Bill C-34

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	(iii) the average length of haul for the movement of grain in the base year;
	(c) specifying a penalty for the purposes of subsection 150(2) and respecting the paying out of the penalty and the excess amount; and
	(d) for carrying out the purposes and provisions of this Division.
	11. (1) Subsection 161(1) of the Act is replaced by the following:
Submission for final offer arbitration	161. (1) A shipper who is dissatisfied with the rate or rates charged or proposed to be charged by a carrier for the movement of goods, or with any of the conditions associated with the movement of goods, may, if the matter cannot be resolved between the shipper and the carrier, submit the matter in writing to the Agency for a final offer arbitration to be conducted by one arbitrator or, if the shipper and the carrier agree, by a panel of three arbitrators.
	(2) Paragraphs 161(2)(a) and (b) of the Act are replaced by the following:
	(a) the final offer of the shipper to the carrier in the matter, excluding any dollar amounts ;
	(3) Paragraph 161(2)(e) of the Act is replaced by the following:
	(e) the name of the arbitrator, if any, that the shipper and the carrier agreed should conduct the arbitration or, if they agreed that the arbitration should be conducted by a panel of three arbitrators, the name of an arbitrator chosen by the shipper and the name of an arbitrator chosen by the carrier.
	12. The Act is amended by adding the following after section 161:
Submission of final offers	161.1 (1) Within 10 days after a submission is served under subsection 161(2), the shipper and the carrier shall submit to the Agency their final offers, including dollar amounts.
Copies to the parties	(2) Without delay after final offers are submitted under subsection (1) by both the shipper and the carrier, the Agency shall provide the shipper and the carrier with copies of each other's final offer.
If no final offer from a party	(3) If one party does not submit a final offer in accordance with subsection (1), the final offer submitted by the other party is deemed to be the final offer selected by the arbitrator under subsection 165(1).
	13. Subsection 162(1) of the Act is replaced by the following:
Arbitration	162. (1) Notwithstanding any application filed with the Agency by a carrier in respect of a matter, within five days after final offers are received under subsection 161.1(1), the Agency shall refer the matter for arbitration
	(a) if the parties did not agree that the arbitration should be conducted by a panel of three arbitrators , to the arbitrator, if any, named under paragraph 161(2)(e) or, if that arbitrator is not , in the opinion of the Agency, available to conduct the arbitration or no arbitrator is named , to an arbitrator on the list of arbitrators referred to in section 169 who the Agency chooses and determines is appropriate and available to conduct the arbitration; and
	(b) if the parties agreed that the arbitration should be conducted by a panel of three arbitrators,
	(i) to the arbitrators named by the parties under paragraph 161(2)(e) and to any arbitrator who those arbitrators have, within 10 days after the submission was served under subsection 161(2), notified the Agency that they have agreed on, or if those arbitrators did not so notify the Agency, to an arbitrator on the list of arbitrators referred to in section 169 who the Agency chooses and determines is appropriate and available to conduct the arbitration, or
	(ii) if an arbitrator referred to in subparagraph (i) is not, in the opinion of the Agency, available to conduct the arbitration, to the arbitrators named in that subparagraph who are available and to an arbitrator chosen by the Agency from the list of arbitrators referred to in section 169 who the Agency determines is appropriate and available to conduct the arbitration.
Interpreta- tion	(1.1) If a matter was referred to a panel of arbitrators, every reference in subsections (1.2) and (2) and sections 163 to 169 to an arbitrator or the arbitrator shall be construed as a reference to a panel of arbitrators or the panel of arbitrators, as the case may be.
Delay in referral	(1.2) If the shipper consents to an application referred to in subsection (1) being heard before the matter is referred to an arbitrator, the Agency shall defer referring the matter until the application is dealt with.
	14. The Act is amended by adding the following after section 162:
Decision or order affecting a matter being arbitrated	162.1 The Agency may, in addition to any other decision or order it may make, order that an arbitration be discontinued, that it be continued subject to the terms and conditions that the Agency may fix or that the decision of the arbitrator be set aside if
	(a) the Agency makes a decision or an order arising out of an application that is in respect of a matter submitted to the Agency for a final offer arbitration and that is filed by a carrier before the matter is referred to arbitration; and
	(b) the decision or order affects the arbitration.
	15. The Act is amended by adding the following after section 164:
Summary process	164.1 If the Agency determines that a shipper's final offer submitted under subsection 161.1(1) involves freight charges in an amount of not more than $750,000 and the shipper did not indicate a contrary intention when submitting the offer, sections 163 and 164 do not apply and the arbitration shall proceed as follows:
	(a) within seven days after a matter is referred to an arbitrator, the shipper and the carrier may file with the arbitrator a response to the final offer of the other party;
	(b) subject to paragraph (c), the arbitrator shall decide the matter on the basis of the final offers and any response filed under paragraph (a); and
	(c) if the arbitrator considers it necessary, the arbitrator may invite the parties to make oral representations or may ask the parties to appear before him or her to provide further information.
	16. (1) Subsection 165(1) of the Act is replaced by the following:
Decision of arbitrator	165. (1) The decision of the arbitrator in conducting a final offer arbitration shall be the selection by the arbitrator of the final offer of either the shipper or the carrier.
	(2) Paragraph 165(2)(b) of the Act is replaced by the following:
	(b) unless the parties agree otherwise, be rendered within 60 days or, in the case of an arbitration conducted in accordance with section 164.1, 30 days after the date on which the submission for the final offer arbitration was received by the Agency; and
	(3) Subsection 165(5) of the Act is replaced by the following:
Reasons may be requested	(5) The arbitrator shall, if requested by all of the parties to the arbitration within 30 days or, in the case of an arbitration conducted in accordance with section 164.1, seven days after the decision of the arbitrator, give written reasons for the decision.
	17. Subsection 169(1) of the Act is replaced by the following:
List of arbitrators	169. (1) The Agency shall, from time to time, in consultation with representatives of shippers and carriers, establish a list of persons who agree to act as arbitrators in final offer arbitrations. The list must state which of the persons have indicated that they have expertise that may assist them in conducting final offer arbitrations and the nature of that expertise.
	18. Schedule I to the Act is replaced by the schedule set out in the schedule to this Act.
	19. Schedules III and IV to the Act are repealed.
	TRANSITIONAL
If a railway line discontinued before coming into force	20. If, before the coming into force of this section, a railway company discontinued operating a grain-dependent branch line listed in Schedule I to the Act, as enacted by section 18, or a portion of such a line, that is in a municipality or district, the company shall make three annual payments, commencing on the date that this section comes into force, in accordance with section 146.1 of the Act.
	COMING INTO FORCE
Coming into force	21. (1) Subject to subsection (2), the provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council.
Coming into force of sections 9 and 10	(2) Sections 9 and 10 come into force, or are deemed to have come into force, on August 1, 2000.

Bill C-34

TRANSITIONAL

COMING INTO FORCE