offence and is liable, on summary conviction, to a fine of $500. and in default of payment to imprisonment for a term of not more than six months, or to imprisonment for a term of not more than six months without option of a fine, or to both.

Non-application of certain enactments.

59

Clause 78(1)(f) and subsections 78(2), (3), and (4), and clauses 82(l)(f) and (h), and subsection 82(4) of The Public Utilities Board Act do not apply to this Act or to the commission.