Bill C-26

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	1st Session, 36th Parliament, 46-47 Elizabeth II, 1997-98
	The House of Commons of Canada
	BILL C-26
	An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act
	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; 1994, cc. 38, 45	CANADA GRAIN ACT
R.S., c. 37 (4th Supp.), ss. 1(1) and (3)	*1. (1) The definitions ``cash purchase ticket'', ``grain receipt'', ``licence'' and ``licensee'' in section 2 of the Canada Grain Act* are replaced by the following:**
``cash purchase ticket'' « bon de paiement »	``cash purchase ticket'' means a document in prescribed form issued in respect of grain delivered to a primary elevator, process elevator, grain dealer or special crops dealer as evidence of the purchase of the grain by the operator of the elevator or the dealer and entitling the holder of the document to payment, by the operator or dealer, of the purchase price stated in the document;
``grain receipt'' « accusé de réception »	``grain receipt'' means a document in prescribed form issued in respect of grain delivered to a process elevator, grain dealer or special crops dealer acknowledging receipt of the grain and entitling the holder of the document to payment by the operator of the elevator or the dealer for the grain;
``licence'' « licence »	``licence'' means a licence to operate an elevator or to carry on business as a grain dealer or as a special crops dealer issued by the Commission under section 45;
``licensee'' « titulaire de licence »	``licensee'' means a person who holds a licence;
1994, c. 45, s. 1(4)(F)	(2) The definitions ``grain'' and ``produit céréalier'' in section 2 of the French version of the Act are replaced by the following:
« grain » ``grain''	« grain » Les semences désignées comme tel par règlement.
« produit céréalier » ``grain product''	« produit céréalier » Produit obtenu par la transformation ou la préparation industrielle de grain, seul ou mélangé à d'autres grains ou substances, et qui peut être livré à une installation pour stockage ou manutention.
	(3) Section 2 of the Act is amended by adding the following in alphabetical order:
``penalty'' « sanction »	``penalty'' means an administrative monetary penalty imposed under the Agriculture and Agri-Food Administrative Monetary Penalties Act for a violation;
``special crop'' « cultures spéciales »	``special crop'' means any grain designated by regulation as a special crop;
``special crops dealer'' « négociant en cultures spéciales »	``special crops dealer'' means an operator of an elevator or a grain dealer who deals in or handles only grain that is a special crop;
``violation'' « violation »	``violation'' means any contravention of this Act or the regulations or any order that may be proceeded with in accordance with the Agriculture and Agri-Food Administrative Monetary Penalties Act;
	2. Section 42 of the Act is amended by striking out the word ``and'' at the end of paragraph (d), by adding the word ``and'' at the end of paragraph (e) and by adding the following after paragraph (e):
	(f) a special crops dealer's licence, being a licence to carry on business as a special crops dealer.
	3. (1) Subparagraph 44(a)(i) of the Act is replaced by the following:
	(i) that person is the holder of a licence issued in respect of the elevator that is of a class appropriate to that type of elevator or, if the person is a special crops dealer, is the holder of a special crops dealer's licence, or
	(2) Subparagraph 44(b)(i) of the Act is replaced by the following:
	(i) that person is the holder of a grain dealer's licence or, if the person is a special crops dealer, a special crops dealer's licence,
1994, c. 45, s. 10	4. Subsection 45(1) of the Act is replaced by the following:
Issue of licences - primary and process elevators and grain and special crops dealers	45. (1) If a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer or a special crops 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 dealer; and
	(b) if the application is for a primary elevator, process elevator or grain dealer's licence, 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 other than special crops produced by the holders.
1994, c. 45, s. 10	5. Subsections 46(1) to (3) of the Act are replaced by the following:
Refusal to issue elevator licence	46. (1) The Commission may refuse to issue an elevator licence if
	(a) the applicant has not given the security fixed pursuant to section 45;
	(b) the applicant intends that the elevator receive special crops, the insurance plan described in section 49.01 is in effect and the applicant has not been approved by the insurer of that plan ; or
	(c) the applicant fails to establish to the satisfaction of the Commission that
	(i) the premises that the applicant proposes to use are appropriate for the storage and handling of grain, or
	(ii) 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
	(a) the applicant has not given the security fixed pursuant to section 45; or
	(b) the applicant intends to deal in special crops, the insurance plan described in section 49.01 is in effect and the applicant has not been approved by the insurer of that plan .
Refusal to issue special crops dealer's licence	(2.1) The Commission may refuse to issue a special crops dealer's licence if the insurance plan described in 49.01 is in effect and the applicant has not been approved by the insurer of that plan .
Refusal of licence re offence or violation	(3) The Commission may refuse to issue a licence to any applicant who has, within the twelve months immediately preceding the application for the licence, been convicted of an offence under this Act or has been found to have committed a violation if the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant.
R.S., c. 37 (4th Supp.), s. 17(1); 1994, c. 45, s. 12(2)	6. (1) Subsection 49(2) of the Act is replaced by the following:
Enforcement or realization of security	(2) Any security given by a licensee as a condition of a licence may only be realized or enforced by the Commission on behalf of any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to
	(a) comply with this Act or any regulation or order made under it; or
	(b) meet any of the licensee's payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act in respect of grain other than a special crop.
1994, c. 45, s. 12(3)	(2) Paragraph 49(3)(a) of the Act is replaced by the following:
	(a) the ticket or receipt is issued in respect of grain other than a special crop and the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain within such period following the issuance of the ticket or receipt by the licensee as may be prescribed; and
1994, c. 45, s. 12(3)	(3) Subsections 49(6) and (7) of the Act are replaced by the following:
Interpreta- tion - failure to meet payment obligations	(6) If 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 cash purchase ticket 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 cash purchase ticket or other bill of exchange is given to the producer.
	7. The Act is amended by adding the following after section 49:
Definition of ``agent''	49.01 (1) In this section and section 49.02, ``agent'' means the Commission or any other person or organization designated as agent by the Minister on the recommendation of the Special Crops Advisory Committee referred to in section 49.02.
Special crops insurance	(2) The agent may, in accordance with the regulations, establish an insurance plan to insure producers of special crops who are holders of cash purchase tickets, elevator receipts or grain receipts against the refusal or failure of licensees to meet their payment or delivery obligations under the receipt or ticket.
Payment of levy	(3) A producer of special crops who delivers or causes to be delivered such a crop to a licensee when an insurance plan described in subsection (2) is in effect shall pay to the licensee in the prescribed manner the prescribed levy.
Collection and remittance of levy to agent	(4) A licensee shall collect the levy from the producer and shall remit it to the agent within such period and in such manner as may be prescribed.
Use of levies by agent	(5) The agent shall use the levies to pay any premiums owed to the insurer, any expenses related to the administration of the insurance plan and any remuneration or reimbursement of expenses to which a member of the Special Crops Advisory Committee may be entitled under subsection 49.02(4).
Limitation	(6) A producer of special crops participating in the insurance plan may make a claim related to a grain receipt, elevator receipt or cash purchase ticket issued in respect of a special crop by a licensee only if
	(a) prior to the expiration of such period following the issuance of the receipt or ticket by the licensee as may be prescribed, the licensee fails or refuses to meet any of their payment or delivery obligations to the producer; and
	(b) the producer has given notice in writing of the failure or refusal to the agent within such period following the failure or refusal as may be prescribed.
Deemed failure	(7) If 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 cash purchase ticket 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 cash purchase ticket or other bill of exchange is given to the producer.
Withdrawal	(8) A producer of special crops may, in the prescribed manner, withdraw from the insurance plan described in this section. The agent must reimburse the producer for the amount of any levy the producer paid under subsection (3) for the period after the producer's withdrawal from the plan.
Special Crops Advisory Committee	49.02 (1) The Minister may establish a committee, referred to as the Special Crops Advisory Committee, composed of not more than nine members named by the Minister for a term not exceeding three years, which term may be renewed for one or more further terms.
Functions	(2) The Special Crops Advisory Committee shall make recommendations regarding the designation of special crops, the selection of a person or organization as agent or insurer under section 49.01 and any other issues concerning special crops submitted to it by the Minister.
Members	(3) The majority of the members of the Special Crops Advisory Committee shall be special crops producers who are not special crops dealers, grain dealers or operators of primary elevators.
Remunera- tion	(4) The agent shall pay to the members of the Special Crops Advisory Committee such remuneration as is fixed by the Minister and reimburse them for any reasonable travel and living expenses incurred by them in the course of their duties while absent from their ordinary places of residence.
1994, c. 45, s. 13	8. Subsection 49.1(2) of the Act is replaced by the following:
No liability	(2) The Commission is not liable if a licensee fails to fulfill any payment or delivery obligation owed to a holder of a grain receipt, elevator receipt or cash purchase ticket.
1994, c. 45, s. 14	9. Subsections 51(3) to (5) of the Act are repealed.
	10. The heading ``ELEVATORS AND GRAIN DEALERS AND THE HANDLING OF GRAIN BY LICENSEES AND OTHER PERSONS'' before section 55 of the Act is replaced by the following:

Bill C-26

BILL C-26

CANADA GRAIN ACT