Bill C-77

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First Reading

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	SUMMARY
	This enactment modernizes and streamlines the regulation of extra-provincial motor carrier (truck and bus) undertakings in Canada, building on the reforms introduced in the Motor Vehicle Transport Act, 1987. The objective is a consistent national regime for motor carriers focused on carrier safety regulation. The key components of the enactment include
	(a) a national regulatory framework for provincial administration of a safety performance-based regime for extra-provincial motor carriers, based on the national safety standards developed by the governments of Canada and the provinces in consultation with industry and embodied in the National Safety Code for Motor Carriers;
	(b) provision for national policy direction supporting the implementation of that framework;
	(c) provision for international arrangements for mutual recognition of carrier safety performance assessment; and
	(d) a two-year transition to full economic deregulation of the extra-provincial bus industry.
	EXPLANATORY NOTES
	Motor Vehicle Transport Act, 1987
	Clause 1: Section 1 reads as follows:
	1. This Act may be cited as the Motor Vehicle Transport Act, 1987.
	Clause 2: (1) and (2) The definitions ``local truck transport'', ``local truck undertaking'', ``prescribed'' and ``provincial transport board'' in subsection 2(1) read as follows:
	``local truck transport'' means the transport of goods by means of a local truck undertaking;
	``local truck undertaking'' means a work or undertaking for the transport of goods by motor vehicle other than by bus, not being an extra-provincial truck undertaking;
	``prescribed'' means prescribed by regulation under this Act;
	``provincial transport board'' means a board, commission or other body or person having, under the law of a province, authority to control or regulate the operation of local bus undertakings or local truck undertakings.
	(3) New.
	Clause 3: Sections 3.1, 3.2 and 10.1 to 10.5 are new. The heading before section 3 and sections 3 to 10 read as follows:
	SAFETY
	3. (1) The Governor in Council may, on the recommendation of the Minister made after consultation by the Minister with the government of each province affected thereby, make regulations respecting the safe operation of extra-provincial bus undertakings or extra-provincial truck undertakings including, without limiting the generality of the foregoing, regulations respecting audit, inspection, entry on premises and the provision of information.
	(2) A regulation under subsection (1) may incorporate by reference the law of a province as amended from time to time.
	(3) No person shall operate an extra-provincial bus undertaking or extra-provincial truck undertaking in contravention of any regulation made under subsection (1).
	PART I
	BUS TRANSPORT
	Operating Licence
	4. Where in any province a licence is, by the law of the province, required for the operation of a local bus undertaking, no person shall operate an extra-provincial bus undertaking in that province except under and in accordance with a licence issued under the authority of this Part.
	5. The provincial transport board in each province may, in its discretion, issue a licence to a person to operate an extra-provincial bus undertaking in the province on the like terms and conditions and in the like manner as if the extra-provincial bus undertaking were a local bus undertaking.
	Tariffs and Tolls
	6. Where in any province tariffs and tolls for local bus transport are determined or regulated by the provincial transport board, the provincial transport board may, in its discretion, determine or regulate the tariffs and tolls for extra-provincial bus transport on the like terms and conditions and in the like manner as if the extra-provincial bus transport were local bus transport.
	PART II
	TRUCKING
	Operating Licence
	7. Where in any province a licence is, by the law of the province, required for the operation of a local truck undertaking, no person shall operate an extra-provincial truck undertaking in that province except under and in accordance with a licence issued under the authority of this Part.
	8. (1) Subject to this section and to any regulations made pursuant to section 9, the provincial transport board in each province may issue a licence to a person to operate an extra-provincial truck undertaking in the province on the like terms and conditions and in the like manner as if the extra-provincial truck undertaking were a local truck undertaking.
	(2) The provincial transport board in a province shall, in exercising its powers under subsection (1), issue a licence to operate an extra-provincial truck undertaking in that province to an applicant therefor who submits to the board prescribed evidence that the applicant meets the prescribed criteria relating to the fitness of the applicant to hold such a licence.
	(3) Notwithstanding subsection (2), where under the law of a province the provincial transport board is authorized to hold a public hearing with respect to an application for a licence to operate a local truck undertaking, the board shall not hold a public hearing with respect to an application for a licence referred to in subsection (2) unless an interested person who objects to the issue of the licence provides the board with evidence that satisfies the board that, in the absence of evidence to the contrary, the operation of the extra-provincial truck undertaking in respect of which the licence is sought would likely be detrimental to the public interest.
	(4) Notwithstanding subsection (2), where under the law of a province an interested person may object to the issue by the provincial transport board of a licence to operate a local truck undertaking, the provincial transport board is not required to issue a licence referred to in subsection (2) if an interested person objects to the issue of the licence and establishes to the satisfaction of the board that the operation of the extra-provincial truck undertaking in respect of which the licence is sought would likely be detrimental to the public interest.
	(5) In applying subsections (3) and (4), a provincial transport board shall
	(a) give primary emphasis to the interests of users of transportation services, whether those services are provided by the undertaking or not; and
	(b) have regard to any statement of public transportation policy issued by the Governor in Council after consultation by the Minister with the government of each province affected thereby.
	(6) Subject to subsection 10(3) but notwithstanding any other provision of this Part, after the day on which subsections (3) to (5) and paragraphs 9(1)(a) to (d) cease to have effect,
	(a) a provincial transport board may not attach any restrictions or conditions to a licence issued under the authority of this Part; and
	(b) the restrictions and conditions to which any licence issued under the authority of this Part is subject, except the condition referred to in subsection 10(3), shall cease to have effect.
	9. (1) The Governor in Council may, on the recommendation of the Minister made after consultation by the Minister with the government of each province affected thereby, make regulations
	(a) prescribing restrictions or conditions to which licences issued under the authority of this Part shall be subject;
	(b) requiring an applicant for a licence under this Part to furnish to the provincial transport board information respecting the applicant's identity and service proposal;
	(c) exempting corridor operations from the application of subsections 8(3) to (5);
	(d) exempting from the application of subsections 8(3) to (5) the extra-provincial truck transport of such commodities as may be specified in the regulations;
	(e) prescribing as the criteria relating to the fitness of an applicant to hold a licence issued under the authority of this Part
	(i) the criteria set out in any agreement between the Government of Canada and the governments of all of the provinces, as amended from time to time, or
	(ii) in the absence of any agreement referred to in subparagraph (i) or on failure to renew such an agreement, such criteria as the Governor in Council may consider necessary;
	(f) authorizing any person or body to determine and certify whether an applicant for a licence under this Part meets, or the holder of a licence issued under the authority of this Part continues to meet, the requirements related to safety that are included in the criteria prescribed pursuant to paragraph (e) and to determine and certify the level at which the applicant or holder of the licence meets those requirements;
	(g) prescribing the type, amount and conditions of insurance and bonding coverage required to be held by an extra-provincial truck undertaking;
	(h) prescribing any other matter or thing that by this Part is to be prescribed; and
	(i) generally as may be necessary for the purposes and provisions of this Part.
	(2) The criteria relating to the fitness of an applicant referred to in paragraph (1)(e) shall include requirements related to safety and insurance and may include requirements relating to bonding coverage and any other requirement relating to the fitness of an applicant to hold a licence.
	10. (1) The holder of a licence issued under the authority of this Part shall not operate the undertaking in respect of which the licence was issued during any period during which the holder does not meet the criteria prescribed pursuant to paragraph 9(1)(e).
	(2) A licence issued under the authority of this Part is not transferable.
	(3) It is a condition of every licence issued under the authority of this Part that the holder thereof will comply with subsections (1) and (2) and any regulations made under subsection 3(1).
	Clause 4: Section 16.1 is new. Section 16 and the headings before it read as follows:
	PART IV
	EXCEPTIONS AND ENFORCEMENT
	Exemption
	16. The Governor in Council may, by regulation, on the recommendation of the Minister made after consultation by the Minister with the government of each province affected thereby, exempt from the application of this Act or of any provision of this Act, either generally or for a limited period or in respect of a limited area, any person, the whole or any part of any extra-provincial bus undertaking or extra-provincial truck undertaking, every extra-provincial bus undertaking or extra-provincial truck undertaking, any group or class of such undertakings or any extra-provincial bus transport or extra-provincial truck transport.
	Clause 5: Section 17 and the heading before it read as follows:
	Foreign Carriers
	17. (1) Where the Minister is of the opinion that a government in a foreign country has engaged in unfair, discriminatory or restrictive practices with regard to Canadian carriers that transport goods by motor vehicle in that country or between that country and Canada, the Minister shall, with the concurrence of the Minister of Foreign Affairs, seek elimination of such practices through consultations.
	(2) Where the consultations referred to in subsection (1) fail to result in the elimination of the practices referred to in that subsection, the Governor in Council may, on the recommendation of the Minister and the Minister of Foreign Affairs made after consultation by the Minister with the government of each province affected thereby, notwithstanding this Act or any other Act of Parliament, by order,
	(a) prohibit or restrict the issuance of any licence under the authority of this Act to any foreign carrier, all foreign carriers or any class of foreign carrier,
	(b) direct any provincial transport board to amend or suspend any licence issued under the authority of this Act to any foreign carrier, all foreign carriers or any class of foreign carrier, and
	(c) direct any provincial transport board to reinstate any licence suspended in accordance with a direction issued under paragraph (b),
	subject to such terms and conditions as may be specified in the order, and a provincial transport board to which the order applies shall comply with the order.
	Clause 6: This amendment would repeal sections 23 to 35 which contain consequential amendments and other provisions that are spent. Section 22 reads as follows:
	22. In any proceedings for an offence under this Act, any document purporting to be certified by the secretary of a provincial transport board to be a true copy of any order or direction made by the board is, without proof of the signature or of the official character of the person appearing to have signed the document, evidence of the original document of which it purports to be a copy.
	Energy Supplies Emergency Act
	Clause 7: Section 38 reads as follows:
	38. In respect of an extra-provincial truck undertaking within the meaning of the Motor Vehicle Transport Act, 1987, the Board may authorize the operation of the undertaking for the transport of a controlled product notwithstanding any provision of that Act or the Canada Transportation Act or any regulations made pursuant to either of those Acts.
	Excise Tax Act
	Clause 8: The relevant portion of the definition ``specified supply'' in section 364 reads as follows:
	``specified supply'' means a supply (other than a prescribed supply) that is
	. . .
	(b) a supply of a passenger transportation service
	. . .
	(iii) made by a person who operates an extra-provincial bus undertaking (within the meaning assigned by subsection 2(1) of the Motor Vehicle Transport Act, 1987);
	Canada Grain Act
	Clause 9: The definition ``public carrier'' in section 2 reads as follows:
	``public carrier'' means any railway company, any operator of an extra-provincial truck undertaking within the meaning of the Motor Vehicle Transport Act, 1987 and any owner or operator of a ship;