BILL C-61 (Royal Assent)

	42-43-44 ELIZABETH II
	CHAPTER 40
	An Act to establish a system of administrative monetary penalties for the enforcement of the Canada Agricultural Products Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act and the Seeds Act
	[Assented to 5th December, 1995]
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	SHORT TITLE
Short title	1. This Act may be cited as the Agriculture and Agri-Food Administrative Monetary Penalties Act.
	INTERPRETATION
Definitions	2. In this Act,
``agri-food Act'' « loi agroalimentai re »	``agri-food Act'' means the Canada Agricultural Products Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act or the Seeds Act;
``Minister'' « ministre »	``Minister'' means the Minister of Agriculture and Agri-Food;
``penalty'' « sanction »	``penalty'' means an administrative monetary penalty imposed under this Act for a violation;
``prescribed'' Version anglaise seulement	``prescribed'' means prescribed by regulation;
``Tribunal'' « Commission »	``Tribunal'' means the Review Tribunal continued by subsection 4.1(1) of the Canada Agricultural Products Act.
	PURPOSE OF ACT
Purpose of Act	3. The purpose of this Act is to establish, as an alternative to the existing penal system and as a supplement to existing enforcement measures, a fair and efficient administrative monetary penalty system for the enforcement of the agri-food Acts.
	POWERS OF MINISTER
Regulations	4. (1) The Minister may make regulations
	(a) designating as a violation that may be proceeded with in accordance with this Act
	(i) the contravention of any specified provision of an agri-food Act or of a regulation made under an agri-food Act,
	(ii) the contravention of any specified order, or class of orders, made by the Minister under the Plant Protection Act, or
	(iii) the refusal or neglect to perform any specified duty, or class of duties, imposed by or under the Plant Protection Act or the Health of Animals Act,
	if the contravention, or the failure or neglect to perform the duty, as the case may be, is an offence under an agri-food Act;
	(b) classifying each violation as a minor violation, a serious violation or a very serious violation;
	(c) fixing a penalty, or a range of penalties, in respect of each violation;
	(d) respecting the circumstances under which, the criteria by which and the manner in which a penalty may be increased or reduced, including the reduction of a penalty pursuant to a compliance agreement under subsection 10(1);
	(e) respecting the determination of a lesser amount that may be paid in complete satisfaction of a penalty if paid within the prescribed time and manner;
	(f) respecting the circumstances under which reviews under this Act by the Tribunal shall be oral or in writing;
	(g) respecting the service of documents required or authorized to be served under this Act including, without restricting the generality of the foregoing, the manner of serving such documents, the proof of their service and the circumstances under which such documents shall be deemed to have been served;
	(h) prescribing anything that by this Act is to be prescribed; and
	(i) generally, for carrying out the purposes and provisions of this Act.
Maximum penalties	(2) The maximum penalty for a violation is
	(a) in the case of a violation that is committed by an individual otherwise than in the course of a business and that is not committed to obtain a financial benefit, $2,000; and
	(b) in any other case, $2,000 for a minor violation, $10,000 for a serious violation and $15,000 for a very serious violation.
Criteria	(3) Without restricting the generality of paragraph (1)(d), in making regulations respecting the criteria for increasing or reducing the amount of the penalty for a violation, the Minister shall include the following in any such criteria:
	(a) the degree of intention or negligence on the part of the person who committed the violation;
	(b) the harm done by the violation; and
	(c) the history of the person who committed the violation of prior violations or convictions under agri-food Acts within the five year period immediately before the violation.
How act or omission may be proceeded with	5. Where any act or omission can be proceeded with as a violation or as an offence, the Minister may commence proceedings in respect of that act or omission as a violation or recommend that it be proceeded with as an offence, but proceeding with it as a violation precludes proceeding with it as an offence, and proceeding with it as an offence precludes proceeding with it as a violation.
Duties of Minister re notices of violation	6. The Minister may
	(a) designate persons, or classes of persons, who are authorized to issue notices of violation; and
	(b) establish, in respect of each violation, a short-form description to be used in notices of violation.
	PROCEEDINGS
Commission of violation	7. (1) Every person who
	(a) contravenes any provision of an agri-food Act or of a regulation made under an agri-food Act,
	(b) contravenes any order made by the Minister under the Plant Protection Act, or
	(c) refuses or neglects to perform any duty imposed by or under the Plant Protection Act or the Health of Animals Act
	the contravention of which, or the refusal or neglect of which, is designated to be a violation by a regulation made under paragraph 4(1)(a) commits a violation and is liable to a warning or to a penalty in accordance with this Act.
Issuance of notice of violation	(2) Where a person designated under paragraph 6(a) 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
	(a) contains a warning that the person has committed a violation; or
	(b) sets out
	(i) the penalty, established in accordance with the regulations, for the violation that the person is liable to pay,
	(ii) particulars concerning the time for paying and the manner of paying the penalty, and
	(iii) subject to the regulations, a lesser amount that may be paid in complete satisfaction of the penalty if paid within the time and manner specified in the notice.
Summary of rights	(3) A notice of violation must clearly summarize, in plain language, the rights and obligations under this Act of the person on whom it is served, including the right to have the facts of the violation reviewed by the Minister or the Tribunal, and the procedure for requesting such a review.
	NOTICES OF VIOLATION WITH WARNING
Notices with warning - request for review	8. (1) Where a notice of violation contains a warning, the person named in the notice may, in the prescribed time and manner, request a review of the facts of the violation by the Minister or the Tribunal.
Deeming	(2) Where a person who is served with a notice of violation that contains a warning does not request a review under subsection (1) in the prescribed time and manner, the person is deemed to have committed the violation identified in the notice of violation.
	NOTICES OF VIOLATION WITH PENALTY
Notices with penalty - payment	9. (1) Where a notice of violation sets out a penalty and the person named in the notice pays, in the prescribed time and manner, the amount of the penalty or, subject to the regulations, the lesser amount set out in the notice that may be paid in lieu of the penalty,
	(a) the person is deemed to have committed the violation in respect of which the amount is paid;
	(b) the Minister shall accept that amount as and in complete satisfaction of the penalty; and
	(c) the proceedings commenced in respect of the violation under section 7 are ended.
Alternatives to payment	(2) Instead of paying the penalty set out in a notice of violation or, where applicable, the lesser amount that may be paid in lieu of the penalty, the person named in the notice may, in the prescribed time and manner,
	(a) if the penalty is $2,000 or more, request to enter into a compliance agreement with the Minister that ensures the person's compliance with the agri-food Act or regulation to which the violation relates;
	(b) request a review by the Minister of the facts of the violation; or
	(c) request a review by the Tribunal of the facts of the violation.
Deeming	(3) Where a person who is served with a notice of violation that sets out a penalty does not pay the penalty in the prescribed time and manner or, where applicable, the lesser amount that may be paid in lieu of the penalty, and does not exercise any right referred to in subsection (2) in the prescribed time and manner, the person is deemed to have committed the violation identified in the notice.
	COMPLIANCE AGREEMENTS
Compliance agreements	10. (1) After considering a request under paragraph 9(2)(a), the Minister may enter into a compliance agreement, as described in that paragraph, with the person making the request on such terms and conditions as are satisfactory to the Minister, which terms may
	(a) include a provision for the giving of reasonable security, in a form and in an amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and
	(b) provide for the reduction, in whole or in part, of the penalty for the violation.
Deeming	(2) A person who makes a request under paragraph 9(2)(a) and who enters into a compliance agreement with the Minister shall, on entering into the compliance agreement, be deemed to have committed the violation in respect of which the compliance agreement was entered into.
Where compliance agreement complied with	(3) Where the Minister is satisfied that a person who has entered into a compliance agreement has complied with the agreement, the Minister shall cause a notice to that effect to be served on the person and, on the service of that notice,
	(a) the proceedings commenced in respect of the violation under section 7 are ended; and
	(b) any security given under the compliance agreement by the person shall be returned to the person.
Where compliance agreement not complied with	(4) Where the Minister is of the opinion that a person who has entered into a compliance agreement has not complied with the agreement, the Minister shall cause a notice of default to be served on the person to the effect that
	(a) instead of the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, the person is liable to pay twice the amount of that penalty and, for greater certainty, subsection 4(2) does not apply in respect of that amount; or
	(b) the security, if any, given under the compliance agreement by the person shall be forfeited to Her Majesty in right of Canada.
Effect of notice of default	(5) On the service of a notice under subsection (4), the person served has no right of set-off against any amount spent by the person under the compliance agreement and
	(a) the person served is liable to pay the amount set out in the notice; or
	(b) where the notice of default provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to Her Majesty in right of Canada and the proceedings commenced in respect of the violation under section 7 are ended.
Effect of payment	(6) Where a person pays the amount set out in a notice of default under subsection (4) in the prescribed time and manner,
	(a) the Minister shall accept the amount as and in complete satisfaction of the amount owing; and
	(b) the proceedings commenced in respect of the violation under section 7 are ended.
Refusal to enter into compliance agreement	11. (1) Where the Minister refuses to enter into a compliance agreement pursuant to a request under paragraph 9(2)(a), the person who made the request may, in the prescribed time and manner,
	(a) pay the amount of the penalty; or
	(b) request a review by the Tribunal of the facts of the violation.
Effect of payment	(2) Where a person pays the amount referred to in paragraph (1)(a),
	(a) the person is deemed to have committed the violation in respect of which the payment is made;
	(b) the Minister shall accept the amount as and in complete satisfaction of the penalty; and
	(c) the proceedings commenced in respect of the violation under section 7 are ended.
Deeming	(3) Where a person does not pay the amount referred to in paragraph (1)(a) in the prescribed time and manner or does not request a review under paragraph (1)(b), the person is deemed to have committed the violation identified in the notice of violation.

42-43-44 ELIZABETH II

CHAPTER 40