BILL C-428 - First Reading

	1st Session, 36th Parliament, 46-47 Elizabeth II, 1997-98
	The House of Commons of Canada
	BILL C-428
	An Act to amend the Bank Act and the Statistics Act (equity in community reinvestment)
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1991, cc. 46, 47, 48; 1992, cc. 27, 51; 1993, cc. 6, 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6; 1997, c. 15	BANK ACT
	*1. The Bank Act* is amended by adding the following after section 522:**
	PART XII.1
	EQUITY IN COMMUNITY REINVESTMENT
	Purpose
	522.01 The purpose of this Part is to promote equity in community reinvestment so that every branch of a bank to which this Part applies, while respecting sound administrative and financial management practices, equitably grants credit or advances to persons having a residence or place of business in the electoral district in which the branch is located, thus correcting the conditions of disadvantage in access to credit experienced by persons from disadvantaged communities.
	Interpretation
Definitions	522.02 In this Act,
``electoral district'' « circonscrip- tion »	``electoral district'' has the same meaning as in the Canada Elections Act,
``designated person'' « personne désignée »	``designated person'' means a person having a residence or a place of business in the electoral district in which a branch of a bank is located,
``branch of a bank'' « succursale bancaire »	``branch of a bank'' means a branch of one of the banks listed in Schedule I, located in an electoral district where the monthly unemployment rate as established by Statistics Canada has been, on at least one occasion during the preceding calendar year, equal to or higher than the national average established by Statistics Canada for the same month.
	Application
Application	522.03 The provisions of this Part apply notwithstanding any other provision of this Act.
	Obligations
Obligation of a branch of a bank	522.04 Subject to section 522.05, a branch of a bank shall implement equity in community reinvestment by instituting such positive policies and practices and making such reasonable accommodations as will ensure that designated persons have access to credit.
Branch not required to take certain measures	522.05 The obligation to implement equity in community reinvestment does not require a branch of a bank to take a particular measure to implement equity in community reinvestment where the taking of that measure would cause undue financial hardship to the branch.
Analyses	522.06 For the purpose of implementing equity in community reinvestment, a branch of a bank shall analyse its operations, systems, rules and practices in order
	(a) to determine the difference between the aggregate of amounts deposited annually with the branch of the bank by designated persons and the total loans and advances granted annually by the branch of the bank to designated persons; and
	(b) to determine the chief reasons for the difference.
Consultation with community represen- tatives	522.07 At least once a year, a branch of a bank shall consult with community representatives who have requested a consultation in writing with the branch of a bank and shall invite them to express their opinions on the following matters:
	(a) the assistance that community representatives could give to the branch of a bank in implementing equity in community reinvestment; and
	(b) the development and implementation of measures by the branch of the bank in order to achieve equity in community reinvestment.
Report of the branch of the bank	522.08 (1) No later than March 31 in each year, a branch of the bank shall file with the Superintendent a report for the preceding calendar year, prepared in the prescribed form and manner, containing the following information:
	(a) the number of deposits made with the branch of a bank by designated persons, broken down by ten thousand dollar increments;
	(b) the number of applications for loans and advances received by the branch of a bank from designated persons, broken down by ten thousand dollar increments;
	(c) the number of loans granted by the branch of a bank to designated persons, broken down by ten thousand dollar increments;
	(d) the term of each loan or advance made by the branch of a bank to designated persons, broken down by ten thousand dollar increments;
	(e) the number of applications for loans and advances received by the branch of a bank from designated persons and the number of loans and advances made by the branch of a bank to designated persons, broken down by
	(i) in the case of a natural person, sex and prescribed age group, and
	(ii) in the case of a corporation, the number of years the corporation has been incorporated;
	(f) the number of loans made by the branch of a bank to designated persons that were recalled, broken down by ten thousand dollar increments;
	(g) a copy of any by-law or policy decision of the branch of a bank relating to the promotion of equity in community reinvestment by the branch of a bank;
	(h) a description of the measures taken to implement equity in community reinvestment;
	(i) a description of consultations with community representatives to implement equity in community reinvestment;
	(j) the percentage of deposits made to the branch of a bank by designated persons as compared with the total amount of deposits made to the branch of a bank; and
	(k) any other prescribed information.
Report of the branch of the bank	(2) The report required by subsection (1) shall make no reference to names or addresses of designated persons.
Application for a loan of less than five thousand dollars	(3) Where the amount of a loan or advance applied for in respect of which subsection (1) applies is less than five thousand dollars, the branch of a bank may omit the particulars in respect thereof required by subsection (1) from the report required by subsection (1).
Copy	522.09 Upon receiving the report required by section 522.08, the Superintendent shall cause a copy to be sent to the Minister forthwith.
Production of information	522.1 (1) The Superintendent may, by order, direct a branch of a bank to provide the Superintendent with the information required by section 522.08.
Time	(2) Any branch of a bank to which a direction has been issued under subsection (1) shall provide the information specified in the order within the time specified in the order.
Evaluation by the Superintenden t	522.11 (1) Within six months of receiving the report referred to in section 522.08, the Superintendent shall conduct an evaluation, in accordance with the criteria established under section 522.14, to determine whether the branch of a bank is making reasonable efforts to implement equity in community reinvestment.
Report	(2) No later than September 30 in every year, the Superintendent shall submit a detailed activity report to the Minister concerning the evaluation made by the Superintendent under subsection (1).
Contents of report	(3) The report shall be based on an analysis of the information and documents obtained under section 522.08 and the comments received under subsection (4) and shall be prepared so as to allow the name and address of each branch of a bank to be known.
Comments	(4) Before submitting the report to the Minister, the Superintendent shall give each branch of a bank that so requests an opportunity to make comments, orally or in writing, to the Superintendent.
Access to records of branch	(5) As part of the duties referred to in subsection (1), the Superintendent or a person acting under the Superintendent's direction
	(a) has a right of access to any records and policy documents of a branch of a bank; and
	(b) may require the directors, officers and the auditor of a branch of a bank to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the information required to be filed with the Superintendent by the branch of a bank under section 522.08.
Tabling the report	522.12 The Minister shall cause the report referred to in section 522.11 to be laid before each House of Parliament within the first five sitting days on which that House is sitting after the report is received by the Minister.
Obligation of Minister	522.13 Within five days after the report has been laid before each House of Parliament under section 522.12, the Minister
	(a) shall cause a copy of the pages of the report that concern a branch of a bank to be sent to the branch of a bank; and
	(b) shall make the report available on request to members of the public for consultation and shall provide a copy or a part of a copy of the report on payment of a fee, not to exceed the costs of furnishing the copy.
Criteria	522.14 (1) For the purposes of section 522.11, the Superintendent shall, after consultation with the community organizations that, in the Superintendent's opinion, have relevant knowledge, establish criteria to assist the Superintendent in determining whether a branch of a bank is making reasonable efforts to implement equity in community reinvestment.
Consultations	(2) The Superintendent may also consult any other person or organization that, in the Superintendent's opinion, has relevant knowledge.
	Offences and Punishments
Offences and punishments	522.15 (1) Every person who contravenes section 522.08 or an order made under section 522.1 is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.
Offence	(2) Every person who contravenes section 522.07 is guilty of an offence and liable on summary conviction to a fine not exceeding fifty thousand dollars.
Limitation period	(3) Any proceedings in respect of an offence under subsection (1) or (2) may be instituted at any time within one year of the time the subject-matter of the proceedings arose.
Continuing offence	(4) Where an offence under subsection (1) is committed on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.
Not offences	522.16 A person who contravenes section 522.04 or 522.06 does not commit an offence and accordingly the Criminal Code does not apply.
	Powers, Duties and Functions of the Minister
Powers, duties and functions of the Minister	522.17 The Minister
	(a) shall institute information programs in every branch of a bank to ensure that the provisions of this Part are understood;
	(b) shall undertake or sponsor research related to the purpose of this Part;
	(c) shall promote, by any means that the Minister considers appropriate, the purpose of this Part; and
	(d) shall develop and conduct programs to recognize a branch of a bank for outstanding achievement in implementing equity in community employment.
R.S., c. S-19; 1988, c. 65; 1990, c. 45; 1992, c. 1	STATISTICS ACT
	*2. The Statistics Act* is amended by adding the following after section 8:**
Monthly statistics on the rate of unemploymen t by electoral district	8.1 (1) Statistics Canada shall compile statistics related to the monthly rate of unemployment in each electoral district and shall publish the results forthwith in the Canada Gazette.
Definition of ``electoral district''	(2) For the purposes of subsection (1), ``electoral district'' has the same meaning as in the Canada Elections Act.