Bill C-18

REGISTRATIONS AND LICENCES

5.2 (1) The Minister may, on application, register a person, or issue a licence to a person, authorizing them to conduct a prescribed activity in respect of a prescribed fertilizer or supplement that has been imported for sale — or that is to be exported or to be sent or conveyed from one province to another — or both register a person and issue them a licence.

(2) The registration and the licence are subject to the prescribed conditions.

(3) The Minister may make a registration or licence subject to any additional conditions that he or she considers appropriate.

(4) The holder of the registration or licence must comply with all the conditions to which the registration or licence is subject.

(5) The registration or licence is not transferable.

5.3 (1) The Minister may, on application, register an establishment as one where a prescribed activity may be conducted in respect of a prescribed fertilizer or supplement that has been imported for sale or that is to be exported or to be sent or conveyed from one province to another.

(2) The applicant in respect of an establishment is the holder of the registration.

(3) The registration is subject to the prescribed conditions.

(4) The Minister may make a registration subject to any additional conditions that he or she considers appropriate.

(5) The holder of the registration must comply with all the conditions to which the registration is subject.

(6) The registration is not transferable.

5.4 Subject to the regulations, the Minister may amend, suspend, cancel or renew a registration made under subsection 5.2(1) or 5.3(1) or a licence issued under subsection 5.2(1).

GENERAL

5.5 The Minister may issue any certificate or other document setting out any information that he or she considers necessary to facilitate the export of any fertilizer or supplement.

5.6 A sample taken by an inspector, or provided to the Minister or an inspector, under this Act may be disposed of in any manner that the Minister considers appropriate.

5.7 In considering an application made under the regulations in relation to a fertilizer or supplement, the Minister may consider information that is available from a review or evaluation of a fertilizer or supplement conducted by the government of a foreign state or of a subdivision of a foreign state or by an international organization, or association, of states.

68. (1) The portion of subsection 7(1) of the Act before paragraph (a) is replaced by the following:

7. (1) Subject to subsection (1.1), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act,

(2) Subsection 7(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) remove anything from that place for the purpose of examination, conducting tests or taking samples.

(3) Section 7 of the Act is amended by adding the following after subsection (2):

(3) An inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act, order a person to provide, on the date, at the time and place and in the manner specified by the inspector, any document, information or sample specified by the inspector.

69. Subsection 9(2) of the Act is replaced by the following:

(2) If an inspector is satisfied that the provisions of this Act and the regulations that apply with respect to an article seized under this Act have been complied with, the article must be released.

70. The Act is amended by adding the following after section 9:

9.1 (1) An inspector who has reasonable grounds to believe that an imported fertilizer or supplement does not meet the requirements of the regulations or was imported in contravention of a provision of this Act or the regulations may, by notice, whether the fertilizer or supplement is seized or not, order its owner or importer or the person having possession, care or control of it to remove it from Canada or, if removal is not possible, to destroy it.

(2) The notice must either be delivered personally to the owner or importer of the fertilizer or supplement or to the person having possession, care or control of it or be sent by registered mail to the owner’s, importer’s or person’s address in Canada.

(3) If the fertilizer or supplement is not removed from Canada or destroyed within the period specified in the notice — or, if no period was specified, within 90 days after the day on which the notice was delivered or sent — it is, despite subsection 9(2), forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

(4) An inspector may, for a period that he or she specifies, suspend the application of subsection (3) if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the fertilizer or supplement will not be sold within that period;

(c) the measures that should have been taken for the fertilizer or supplement not to have been imported in contravention of a provision of this Act or the regulations will be taken within that period; and

(d) if the fertilizer or supplement does not meet the requirements of the regulations, it will be brought into compliance with the regulations within that period.

(5) An inspector may cancel the notice if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the fertilizer or supplement has not been sold within the period referred to in subsection (6);

(c) the measures referred to in paragraph (4)(c) were taken within that period; and

(d) if the fertilizer or supplement did not meet the requirements of the regulations when it was imported, it was brought into compliance with the regulations within that period.

(6) The period for the purposes of subsection (5) is

(a) if the application of subsection (3) was suspended under subsection (4), the period of the suspension; and

(b) if the application of subsection (3) was not suspended, the period specified in the notice or, if no period was specified, the period that ends 90 days after the day on which the notice was delivered or sent.

(7) The Statutory Instruments Act does not apply in respect of the notice.

ANALYSIS

9.2 An inspector may submit to an analyst, for analysis or examination,

(a) any sample taken by an inspector, or provided to the Minister or an inspector, under this Act; or

(b) anything removed under paragraph 7(1)(d), any article seized under subsection 9(1) or any sample of that thing or article.

LIMITATION ON LIABILITY

9.3 If a person must, under this Act, do anything or permit an inspector to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

9.4 No person who exercises powers or performs duties or functions under this Act is liable in respect of anything done or omitted to be done in good faith in the exercise of those powers or the performance of those duties or functions.

71. The portion of section 10 of the Act before paragraph (a) is replaced by the following:

10. Every person who contravenes any provision of this Act or the regulations or fails to do anything that the person is ordered to do by an inspector under this Act is guilty of

72. Sections 10.1 and 11 of the Act are replaced by the following:

10.1 If a person other than an individual commits an offence under section 10, any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

11. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

11.1 Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

SEEDS ACT

73. The long title of the Seeds Act is replaced by the following:

An Act respecting seeds

74. (1) The definition “grade” in section 2 of the Act is replaced by the following:

“grade”, in respect of seed, includes any class of seed;

(2) Section 2 of the Act is amended by adding the following in alphabetical order:

“document” means anything on which information that is capable of being understood by a person, or read by a computer or other device, is recorded or marked;

“environment” means the components of the Earth and includes

(a) air, land and water,

(b) all layers of the atmosphere,

(c) all organic and inorganic matter and living organisms, and

(d) the interacting natural systems that include components referred to in paragraphs (a) to (c);

“item to which this Act applies” means

(a) seed,

(b) anything used in an activity regulated under this Act, and

(c) a document that is related to seed or to any activity regulated under this Act;

75. The Act is amended by adding the following after section 3:

3.1 No person shall sell, import or export in contravention of the regulations any seed that presents a risk of harm to human, animal or plant health or the environment.

3.2 No person shall sell seed that is the subject of a recall order referred to in subsection 19(1) of the Canadian Food Inspection Agency Act.

76. (1) Paragraph 4(1)(a.1) of the Act is replaced by the following:

(a.1) providing, with respect to grades requiring varietal purity, for the determination of varietal purity of seed crops and, in particular, for any such determination to be made by the Canadian Seed Growers’ Association and any standards established by that Association to be used;

(a.2) respecting the sale, importation or exportation of any seed that presents a risk of harm to human, animal or plant health or the environment;

(a.3) respecting the sending or conveying from one province to another or the importation or exportation of any seed;

(a.4) respecting the sale of any seed that has been imported or is to be exported or to be sent or conveyed from one province to another;

(2) Paragraph 4(1)(f) of the Act is replaced by the following:

(f) exempting, with or without conditions, any item to which this Act applies, or a person or activity in respect of seed, from the application of this Act or the regulations or a provision of this Act or the regulations;

(3) Subsection 4(1) of the Act is amended by adding the following after paragraph (g):

(g.1) requiring persons to take or keep samples of any seed, or its package or label, and to provide the Minister or an inspector with, or with access to, those samples, and respecting the manner in which those samples are to be taken or kept and the manner in which they are to be provided or access to them is to be provided;

(4) Paragraph 4(1)(j.1) of the Act is replaced by the following:

(j.1) requiring persons to prepare, keep or maintain documents and to provide the Minister or an inspector with, or with access to, those documents, and respecting

(i) the information in those documents,

(ii) the manner in which they are to be prepared, kept or maintained,

(iii) the place where they are to be kept or maintained, and

(iv) the manner in which they are to be provided or access to them is to be provided;

(j.2) respecting the issuance of certificates or other documents for the purpose of section 4.11;

(j.3) respecting quality management programs, quality control programs, safety programs, preventive control plans or any other similar programs or plans to be implemented by persons who conduct any activity regulated under this Act;

(5) Subsection 4(2) of the Act is replaced by the following:

(2) The Minister may, by order, specify the kinds of plants whose seeds are, for the purposes of this Act, weed seeds.

(3) Regulations made under paragraph (1)(a.2) or (a.3) may, among other things, establish preclearance or in-transit requirements for any imported seed or anything imported with it.

(4) Regulations made under paragraph (1)(j.1) may, among other things, require persons who conduct any activity regulated under this Act and who become aware that seed presents a risk of harm to human, animal or plant health or the environment or does not meet the requirements of the regulations to provide written notice to that effect to the Minister or an inspector.

77. The Act is amended by adding the following after section 4:

INCORPORATION BY REFERENCE

4.1 (1) A regulation made under subsection 4(1) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.

(2) The Minister must ensure that any document that is incorporated by reference in a regulation made under subsection 4(1), including any amendments to the document, is accessible.

(3) A person is not liable to be found guilty of an offence or subjected to an administrative sanction for any contravention in respect of which a document that is incorporated by reference in a regulation made under subsection 4(1) is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person.

(4) For greater certainty, a document that is incorporated by reference in a regulation made under subsection 4(1) is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.

GENERAL

4.11 The Minister may issue any certificate or other document setting out any information that he or she considers necessary to facilitate the export of any seed.

4.12 A sample taken by an inspector, or provided to the Minister or an inspector, under this Act may be disposed of in any manner that the Minister considers appropriate.

4.13 In considering an application made under the regulations in relation to seed, the Minister may consider information that is available from a review or evaluation of seed conducted by the government of a foreign state or of a subdivision of a foreign state or by an international organization, or association, of states.

78. Subsection 5(1) of the French version of the Act is replaced by the following:

79. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following:

6. (1) Subject to subsection (1.1), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act,

(2) Subsection 6(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):

(e) remove anything from that place for the purpose of examination, conducting tests or taking samples.

(3) Section 6 of the Act is amended by adding the following after subsection (2):

(3) An inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act, order a person to provide, on the date, at the time and place and in the manner specified by the inspector, any document, information or sample specified by the inspector.

80. Subsection 8(2) of the Act is replaced by the following:

(2) If an inspector is satisfied that the provisions of this Act and the regulations that apply with respect to any seed or package seized under this Act have been complied with, the seed or package must be released.

81. The Act is amended by adding the following after section 8:

8.1 (1) An inspector who has reasonable grounds to believe that imported seed does not meet the requirements of the regulations or was imported in contravention of a provision of this Act or the regulations may, by notice, whether the seed is seized or not, order its owner or importer or the person having possession, care or control of it to remove it from Canada or, if removal is not possible, to destroy it.

(2) The notice must either be delivered personally to the owner or importer of the seed or to the person having possession, care or control of it or be sent by registered mail to the owner’s, importer’s or person’s address in Canada.

(3) If the seed is not removed from Canada or destroyed within the period specified in the notice — or, if no period was specified, within 90 days after the day on which the notice was delivered or sent — it is, despite subsection 8(2), forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

(4) An inspector may, for a period that he or she specifies, suspend the application of subsection (3) if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the seed will not be sold within that period;

(c) the measures that should have been taken for the seed not to have been imported in contravention of a provision of this Act or the regulations will be taken within that period; and

(d) if the seed does not meet the requirements of the regulations, it will be brought into compliance with the regulations within that period.

(5) An inspector may cancel the notice if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the seed has not been sold within the period referred to in subsection (6);

(c) the measures referred to in paragraph (4)(c) were taken within that period; and

(d) if the seed did not meet the requirements of the regulations when it was imported, it was brought into compliance with the regulations within that period.

(6) The period for the purposes of subsection (5) is

(a) if the application of subsection (3) was suspended under subsection (4), the period of the suspension; and

(b) if the application of subsection (3) was not suspended, the period specified in the notice or, if no period was specified, the period that ends 90 days after the day on which the notice was delivered or sent.

(7) The Statutory Instruments Act does not apply in respect of the notice.

ANALYSIS

8.2 An inspector may submit to an analyst, for analysis or examination,

(a) any sample taken by an inspector, or provided to the Minister or an inspector, under this Act; or

(b) anything removed under paragraph 6(1)(e), any seed or package seized under subsection 8(1) or any sample of that thing, seed or package.

LIMITATION ON LIABILITY

8.3 If a person must, under this Act, do anything or permit an inspector to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

8.4 No person who exercises powers or performs duties or functions under this Act is liable in respect of anything done or omitted to be done in good faith in the exercise of those powers or the performance of those duties or functions.

82. (1) The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:

9. (1) Every person who contravenes any provision of this Act or the regulations or fails to do anything that the person is ordered to do by an inspector under this Act is guilty of

(2) Subsections 9(2) to (5) of the Act are replaced by the following:

(2) If a person other than an individual commits an offence under subsection (1), any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

(3) In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

83. Section 10 of the Act is replaced by the following:

10. Summary conviction proceedings for an offence under this Act may be instituted no later than three years after the day on which the subject matter of the proceedings arises.

HEALTH OF ANIMALS ACT

84. (1) The definition “produit vétérinaire biologique” in subsection 2(1) of the French version of the Health of Animals Act is repealed.

(2) The definition “veterinary biologic” in subsection 2(1) of the English version of the Act is replaced by the following:

“veterinary biologic” means a thing that is manufactured, sold or represented for use in restoring, correcting or modifying organic functions in animals or for use in the diagnosis, treatment, mitigation or prevention of a disease, disorder or abnormal physical state — or its symptoms — in animals and that is

(a) a helminth, protozoa or micro-organism,

(b) a substance or mixture of substances derived from animals, helminths, protozoa, micro-organisms or plants, or

(c) a substance of synthetic origin;

(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

“document” means anything on which information that is capable of being understood by a person, or read by a computer or other device, is recorded or marked;

(4) Subsection 2(1) of the French version of the Act is amended by adding the following in alphabetical order:

85. Section 6 of the Act is repealed.

86. The Act is amended by adding the following after section 11:

11.1 No person shall sell an animal or thing regulated under this Act that is the subject of a recall order referred to in subsection 19(1) of the Canadian Food Inspection Agency Act.

87. Section 12 of the French version of the Act is replaced by the following:

88. Subsection 16(1) of the French version of the Act is replaced by the following:

89. Sections 17 and 18 of the Act are replaced by the following:

17. Subject to section 18, if the Minister determines that an animal or thing has been imported — or an attempt has been made to import an animal or thing — in contravention of this Act or the regulations or that a requirement imposed by or under the regulations in respect of an imported animal or thing has not been met, it is forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

18. (1) An inspector or officer who has reasonable grounds to believe that an imported animal or thing has been imported in contravention of this Act or the regulations, is or could be affected or contaminated by a disease or toxic substance or is a vector or that a requirement imposed by or under the regulations in respect of an imported animal or thing has not been met may, by notice, whether the animal or thing is seized or not, order its owner or importer or the person having possession, care or control of it to remove it from Canada or, if removal is not possible, to dispose of it.

(2) The notice must either be delivered personally to the owner or importer of the animal or thing or to the person having possession, care or control of it or be sent by registered mail to the owner’s, importer’s or person’s address in Canada.

(3) If the animal or thing is not removed from Canada, or disposed of, within the period specified in the notice — or, if no period was specified, within 90 days after the day on which the notice was delivered or sent — it is, despite subsection 45(1), forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

(4) An inspector or officer may, for a period that he or she specifies, suspend the application of subsection (3) if he or she is satisfied that

(a) harm to human or animal health or, in the case of a veterinary biologic, to the environment is unlikely to result;

(b) the animal or thing will not be sold within that period;

(c) the measures that should have been taken for the animal or thing not to have been imported in contravention of a provision of this Act or the regulations will be taken within that period; and

(d) if the animal or thing does not meet the requirements of the regulations, it will be brought into compliance with the regulations within that period.

(5) An inspector or officer may cancel the notice if he or she is satisfied that

(a) harm to human or animal health or, in the case of a veterinary biologic, to the environment is unlikely to result;

(b) the animal or thing has not been sold within the period referred to in subsection (6);

(c) the measures referred to in paragraph (4)(c) were taken within that period; and

(d) if the animal or thing did not meet the requirements of the regulations when it was imported, it was brought into compliance with the regulations within that period.

(6) The period for the purposes of subsection (5) is

(a) if the application of subsection (3) was suspended under subsection (4), the period of the suspension; and

(b) if the application of subsection (3) was not suspended, the period specified in the notice or, if no period was specified, the period that ends 90 days after the day on which the notice was delivered or sent.

(7) Section 17 does not apply to the animal or thing that is required to be removed from Canada.

90. Section 36 of the Act is replaced by the following:

36. (1) An inspector or officer may, for the purpose of detecting diseases or toxic substances or for a purpose related to verifying compliance or preventing non-compliance with this Act, order a person to provide, on the date, at the time and place and in the manner specified by the inspector or officer, any document, information or sample specified by the inspector or officer.

(2) A person who is ordered by an inspector or officer to provide a document, information or a sample has a duty to do so on the specified date, at the specified time and place and in the specified manner.

91. The portion of subsection 38(1) of the Act before paragraph (a) is replaced by the following:

38. (1) For the purpose of detecting diseases or toxic substances or for a purpose related to verifying compliance or preventing non-compliance with this Act, an inspector or officer may

92. (1) Subsection 45(1) of the Act is replaced by the following:

45. (1) If an inspector or officer is satisfied that the provisions of this Act and the regulations that apply with respect to an animal or thing seized under this Act have been complied with, the animal or thing must be released.

(2) Subsection 45(2) of the English version of the Act is replaced by the following:

(2) If proceedings are instituted in relation to an animal or thing seized under this Act and it has not been disposed of or forfeited under this Act, the owner of the animal or thing or the person having the possession, care or control of it at the time of its seizure may apply for an order that it be returned. The application may be made, in the case of a violation, to the Tribunal or, in the case of an offence, to the court before which the proceedings are being held.

93. Subsection 47(1) of the Act is replaced by the following:

47. (1) If the Tribunal or the court, as the case may be, orders the forfeiture of an animal or thing under subsection 46(1), the animal or thing shall be disposed of as the Minister may direct.

94. Section 50 of the Act is replaced by the following:

50. If a person must, under this Act, do anything or permit an inspector or officer to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

50.1 No person who exercises powers or performs duties or functions under this Act is liable in respect of anything done or omitted to be done in good faith in the exercise of those powers or the performance of those duties or functions.

95. (1) Paragraph 64(1)(a) of the French version of the Act is replaced by the following:

(2) Subsection 64(1) of the Act is amended by adding the following after paragraph (o):

(o.1) exempting, with or without conditions, any animal or thing, or a person or activity in respect of an animal or thing, from the application of this Act or the regulations or a provision of this Act or the regulations;

(3) Paragraph 64(1)(s) of the Act is replaced by the following:

(s) prohibiting or regulating the importation, exportation, preparation, manufacturing, preserving, packaging, labelling, storing, testing, transportation, sale, conditions of sale, advertising for sale, use and disposal of veterinary biologics and regulating their purity, potency, efficacy and safety;

(s.1) respecting quality management programs, quality control programs, safety programs, preventive control plans or any other similar programs or plans to be implemented by persons who conduct any activity regulated under this Act;

(4) Paragraph 64(1)(v) of the Act is replaced by the following:

(v) regulating the importation, exportation, preparation, manufacturing, preserving, packaging, labelling, storing, distribution, sale, conditions of sale and advertising for sale of products of animal deadyards, rendering plants and animal food factories;

(5) Subsection 64(1) of the Act is amended by adding the following after paragraph (w):

(w.1) requiring persons to take or keep samples from any animal or thing and to provide the Minister or an inspector or officer with, or with access to, those samples, and respecting the manner in which those samples are to be taken or kept and the manner in which they are to be provided or access to them is to be provided;

(6) Paragraph 64(1)(z.3) of the Act is replaced by the following:

(z.3) requiring persons to prepare, keep or maintain documents and to provide the Minister or an inspector or officer with, or with access to, those documents, and respecting

(i) the information in those documents,

(ii) the manner in which they are to be prepared, kept or maintained,

(iii) the place where they are to be kept or maintained, and

(iv) the manner in which they are to be provided or access to them is to be provided;

(7) Section 64 of the Act is amended by adding the following after subsection (1):

(1.1) Regulations made under paragraph (1)(a) may, among other things, authorize the Minister to designate, by notice, diseases for the purposes of those regulations.

(1.2) The Statutory Instruments Act does not apply in respect of a notice given by the Minister under a regulation made under paragraph (1)(a).

(1.3) Regulations made under paragraph (1)(a) that regulate the importation of animals or things may regulate those animals or things after their importation.

(1.4) Regulations made under paragraph (1)(z.3) may, among other things, require persons who conduct any activity regulated under this Act and who become aware that an animal by-product, an animal food, an animal product, a product of a rendering plant or a veterinary biologic presents a risk of harm to human or animal health or the environment or does not meet the requirements of the regulations to provide written notice to that effect to the Minister or an inspector or officer.

96. The Act is amended by adding the following after section 64:

INCORPORATION BY REFERENCE

64.1 (1) A regulation made under section 64 may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.

(2) The Minister must ensure that any document that is incorporated by reference in a regulation made under section 64, including any amendments to the document, is accessible.

(3) A person is not liable to be found guilty of an offence or subjected to an administrative sanction for any contravention in respect of which a document that is incorporated by reference in a regulation made under section 64 is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person.

(4) For greater certainty, a document that is incorporated by reference in a regulation made under section 64 is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.

GENERAL

64.2 In considering an application made under the regulations in relation to an animal or thing, the Minister may consider information that is available from a review or evaluation of an animal or thing conducted by the government of a foreign state or of a subdivision of a foreign state or by an international organization, or association, of states.

64.3 The Statutory Instruments Act does not apply in respect of a notice referred to in section 66.

97. Section 68 of the Act is replaced by the following:

68. Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

98. Sections 71 and 72 of the Act are replaced by the following:

71. If a person other than an individual commits an offence under this Act, any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

72. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

PLANT PROTECTION ACT

99. (1) The definitions “pest” and “violation” in section 3 of the Plant Protection Act are replaced by the following:

“pest” means any thing that is injurious or potentially injurious, whether directly or indi- rectly, to plants or to products or by-products of plants;

“violation” means any of the following that may be proceeded with in accordance with the Agriculture and Agri-Food Administrative Monetary Penalties Act:

(a) any contravention of any provision of this Act or of a regulation made under this Act,

(b) any contravention of any order made by the Minister under this Act, and

(c) any refusal or neglect to perform any duty imposed by or under this Act.

(2) Section 3 of the Act is amended by adding the following in alphabetical order:

“document” means anything on which information that is capable of being understood by a person, or read by a computer or other device, is recorded or marked;

100. The Act is amended by adding the following after section 6:

6.1 No person shall sell a thing regulated under this Act that is the subject of a recall order referred to in subsection 19(1) of the Canadian Food Inspection Agency Act.

101. Sections 7 and 8 of the Act are replaced by the following:

7. No person shall import or admit into Canada or export from Canada any thing that is a pest, that is or could be infested with a pest or that constitutes or could constitute a biological obstacle to the control of a pest, unless

(a) the person has produced to an inspector all permits, certificates and other documentation required by the regulations;

(b) the thing is or has been presented to an inspector — if required by the regulations or an inspector — in the manner and under the conditions specified by the inspector and at a place designated by the regulations or an inspector; and

(c) the thing is imported or exported in accordance with any other requirements of the regulations.

8. (1) An inspector who has reasonable grounds to believe that an imported thing has been imported in contravention of a provision of this Act or the regulations, is a pest, is or could be infested with a pest or constitutes or could constitute a biological obstacle to the control of a pest or that a requirement imposed by or under the regulations in respect of an imported thing has not been met may, by notice, whether the thing is seized or not, order its owner or importer or the person having possession, care or control of it to remove it from Canada or, if removal is not possible, to destroy it.

(2) The notice must either be delivered personally to the owner or importer of the thing or to the person having possession, care or control of it or be sent by registered mail to the owner’s, importer’s or person’s address in Canada.

(3) If the thing is not removed from Canada, or destroyed, within the period specified in the notice — or, if no period was specified, within 90 days after the day on which the notice was delivered or sent — it is, despite subsection 32(1), forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

(4) An inspector may, for a period that he or she specifies, suspend the application of subsection (3) if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the thing will not be sold within that period;

(c) the measures that should have been taken for the thing not to have been imported in contravention of a provision of this Act or the regulations will be taken within that period; and

(d) if the thing does not meet the requirements of the regulations, it will be brought into compliance with the regulations within that period.

(5) An inspector may cancel the notice if he or she is satisfied that

(a) harm to human, animal or plant health or the environment is unlikely to result;

(b) the thing has not been sold within the period referred to in subsection (6);

(c) the measures referred to in paragraph (4)(c) were taken within that period; and

(d) if the thing did not meet the requirements of the regulations when it was imported, it was brought into compliance with the regulations within that period.

(6) The period for the purposes of subsection (5) is

(a) if the application of subsection (3) was suspended under subsection (4), the period of the suspension; and

(b) if the application of subsection (3) was not suspended, the period specified in the notice or, if no period was specified, the period that ends 90 days after the day on which the notice was delivered or sent.

102. The Act is amended by adding the following after section 23:

23.1 (1) An inspector may, for the purpose of detecting pests or for a purpose related to verifying compliance or preventing non-compliance with this Act, order a person to provide, on the date, at the time and place and in the manner specified by the inspector, any document, information or sample specified by the inspector.

(2) A person who is ordered by an inspector to provide a document, information or a sample has a duty to do so on the specified date, at the specified time and place and in the specified manner.

103. (1) The portion of subsection 25(1) of the Act before paragraph (a) is replaced by the following:

25. (1) For the purpose of detecting pests or for a purpose related to verifying compliance or preventing non-compliance with this Act, an inspector may

(2) Paragraph 25(2)(b) of the English version of the Act is replaced by the following:

(b) reproduce any document or cause it to be reproduced from the data in the form of a printout or other intelligible output and take the printout or other output for examination or copying; and

104. (1) Subsection 32(1) of the Act is replaced by the following:

32. (1) If an inspector is satisfied that the provisions of this Act and the regulations that apply with respect to a thing seized under this Act have been complied with, the thing must be released.

(2) Subsection 32(2) of the English version of the Act is replaced by the following:

(2) If proceedings are instituted in relation to a thing seized under this Act and it has not been disposed of or forfeited under this Act, the owner of the thing or the person having the possession, care or control of it at the time of its seizure may apply for an order that it be returned. The application may be made, in the case of a violation, to the Tribunal or, in the case of an offence, to the court before which the proceedings are being held.

105. Subsection 34(1) of the Act is replaced by the following:

34. (1) If the Tribunal or the court, as the case may be, orders the forfeiture of a thing under subsection 33(1), the thing shall be disposed of as the Minister may direct.

106. The Act is amended by adding the following after section 36:

PROHIBITIONS RESPECTING DOCUMENTS

36.1 (1) No person shall alter, destroy or falsify a document that they are required under this Act to keep, maintain or provide.

(2) No person shall

(a) alter a document issued or made — or in any manner given — under this Act;

(b) have in their possession or use a document issued or made — or in any manner given — under this Act that has been altered; or

(c) use any document issued or made — or in any manner given — under this Act for a purpose or in respect of a thing, other than the purpose or thing for which the document was issued, made or given.

36.2 No person shall have in their possession or use any document that has not been issued or made — or in any manner given — under this Act if it so closely resembles a document that has been so issued, made or given that it is likely to be mistaken for it.

PROHIBITIONS RESPECTING MARKING AND IDENTIFICATION

36.3 (1) No person shall alter, destroy or falsify a mark, label, tag or seal required under this Act.

(2) No person shall

(a) have in their possession or use a mark, label, tag or seal required under this Act that has been altered or falsified; or

(b) use a mark, label, tag or seal required under this Act for a purpose or in respect of a thing, other than a purpose or a thing provided for in the regulations.

36.4 No person shall have in their possession or use

(a) any mark, label, tag or seal that so closely resembles one required under this Act that it is likely to be mistaken for it; or

(b) any device that is designed or adapted to create a mark that so closely resembles a mark required under this Act that it is likely to be mistaken for it.

107. Section 38 of the Act is replaced by the following:

38. If a person must, under this Act, do anything or permit an inspector to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

38.1 No person who exercises powers or performs duties or functions under this Act is liable in respect of anything done or omitted to be done in good faith in the exercise of those powers or the performance of those duties or functions.

108. (1) Paragraph 47(a) of the Act is replaced by the following:

(a) prohibiting or regulating the carrying out of any activity in respect of pests and of other things that are or could be infested with pests or that constitute or could constitute biological obstacles to the control of pests, including their importation and admission into Canada, their exportation from Canada and their movement within Canada;

(a.1) for the purposes of paragraph 7(b),

(i) respecting the circumstances in which a thing must be presented to an inspector, and

(ii) imposing conditions on an inspector’s authority to require that a thing be presented;

(2) Section 47 of the Act is amended by adding the following after paragraph (b):

(b.1) respecting authorizations provided for in section 47.2, including the conditions to which they may be subject and their amendment, suspension or revocation;

(3) Paragraph 47(r) of the Act is replaced by the following:

(r) requiring documents to be furnished by inspectors;

(r.1) requiring persons to prepare, keep or maintain documents and to provide the Minister or an inspector with, or with access to, those documents, and respecting

(i) the information in those documents,

(ii) the manner in which they are to be prepared, kept or maintained,

(iii) the place where they are to be kept or maintained, and

(iv) the manner in which they are to be provided or access to them is to be provided;

(r.2) requiring persons to take or keep samples of any thing and to provide the Minister or an inspector with, or with access to, those samples, and respecting the manner in which those samples are to be taken or kept and the manner in which they are to be provided or access to them is to be provided;

(4) Section 47 of the Act is amended by adding “and’’ at the end of paragraph (s) and by adding the following after that paragraph:

(t) exempting, with or without conditions, any thing, or a person or activity in respect of a thing, from the application of this Act or the regulations or a provision of this Act or the regulations.

(5) Section 47 of the Act is renumbered as subsection 47(1) and is amended by adding the following:

(2) Regulations made under paragraph (1)(a) may, among other things, establish preclearance or in-transit requirements for any imported thing or anything imported with it.

(3) Regulations made under paragraph (1)(a) may, among other things, authorize the Minister or an inspector to prohibit or restrict the carrying out of any activity in respect of a thing if the Minister or inspector has reasonable grounds to believe that the thing is a pest, is infested with a pest or constitutes a biological obstacle to the control of a pest, and prescribe conditions for the exercise of the authority.

(4) Regulations made under paragraph (1)(i) may, among other things, authorize the Minister or an inspector to prohibit or restrict the use of a place or a thing if the Minister or inspector has reasonable grounds to believe that the place is infested with a pest or that the thing is a pest, is infested with a pest or constitutes a biological obstacle to the control of a pest, and prescribe conditions for the exercise of the authority.

(5) Regulations made under paragraph (1)(r.1) may, among other things, require persons who conduct any activity regulated under this Act and who become aware that a thing that is a pest, that is or could be infested with a pest or that constitutes or could constitute a biological obstacle to the control of a pest presents a risk of harm to human, animal or plant health or the environment or does not meet the requirements of the regulations to provide written notice to that effect to the Minister or an inspector.

109. The Act is amended by adding the following after section 47:

INCORPORATION BY REFERENCE

47.1 (1) A regulation made under subsection 47(1) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.

(2) The Minister must ensure that any document that is incorporated by reference in a regulation made under subsection 47(1), including any amendments to the document, is accessible.

(3) A person is not liable to be found guilty of an offence or subjected to an administrative sanction for any contravention in respect of which a document that is incorporated by reference in a regulation made under subsection 47(1) is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person.

(4) For greater certainty, a document that is incorporated by reference in a regulation made under subsection 47(1) is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.

AUTHORIZATIONS

47.2 (1) The President of the Canadian Food Inspection Agency may, subject to the regulations, authorize any person to perform any activity that he or she specifies, subject to any conditions that he or she considers appropriate, if the activity is related to ensuring that a thing is not a pest, is not or could not be infested with a pest or does not or could not constitute a biological obstacle to the control of a pest.

(2) The authorization is not transferable.

(3) The President may, subject to the regulations, amend, suspend or revoke the authorization.

GENERAL

47.3 The Statutory Instruments Act does not apply in respect of a notice referred to in section 49.

110. The portion of subsection 48(1) of the French version of the Act before paragraph (a) is replaced by the following:

48. (1) Quiconque contrevient aux dispositions de la présente loi — à l’exception de l’article 9 — ou des règlements ou refuse ou néglige d’accomplir une obligation imposée sous le régime de la présente loi commet une infraction et encourt, sur déclaration de cul­pabilité :

111. Section 51 of the Act is replaced by the following:

51. Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

112. Sections 54 and 55 of the Act are replaced by the following:

54. If a person other than an individual commits an offence under this Act, any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

55. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

AGRICULTURE AND AGRI-FOOD ADMINISTRATIVE MONETARY PENALTIES ACT

113. The definition “Minister” in section 2 of the Agriculture and Agri-Food Administrative Monetary Penalties Act is replaced by the following:

“Minister” means the Minister of Agriculture and Agri-Food, except that

(a) it means the Minister of Health in relation to a violation involving a contravention of

(i) the Pest Control Products Act, or

(ii) a provision relating to food safety of an agri-food Act or of a regulation made under such an Act, and

(b) it means the Minister of Public Safety and Emergency Preparedness in relation to a notice of violation issued in respect of the contravention of program legislation referred to in subsection 11(5) of the Canadian Food Inspection Agency Act;

114. (1) Subsection 4(1) of the Act is amended by adding the following after paragraph (b):

(b.1) establishing, in respect of each violation, a short-form description to be used in notices of violation;

(2) Paragraph 4(2)(b) of the Act is replaced by the following:

(b) in any other case, $5,000 for a minor violation, $15,000 for a serious violation and $25,000 for a very serious violation.

115. Section 6 of the Act is replaced by the following:

6. The Minister may designate persons, or classes of persons, who are authorized to issue notices of violation.

116. The portion of subsection 7(2) of the English version of the Act before paragraph (a) is replaced by the following:

(2) If a person designated under section 6 has reasonable grounds to believe that a person has committed a violation, the designated person may issue, and shall cause to be served on the person, a notice of violation that names the person, identifies the violation and

117. Subsection 11(3) of the English version of the Act is replaced by the following:

(3) If a person does not, in the prescribed time and manner, either pay the amount referred to in paragraph (1)(a) or request a review under paragraph (1)(b), the person is deemed to have committed the violation identified in the notice of violation.

118. Subsection 15(2) of the French version of the Act is replaced by the following:

119. Section 26 of the Act is replaced by the following:

26. No proceedings in respect of a violation may be commenced later than

(a) six months after the day on which the subject matter of the proceedings arises, in the case of a minor violation; or

(b) two years after the day on which the subject matter of the proceedings arises, in the case of a serious violation or a very serious violation.

AGRICULTURAL MARKETING PROGRAMS ACT

120. (1) Paragraph (b) of the definition “administrator” in subsection 2(1) of the Agricultural Marketing Programs Act is replaced by the following:

(b) an organization, other than a lender, that the Minister, taking into account any criteria prescribed by regulation, determines to be an organization that represents producers who produce, in an area, a significant portion of an agricultural product to which Part I applies; or

(2) Paragraph (b) of the definition “producer” in subsection 2(1) of the Act is replaced by the following:

(b) a corporation that is controlled by one or more of the persons or entities referred to in paragraphs (a), (c) and (d);

(3) The portion of the definition “produc- er” in subsection 2(1) of the Act after para- graph (d) is repealed.

(4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

“program year”, in respect of an advance, means the period that is specified in the advance guarantee agreement and the repayment agreement that relates to the advance.

(5) Section 2 of the Act is amended by adding the following after subsection (1):

(2) For the purpose of paragraph (b) of the definition “producer” in subsection (1), a corporation is controlled by a person or entity if the corporation is controlled in any manner that results in control in fact, whether directly through the ownership of voting shares or indirectly through a trustee or other person who administers the property of another, a legal representative, an agent or mandatary or other intermediary acting as nominee or otherwise, a trust, a contract, the ownership of a corporation or otherwise.

121. Subsections 3(2) and (3) of the Act are replaced by the following:

(2) In the absence of proof to the contrary, a producer is presumed to be related to another producer in any of the following circumstances:

(a) the producer controls, directly or indi- rectly in any manner, the other producer;

(b) the producer is controlled, directly or indirectly in any manner, by the same person or group of persons as the other producer;

(c) the producer carries on a farming operation in partnership with the other producer;

(d) the producer shares any management services, administrative services, equipment, facilities or overhead expenses of a farming operation with the other producer, but is not in partnership with that other producer;

(e) any other circumstances set out in the regulations.

(3) For the purposes of subsection (2), “group of persons” means a producer that is a partnership, cooperative or other association of persons.

122. The heading of Part I of the French version of the Act is replaced by the following:

123. Subsections 4.1(2) and (3) of the Act are replaced by the following:

(2) Subject to any regulations made under paragraph (3)(b), animals that are or were used as breeding animals are not agricultural prod- ucts that are subject to this Part.

(3) The Governor in Council may make regulations

(a) designating any agricultural product as being subject to this Part; and

(b) designating any breeding animals or classes of breeding animals as being subject to this Part and respecting any conditions related to that designation.

124. (1) The portion of paragraph 5(3)(e) of the Act before subparagraph (iii) is replaced by the following:

(e) to take steps, in accordance with the advance guarantee agreement, to ensure that, before an advance is made

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accord- ance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(2) Paragraph 5(3)(g) of the Act is repealed.

(3) Paragraph 5(3)(h) of the Act is replaced by the following:

(h) to pay to the Minister any additional interest resulting from its failure to make payments required by paragraph (f);

(4) Paragraph 5(3)(i) of the Act is replaced by the following:

(h.1) after the administrator receives the payment of interest referred to in subparagraph 10(2)(a)(v), to pay to the Minister, within the period specified in the advance guarantee agreement, any interest paid by the Minister under subsection 9(1) on the amount of an advance that is repaid by a producer to the administrator without proof that the agricultural product has been sold;

(i) to pay to the Minister, within the period specified in the advance guarantee agreement, the amount repaid to the administrator under a repayment agreement by a defaulting producer if the Minister has previously made a payment for the producer under subsection 23(1) or (1.1); and

(j) to assign, on the Minister’s request and within any period that the Minister specifies, its rights and obligations under the advance guarantee agreement to any entity that the Minister specifies, if the administrator has not met all of its obligations under the agreement and the Minister has sent a notice to the administrator stating that the administrator has had, in the Minister’s opinion, adequate opportunity to meet the obligations, and requesting the administrator to meet them.

(5) Subsection 5(3.01) of the Act is replaced by the following:

(3.01) An advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment:

(a) the administrator must agree to make advances to producers solely in the areas specified in the agreement;

(b) the administrator must agree to make advances to producers solely in relation to the agricultural product specified in the agreement;

(c) the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; and

(d) the producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule to

(i) the administrator, to the extent of the producer’s liability under section 22, and

(ii) the Minister, to the extent of the producer’s liability under section 23.

(3.02) The Minister may designate, in the advance guarantee agreement with the administrator, agricultural products or classes of agricultural products with respect to which an amount of an advance may be repaid, without proof that the agricultural product has been sold, before the expiry of the production period for which the advance was made.

(6) Subsection 5(3.1) of the Act is replaced by the following:

(3.1) The terms described in paragraphs (3)(c) and (f) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) — are not required if the Minister and an administrator are the only parties to the agreement.

(7) Subsection 5(4) of the Act is replaced by the following:

(4) The administrator may, subject to any terms and conditions of the advance guarantee agreement, charge fees to producers for the purpose of recovering any costs under this Part, including costs related to the recovery of outstanding amounts from producers who are in default under a repayment agreement and costs of receiving and dealing with applications for advances, administering advances and any other administrative services.

(8) Subsection 5(6) of the Act is replaced by the following:

(6) The administrator may, with the Minister’s approval, withhold amounts from an advance made to a producer for a purpose authorized under the advance guarantee agreement.

125. Subsection 5.1(2) of the Act is replaced by the following:

(2) Paragraph 5(3)(i), section 23 and, unless the agreement specifies otherwise, the following provisions do not apply to an advance guarantee agreement that the Minister enters into without making the guarantee referred to in paragraph 5(1)(a):

(a) paragraphs 5(3)(c), (e), (f) and (h);

(b) paragraphs 10(1)(g) and (h);

(c) paragraphs 10(2)(b) and (c); and

(d) paragraph 19(1)(c).

126. (1) Paragraphs 7(4)(a) to (e) of the Act are replaced by the following:

(a) paragraph 5(3)(e);

(b) subsection 5(3.01);

(c) paragraphs 10(1)(g) and (h);

(d) paragraphs 10(2)(b) to (c); and

(e) paragraph 19(1)(c) and subsection 19(3).

(2) Subsection 7(5) of the Act is repealed.

127. (1) Subsection 9(1) of the Act is replaced by the following:

9. (1) The Minister must, in relation to each producer, pay to the lender specified in an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts:

(a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and

(b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are attributable to the producer under subsection (2).

(2) Subsection 9(2) of the Act is replaced by the following:

(2) If a producer is related to another producer, the amounts received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

128. (1) The portion of subsection 10(1) of the Act before paragraph (e) is replaced by the following:

10. (1) For a producer to be eligible for a guaranteed advance during a program year,

(a) the Minister must determine, taking into account any criteria prescribed by regulation, that the producer continuously owns the agricultural product, is responsible for marketing it and either is or was producing it;

(b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on;

(c) if the producer is a corporation with only one shareholder,

(i) the individual who makes the application for an advance on the producer’s behalf must have attained the age of majority in the province where the produc- er’s farming operation is carried on, and

(ii) the shareholder must agree in writing to be personally liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for any of the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

(d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,

(i) the individual who makes the application for an advance on behalf of the corporation, partnership, cooperative or association must have attained the age of majority in the province where the produc- er’s farming operation is carried on, and

(ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

(2) Paragraph 10(1)(f.1) of the Act is replaced by the following:

(f.1) the producer must demonstrate to the administrator that they are capable of meeting their obligations under the repayment agreement and that they are meeting all of their obligations under any other repayment agreement;

(3) Paragraph 10(1)(h) of the Act is replaced by the following:

(h) the producer must demonstrate that

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accord- ance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; and

(4) Subsection 10(1.1) of the Act is replaced by the following:

(1.1) For the purpose of paragraph (1)(g), the producer’s eligibility is not affected by the administrator sharing the security referred to in section 12 with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.

(5) Subparagraphs 10(2)(a)(v) and (vi) of the Act are replaced by the following:

(v) if the producer repays to the administrator an amount of the advance without proof that the agricultural product has been sold and that amount is greater than the amount prescribed by the regulations, by paying to the administrator, in accordance with the terms and conditions specified in the repayment agreement, the amount of interest owed under that agreement on the difference obtained by subtracting that prescribed amount from that repaid amount,

(vi) by any other means prescribed by the regulations, or

(vii) by paying the administrator using a combination of the means described in subparagraphs (i) to (vi);

(6) Subsection 10(2) of the Act is amended by adding the following after paragraph (a):

(a.1) if the repayment agreement is in respect of an agricultural product designated by the Minister in the advance guarantee agreement, or an agricultural product in a class of agricultural products that is so designated, to repay the amount of the advance with respect to that agricultural product, with or without proof that it has been sold, before the expiry of the production period for which the advance was made;

(7) Paragraph 10(2)(b) of the Act is replaced by the following:

(b) to ensure that

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;

(8) Section 10 of the Act is amended by adding the following after subsection (2):

(2.1) The administrator may, with the Minister’s approval and subject to any conditions specified by the Minister, waive those requirements of a repayment agreement that are referred to in paragraph 2(a) in order to permit a producer to repay an advance under the agreement if the administrator is satisfied that the agricultural product in respect of which the advance has been made has not been disposed of by the producer.

129. Section 11 of the Act is replaced by the following:

11. Subject to section 22, if an agricultural product for which a guaranteed advance is made ceases, in whole or in part, to be in marketable condition, through no fault of the producer, the producer becomes liable to repay to the administrator that made the advance, within the period specified in the advance guarantee agreement, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural product, together with the interest — other than the interest paid by the Minister under subsection 9(1) — accruing on that portion calculated from the date of the advance.

130. Section 12 of the Act is replaced by the following:

12. An administrator that makes a guaranteed advance for an agricultural product to a producer in a program year shall take the security required by regulations made under paragraph 40(1)(f.2) for the amount of the producer’s liability under sections 22 and 23.

131. The Act is amended by adding the following after section 12:

13. If the security referred to in section 12 includes an agricultural product that is an animal raised in a particular area, the value of that agricultural product is considered to be 50%, or the percentage fixed by regulation, of the average price that in the Minister’s opinion will be payable to producers of that agricultural product in that area.

132. (1) Paragraph 19(1)(b) of the Act is replaced by the following:

(b) the rate per production unit that is specified by the Minister for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made.

(2) Subsection 19(1) of the Act is amended by adding the following after paragraph (b):

by

(c) the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%.

(3) Section 19 of the Act is amended by adding the following after subsection (1):

(1.1) The administrator’s percentage mentioned in paragraph (1)(c), as determined under the regulations, must not exceed 10%. If the regulations establish a method of calculating that percentage, when the calculation results in a percentage that is less than 3%, that percentage is deemed to be 3% and when the calculation results in a percentage that is greater than 10%, that percentage is deemed to be 10%.

(4) Subsection 19(3) of the Act is replaced by the following:

(3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule or the security referred to in section 12, the maximum amount of an advance eligible for a guarantee under this Part is

(a) in the case when the advance is covered by such a program, the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program; or

(b) in the case when the advance is covered by such a security, the lesser of the amount calculated under subsection (1) and the amount of the value of that security.

133. (1) The portion of subsection 20(1) of the Act before paragraph (a) is replaced by the following:

20. (1) Subject to subsection (1.1), the maximum amount of advances in any program year that are eligible for a guarantee under this Act is

(2) Subsection 20(2) of the Act is replaced by the following:

(2) If a producer is related to another producer, the amounts of advances received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

134. (1) Paragraph 21(1)(a) of the Act is replaced by the following:

(a) has not met all of their obligations under the agreement within 21 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the administrator’s opinion, adequate opportunity to meet the obligations, and requesting the producer to meet them;

(2) Subsection 21(1) of the Act is amended by adding the following after paragraph (c):

(c.1) becomes the subject of proceedings under the Companies’ Creditors Arrangement Act and has not met all of their obligations under the agreement;

(c.2) has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement;

(3) Subsection 21(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by adding the following after that paragraph:

(d.1) is, in the administrator’s opinion, at fault for causing or contributing to a decrease in the value of the security taken by the administrator under section 12 and, as a result, in the administrator’s opinion, the value of the security is less than the value of the outstanding amount of the advance; or

(4) Subsection 21(2) of the Act is replaced by the following:

(2) Subject to any regulations, if a default is impending, the Minister may, at the administrator’s request, order the default to be stayed for a specified period on any terms and conditions that the Minister may establish.

(2.1) A producer in respect of whom a stay of default is ordered is liable to the administrator for the costs incurred by the administrator in relation to the stay of default, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4).

(5) Subsection 21(4) of the Act is replaced by the following:

(4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance from the administrator for any period specified in the agreement, even though the producer has ceased to be in default.

135. (1) The portion of section 22 of the French version of the Act before paragraph (a) is replaced by the following:

(2) Section 22 of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(c) the costs, including legal costs, incurred by the administrator to recover the outstanding amounts and interest, if those costs are approved by the Minister, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4); and

(d) any other outstanding amounts under the repayment agreement.

136. (1) Subsections 23(1) and (2) of the Act are replaced by the following:

23. (1) If the producer is in default under the repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, in accordance with the advance guarantee agreement and subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as the case may be, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance.

(1.1) The Minister may, subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as specified in the advance guarantee agreement, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance, if

(a) the producer is in default under the repayment agreement and has made an application under section 5 of the Farm Debt Mediation Act; or

(b) the producer has been in default under the repayment agreement for the period specified in the advance guarantee agreement.

(2) The Minister is, to the extent of any payment under subsection (1) or (1.1), subrogated to the administrator’s rights against the producer in default and against persons who are liable under paragraphs 10(1)(c) and (d) and may maintain an action, in the name of the administrator or in the name of the Crown, against that producer and those persons.

(2) Subsections 23(4) and (5) of the Act are replaced by the following:

(4) Subject to the other provisions of this section, no action or proceedings may be taken by the Minister to recover any amounts, interest and costs owing after the six year period that begins on the day on which the Minister is subrogated to the administrator’s rights.

(5) The amounts, interest and costs owing may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against any sum of money that may be due or payable by Her Majesty in right of Canada to the person or their estate or succession.

(6) If a person acknowledges liability for the amounts, interest and costs owing, whether before or after the end of the limitation or prescription period, the time during which the limitation or prescription period has run before the acknowledgment of liability does not count in the calculation of the limitation or prescription period and an action or proceedings to recover the amounts, interest and costs may be taken within six years after the day of the acknowledgment of liability.

(7) An acknowledgement of liability means

(a) a written promise to pay the amounts, interest and costs owing, signed by the person or his or her agent or other representative;

(b) a written acknowledgment of the amounts, interest and costs owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

(c) a payment, even in part, by the person or his or her agent or other representative of any of the amounts, interests and costs owing;

(d) any acknowledgment of the amounts, interest and costs owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act, the Farm Debt Mediation Act or any other legislation dealing with the payment of debts; or

(e) the person’s performance of an obligation under the repayment agreement referred to in subsection (1).

(8) Any period in which it is prohibited to commence or continue an action or proceedings against the person to recover the amounts, interest and costs owing does not count in the calculation of a limitation or prescription period under this section.

(9) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

137. Subsections 34(3) and (4) of the Act are repealed.

138. (1) Subsection 40(1) of the Act is amended by adding the following after paragraph (a.1):

(a.2) defining the meanings of the words and expressions “control” and “controlled by” for the purposes of paragraphs 3(2)(a) and (b);

(a.3) prescribing, for the purposes of paragraph 3(2)(e), circumstances in which pro- ducers are presumed to be related;

(2) The portion of paragraph 40(1)(b) of the Act before subparagraph (i) is replaced by the following:

(b) for the purpose of subsection 4.1(1) and any regulations made under subsection 4.1(3), prescribing criteria for

(3) Paragraphs 40(1)(c) to (e) of the Act are replaced by the following:

(c) fixing an amount for the purposes of each of subsection 5(5), paragraphs 7(3)(a) and (b), subsection 9(1), paragraph 20(1)(b) and subsection 20(1.1), which amount may, for the purposes of subsection 9(1), paragraph 20(1)(b) or subsection 20(1.1), differ with regard to classes of producers;

(d) prescribing criteria for the purposes of paragraph 7(1)(b);

(e) fixing a percentage for the purposes of each of paragraphs 7(3)(a) and (b), section 13 and subsection 19(2);

(e.01) for the purposes of subsections 9(2) and 20(2), fixing the percentage or percent- ages of the amounts received by, or attributed to, related producers that are to be attributable to a producer, which percentage or percent­ages may differ depending on the type of producer or related producer;

(e.02) for the purposes of subsections 9(2) and 20(2), respecting the method of calculating the amounts received by, or attributed to, related producers that are to be attributable to a producer, which method of calculation may differ depending on the type of producer or related producer;

(4) Subsection 40(1) of the Act is amended by adding the following after paragraph (e.1):

(e.11) respecting, for the purposes of subparagraphs 10(1)(c)(ii) and (d)(ii), guarantors or classes of guarantors and the security or classes of security that must be provided by guarantors;

(5) Subsection 40(1) of the Act is amended by adding the following after paragraph (f):

(f.01) prescribing, for the purposes of subparagraph 10(2)(a)(vi), any means that may be used to repay an advance and the terms and conditions respecting those repayments;

(6) Paragraph 40(1)(f.2) of the Act is replaced by the following:

(f.2) respecting the security or classes of security that administrators are required to take for the purposes of section 12;

(f.3) determining, for the purposes of paragraph 19(1)(c), the administrator’s percentage or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance;

(f.4) respecting stays of default under subsection 21(2);

(7) Subsection 40(1) of the Act is amended by striking out “and” at the end of paragraph (h.1) and by adding the following after that paragraph:

(h.2) prescribing anything that is to be prescribed under this Act; and

(8) Subsection 40(2) of the Act is replaced by the following:

(2) Regulations made under paragraph (1)(c) or (e) may be made only on the Minister’s recommendation with the concurrence of the Minister of Finance.

139. Subsection 42(1) of the Act is replaced by the following:

42. (1) Every five years after the coming into force of this subsection, the Minister must review the provisions and operation of this Act in consultation with the Minister of Finance.

140. The schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following: