Bill C-221
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2nd Session, 36th Parliament, 48 Elizabeth II, 1999
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The House of Commons of Canada
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BILL C-221 |
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An Act respecting the transfer of grain
elevators located in a Prairie province
and the discontinuance of their operation
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SHORT TITLE |
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| Short title
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1. This Act may be cited as the Prairie
Grain Elevators Act.
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INTERPRETATION |
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| Definitions
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2. The definitions in this section apply in
this Act.
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| ``grain
elevator'' « silo »
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``grain elevator'' means an elevator within the
meaning of section 2 of the Canada Grain
Act that is located in a Prairie province.
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| ``grain
elevator
operator'' « exploi- tant »
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``grain elevator operator'' means a person
who operates a grain elevator pursuant to a
license issued under the Canada Grain Act
or who operates a grain elevator that has
been exempted from the licensing
requirements of that Act pursuant to a
regulation or order made under section 117
of that Act.
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| ``Prairie
province'' « province des Prairies »
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``Prairie province'' means the province of
Manitoba, Saskatchewan or Alberta.
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| Three year
plan
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3. (1) Every grain elevator operator shall
prepare and keep up to date a plan indicating
for each of the operator's grain elevators
whether the operator intends to continue to
operate the elevator or whether within the next
three years, the operator intends to sell, lease
or otherwise transfer the elevator, or to take
steps to discontinue operating the elevator.
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| Public
availability of
plan
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(2) The operator shall make the plan
available for public inspection in offices of the
operator that it designates for that purpose.
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| No sale, etc.
unless
indicated in
plan
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(3) A sale, lease or other transfer of a grain
elevator is void unless, before the transfer is
completed, the plan indicates the operator's
intention to transfer or discontinue operating
it.
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| Compliance
with steps for
discontinu- ation
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4. A grain elevator operator shall comply
with the steps described in this Act before
discontinuing the operation of a grain
elevator, but no steps shall be taken until the
operator's intention to discontinue the
elevator has been indicated in its plan for at
least sixty days.
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| Advertise- ment of availability of grain elevator for continued operations
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5. (1) The grain elevator operator shall
advertise the availability of the grain elevator,
or any operating interest that the operator has
in it for sale, lease or other transfer for
continued operation and its intention to
discontinue operating the elevator if it is not
transferred.
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| Content of
advertise- ment
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(2) The advertisement must include a
description of the grain elevator and how it or
the operating interest is to be transferred,
whether by sale, lease or otherwise, and an
outline of the steps that must be taken before
the operation of the elevator be discontinued,
including
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| Disclosure of
process
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6. (1) The grain elevator operator shall
disclose the process the operator intends to
follow for receiving and evaluating offers to
each interested person who makes their
interest known in accordance with the
advertisement.
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| Negotiation in
good faith
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(2) The operator shall negotiate with an
interested person in good faith and in
accordance with the process it discloses.
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| Time limit for
agreement
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(3) The operator has four months to reach an
agreement with an interested person after the
final date stated in the advertisement for
persons to make their interest known.
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| Decision to
continue
operation of
grain elevator
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(4) If an agreement is not reached within the
four months, the operator may decide to
continue the operation of the grain elevator in
which case it is not required to comply with
section 7, but shall amend its plan to reflect its
decision.
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| Offer to
municipal or
district
government
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7. (1) The grain elevator operator shall offer
to transfer all of the operators' interest in the
grain elevator to a government mentioned in
this section (2) for not more than its net
salvage value to be used for any purpose if
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| Offer to
municipal or
district
government
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(2) After the requirement to make the offer
arises, the operator shall send it to the clerk or
other senior administrative officer of the
municipal or district government in whose
territory the elevator is located.
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| Time limits
for acceptance
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(3) After the offer is received by a
municipal or district government, it may
accept it within sixty days.
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| Communica- tion and notice of acceptance
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(4) Once a government communicates its
written acceptance of the offer to the operator,
the right of any other government or accept the
offer is extinguished and the operator shall
notify the other governments of the
acceptance.
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| Net salvage
value
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(5) If a government accepts the offer, but
cannot agree with the operator on the net
salvage value within ninety days after the
acceptance, the Minister of Agriculture and
Agri-Food may, on the application of the
government or the operator, determine the net
salvage value.
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| Disconti- nuation
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8. (1) Where a grain elevator operator has
complied with the process set out in this Act,
but an agreement for the sale, lease or other
transfer of the grain elevator is not entered into
through that process, the operator may
discontinue operating the elevator on
providing notice thereof to the Minister of
Agriculture and Agri-Food. Thereafter, the
operator has no obligations under this Act in
respect of the operation of the elevator.
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| No obligation
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(2) If the grain elevator is sold, leased or
otherwise transferred by an agreement entered
into through the process prescribed by this
Act, the operator that conveyed the elevator
has no obligations under this Act in respect of
the operation of the elevator as and from the
date the sale, lease or other transfer was
completed.
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