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Bill C-41

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RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the Royal Canadian Mint Act and the Currency Act''

SUMMARY

This enactment amends the Royal Canadian Mint Act to update the terminology for coins in order to reflect the markets served rather than the metals of which the coins are composed. The amendments simplify the process for issuing coins by giving additional powers to the Mint and to the Minister of Public Works and Government Services. The Mint is given the capacity of a natural person and the power to incorporate subsidiaries and to acquire and dispose of interests in other entities. Other amendments of an administrative nature are also enacted.

This enactment makes corresponding amendments to the Currency Act and increases the maximum amount acceptable as legal tender for certain denominations of coins.

EXPLANATORY NOTES

Royal Canadian Mint Act

Clause 1: (1) The definitions ``base metal coin'' and ``precious metal coin'' in section 2 read as follows:

``base metal coin'' means a coin other than a precious metal coin;

``precious metal coin'' means a coin at least fifty per cent of the composition of which is gold, silver or platinum or of the platinum group of metals.

(2) New.

Clause 2: Subsection 4(1) reads as follows:

4. (1) The Mint may, as ancillary and incidental to its objects,

    (a) produce and arrange for the production and supply of coins of the currency of Canada;

    (b) produce coins of the currency of countries other than Canada;

    (c) melt, assay and refine gold, silver and other metals;

    (d) buy and sell gold, silver and other metals;

    (e) assay, refine, store and otherwise deal with gold, silver and other metals for the account of Her Majesty or others;

    (f) prepare and store shipments of coin, gold, silver and other metals and move such shipments to or from the Mint;

    (g) make medals, plaques and other devices;

    (h) to borrow or lease precious metals that it requires for the purposes of its operations; and

    (i) to do all other things that are incidental or conducive to the attainment of the objects and the exercise of the powers of the Mint.

Clause 3: The heading before section 5.1 and sections 5.1 to 5.3 read as follows:

PRECIOUS METAL COINS

5.1 (1) The Governor in Council may, by proclamation, authorize the issue of precious metal coins of a description, and of the standards, margin of tolerance and least current weight applicable to that description, that are specified in Part I of the schedule.

(2) The Governor in Council may, by proclamation,

    (a) prescribe the dimensions and designs of any precious metal coins;

    (b) amend Part I of the schedule by adding to that Part any denominations of precious metal coins other than those specified therein and the description, standards, margin of tolerance and least current weight for precious metal coins of that denomination; and

    (c) amend Part I of the schedule by substituting any description, standards, margin of tolerance or least current weight in place of those specified in the schedule.

(3) The Governor in Council may, by order, fix, in respect of any denomination specified in Part I of the schedule, the maximum number of precious metal coins to be struck in any year.

BASE METAL COINS

5.2 (1) Every base metal coin issued under this Act shall be of a description, and of the standard weight and margin of tolerance applicable to that description, specified in Part II of the schedule.

(2) The Governor in Council may, by proclamation,

    (a) prescribe the dimensions and design of any base metal coin; and

    (b) amend Part II of the schedule by altering the margin of tolerance for base metal coins of any denomination.

(3) Notwithstanding subsections (1) and (2), the Governor in Council may, by regulation, authorize the issue of base metal coins

    (a) the composition of which differs from the composition specified for those coins in Part II of the schedule but the colour of which is similar to the colour of coins of the composition so specified; or

    (b) the diameter of which varies from the diameter prescribed for those coins under subsection (2) by not more than ten per cent.

5.3 (1) The Governor in Council may, by proclamation, amend Part II of the schedule by adding to that Part any denomination of base metal coins other than those specified therein.

(2) Every coin of a denomination added to Part II of the schedule pursuant to subsection (1) shall be of a composition specified in that Part and of a standard weight that bears the same proportion to the standard weight specified in that Part as the denomination of the coin bears to the denomination of coins of the same composition.

(3) Notwithstanding subsections (1) and (2), where the Governor in Council, by reason of a shortage of certain metals, considers it advisable in the public interest to curtail the use of those metals in making base metal coins of any denomination specified in Part II of the schedule, the Governor in Council may, by proclamation, authorize the issue of base metal coins of that denomination and amend that Part by specifying the composition and standard weight of that issue of base metal coins and the margin of tolerance therefor.

(4) Where more than one composition is specified for a denomination of base metal coins set out in Part II of the schedule, the Governor in Council may, by proclamation, specify which of the compositions, with its applicable standard weight and margin of tolerance, shall be used in the making of base metal coins of that denomination.

Clause 4: Subsection 7(4) reads as follows:

(4) Where, pursuant to paragraph 4(1)(e), the Mint deals with gold, silver or other metals for the account of Her Majesty, payments for the purchase thereof shall be made out of the Consolidated Revenue Fund on the authorization of the Minister of Finance and all amounts received from the sale thereof shall be paid into the Consolidated Revenue Fund.

Clause 5: Section 8 reads as follows:

8. The Board of Directors of the Mint shall consist of a Chairman, the Master of the Mint and nine other directors.

Clause 6: Section 9 reads as follows:

9. The Chairman shall be appointed by the Governor in Council to hold office during pleasure for such term as the Governor in Council considers appropriate.

Clause 7: Subsection 20(1) reads as follows:

20. (1) The Mint may, for the attainment of its objects, borrow money from the Consolidated Revenue Fund or any other source but the aggregate of the amounts lent to the Mint and outstanding at any time shall not exceed fifty million dollars or such greater amount as may be specified in an appropriation Act.

Currency Act

Clause 9: The definition ``Minister'' in section 2 reads as follows:

``Minister'' means, in Part I, the Minister of Public Works and Government Services and, in Part II, the Minister of Finance;

Clause 10: Subsection 3(2) reads as follows:

(2) The denominations of money in the currency of Canada are dollars, cents and mills, the cent being one one-hundredth of a dollar and the mill one-tenth of a cent.

Clause 11: Subsection 7(1) reads as follows:

7. (1) Subject to subsection (2), the following coins shall pass current for the amount in the currency of Canada that appears on the coins as the denomination thereof, namely,

    (a) coins that were issued under the authority of the Crown for circulation in Canada; and

    (b) coins that were issued under the authority of the Crown for circulation in any province of Canada before it became part of Canada and were, immediately before October 15, 1952, current and legal tender in Canada.

Clause 12: (1) The relevant portion of subsection 8(1) reads as follows:

8. (1) Subject to this section, a tender of payment of money is a legal tender if it is made

    (a) in coins issued under the authority of the Crown for circulation in Canada that are current under section 7; and

(2) Subsection 8(2.1) is new. Subsections 8(2) and (3) read as follows:

(2) A tender of payment of money in coins referred to in subsection (1) is a legal tender

    (a) in the case of coins of a denomination greater than ten dollars, for payment of any amount, if the tender consists of not more than one coin;

    (b) in the case of coins of the denomination of ten cents or greater but not exceeding ten dollars, for payment of an amount not exceeding ten dollars;

    (c) in the case of coins of the denomination of five cents or greater but less than ten cents, for payment of an amount not exceeding five dollars; and

    (d) in the case of coins of the denomination of one cent or greater but less than five cents, for payment of an amount not exceeding twenty-five cents.

(3) For the purposes of subsection (2), where more than one amount is payable by one person to another on the same day under one or more obligations, the total of those amounts is deemed to be one amount due and payable on that day.

Clause 13: Subsection 9(1) reads as follows:

9. (1) The Governor in Council may, by proclamation, call in coins of any date and denomination.

Clause 14: Section 9.1 reads as follows:

9.1 All amounts received from the issue, for circulation in Canada, of coins of the currency of Canada shall be paid into the Consolidated Revenue Fund.

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