42-43 ELIZABETH II

CHAPTER 45

An Act to amend the Canada Grain Act and respecting certain regulations made pursuant to that Act

[Assented to 15th December, 1994]

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S., c. G-10; R.S., cc. 31, 49 (1st Supp.), c. 29 (3rd Supp.), c. 37 (4th Supp.); 1988, c. 65

CANADA GRAIN ACT

1. (1) The definition ``regulation'' in section 2 of the Canada Grain Act is repealed.

(2) The definitions ``installation de transbordement'', ``installation de transformation'', ``installation primaire'' and ``installation terminale'' in section 2 of the French version of the Act are repealed.

(3) The definition ``contaminated'' in section 2 of the Act is replaced by the following:

``contaminate d''
« contaminé »

``contaminated'' means, in respect of grain, containing any substance in sufficient quantity that the grain is unfit for consumption by persons and animals or is adulterated within the meaning of the regulations made pursuant to paragraph 30(1)(a) of the Food and Drugs Act;

R.S., c. 37 (4th Supp.), s. 1(1)

(4) The definition ``grain'' in section 2 of the French version of the Act is replaced by the following:

« grain »
``grain''

« grain » Les graines ou céréales désignées comme tel par règlement.

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

``class''
« classe »

``class'', in respect of grain, means any variety or varieties of grain designated by order of the Commission as a class for the purposes of this Act;

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

« installation de transbordeme nt » ou « silo de transbordeme nt » ``transfer elevator''

« installation de transbordement » ou « silo de transbordement »

      a) Silo des régions de l'Est ou de l'Ouest servant principalement au transbordement du grain officiellement inspecté et pesé dans un autre silo;

      b) silo de la région de l'Est en outre destiné à recevoir, nettoyer et stocker du grain provenant de l'Est ou de l'étranger.

« installation de transformatio n » ou « silo de transformatio n » ``process elevator''

« installation de transformation » ou « silo de transformation » Silo destiné principalement à la réception et au stockage du grain en vue de sa préparation industrielle ou de sa transformation.

« installation primaire » ou « silo primaire » ``primary elevator''

« installation primaire » ou « silo primaire » Silo destiné principalement à recevoir du grain, directement des producteurs, pour stockage ou expédition ou pour les deux.

« installation terminale » ou « silo terminal » ``terminal elevator''

« installation terminale » ou « silo terminal » Silo destiné principalement à recevoir du grain, au moment de son inspection et de sa pesée officielles ou par la suite, et à le nettoyer, le stocker et le traiter avant expédition.

2. (1) Subsection 4(1) of the Act is replaced by the following:

Chief commissioner and assistant chief commissioner

4. (1) The Governor in Council shall designate one of the commissioners to be chief commissioner and another commissioner to be assistant chief commissioner.

(2) Section 4 of the Act is amended by adding the following after subsection (2):

Powers of assistant chief commissioner

(3) The assistant chief commissioner may exercise all the powers and perform all the functions of the chief commissioner in the event of the absence or incapacity of the chief commissioner or if the office of the chief commissioner is vacant.

3. Subsections 6(3) and (4) of the Act are repealed.

4. Section 12 of the Act is amended by striking out the word ``and'' at the end of paragraph (e), by adding the word ``and'' at the end of paragraph (f) and by adding the following after paragraph (f):

    (g) fixing the allowance to be paid to members of grain standards committees and grain appeal tribunals.

R.S., c. 37 (4th Supp.), s. 5

5. Subsection 16(1) of the Act is replaced by the following:

Grades may be established by regulation

16. (1) The Commission may, by regulation, establish grades and grade names for any kind of western grain and eastern grain and establish the specifications for those grades and set out a method or methods, visual or otherwise, for determining the characteristics of the grain for the purposes of meeting the quality requirements of purchasers of grain.

6. Paragraph 22(a) of the Act is replaced by the following:

    (a) if the member is not employed in the public service of Canada, an allowance for the member's services in an amount to be fixed by by-law of the Commission; and

7. Section 30 of the Act is renumbered as subsection 30(1) and is amended by adding the following:

Grading of unofficial samples

(2) An inspector may, on application for grading, grade unofficial samples of grain in the prescribed manner.

8. Paragraph 37(a) of the Act is replaced by the following:

    (a) if the member is not employed in the public service of Canada, an allowance for the member's services in an amount to be fixed by by-law of the Commission; and

9. The portion of section 43 of the Act before paragraph (a) is replaced by the following:

Subclasses of licences

43. The Commission may, with the approval of the Governor in Council, make regulations prescribing

R.S., c. 37 (4th Supp.), s. 16

10. Sections 45 to 47 of the Act are replaced by the following:

Issue of licences - primary and process elevators and grain dealers

45. (1) Where a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

    (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer; and

    (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, insurance or otherwise, having regard to the applicant's potential obligations for the payment of money or the delivery of grain to producers of grain who are holders of cash purchase tickets, elevator receipts or grain receipts issued pursuant to this Act in relation to grain produced by the holders.

Issue of licences - terminal and transfer elevators

(2) Where a person who proposes to operate a terminal or transfer elevator applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

    (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator; and

    (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, insurance or otherwise, having regard to the applicant's obligations for the payment of money or the delivery of grain to holders of elevator receipts issued pursuant to this Act.

Terms and conditions of licence

(3) A licence issued pursuant to this section shall be

    (a) for a term not exceeding five years; and

    (b) subject to such conditions, in addition to any prescribed conditions, as the Commission deems appropriate in the public interest for facilitating trade in grain.

Refusal to issue elevator licence

46. (1) The Commission may refuse to issue an elevator licence if the applicant has not given the security fixed pursuant to section 45 or fails to establish to the satisfaction of the Commission that

    (a) the premises that the applicant proposes to use are appropriate for the storage and handling of grain; or

    (b) the elevator is or will be of such a type and in such condition and the equipment of the elevator is or will be of such a type and size and in such condition as to enable the applicant to provide, at the location where the applicant proposes to operate the elevator, the services required by or pursuant to this Act to be provided at that location by a licensee holding a licence of the class for which the applicant has applied.

Refusal to issue grain dealer's licence

(2) The Commission may refuse to issue a grain dealer's licence if the applicant has not given the security fixed pursuant to section 45.

Refusal of licence re convictions

(3) The Commission may refuse to issue a licence if the applicant has been convicted of an offence under this Act within the twelve months immediately preceding the application for the licence and the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant.

Interpretation

(4) Nothing in this section shall be construed as a limitation on the powers of the Commission to issue or refuse to issue a licence pursuant to any other provision of this Act.

11. Subsection 48(1) of the Act is replaced by the following:

Consultation

48. (1) The Commission shall, at the request of an applicant for a licence, consult with the applicant with regard to any conditions that the Commission proposes to attach to the licence pursuant to paragraph 45(3)(b).

R.S., c. 37 (4th Supp.), s. 17(1)

12. (1) Subsection 49(1) of the Act is replaced by the following:

Additional security

49. (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient.

R.S., c. 37 (4th Supp.), s. 17(1)

(2) The portion of paragraph 49(2)(b) of the Act before subparagraph (i) is replaced by the following:

    (b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to

R.S., c. 37 (4th Supp.), s. 17(1)

(3) Subsections 49(2.1) and (3) of the Act are replaced by the following:

Limitation - primary or process elevator or grain dealers

(3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if

    (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and

    (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal.

Limitation - terminal and transfer elevator

(4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder.

Limitation - prescribed percentage

(5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.

Interpretation - failure to meet payment obligations

(6) Where the failure on the part of a licensee to meet the licensee's payment obligations is a result of their giving to the producer a cheque or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cheque or other bill of exchange is given to the producer.

Interpretation - delivery

(7) For the purposes of this section, delivery to a licensed grain dealer occurs on the earliest of

    (a) the day the licensed grain dealer issues a cash purchase ticket or a grain receipt to the producer,

    (b) the day the grain is unloaded from a railway car, where a producer loaded the grain directly onto the railway car, and

    (c) the day the licensed grain dealer receives the grain or receives documents entitling the licensed grain dealer to the grain.

Insurance

(8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator.

13. The Act is amended by adding the following after section 49:

Restrictions - no liability for improper delivery of grain

49.1 (1) The Commission is not liable to a producer who has delivered grain

    (a) to a person who is not a licensee; or

    (b) to a licensee, if the producer has not obtained a cash purchase ticket, an elevator receipt or a grain receipt from the licensee.

Restrictions - no liability for insufficient security

(2) The Commission is not liable if a licensee fails to provide sufficient security to ensure that the licensee meets their obligations to pay money or to deliver grain to a holder of a cash purchase ticket, elevator receipt or grain receipt.

R.S., c. 37 (4th Supp.), s. 18

14. Sections 50 and 51 of the Act are replaced by the following:

Charges to be filed

50. (1) Each licensee who operates an elevator shall, before the commencement of each crop year, file with the Commission a schedule of the charges to be made at the licensed elevator in the crop year for each service to be performed under their licence.

Amendment of charges

(2) A licensee who operates an elevator may, during a crop year, file with the Commission an amended schedule of charges for services to be performed under the licence in that crop year.

Condition

(3) An amended schedule of charges is not effective until it has been filed with the Commission.

Charges that may be made

51. (1) No licensee who operates an elevator shall charge or receive for any services performed under the licence at that elevator any sum greater than the lesser of

    (a) the maximum charges that may be fixed by the regulations for the services, and

    (b) such charges for the services as are set out in the schedule of charges filed by the licensee with the Commission.