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Bill C-44

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First Reading

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C-44

First Session, Thirty-eighth Parliament,

53-54 Elizabeth II, 2004-2005

HOUSE OF COMMONS OF CANADA

BILL C-44

An Act to amend the Canada Transportation Act and the Railway Safety Act, to enact the VIA Rail Canada Act and to make consequential amendments to other Acts

first reading, March 24, 2005

THE MINISTER OF TRANSPORT

90314

RECOMMENDATION

Her 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 Canada Transportation Act and the Railway Safety Act, to enact the VIA Rail Canada Act and to make consequential amendments to other Acts”.

SUMMARY

Part 1 amends the Canada Transportation Act. Certain amendments apply to all modes of transportation, including amendments that clarify the national transportation policy and the operation of the Competition Act in the transportation sector, change the number of members of the Canadian Transportation Agency, create a mediation process for transportation matters, modify requirements regarding the provision of information to the Minister of Transport and modify and extend provisions regarding mergers and acquisitions of air transportation undertakings to all transportation undertakings.

This Part amends the Act with respect to air transportation, in particular in relation to complaints processes, the advertising of prices for air services and the disclosure of terms and conditions of carriage.

This Part amends the Act with respect to railway transportation. It includes the creation of a mechanism for dealing with complaints concerning noise resulting from the construction or operation of railways and the modification of provisions relating to the setting of rates payable by shippers for transport of goods and of provisions dealing with the transfer and discontinuance of operation of railway lines. It also establishes a mechanism for resolving disputes between public passenger service providers and railway companies regarding the use of railway company equipment and facilities.

This Part amends the Act to establish an approval mechanism for the construction or alteration of international bridges and tunnels and to provide for the regulation of their operation, maintenance and security.

Part 2 amends the Railway Safety Act to include provisions for the appointment of police constables with respect to railway companies and procedures for dealing with complaints concerning them.

Part 3 enacts a new Act governing VIA Rail Canada, including its mandate to provide passenger rail service in Canada.

Part 4 makes consequential and coordinating amendments and provides for the coming into force of the various provisions.

Also available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca

TABLE OF PROVISIONS

AN ACT TO AMEND THE CANADA TRANSPORTATION ACT AND THE RAILWAY SAFETY ACT, TO ENACT THE VIA RAIL CANADA ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS

SHORT TITLE

1. Transportation Amendment Act

PART 1

CANADA TRANSPORTATION ACT

2-70. Amendments

71. Transitional Provisions

PART 2

RAILWAY SAFETY ACT

72-73. Railway Safety Act

PART 3

VIA RAIL CANADA ACT

74. Enactment of Act

SHORT TITLE

1. VIA Rail Canada Act

INTERPRETATION

2. Definitions

CONTINUANCE

3. Continuance of VIA Rail Canada Inc.

4. Charter

5. Cessation of former legal regime

6. Cancellation of shares

MINISTER

7. Minister responsible

MANDATE, CAPACITY AND POWERS

8. Mandate

9. Legal capacity

10. Not an agent of Her Majesty

HEAD OFFICE

11. Head office

BOARD OF DIRECTORS

Establishment

12. Composition

Chair

13. Role of chair

Chief Executive Officer

14. Role of chief executive officer

TRANSITIONAL PROVISIONS

15. Directors continued

16. References

17. Property

18. Rights and obligations

19. Legal actions or claims

20. By-laws

PART 4

CONSEQUENTIAL AND COORDINATING AMENDMENTS AND COMING INTO FORCE

Consequential Amendments

75. Air Canada Public Participation Act

76. Canada Labour Code

77-78. Competition Act

79-80. Federal-Provincial Fiscal Arrangements Act

81-82. Financial Administration Act

83-84. Payments in Lieu of Taxes Act

85. Regulations and Other Instruments

Coordinating Amendments

86. Canada Transportation Act

87. Transportation Appeal Tribunal of Canada Act

Coming into Force

88. Order in council

SCHEDULE

1st Session, 38th Parliament,

53-54 Elizabeth II, 2004-2005

house of commons of canada

BILL C-44

An Act to amend the Canada Transportation Act and the Railway Safety Act, to enact the VIA Rail Canada Act and to make consequential amendments to other Acts

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Transportation Amendment Act.

PART 1

1996, c. 10

CANADA TRANSPORTATION ACT

Amendments

2. Subsection 4(2) of the Canada Transportation Act is replaced by the following:

Competition Act

(2) Subject to subsection (3), nothing in or done under the authority of this Act, other than Division IV of Part III, affects the operation of the Competition Act.

International agreements respecting air services

(3) In the event of any inconsistency or conflict between an international agreement or convention respecting air services to which Canada is a party and the Competition Act, the provisions of the agreement or convention prevail to the extent of the inconsistency or conflict.

3. Section 5 of the Act is replaced by the following:

Declaration

5. It is declared that a competitive, economic and efficient transportation system that is safe and secure and respects the environment is essential to serve the needs of its users, advance the well-being of Canadians and enable competitiveness and economic growth in both urban and rural areas throughout Canada. Those objectives are most likely to be achieved when

(a) competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services;

(b) regulation and strategic public intervention occur only if they are necessary to achieve economic, environmental or social outcomes that cannot be achieved satisfactorily by competition and market forces and they do not unduly favour, or reduce the inherent advantages of, any particular mode of transportation;

(c) the transportation system is accessible without undue obstacle to the mobility of persons, including persons with disabilities; and

(d) governments and the private sector work together for an integrated transportation system.

2001, c. 27, s. 221

4. Paragraph 7(2)(a) of the Act is replaced by the following:

(a) not more than five members appointed by the Governor in Council, and

5. Subsection 8(3) of the Act is replaced by the following:

Continuation in office

(3) Where a member appointed under paragraph 7(2)(a) ceases to hold office, the Chairperson may authorize the member to continue to hear any matter that was before the member on the expiration of the member’s term of office and that member is deemed to be a member of the Agency, but that person’s status as a member does not preclude the appointment of up to five members under paragraph 7(2)(a) or up to three temporary members under subsection 9(1).

6. Subsection 18(2) of the Act is replaced by the following:

Residence of members

(2) The members shall reside in the National Capital Region described in the schedule to the National Capital Act or within any distance of it that the Governor in Council determines.

7. (1) Subsections 27(2) and (3) of the Act are repealed.

(2) Subsection 27(5) of the Act is repealed.

2002, c. 8, s. 122

8. Subsection 33(1) of the Act is replaced by the following:

Enforcement of decision or order

33. (1) A decision or order of the Agency may be made an order of the Federal Court or of any superior court and is enforceable in the same manner as such an order.

9. The Act is amended by adding the following after section 36:

Mediation

Request by parties

36.1 (1) If there is a dispute concerning a matter within the jurisdiction of the Agency, all the parties to the dispute may, by agreement, make a request to the Agency for mediation. On receipt of the request, the Agency shall refer the dispute for mediation.

Appointment of mediator

(2) When a dispute is referred for mediation, the Chairperson shall appoint one or two persons to mediate the dispute.

Mediator not to act in other proceedings

(3) A person who is appointed to mediate a dispute may not act in any other proceedings before the Agency in relation to that matter.

Confidentiality of mediation

(4) All matters relating to the mediation of a dispute shall be kept confidential, unless the parties to the dispute otherwise agree, and information provided by a party for the purposes of mediation shall not be used for any other purpose without the consent of that party.

Time limit for completion of mediation

(5) Unless the parties to a dispute otherwise agree, the mediation of the dispute shall be completed within 60 days after the dispute is referred for mediation.

Effect of mediation on proceedings

(6) The mediation has the effect of

(a) staying for the period of the mediation any proceedings before the Agency in so far as they relate to a matter that is the subject of the mediation; and

(b) extending the time within which the Agency may make a decision or determination under this Act with regard to those proceedings by the period of the mediation.

Filing of mediation agreement

(7) An agreement that is reached as a result of mediation may be filed with the Agency and, after filing, is enforceable as if it were an order of the Agency.

10. (1) The portion of subsection 50(1) of the Act before paragraph (a) is replaced by the following:

Regulations re information

50. (1) The Governor in Council may make regulations requiring any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister, when and in the form and manner that the regulations may specify, for the purposes of

(2) Paragraph 50(1)(b) of the Act is replaced by the following:

(b) reporting under section 52;

(3) Paragraph 50(1)(d) of the Act is replaced by the following:

(d) any safety, security or subsidy program;

(4) Section 50 of the Act is amended by adding the following after subsection (1):

Persons referred to

(1.1) The persons for the purposes of subsection (1) are

(a) carriers;

(b) owners or operators of

(i) transportation undertakings,

(ii) transportation works, infrastructure, facilities or assets, and

(iii) grain handling undertakings;

(i) the Canadian Air Transport Security Authority established by subsection 5(1) of the Canadian Air Transport Security Authority Act,

(ii) NAV CANADA, a corporation incorporated on May 26, 1995 under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and

(iii) Pilotage Authorities named in the schedule to the Pilotage Act;

(d) intermediaries involved in transportation movements who are specified in the regulations; and

(e) any other person or class of persons specified in the regulations.

11. The Act is amended by adding the following after section 50:

Information already provided

50.1 For the purposes of subsection 50(1), if any information referred to in that subsection has already been provided to a department or agency of the Government of Canada, the Minister may request that department or agency to provide the information to the Minister.

2000, c. 16, s. 2

12. (1) Subsection 51(2) of the Act is replaced by the following:

Administrative use of information

(2) Subsection (1) does not apply so as to prohibit

(a) the communication of information to the Agency or to a minister of the Crown in right of Canada, the agent of any such minister or an officer or employee of, or adviser to, Her Majesty in right of Canada for the purposes of the administration of this Act or any other Act of Parliament or for the purposes of the development of policies;

(b) the communication of information to persons referred to in paragraph 50(1.1)(c) that is necessary for them to carry out their duties and functions;

(c) the reporting of information in an aggregated form that prevents information obtained from an identifiable person from being related to that person;

(d) the communication of information by the Minister for the purpose of monitoring the grain transportation and handling system; or

(e) the communication of information that is available to, or ascertainable by, the public.

Terms and conditions

(2.1) The Minister may, with the approval of the Governor in Council, make regulations respecting the terms and conditions for the communication of information referred to in subsection (2).

(2) Section 51 of the Act is amended by adding the following after subsection (3):

Requirement for other persons to maintain confidentiality

(4) Any person who receives information from the Minister that is confidential under this Act shall not knowingly disclose that information and shall take the measures necessary to maintain its confidentiality.

13. (1) The portion of subsection 52(1) of the Act before paragraph (a) is replaced by the following:

Industry review

52. (1) Every three years the Minister shall prepare, and lay before the Senate and the House of Commons within the year after the end of the three-year period, a report briefly reviewing the state of transportation in Canada, including

(2) Subsection 52(2) of the Act is repealed.

14. (1) Subsections 53(1) and (2) of the Act are replaced by the following:

Statutory review

53. (1) The Minister shall, no later than eight years after the day this subsection comes into force, appoint one or more persons to carry out a comprehensive review of the operation of this Act and any other Act of Parliament for which the Minister is responsible that pertains to the economic regulation of a mode of transportation or to transportation activities under the legislative authority of Parliament.

Objective of review

(2) The person or persons conducting the review shall assess whether the legislation referred to in subsection (1) provides Canadians with a transportation system that is consistent with the national transportation policy set out in section 5 and, where necessary or desirable, may recommend amendments to

(a) the national transportation policy; and

(b) the legislation referred to in subsection (1).

(2) Subsection 53(5) of the Act is replaced by the following:

Report

(5) The review shall be completed and a report of the review submitted to the Minister within 18 months after the appointment referred to in subsection (1).

15. The Act is amended by adding the following after section 53:

Review of Mergers and Acquisitions

Notice

53.1 (1) Every person who is required to notify the Commissioner of Competition under subsection 114(1) of the Competition Act of a proposed transaction that involves a transportation undertaking shall, at the same time as the Commissioner is notified and, in any event, not later than the date by which the person is required to notify the Commissioner,

(a) give notice of the proposed transaction to the Minister; and

(b) in the case of a proposed transaction that involves an air transportation undertaking, also give notice of the transaction to the Agency.

Information

(2) A notice given to the Minister or to the Agency shall, subject to the regulations, contain the information required under subsection 114(1) of the Competition Act. The notice shall also contain any information with respect to the public interest as it relates to national transportation that is required under any guidelines that may be issued by the Minister. After receipt of a notice, the Minister may require the person who has given the notice to provide further information.

Not statutory instruments

(3) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act.

No public interest issues

(4) If the Minister is of the opinion that the proposed transaction does not raise issues with respect to the public interest as it relates to national transportation, the Minister shall, within 42 days after a person gives notice under subsection (1), give notice of the opinion to that person, in which case sections 53.2 and 53.3 do not apply in respect of that transaction.

Public interest issues

(5) If the Minister is of the opinion that the proposed transaction raises issues with respect to the public interest as it relates to national transportation, the Minister may

(a) under section 49, direct the Agency to examine those issues; or

(b) under section 7.1 of the Department of Transport Act, appoint and direct any person to examine those issues.

Report

(6) The Agency or person, as the case may be, shall report to the Minister within 150 days after being directed under subsection (5), or within any longer period that the Minister may allow.

Prohibition

53.2 (1) No person shall complete a proposed transaction referred to in subsection 53.1(1) unless the transaction is approved by the Governor in Council and, in the case of a transaction that involves an air transportation undertaking, the Agency determines that the transaction would result in an undertaking that is Canadian as defined in subsection 55(1).

Commissioner’s report

(2) The Commissioner of Competition shall within 150 days after the Commissioner is notified of the proposed transaction under subsection 114(1) of the Competition Act, or within any longer period that the Minister may allow, report to the Minister and the parties to the transaction on any concerns regarding potential prevention or lessening of competition that may occur as a result of the transaction.

Report to be made public

(3) The report shall be made public immediately after its receipt by the Minister.

Concerns relating to public interest and competition

(4) After receipt of the Commissioner’s report and any report given under subsection 53.1(6), but before the Minister makes a recommendation for the purposes of subsection (7), the Minister shall

(a) consult with the Commissioner regarding any overlap between any concerns that the Minister has in respect of the proposed transaction with regard to the public interest as it relates to national transportation and any concerns in respect of the transaction that are raised in the Commissioner’s report; and

(b) request the parties to the transaction to address

(i) with the Minister any concerns that the Minister has in respect of the transaction with regard to the public interest as it relates to national transportation, and

(ii) with the Commissioner any concerns that the Commissioner has regarding potential prevention or lessening of competition that may occur as a result of the transaction.

Measures to address concerns

(5) The parties to the transaction shall

(a) after conferring with the Minister regarding concerns referred to in subparagraph (4)(b)(i), inform the Minister of any measures they are prepared to undertake to address those concerns; and

(b) after conferring with the Commissioner regarding concerns identified under subparagraph (4)(b)(ii), inform the Commissioner of any measures they are prepared to undertake to address those concerns.

The parties may propose revisions to the transaction.

Preconditions to recommendation

(6) Before making a recommendation for the purposes of subsection (7), the Minister shall obtain the Commissioner’s assessment of the adequacy of any undertaking proposed by the parties to address the concerns that have been identified under subparagraph (4)(b)(ii) and the effects of any proposed revisions to the transaction on those concerns.

Approval of Governor in Council

(7) If the Governor in Council is satisfied that it is in the public interest to approve the proposed transaction, taking into account any revisions to it proposed by the parties and any measures they are prepared to undertake, the Governor in Council may, on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The Governor in Council shall indicate those terms and conditions that relate to potential prevention or lessening of competition and those that relate to the public interest as it relates to national transportation.

Variation of terms and conditions

(8) On application by a person who is subject to terms and conditions specified under subsection (7), the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation.

Commissioner’s representations

(9) If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making a recommendation under subsection (7) or (8), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency.

Compliance with terms and conditions

(10) Every person who is subject to terms and conditions shall comply with them.

Canadian

53.3 The Agency shall determine whether a proposed transaction referred to in subsection 53.1(1) that involves an air transportation undertaking would result in an undertaking that is Canadian as defined in subsection 55(1).

Order of divestiture — application by Minister

53.4 (1) If a person contravenes subsection 53.2(1) or (10) with respect to a term or condition that relates to the public interest as it relates to national transportation, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.

Order of divestiture — application by Commissioner

(2) If a person contravenes subsection 53.2(10) with respect to a term or condition that relates to potential prevention or lessening of competition, a superior court may, on application by the Commissioner, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application.

Regulations

53.5 The Governor in Council may, on the recommendation of the Minister, make regulations

(a) specifying information required in a notice under subsection 53.1(1); and

(b) exempting classes of transactions from the application of sections 53.1 to 53.3.

Offence — subsection 53.1(1)

53.6 (1) Every person who contravenes subsection 53.1(1) is guilty of an offence and is liable

(a) on conviction on indictment, to a fine not exceeding $50,000; or

(b) on summary conviction, to a fine not exceeding $25,000.

Offence — subsection 53.2(1) or (10)

(2) Every person who contravenes subsection 53.2(1) or (10) is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years or to a fine not exceeding $10,000,000, or to both.

Continuing offence

(3) If an offence under subsection 53.2(10) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

Officers, etc., of corporations

(4) If a corporation commits an offence under subsection (1) or (2), any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

Sections 174 and 175 do not apply

(5) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1) or (2).

16. (1) Subsection 56(1) of the Act is replaced by the following:

Non-application of Part

56. (1) This Part does not apply to a person that uses an aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces.

(2) Section 56 of the Act is amended by adding the following after subsection (2):

Emergency service exclusion

(3) This Part does not apply to the provision of an air service if the federal government, a provincial government or a municipality declares an emergency under federal or provincial law, and that government or municipality directly or indirectly requests that the air service be provided to respond to the emergency.

Public interest

(4) The Minister may, by order, prohibit the provision of an air service under subsection (3) or require the discontinuance of that air service if, in the opinion of the Minister, it is in the public interest to do so.

Not a statutory instrument

(5) The order is not a statutory instrument within the meaning of the Statutory Instruments Act.

2000, c. 15, s. 2

17. The heading before section 56.1 and sections 56.1 to 56.7 of the Act are repealed.

18. Section 59 of the Act is replaced by the following:

Prohibition re sale

59. No person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under this Part, a person holds a licence issued under this Part in respect of that service and that licence is not suspended.

19. Section 62 of the Act is replaced by the following:

Qualification exemption

62. If the Minister considers it necessary or advisable in the public interest that a domestic licence be issued to a person who is not a Canadian, the Minister may on any terms and conditions, and for any period, that the Minister may specify exempt the person from the application of subparagraph 61(a)(i).

2000, c. 15, s. 3

20. (1) Subsection 64(1.2) of the Act is replaced by the following:

Discussion with elected officials

(1.2) A licensee shall provide an opportunity for elected officials of the municipal or local government of the community of the point or points, as the case may be, to meet and discuss with the licensee the impact of the proposed discontinuance or reduction.

(2) Section 64 of the Act is amended by adding the following after subsection (3):

Exemption

(3.1) This section does not apply to a licensee that operates a domestic service that is seasonal in nature for eight months or less in a 12-month period.

21. Paragraph 65(a) of the Act is replaced by the following:

(a) for such a period, not exceeding one hundred and twenty days after the date of the finding by the Agency, as the Agency deems appropriate; and

2000, c. 15, s. 4

22. (1) Subsection 66(2) of the French version of the Act is replaced by the following:

Gamme de prix insuffisante

(2) S’il conclut, sur dépôt d’une plainte, qu’un licencié, y compris les licenciés de son groupe, est la seule personne à offrir un service intérieur entre deux points, d’une part, et que celui-ci offre une gamme de prix ou de taux insuffisante à l’égard de ce service, d’autre part, l’Office peut, par ordonnance, enjoindre au licencié, pour la période qu’il estime indiquée dans les circonstances, de publier et d’appliquer à l’égard de ce service un ou plusieurs prix ou taux supplémentaires qu’il estime indiqués dans les circonstances.

2000, c. 15, s. 4

(2) The portion of subsection 66(3) of the Act before paragraph (a) is replaced by the following:

Relevant information

(3) When making a finding under subsection (1) or (2) that a fare, cargo rate or increase in a fare or cargo rate published or offered in respect of a domestic service between two points is unreasonable or that a licensee is offering an inadequate range of fares or cargo rates in respect of a domestic service between two points, the Agency may take into consideration any information or factor that it considers relevant, including

2000, c. 15, s. 4

(3) Paragraph 66(3)(b) of the Act is replaced by the following:

(b) fares or cargo rates applicable to similar domestic services offered by the licensee and one or more other licensees, including terms and conditions related to the fares or cargo rates, the number of seats available at those fares and the cargo capacity and cargo container types available at those rates;

2000, c. 15, s. 4

(4) Paragraph 66(3)(c) of the Act is replaced by the following:

(c) any other information provided by the licensee, including information that the licensee is required to provide under section 83.

2000, c. 15, s. 4

(5) Subsection 66(4) of the Act is replaced by the following:

Alternative domestic services

(4) The Agency may find that a licensee is the only person providing a domestic service between two points if every alternative domestic service between those points is, in the opinion of the Agency, unreasonable, taking into consideration the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available.

Alternative service

(4.1) The Agency shall not make an order under subsection (1) or (2) in respect of a licensee found by the Agency to be the only person providing a domestic service between two points if, in the opinion of the Agency, there exists another domestic service that is not between the two points but is a reasonable alternative taking into consideration the convenience of access to the service, the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available.

2000, c. 15, s. 4

(6) Subsections 66(6) and (7) of the Act are repealed.

23. Paragraph 67(1)(a) of the Act is replaced by the following:

(a) display in a prominent place at the business offices of the licensee a sign indicating that the tariffs for the domestic service offered by the licensee, including the terms and conditions of carriage, are available for public inspection at the business offices of the licensee, and allow the public to make such inspections;

(a.1) publish the terms and conditions of carriage on any Internet site used by the licensee for selling the domestic service offered by the licensee;

2000, c. 15, s. 6

24. The portion of section 67.1 of the Act before paragraph (a) is replaced by the following:

Fares or rates not set out in tariff

67.1 If, on complaint in writing to the Agency by any person, the Agency finds that, contrary to subsection 67(3), the holder of a domestic licence has applied a fare, rate, charge or term or condition of carriage applicable to the domestic service it offers that is not set out in its tariffs, the Agency may order the licensee to

2000, c. 15, s. 6

25. Subsection 67.2(1) of the French version of the Act is replaced by the following:

Conditions déraisonnables

67.2 (1) S’il conclut, sur dépôt d’une plainte, que le titulaire d’une licence intérieure a appliqué pour un de ses services intérieurs des conditions de transport déraisonnables ou injustement discriminatoires, l’Office peut suspendre ou annuler ces conditions et leur en substituer de nouvelles.

2000, c. 15, s. 7

26. Subsection 68(1) of the Act is replaced by the following:

Non-application of fares, etc.

68. (1) Sections 66 to 67.2 do not apply in respect of fares, rates or charges applicable to a domestic service provided for under a contract between a holder of a domestic licence and another person whereby the parties to the contract agree to keep its provisions confidential.

Non-application of terms and conditions

(1.1) Sections 66 to 67.2 do not apply in respect of terms and conditions of carriage applicable to a domestic service provided for under a contract referred to in subsection (1) to which an employer is a party and that relates to travel by its employees.

27. The Act is amended by adding the following after section 75:

Issuance Of International Charter Permits

Issuance, amendment and cancellation of permits

75.1 The issuance of a permit for the operation of an international charter to a licensee and the amendment or cancellation of the permit shall be made in accordance with regulations made under paragraph 86(1)(e).

2000, c. 15, s. 7.1

28. Section 85.1 of the Act and the heading before it are replaced by the following:

Air Travel Complaints

Review and mediation

85.1 (1) If a person has made a complaint under any provision of this Part, the Agency, or a person authorized to act on the Agency’s behalf, may review and attempt to resolve the complaint and may, if appropriate, mediate or arrange for mediation of the complaint.

Report

(2) The Agency or a person authorized to act on the Agency’s behalf shall report to the parties outlining their positions regarding the complaint and any resolution of the complaint.

Complaint not resolved

(3) If the complaint is not resolved under this section to the satisfaction of the complainant, the complainant may request the Agency to deal with the complaint in accordance with the provisions of this Part under which the complaint has been made.

Further proceedings

(4) A member of the Agency or any person authorized to act on the Agency’s behalf who has been involved in attempting to resolve or mediate the complaint under this section may not act in any further proceedings before the Agency in respect of the complaint.

Extension of time

(5) The period of one hundred and twenty days referred to in subsection 29(1) shall be extended by the period taken by the Agency or any person authorized to act on the Agency’s behalf to review and attempt to resolve or mediate the complaint under this section.

2000, c. 15, s. 8

29. (1) Paragraph 86(1)(h) of the Act is amended by striking out the word “and” at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following:

(iii) authorizing the Agency to direct a licensee or carrier to take corrective measures that the Agency considers appropriate and to pay compensation for any expense incurred by a person adversely affected by the licensee’s or carrier’s failure to apply the fares, rates, charges or terms or conditions of carriage applicable to the service it offers that were set out in its tariffs; and

(iv) requiring a licensee or carrier to display the terms and conditions of carriage for its international service on its Internet site, if the site is used for selling the international service of the licensee or carrier;

(2) Paragraph 86(1)(j) of the Act is replaced by the following:

(j) requiring licensees to include in contracts or arrangements with travel wholesalers, tour operators, charterers or other persons associated with the provision of air services to the public, or to make such contracts and arrangements subject to, terms and conditions specified or referred to in the regulations;

(3) Subsection 86(3) of the Act is repealed.

30. The Act is amended by adding the following after section 86:

Advertising regulations

86.1 (1) The Agency may, on the recommendation of the Minister, make regulations respecting advertising in all media, including on the Internet, of prices for air services within, or originating in, Canada.

Contents of regulations

(2) Without limiting the generality of subsection (1), regulations may be made under that subsection requiring a carrier who advertises a price for an air service to

(a) include in the price all costs to the carrier of providing the service, and

(b) indicate in the advertisement all fees, charges and taxes collected by the carrier on behalf of another person in respect of the service,

so as to enable a purchaser of the service to readily determine the total amount to be paid for the service.

Regulations may prescribe

(3) Without limiting the generality of subsection (1), the regulations may prescribe what are costs, fees, charges and taxes for the purposes of subsection (2).

Regulations and orders

86.2 A regulation or order made under this Part may be conditional or unconditional or qualified or unqualified and may be general or restricted to a specific area, person or thing or group or class of persons or things.

31. Section 87 of the Act is amended by adding the following in alphabetical order:

“metropolitan area”
« région métropolitaine »

“metropolitan area” means any area that is classified by Statistics Canada in its most recent census of Canada as a census metropolitan area;

“public passenger service provider”
« société de transport publique »

“public passenger service provider” means VIA Rail Canada Inc., a passenger rail service provider designated by the Minister or an urban transit authority;

“urban transit authority”
« administration de transport de banlieue »

“urban transit authority” means an entity owned or controlled by the federal government or a provincial, municipal or district government that provides commuter services in a metropolitan area.

32. The Act is amended by adding the following after section 95:

Noise

Obligation

95.1 When constructing or operating a railway, a railway company must not cause unreasonable noise, taking into account

(a) its obligations under sections 113 and 114, if applicable;

(b) its operational requirements; and

Guidelines

95.2 (1) The Agency may issue and publish, in any manner that it considers appropriate, guidelines with respect to

(a) the elements that the Agency will use to determine whether a railway company is complying with section 95.1; and

(b) the collaborative resolution of noise complaints relating to the construction or operation of railways.

Consultations

(2) The Agency must consult with interested parties before issuing any guidelines.

Not statutory instruments

(3) The guidelines are not statutory instruments within the meaning of the Statutory Instruments Act.

Complaints and investigations

95.3 (1) On receipt of a complaint made by any person that a railway company is not complying with section 95.1, the Agency may order the railway company to undertake any changes in its railway construction or operation that the Agency considers reasonable in order to prevent unreasonable noise, taking into account the factors referred to in that section.

Restriction

(2) If the Agency has published guidelines under subsection 95.2(1), it must first satisfy itself that the collaborative measures set out in the guidelines have been exhausted in respect of the noise complained of before it conducts any investigation or hearing in respect of the complaint.

Public passenger service providers

95.4 Sections 95.1 to 95.3 apply, with any modifications that the circumstances require, to public passenger service providers.

1999, c. 31, ss. 37(E) and 38(E)

33. Section 104 of the Act and the heading before it are replaced by the following:

Security

Deposit of mortgage, hypothec or security agreement

104. (1) The following may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify:

(a) a mortgage or hypothec issued by a railway company;

(b) a security agreement entered into by a railway company;

(d) a copy of any document referred to in any of paragraphs (a) to (c) or a summary of any such document made in accordance with regulations made under section 105.1.

Effect of deposit

(2) Once the deposit is made, the mortgage or hypothec, security agreement, assignment or other document need not be deposited, registered or filed under any other law or statute respecting real or personal property, and the deposited document is valid against all persons.

34. (1) Subsections 105(1) and (2) of the Act are replaced by the following:

Deposit of documents

105. (1) A document, or a copy or summary of a document, evidencing any of the following transactions may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify:

(a) a lease, sale, conditional sale, instalment sale, mortgage, hypothec, bailment, leasing, deposit or security agreement relating to rolling stock or any accessories or appurtenances relating to rolling stock; and

(b) an amendment, assignment or discharge of a document mentioned in paragraph (a).

(2) Subsection 105(4) of the Act is repealed.

35. The Act is amended by adding the following after section 105:

Regulations

105.1 The Governor in Council may make regulations respecting

(a) the depositing of copies of documents under sections 104 and 105;

(b) the form and content of summaries to be deposited under those sections; and

(c) the effects, in Canada, of the deposit, registration or filing in other countries of documents evidencing any transaction referred to in paragraph 105(1)(a) or of documents evidencing amendments, assignments or discharges of those documents.

36. Subsections 106(5) and (6) of the Act are replaced by the following:

Limitation

(5) No order of the Federal Court or any other court restraining action against the railway company affects any right or remedy of a person in respect of, including the right to take possession of, the rolling stock, or any accessories or appurtenances relating to the rolling stock, of the company as a creditor under a security agreement, mortgage or hypothec or as a bailor, depositary, lessor or vendor under a conditional sale or an instalment sale, whether as trustee or otherwise, unless

(a) within 60 days after filing the scheme of arrangement, or any extended period to which the person may agree, the railway company agrees to perform all its obligations under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be;

(b) any event that occurred before or after the scheme was filed and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured before the later of

(i) 30 days after the event, and

(ii) the end of the period referred to in paragraph (a); and

(c) any event that occurred on or after the expiry of the period referred to in paragraph (a) and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured in accordance with that instrument or act.

Extension of 60-day period

(6) An extension of the 60-day period under paragraph (5)(a) does not prejudice the right to take possession of, or any other right or remedy in respect of, the rolling stock or the accessories or appurtenances relating to the rolling stock.

37. (1) Subsection 108(2) of the Act is repealed.

(2) Subsection 108(5) of the Act is repealed.

38. (1) The definition “competitive line rate” in section 111 of the Act is repealed.

(2) The definition “connecting carrier” in section 111 of the Act is replaced by the following:

“connecting carrier”
« transporteur de liaison »

“connecting carrier” means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route;

(3) Section 111 of the Act is amended by adding the following in alphabetical order:

“competitive connection rate”
« prix de raccordement concurrentiel »

“competitive connection rate” means a rate established by the Agency as a result of an application made under section 131;

39. Section 119 of the Act is replaced by the following:

Notice of change of tariff

119. (1) A railway company that proposes to change a tariff, other than by reduction of rates or charges, shall, at least thirty days before its effective date, publish a notice of the change containing a summary of the change.

Notice to shipper

(2) A railway company shall, at least thirty days before the effective date of the change of tariff, send a copy of the notice to any shipper with whom it has a confidential contract that refers to the tariff.

Effect of freight tariff

(3) If a railway company issues or changes a tariff, and publishes the tariff or notice of change of tariff, as the case may be, in accordance with this Division and Division VI,

(a) the tariff, or the tariff as changed, is the lawful tariff of the railway company and, subject to subsection (1), takes effect on the date stated in the tariff;

(b) the tariff, or the tariff as changed, supersedes any preceding tariff; and

(c) a railway company that owns or operates a railway line in respect of which the tariff is issued or changed, shall apply the tariff, or the tariff as changed, until it expires or until it is superseded by a new tariff.

40. Paragraph 128(1)(b) of the Act is replaced by the following:

(b) determining the maximum rate per car to be charged for interswitching traffic, or prescribing the manner of determining that maximum rate, including the adjustments to be made to that maximum rate as a result of changes in costs, and establishing distance zones for those purposes; and

41. The heading before section 129 of the Act is replaced by the following:

Competitive Connection Rates

42. Subsection 129(1) of the Act is replaced by the following:

Application

129. (1) Sections 130 to 136 apply if

(a) a shipper has access to the lines of only one railway company at the point of origin or destination of the movement of the shipper’s traffic;

(b) an interswitching rate has not been determined under paragraph 128(1)(b) for a continuous route between the point of origin or destination, as the case may be, and the nearest interchange; and

43. Subsections 130(1) and (2) of the Act are replaced by the following:

Rate to be established on shipper’s request

130. (1) The local carrier serving the shipper at the point of origin or destination, whichever is served exclusively by the local carrier, shall, at the request of the shipper, establish a rate applicable to the movement of the traffic between

(a) the point of origin and the point of destination; and

(b) the point of origin or destination, as the case may be, and the nearest interchange with a connecting carrier.

Requirement unaffected by extent of carrier’s capability

(2) The local carrier shall establish a rate under paragraph (1)(b) even if it is able to move the traffic between the point of origin and the point of destination or over a portion of that route that is longer than the portion in respect of which the rate is to apply.

44. Sections 131 to 133 of the Act are replaced by the following:

Application to Agency

131. (1) A shipper may apply to the Agency to establish any of the following matters in respect of which the shipper and the local carrier do not agree:

(a) the rate applicable between the point of origin or destination, as the case may be, and the nearest interchange with a connecting carrier;

(b) the designation of the continuous route;

(d) the manner in which the local carrier is to fulfil its service obligations.

Pre-determination

(2) The Agency may proceed to establish a matter referred to in subsection (1) only if it has first determined that

(a) the shipper has no alternative, effective, adequate and competitive means for the movement of the traffic to which the application relates between

(i) the point of origin or destination, as the case may be, and the nearest interchange, or

(ii) the point of origin and the point of destination; and

(b) the rate established by the local carrier for the movement of the traffic from the point of origin to the point of destination is above the 75th percentile of revenue per tonne kilometre for movements by the local carrier of similar traffic under similar conditions.

Time limit

(3) The Agency must establish the matter or matters to which the application relates within 45 days after receiving the application.

No final offer arbitration

(4) If a shipper makes an application under this section in respect of any matter, the shipper is not entitled to submit any matter involving the movement of the traffic to which the application relates between the point of origin and the point of destination to the Agency for final offer arbitration under section 161 within one year after the day the application is made or, if a competitive connection rate has been established, while it is in effect, if it is in effect beyond the day that is one year after the day the application was made.

Restriction regarding establishment of rate

132. The Agency may not establish a competitive connection rate for the movement of trailers on flat cars, containers on flat cars or less than carload traffic, unless they arrive at a port in Canada by water for movement by rail or by rail for movement by water.

Maximum portion of traffic

133. (1) The portion of a movement of traffic in respect of which a competitive connection rate may be established must not exceed 50 per cent of the total number of kilometres over which the traffic is moved by rail or 1 200 km, whichever is greater.

Exception

(2) On application by a shipper, the Agency may establish a competitive connection rate for a greater portion of a movement of traffic if the Agency is satisfied that no interchange exists within the maximum portion referred to in subsection (1).

Range of rate

133.1 (1) A competitive connection rate must fall in the range of the 75th to the 90th percentile of revenue per tonne kilometre for the movement by the local carrier of similar traffic under similar conditions.

Rate to be compensatory

(2) A competitive connection rate must not be less than the variable costs of moving the traffic, as determined by the Agency.

45. The Act is amended by adding the following after section 135:

Confidentiality of information

135.1 Any information used by the Agency to make the determination referred to in paragraph 131(2)(b) or section 133.1 is confidential and may not be disclosed to the applicant.

No other rates may be established

135.2 If a competitive connection rate has been established for a movement of traffic of a shipper, no other competitive connection rate may be established in respect of that movement while the rate is in effect.

46. (1) Subsection 136(1) of the Act is replaced by the following:

Obligation to provide cars

136. (1) If a competitive connection rate is established, the railway company, other than the local carrier, that moves the shipper’s traffic to or from the interchange shall provide the shipper with an adequate supply of cars for the traffic being moved from the point of origin to the point of destination.

(2) Subsection 136(4) of the Act is replaced by the following:

Tariff to set out service obligations

(4) The tariff setting out a competitive connection rate must set out the manner in which the local carrier issuing the tariff shall, subject to subsection (1), fulfil its service obligations as agreed on by the shipper and the local carrier or as determined by the Agency.

47. The Act is amended by adding the following after section 136:

Suspension of sections 129 to 136

136.1 If the Governor in Council is of the opinion that the financial viability of a railway company has been seriously affected by the operation of sections 129 to 136, the Governor in Council may, by order,

(a) suspend the operation of those sections, either entirely or with respect to any kind of traffic specified in the order, in respect of that railway company, or all railway companies, and, if such an order is made, those sections cease to be in force in accordance with the order during the period that is specified in the order, or until the order is repealed; or

(b) vary or rescind any decision of the Agency that establishes any matter referred to in any of paragraphs 131(1)(a) to (d) in relation to the railway company.

2000, c. 16, s. 5(2)

48. Subsection 141(3) of the Act is replaced by the following:

Notification of changes

(2.1) Whenever the railway company makes a change to the plan, it shall notify the following of the change within 10 days after the change:

(a) the Minister;

(b) the Agency;

(c) the minister responsible for transportation matters in the government of each province through which the railway line passes;

(d) the chairperson of every urban transit authority through whose territory the railway line passes; and

(e) the clerk or other senior administrative officer of every municipal or district government through which the railway line passes.

When sale, etc., permitted

(3) Subject to section 144.1, a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation.

49. Subsections 143(3) and (4) of the Act are replaced by the following:

Disclosure of agreement with public passenger service provider

(3) The advertisement must also disclose the existence of any agreement between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line.

50. Subsection 144(2) of the Act is repealed.

51. The Act is amended by adding the following after section 144:

Rights and obligations under passenger service agreements continued

144.1 (1) If a railway line, or a railway company’s operating interest in a railway line, is sold, leased or otherwise transferred under subsection 141(3) or as the result of an advertisement under subsection 143(1) and, before the day the advertisement was made, an agreement was in force between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line, the rights and obligations of the railway company under the agreement in respect of the operation of that service on that line vest, as of the day the transfer takes place, in the person or entity to which the railway line, or the operating interest, is transferred, unless the public passenger service provider indicates otherwise before that day.

Declaration that line is for general advantage of Canada

(2) Whenever a railway company’s rights and obligations under an agreement with VIA Rail Canada Inc. are vested in another person or entity by subsection (1), the portion of the railway line to which the agreement relates is hereby declared, as of the day the transfer takes place, to be a work for the general advantage of Canada.

Duration of declaration

(3) The declaration referred to in subsection (2) ceases to have effect if

(a) VIA Rail Canada Inc. ceases to operate a passenger rail service on the portion of railway line to which the declaration relates; or

(b) the operation of the railway line is discontinued.

52. (1) The portion of subsection 145(1) of the Act before paragraph (a) is replaced by the following:

Offer to governments

145. (1) The railway company shall offer to transfer all of its interest in the railway line to the governments and urban transit authorities mentioned in this section for not more than its net salvage value to be used for any purpose if

(2) Subsection 145(2) of the Act is replaced by the following:

Which governments receive offer

(2) After the requirement to make the offer arises, the railway company shall send it simultaneously

(a) to the Minister if the railway line passes through

(i) more than one province or outside Canada,

(ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act,

(iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims, or

(iv) a metropolitan area;

(b) to the minister responsible for transportation matters in the government of each province through which the railway line passes;

(d) to the clerk or other senior administrative officer of every municipal or district government through whose territory the railway line passes.

(3) The portion of subsection 145(3) of the Act before paragraph (a) is replaced by the following:

Time limits for acceptance

(3) Subject to subsection 146.3(3), after the offer is received

(4) Subsection 145(3) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(b.1) by an urban transit authority, it may accept it within an additional thirty days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

(c) by a municipal or district government, it may accept it within an additional thirty days after the end of the period or periods for acceptance under paragraphs (a), (b) and (b.1), if it is not accepted under those paragraphs.

(5) Subsections 145(4) and (5) of the Act are replaced by the following:

Communication and notice of acceptance

(4) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company must notify the other governments and urban transit authorities of the acceptance.

Net salvage value

(5) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within ninety days after the acceptance, the Agency may, on the application of the government or urban transit authority or the railway company, determine the net salvage value.

2000, c. 16, s. 8

53. Sections 146 and 146.1 of the Act are replaced by the following:

Discontinuation

146. (1) If a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest in it is not entered into through that process, the railway company may discontinue operating the line on providing notice of the discontinuance to the Agency. Thereafter, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by any public passenger service provider over the railway line.

No obligation

(2) Subject to subsection (3), if the railway line, or any interest of the railway company in it, is sold, leased or otherwise transferred by an agreement entered into through the process set out in sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by any public passenger service provider over the railway line as and from that date.

Obligation to resume operations or offer for sale

(3) If, by reason of any term or condition in the instrument or act by which a railway line or an operating interest in a railway line is transferred through the process set out in sections 143 to 145 or otherwise, the railway line or the operating interest reverts to the railway company that transferred it, the railway company must, within 60 days after the reversion, resume operations on the line or follow the process set out in sections 143 to 145.

Compensation

146.1 (1) A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

Compensation

(2) If a railway company to whom subsection 146(3) applies does not resume operations in the time provided for in that subsection and does not enter into an agreement for the sale, lease or other transfer of the applicable railway line, or applicable interest in a railway line, after following the process set out in sections 143 to 145, the railway company shall, beginning on the day after the last day its offer could have been accepted under the process set out in section 145, make three annual payments to the municipality or district in which the railway line, or portion of line, as the case may be, is located, in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

List of metropolitan sidings and spurs to be dismantled

146.2 (1) A railway company shall prepare and keep up to date a list of its sidings and spurs that it plans to dismantle and that are located in metropolitan areas, except for sidings and spurs located on a railway right-of-way that will continue to be used for railway operations subsequent to their dismantlement.

Publication of list and notification of changes

(2) The railway company shall publish the list on its Internet site and, whenever it makes a change to the list, it shall notify the following of the change within 10 days after the change:

(a) the Minister;

(b) the Agency;

(c) the minister responsible for transportation matters in the government of the province in which the siding or spur that is the subject of the change is located;

(d) the chairperson of the urban transit authority in whose territory the siding or spur that is the subject of the change is located; and

(e) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur that is the subject of the change is located.

Limitation

(3) A railway company shall not take steps to dismantle a siding or a spur until at least 12 months have elapsed since the siding or spur was added to the list.

Offer to governments

(4) Before dismantling a siding or a spur that has been on the list for at least 12 months, a railway company shall send simultaneously to each of the following an offer to transfer all of its interest in the siding or spur for not more than its net salvage value:

(a) the Minister;

(b) the minister responsible for transportation matters in the government of the province in which the siding or spur is located;

(d) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur is located.

Time limits for acceptance

(5) Subject to subsection 146.3(3), after the offer is received

(a) by the Minister, the Government of Canada may accept it within 30 days;

(b) by the provincial minister, the government of the province may accept it within an additional 30 days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

(c) by the chairperson of an urban transit authority, that authority may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

(d) by the clerk or other senior administrative officer of a municipal or district government, that government may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a), (b) and (c), if it is not accepted under those paragraphs.

Communication and notice of acceptance

(6) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company shall notify the other governments and urban transit authorities of the acceptance.

Net salvage value

(7) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government, the urban transit authority or the railway company, determine the net salvage value.

Dismantling permitted

(8) If the offer is not accepted, the railway company may dismantle the siding or spur on providing notice to the Agency.

Determination of net salvage value before expiry of time to accept offer

146.3 (1) A person to whom a railway line is offered under section 145, or to whom a siding or spur is offered under section 146.2, may apply to the Agency for a determination of the net salvage value of the railway line, siding or spur, as the case may be, at any time before the expiry of the period available to the person to accept the offer.

Notification of application

(2) The applicant shall without delay provide a copy of the application to the railway company, and the railway company shall without delay notify every other person to whom the offer was made and whose time to accept the offer has not expired that an application for a determination of the net salvage value was made.

Effect of application

(3) If an application is made under subsection (1), the time available to the applicant to accept the offer expires on the day that is 30 days after the day the Agency notifies the applicant of its determination of the net salvage value and the 30-day period for each other person to accept the offer is calculated on the expiry of the period available to the applicant to accept the offer.

Costs

(4) The applicant shall reimburse the Agency’s costs associated with the application.

Railway rights of way

146.4 Sections 146.2 and 146.3 apply, with any modifications that the circumstances require, to railway rights of way, that are located in metropolitan areas and in respect of which the sidings and spurs have been dismantled, that a railway company plans to sell, lease or otherwise transfer .

Passenger railway stations

146.5 Sections 146.2 and 146.3 apply, with any modifications that the circumstances require, to passenger railway stations in Canada that a railway company plans to sell, lease or otherwise transfer or dismantle.

2000, c. 16, s. 10

54. (1) Paragraph 151(4)(c) of the Act is replaced by the following:

(c) the Agency shall make adjustments to the index to reflect the changes in costs incurred by the prescribed railway companies for the purpose of obtaining cars as a result of the sale, lease or other disposal or withdrawal from service of government hopper cars and to reflect the changes in the costs of maintaining cars that have been so obtained.

(2) Section 151 of the Act is amended by adding the following after subsection (5):

Making of adjustments

(6) Despite subsection (5), the Agency shall make the adjustments referred to in paragraph (4)(c) at any time that it considers appropriate and determine the date when the adjusted index takes effect.

55. The Act is amended by adding the following after section 151:

List of Available Sidings

List of available sidings

151.1 (1) A railway company shall prepare and keep up to date a list of the sidings that it makes available in the Western Division where railway cars that are allocated by the Canadian Grain Commission under subsection 87(2) of the Canada Grain Act can be loaded.

Publication of list

(2) The railway company shall publish the list on its Internet site.

Removal from list

(3) A railway company may remove a siding from the list only after the expiry of 60 days after the publication of a notice of its intention to do so in a newspaper of general circulation in the area where the siding is located.

56. (1) The Act is amended by adding the following after section 152:

Division VI.1

Public Passenger Service Providers

Dispute Resolution

Application

152.1 (1) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the negotiation of any agreement concerning the use of the railway company’s railway, land, equipment, facilities or services by the public passenger service provider or concerning the conditions, or the amount to be paid, for that use, the public passenger service provider may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter.

Application

(2) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the implementation of any matter previously decided by the Agency, either the public passenger service provider or the railway company may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter.

Amount to be fixed

152.2 (1) If, pursuant to an application made under subsection 152.1(1), the Agency fixes the amount to be paid by the public passenger service provider for the use of any of the railway company’s railway, land, equipment, facilities or services, that amount must reflect the cost associated with the public passenger service provider’s use of that railway, land or equipment or those facilities or services.

Factors

(2) In determining that amount, the Agency must take into consideration, among other things,

(a) the variable costs incurred by the railway company as a result of the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services, including, but not limited to, its variable costs incurred to maintain safe operations and to avoid congestion and undue delay;

(b) the railway company’s cost of capital, based on a rate set by the Agency, applied to the net book value of the assets to be used by the public passenger service provider, less any amount to be paid by the public passenger service provider in respect of those assets;

(c) the cost of any improvements made by the railway company in relation to the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services;

(d) a reasonable contribution towards the railway company’s constant costs; and

(e) the value of any benefits that would accrue to the railway company from any investment made by the public passenger service provider.

Duration of decision

152.3 Any decision of the Agency in respect of an application made under subsection 152.1(1) is binding on the parties for a period of five years after the day on which the decision is made, or for any other period agreed to by the parties that is specified in the decision.

Agreements

Providing copies

152.4 (1) A railway company or a public passenger service provider must provide to any person who requests it

(a) a copy of any agreement entered into on or after the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services; and

(b) subject to subsection (2), a copy of any agreement entered into before the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services.

Exclusion

(2) The Agency may, on application by a railway company or a public passenger service provider, exclude an agreement, or any specified portion of an agreement, from the application of paragraph (1)(b) on the grounds that harm would likely result to the applicant if the agreement, or the specified portion, were to be disclosed.

Transitional

(2) Section 152.1 of the Act, as enacted by subsection (1), does not apply in respect of agreements entered into before the day on which this section comes into force.

Exception

(3) Despite subsection (2), in the case of an agreement between VIA Rail Canada Inc. and a railway company that was entered into before the day on which this section comes into force, Via Rail Canada Inc. may apply to the Canadian Transportation Agency to decide any matter respecting the priority to be given to the trains of any of the parties to the agreement. In making its decision, the Agency shall have regard to the public interest and to the operational requirements of the parties to the agreement. Section 152.2 of the Act, as enacted by subsection (1), applies, with any modifications that the circumstances require, if the Agency, as part of its decision, fixes an amount to be paid by Via Rail Canada Inc. In the event of any inconsistency between the decision of the Agency and the provisions of the agreement, the decision of the Agency prevails to the extent of the inconsistency.

57. Subsection 157.1(1) of the Act is replaced by the following:

Agreements to apply transportation law to provincial railways

157.1 (1) The Minister may enter into an agreement with a provincial minister responsible for transportation matters providing for the administration, in relation to persons who operate railways within the legislative authority of the province, of any law respecting:

(a) railway safety, accident investigation and railway crossings; or

(b) railway noise or the economic regulation of railway companies to the extent that those matters are governed by this Act.

58. Section 158 of the Act and the heading before it are repealed.

59. Section 160 of the Act is replaced by the following:

Passenger rail services

160. Sections 161 to 169 also apply, with such modifications as the circumstances require, in respect of the rates charged or proposed to be charged by, and in respect of any of the conditions associated with the provision of services by, a railway company to any other railway company that is engaged in passenger rail services, other than a public passenger service provider.

2000, c. 16, s. 11(1)

60. 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 charge or rate charged or proposed to be charged by a carrier for the movement of goods or for any incidental services, or with any term or condition associated with the movement of goods or any incidental services, 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.

2000, c. 16, s. 15

61. The portion of section 164.1 of the Act before paragraph (a) is replaced by the following:

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, section 163 and subsection 164(1) do not apply, and the arbitration is to proceed as follows:

62. The Act is amended by adding the following after section 169:

Joint offer of several shippers

169.1 (1) Sections 161 to 169 apply, with any modifications that the circumstances require, in the case where more than one shipper is dissatisfied with any charge or rate charged or proposed to be charged by a carrier for the movement of goods or for any incidental services, or with any term or condition associated with the movement of goods or any incidental services.

Common matter and equal application of the offer

(2) The matter submitted to the Agency for a final offer arbitration must be common to all the shippers, they must make a joint offer in respect of the matter and the terms of that offer must apply to all of them equally.

Time for submission of final offers

(3) In the case of a matter that is submitted to the Agency by more than one shipper, the period referred to in subsection 161.1(1) shall be 20 days.

Extension of periods

(4) In the case of a matter that is submitted to the Agency by more than one shipper, the arbitrator may, if he or she considers it necessary, extend any of the periods referred to in subsections 163(3) and (4) and paragraph 164.1(a).

Extension of time for making decision

(5) Despite paragraph 165(2)(b), in the case of a matter that is submitted to the Agency by more than one shipper, the decision of the arbitrator shall, unless the parties agree otherwise, be rendered within 120 days or, in the case of an arbitration conducted in accordance with section 164.1, 90 days after the day on which the submission for the final offer arbitration was received by the Agency.

Other persons

169.2 (1) Sections 161 to 169 apply, with any modifications that the circumstances require, in the case of a person, other than a shipper or a carrier, or a group of persons, who is or are subject to a charge or rate charged or proposed to be charged by a carrier for the movement of goods or for any incidental services, or with any term or condition associated with the movement of goods or any incidental services.

Common matter and equal application of the offer

(2) In the case of a group of persons referred to in subsection (1), the matter submitted to the Agency for a final offer arbitration must be common to all of them, the group must make a joint offer in respect of the matter and the terms of that offer must apply to all members of the group equally.

Time for submission of final offers

(3) In the case of a matter submitted to the Agency by a group of persons referred to in subsection (1), the period referred to in subsection 161.1(1) shall be 20 days.

Extension of periods

(4) In the case of a matter that is submitted to the Agency by a group of persons referred to in subsection (1), the arbitrator may, if he or she considers it necessary, extend any of the periods referred to in subsections 163(3) and (4) and paragraph 164.1(a).

Extension of time for making decision

(5) Despite paragraph 165(2)(b), in the case of a matter that is submitted to the Agency by a group of persons referred to in subsection (1), the decision of the arbitrator shall, unless the parties agree otherwise, be rendered within 120 days or, in the case of an arbitration conducted in accordance with section 164.1, 90 days after the day on which the submission for the final offer arbitration was received by the Agency.

Mediation

169.3 (1) The parties to a final offer arbitration may, by agreement, refer to a mediator, which may be the Agency, a matter that has been submitted for a final offer arbitration.

Confidentiality of mediation

(2) All matters relating to the mediation shall be kept confidential, unless the parties otherwise agree, and information provided by a party for the purposes of the mediation shall not be used for any other purpose without the consent of that party.

Time limit for completion of mediation

(3) Unless the parties otherwise agree, the mediation shall be completed within 30 days after the matter is referred for mediation.

Effect of mediation on final offer arbitration

(4) The mediation has the effect of

(a) staying the conduct of the final offer arbitration for the period of the mediation; and

(b) extending the time within which the arbitrator must make a decision in the matter of the final offer arbitration by the period of the mediation.

63. The Act is amended by adding the following after section 172:

PART V.1

INTERNATIONAL BRIDGES AND TUNNELS

Interpretation and Application

Definitions

172.01 The following definitions apply in this Part.

“alteration”
« modification »

“alteration” includes a conversion, an extension and a change in use of an international bridge or tunnel but does not include its operation and maintenance.

“international bridge or tunnel”
« pont ou tunnel international »

“international bridge or tunnel” means a bridge or tunnel, or any part of it, that connects any place in Canada to any place outside Canada, and includes the approaches and facilities related to the bridge or tunnel.

Relationship with certain Acts

172.02 (1) In the event of any inconsistency or conflict between this Part or the regulations made under it and any Act listed in Schedule III, this Part and the regulations prevail to the extent of the inconsistency or conflict.

Amendment of Schedule III

(2) The Governor in Council may, on the recommendation of the Minister, make regulations amending Schedule III by adding, changing or deleting the name of an Act.

Application of other Acts

(3) Nothing in this Part or the regulations made under it affects the application of any other Act of Parliament, including any requirement for a person to obtain a licence, permit or other authorization in respect of an international bridge or tunnel.

Works for the general advantage of Canada

172.03 International bridges and tunnels are hereby declared to be works for the general advantage of Canada.

For greater certainty

172.04 For greater certainty, this Part applies in respect of any proposal for construction or alteration of an international bridge or tunnel that has been submitted to any department, agency or regulatory authority of the Government of Canada before the coming into force of this Part.

Construction and Alteration

Prohibition

172.05 No person shall construct or alter an international bridge or tunnel without the approval of the Governor in Council under this Part.

Application for approval

172.06 (1) Any person who proposes to construct or alter an international bridge or tunnel shall submit an application to the Minister for approval by the Governor in Council and provide the Minister with any document or information that is required under guidelines issued by the Minister or any further document or information that is required by the Minister after receipt of the application.

Not statutory instruments

(2) The guidelines referred to in subsection (1) are not statutory instruments within the meaning of the Statutory Instruments Act.

Approval of Governor in Council

172.07 (1) The Governor in Council may, on the recommendation of the Minister, approve the proposed construction or alteration of an international bridge or tunnel subject to any terms and conditions that the Governor in Council considers appropriate.

Variation of terms and conditions

(2) The Governor in Council may vary or rescind the terms and conditions or impose new terms and conditions.

Compliance with terms and conditions

(3) Every person who is subject to terms and conditions shall comply with them.

Ministerial order

172.08 (1) If any person constructs or alters an international bridge or tunnel without the approval of the Governor in Council, the Minister may

(a) order any person to refrain from proceeding with the construction or alteration of the bridge or tunnel;

(b) order the owner of the bridge or tunnel to remove or alter the bridge or tunnel; and

(c) if the owner of the bridge or tunnel fails to comply with an order made under paragraph (b), remove and destroy the bridge or tunnel and sell, give away or otherwise dispose of the materials contained in the bridge or tunnel.

Costs of removal, destruction or disposal

(2) If the Minister removes, destroys or disposes of an international bridge or tunnel under paragraph (1)(c), the costs of and incidental to the operation of removal, destruction or disposal, after deducting from the costs any sum that may be realized by sale or otherwise, are recoverable with costs by Her Majesty from the owner as a debt due to Her Majesty.

Offence and punishment

172.09 (1) Every person who contravenes section 172.05 or subsection 172.07(3) or fails to comply with an order of the Minister under paragraph 172.08(1)(a) or (b) is guilty of an offence and is liable

(a) on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding two years, or to both; or

(b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding six months, or to both.

Continuing offence

(2) If an offence under subsection (1) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

Officers, etc., of corporations

(3) If a corporation commits an offence under subsection (1), any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

Sections 174 and 175 do not apply

(4) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1).

Court may order forfeiture

172.1 (1) Where a person is convicted on indictment of an offence referred to in subsection 172.09(1) in relation to the construction or alteration of an international bridge or tunnel, the court may, in addition to any other punishment that it may impose, order that the international bridge or tunnel, or anything used in its construction or alteration, (in this section referred to as the “property”) be forfeited and, on the making of such an order, the property is forfeited to Her Majesty in right of Canada.

Application by person claiming interest

(2) If any international bridge or tunnel, or anything used in its construction or alteration, is forfeited under subsection (1), any person (in this section referred to as the “applicant”), other than a person convicted of the offence that resulted in the forfeiture, who claims an interest in the property, may, within 30 days after the forfeiture, apply by notice in writing to a judge of the superior court of the province where the property is situated for an order under subsection (5).

Date of hearing

(3) A judge to whom an application is made under subsection (2) shall fix a day not less than thirty days after the date of filing of the application for the hearing of the application.

Notice

(4) An applicant shall serve a notice of the application and of the day fixed for the hearing of the application on the Minister at least fifteen days before the day so fixed.

Order by judge

(5) If, on the hearing of an application, the judge is satisfied that the applicant

(a) is innocent of any complicity in the offence that resulted in the forfeiture and of any collusion in relation to the offence with the person convicted of the offence, and

(b) exercised reasonable care to satisfy himself or herself that property was not likely to be constructed, altered or used, as the case may be, in contravention of this Part,

the applicant is entitled to an order by the judge declaring that the applicant’s interest is not affected by the forfeiture and declaring the nature and extent of that interest.

Appeal

(6) An appeal from an order or refusal to make an order under subsection (5) lies to the court to which an appeal may be taken from an order of the superior court in the province in which the forfeiture occurred and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court from orders or judgments of a judge of the superior court.

Application to Minister

(7) The Minister shall, on application made to the Minister by any person who has obtained an order under subsection (5),

(a) direct that the property to which the interest of the applicant relates be returned to the applicant; or

(b) direct that an amount equal to the value of the interest of the applicant, as declared in the order, be paid to the applicant.

Disposal of forfeited property

(8) Where no application is made under this section for an order in relation to an interest in any property or an application is made and the judge or, on appeal, the court refuses to make an order referred to in subsection (5), the property shall be disposed of in any manner that the Minister may direct.

Expropriation

172.11 If a person requires an interest in land, as defined in section 2 of the Expropriation Act, for the purposes of the construction or alteration of an international bridge or tunnel and has unsuccessfully attempted to purchase the interest in land, the person may request the Minister to have the Minister of Public Works and Government Services have the interest in land expropriated by the Crown and section 4.1 of that Act applies to that person, with any modifications that the circumstances require, as if the person were a railway company.

Maintenance and Repair

Regulations

172.12 (1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting the maintenance and repair of international bridges and tunnels.

Contents of regulations

(2) Without limiting the generality of subsection (1), regulations may be made under that subsection

(a) requiring the owner or operator of an international bridge or tunnel to prepare reports for the Minister on the condition of the bridge or tunnel;

(b) specifying the information that is to be included in reports and the frequency with which they must be prepared and sent to the Minister;

(c) providing for inspection of international bridges and tunnels by the Minister or a person designated by the Minister; and

(d) authorizing the Minister to order the owner or operator of an international bridge or tunnel to take any action that the Minister considers necessary to ensure that it is kept in good condition.

Operation

Regulations

172.13 (1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting the operation and use of international bridges and tunnels.

Contents of regulations

(2) Without limiting the generality of subsection (1), regulations may be made under that subsection

(a) specifying the use that may be made of international bridges or tunnels by different types of vehicles;

(b) respecting the tolls, fees and other charges that may be imposed by owners or operators of international bridges or tunnels for their use, to ensure the efficient flow of traffic;

(d) respecting the level of service that is to be provided by owners or operators of international bridges or tunnels.

Security and Safety

Regulations

172.14 (1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting the security and safety of international bridges and tunnels.

Contents of regulations

(2) Without limiting the generality of subsection (1), regulations may be made under that subsection

(a) requiring persons who own or operate international bridges or tunnels to develop and implement security plans and establish security management systems;

(b) specifying what must be included in security plans and requiring persons who own or operate international bridges or tunnels to make the additions, changes or deletions to their security plan that the Minister considers appropriate; and

(c) respecting the provision to the Minister of information related to the security of international bridges and tunnels.

Emergency directions

172.15 If the Minister is of the opinion that there is an immediate threat to the security or safety of any international bridge or tunnel, the Minister may direct any person to do, or to refrain from doing, anything that in the opinion of the Minister it is necessary to do or refrain from doing in order to respond to the threat, including directions respecting the evacuation of the international bridge or tunnel and the diversion of traffic or persons.

Authorized officer may make emergency direction

172.16 The Minister may authorize any officer of the Department of Transport to make, subject to any restrictions or conditions that the Minister may specify, any direction that the Minister may make under section 172.15 whenever the officer is of the opinion that there is a threat referred to in that section.

Duration

172.17 An emergency direction comes into force immediately when it is made but ceases to have force 30 days after it is made, unless the Minister or the officer who made it repeals it before the expiry of the 30 days.

Relationship with regulations

172.18 (1) An emergency direction may provide that it applies in lieu of or in addition to any regulation made under section 172.14.

Conflict

(2) In the event of any inconsistency or conflict between a regulation and an emergency direction, the emergency direction prevails to the extent of the inconsistency or conflict.

Not statutory instruments

172.19 Emergency directions made under section 172.15 or 172.16 are not statutory instruments within the meaning of the Statutory Instruments Act.

Offence

172.2 (1) Every person who contravenes a regulation made under section 172.14 or an emergency direction made under section 172.15 or pursuant to section 172.16 is guilty of an offence punishable on summary conviction and liable

(a) in the case of an individual, to a fine not exceeding $5,000; and

(b) in the case of a corporation, to a fine not exceeding $100,000.

No offence

(2) A person authorized by the Minister to verify compliance with a regulation or an emergency direction referred to in subsection (1) does not commit an offence if the person commits any act or omission that is required in the course of any such verification and that would otherwise constitute a contravention of a regulation or an emergency direction.

Section 174 does not apply

(3) Section 174 does not apply in respect of an offence committed under subsection (1).

Incorporation By Letters Patent

Letters patent

172.21 (1) The Governor in Council may, on the recommendation of the Minister, issue letters patent of incorporation for the establishment of a corporation, with or without share capital, for the purpose of the corporation constructing or operating an international bridge or tunnel. Letters patent take effect on the date stated in them.

Contents of letters patent

(2) The letters patent may include the following:

(a) the corporate name of the corporation;

(b) the objects of the corporation;

(d) the place where the registered office of the corporation is located;

(e) provisions regarding the keeping of, and access to, records of the corporation;

(f) the number of directors to be appointed and provisions governing their appointment, term of office, remuneration, indemnification and removal;

(g) provisions regarding the powers, functions and duties of the directors and meetings of the directors;

(h) a code of conduct governing the conduct of the directors and officers of the corporation;

(i) provisions for the holding of meetings of members or shareholders of the corporation, including an annual public meeting;

(j) provisions regarding the ownership of, or membership in, the corporation;

(k) provisions regarding the management and control of the corporation;

(l) provisions regarding financial statements and corporate finance, including provisions regarding the power of the corporation to borrow money on the credit of the corporation and to issue debt obligations and provide security for its obligations;

(m) provisions regarding subsidiaries of the corporation, including the management and control of subsidiaries and their activities;

(n) provisions regarding any fundamental changes to the corporation, including the amalgamation, continuance, liquidation or dissolution of the corporation; and

(o) any other provision that the Governor in Council considers appropriate to include in the letters patent and that is not inconsistent with this Part.

Supplementary letters patent

(3) The Governor in Council may, on the recommendation of the Minister, issue supplementary letters patent amending the letters patent of a corporation, and the supplementary letters patent take effect on the date stated in them.

Revocation of letters patent

(4) The Governor in Council may, on the recommendation of the Minister, revoke letters patent or supplementary letters patent of a corporation by issuing a notice to that effect. The revocation takes effect on the date stated in the notice.

Not statutory instruments

(5) Letters patent, supplementary letters patent and a notice of revocation are not statutory instruments within the meaning of the Statutory Instruments Act, but shall be published in the Canada Gazette and are valid with respect to third parties as of the date of publication.

Deemed knowledge of letters patent

172.22 A person who deals with a corporation, acquires rights from a corporation or directly or indirectly acquires rights relating to a corporation is deemed to know the contents of the letters patent of the corporation.

Regulations

172.23 (1) For the purposes of this Part, the Governor in Council may, on the recommendation of the Minister, make regulations, in respect of one or more corporations, regarding any matter referred to in subsection 172.21(2).

Conflict between regulations and letters patent

(2) In the event of any inconsistency or conflict between the regulations made under subsection (1) and the letters patent or supplementary letters patent of a corporation, the regulations prevail to the extent of the inconsistency or conflict.

Capacity and powers

172.24 (1) A corporation is incorporated for the purpose of constructing or operating an international bridge or tunnel in respect of which its letters patent are issued and, for that purpose and for the purposes of this Part, has the capacity, rights, powers and privileges of a natural person.

Restriction on activities and powers

(2) A corporation shall not carry on any activity or exercise any power that it is restricted by its letters patent, or by regulations made under subsection 172.23(1), from carrying on or exercising, nor shall it exercise any of its powers or carry on any of its activities in a manner contrary to its letters patent, those regulations or this Part.

Within Canada

(3) A corporation may carry on its activities throughout Canada.

Extra-territorial capacity

(4) A corporation has the capacity to carry on its activities, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent that the laws of that jurisdiction permit.

Tolls

172.25 Subject to the provisions of this Part and regulations made under this Part and to its letters patent, a corporation may charge tolls, fees or other charges for the use of an international bridge or tunnel.

Power to manage

172.26 The directors shall manage, or supervise the management of, the activities and affairs of the corporation.

Duty of care of directors and officers

172.27 (1) Every director and officer of a corporation shall, in exercising powers and discharging duties,

(a) act honestly and in good faith with a view to the best interests of the corporation; and

(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

Duty to comply

(2) Every director and officer of a corporation shall comply with this Part, any regulations made under subsection 172.23(1) and the letters patent and by-laws of the corporation.

No exculpation

(3) No provision in a contract or resolution relieves a director or officer from the duty to act in accordance with this Part, any regulations made under subsection 172.23(1) or the letters patent or by-laws of the corporation or relieves them from liability for a breach of any of them.

Power to make by-laws

172.28 Unless the letters patent or any regulations made under subsection 172.23(1) provide otherwise, the directors of a corporation may make, amend or repeal by-laws that regulate the affairs of the corporation.

Shares of a Corporation

Financial Administration Act

172.29 For the purposes of section 90 of the Financial Administration Act, Her Majesty in right of Canada, or a parent Crown corporation within the meaning of section 83 of that Act, is authorized to acquire, hold, dispose of and otherwise deal with shares of a corporation that owns or operates an international bridge or tunnel.

Enforcement

Powers

172.3 (1) Subject to subsection (4), the Minister, or a person designated by the Minister, may

(a) enter any place for the purposes of making inspections, investigations or audits relating to the enforcement of this Part;

(b) remove any document or other thing from any place referred to in paragraph (a) for examination or, in the case of a document, copying; and

(c) seize anything found in any place referred to in paragraph (a) that the Minister, or a person designated by the Minister, believes on reasonable grounds will afford evidence with respect to an offence under this Part.

Computers

(2) In carrying out an inspection, investigation or audit in any place referred to in paragraph (1)(a), the Minister, or a person designated by the Minister, may

(a) use or cause to be used any computer system or data processing system at the place to examine any data contained in, or available to, the system;

(b) reproduce any record, or cause it to be reproduced from the data, in the form of a printout or other intelligible output, and remove the printout or other output for examination or copying; and

(c) use or cause to be used any copying equipment at the place to make copies of any books, records, electronic data or other documents.

Search warrants

(3) Sections 487 to 492 of the Criminal Code apply in respect of any offence committed or suspected to have been committed under this Part.

Regulations

(4) The Governor in Council may, on the recommendation of the Minister, make regulations respecting

(a) the protection and preservation of any evidence that has been seized without a warrant under paragraph (1)(c); and

(b) the return of the evidence to its owner or the person from whom it was seized.

Dwelling-house

(5) If any place referred to in paragraph (1)(a) is a dwelling-house, the Minister, or a person designated by the Minister, may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant issued under subsection (6).

Authority to issue warrant

(6) Where on ex parte application a justice of the peace is satisfied by information on oath

(a) that entry to a dwelling-house is necessary for the purpose of performing any function of the Minister pursuant to this Part, and

(b) that entry to the dwelling-house has been refused or that there are reasonable grounds for believing that entry will be refused,

the justice of the peace may issue a warrant authorizing the Minister, or a person designated by the Minister, to enter that dwelling-house subject to any conditions that may be specified in the warrant.

Use of force

(7) In executing a warrant under subsection (6), the Minister, or a person designated by the Minister, shall not use force unless they are accompanied by a peace officer and the use of force has been specifically authorized in the warrant.

Duty to assist Minister

172.31 The owner or person who is in possession or control of a place that is inspected, investigated or audited under subsection 172.3(1), and every person who is found in the place, shall

(a) give the Minister, or a person designated by the Minister, all reasonable assistance to enable them to carry out the inspection, investigation or audit and exercise any power conferred on them by that subsection; and

(b) provide the Minister, or a person designated by the Minister, with any information relevant to the administration of this Part or the regulations, notices, orders or emergency directions made under this Part that they may reasonably require.

Injunction

172.32 (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done, is about to do or is likely to do any act or thing constituting or directed toward the commission of an offence under this Part, the court may issue an injunction ordering any person named in the application

(a) to refrain from doing any act or thing that, in the opinion of the court, may constitute or be directed toward the commission of an offence under this Part; or

(b) to do any act or thing that, in the opinion of the court, may prevent the commission of an offence under this Part.

Notice

(2) No injunction may be issued under subsection (1) unless 48 hours notice is given to the party or parties named in the application or the urgency of the situation is such that service of notice would not be in the public interest.

64. (1) The portion of section 177 of the Act before paragraph (a) is replaced by the following:

Regulations by Agency

177. (1) The Agency may, by regulation,

(2) Paragraph 177(1)(b) of the French version of the Act is replaced by the following:

b) prévoir le montant maximal — plafonné, dans le cas des personnes physiques, à 5 000 $ et, dans le cas des personnes morales, à 25 000 $ — de la sanction applicable à chaque violation qui constitue une contravention à un texte ainsi désigné.

(3) Section 177 of the Act is amended by adding the following after subsection (1):

Regulations by Minister

(2) The Minister may, by regulation,

(a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180

(i) any provision of section 51 or of any regulation made under section 50 or 51, or any requirement of any of those provisions; or

(ii) any provision of a regulation made under subsection 172.14 or an emergency direction made under section 172.15 or pursuant to section 172.16; and

(b) prescribe the maximum amount payable for each violation, but the amount shall not exceed

(i) $5,000, in the case of an individual, and

(ii) $25,000, in the case of a corporation.

65. (1) The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the following:

Notices of violation

178. (1) The Agency, in respect of violations referred to in subsection 177(1), or the Minister, in respect of violations referred to in subsection 177(2), may

(2) Subsection 178(3) of the French version of the Act is replaced by the following:

Certificat

(3) Chaque agent reçoit un certificat établi en la forme fixée par l’Office ou le ministre, selon le cas, et attestant sa qualité, qu’il présente sur demande à la personne à qui il veut demander des renseignements.

66. Subsection 179(1) of the French version of the Act is replaced by the following:

Violation

179. (1) Toute contravention à un texte désigné au titre de l’article 177 constitue une violation pour laquelle le contrevenant s’expose à la sanction établie conformément à cet article.

67. (1) Subsection 180(1) of the Act is replaced by the following:

Issuance of notice of violation

180. (1) If a person designated as an enforcement officer under paragraph 178(1)(a) believes that a person has committed a violation, the enforcement officer may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out

(a) the penalty, established in accordance with the regulations made under section 177, for the violation that the person is liable to pay; and

(b) the particulars concerning the time for paying and the manner of paying the penalty.

2001, c. 29, s. 52(2)

(2) Paragraphs 180(2)(b) and (c) of the Act are replaced by the following:

(b) “designated provision” shall be read as a reference to a provision, requirement or condition designated under section 177;

(c) “Minister”, in the case of a violation referred to in subsection 177(1), shall be read as a reference to the Agency or, in any provision other than subsection 7.8(1) of the Aeronautics Act, to a person designated by the Agency;

(3) Paragraph 180(2)(e) of the Act is replaced by the following:

(e) “regulations made under paragraph 7.6(1)(b)” shall be read as a reference to regulations made under section 177.

68. The Act is amended by adding the following after section 180:

Delegation by Minister

180.1 In the case of a violation referred to in subsection 177(2), the Minister may delegate to the Agency any power, duty or function conferred on the Minister under this Part and under sections 7.8 to 8.2 of the Aeronautics Act.

Terminology

69. The Act is amended by replacing the words “competitive line rate” with the words “competitive connection rate” in the following provisions:

(a) subsection 116(6);

(b) subsection 129(2);

(d) subsections 136(2) and (3).

70. The Act is amended by adding, after Schedule II, the schedule set out in the schedule to this Act.

Transitional Provisions

Members continued

71. (1) Despite sections 4 to 6 of this Act, the members of the Canadian Transportation Agency, including its Chairperson and Vice-Chairperson, who hold office on the coming into force of those sections continue to hold office according to the conditions of their appointments, until the expiry of their respective terms.

Temporary limitation on appointment of new members

(2) Despite section 4 of this Act, the Governor in Council may not appoint or reappoint members of the Agency under paragraph 7(2)(a) or subsection 8(2) respectively of the Canada Transportation Act until the number of members of the Agency, other than the Chairperson and the Vice-Chairperson, is less than three.

Exception for appointment of Chairperson and Vice-Chairperson

(3) Despite section 4 of this Act and subsection (2) of this section, the Governor in Council may appoint or reappoint members of the Agency to be designated as the Chairperson or the Vice-Chairperson of the Agency under subsection 7(3) of the Canada Transportation Act.

PART 2

R.S., c. 32 (4th Supp.)

RAILWAY SAFETY ACT

2002, c. 8, s. 168

72. Subsection 34(1) of the Railway Safety Act is replaced by the following:

Enforcement through court

34. (1) An order or emergency directive made by the Minister may be made an order of the Federal Court or of any superior court, and shall be enforced in the same manner as an order of the court.

73. (1) The Act is amended by adding the following after section 43:

PART IV.1

POLICE CONSTABLES

Appointment

44. (1) A judge of a superior court may appoint a person as a police constable for the enforcement of Part III of the Canada Transportation Act and for the enforcement of the laws of Canada or a province in so far as their enforcement relates to the protection of property owned, possessed or administered by a railway company and the protection of persons and property on that property.

Limitation

(2) The appointment may only be made on the application of a railway company that owns, possesses or administers property located within the judge’s jurisdiction.

Jurisdiction

(3) The police constable has jurisdiction on property under the administration of the railway company and in any place within 500 m of property that the railway company owns, possesses or administers.

Power to take persons before a court

(4) The police constable may take a person charged with an offence under Part III of the Canada Transportation Act, or any law referred to in subsection (1), before a court that has jurisdiction in such cases over any area where property owned, possessed or administered by the railway company is located, whether or not the person was arrested, or the offence occurred or is alleged to have occurred, within that area.

Court’s jurisdiction

(5) The court must deal with the person as though the person had been arrested, and the offence had occurred, within the area of the court’s jurisdiction, but the court may not deal with the person if the offence is alleged to have occurred outside the province in which the court is sitting.

Dismissal or discharge of police constable

(6) A superior court judge referred to in subsection (1) or the railway company may dismiss or discharge the police constable and the dismissal or discharge terminates the powers, duties and privileges conferred on the constable by this section.

Procedures for dealing with complaints

44.1 (1) If one or more police constables are appointed with respect to a railway company, the railway company must

(a) establish procedures for dealing with complaints concerning police constables;

(b) designate one or more persons to be responsible for implementing the procedures; and

Procedures to be filed with Minister

(2) The railway company must file with the Minister a copy of its procedures for dealing with complaints and must implement any recommendations made by the Minister, including recommendations concerning how the procedures are to be made public.

Transitional

(2) Every police constable appointed under section 158 of the Canada Transportation Act who holds office on the day on which this section comes into force is deemed to have been appointed under section 44 of the Railway Safety Act, as enacted by subsection (1).

PART 3

VIA RAIL CANADA ACT

74. The VIA Rail Canada Act is enacted as follows:

An Act to continue VIA Rail Canada Inc. under the name VIA Rail Canada

SHORT TITLE

Short title

1. This Act may be cited as the VIA Rail Canada Act.

INTERPRETATION

Definitions

2. The following definitions apply in this Act.

“board”
« conseil »

“board” means the board of directors of the Corporation established by section 12.

“Corporation”
« Société »

“Corporation” means VIA Rail Canada, resulting from the continuance of VIA Rail Canada Inc. under section 3.

CONTINUANCE

Continuance of VIA Rail Canada Inc.

3. VIA Rail Canada Inc., incorporated on January 12, 1977 under the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada 1970, is continued under this Act under the name VIA Rail Canada.

Charter

4. For the purpose of Part X of the Financial Administration Act, this Act is deemed to be the charter of the Corporation.

Cessation of former legal regime

5. On the coming into force of section 3 of this Act, the Canada Business Corporations Act ceases to apply to the Corporation and the constating documents of VIA Rail Canada Inc. cease to have effect.

Cancellation of shares

6. All shares of VIA Rail Canada Inc. are cancelled without any repayment of capital in respect of them. The capital constitutes a capital surplus of the Corporation.

MINISTER

Minister responsible

7. The Minister of Transport is the appropriate minister in relation to the Corporation for the purposes of Part X of the Financial Administration Act.

MANDATE, CAPACITY AND POWERS

Mandate

8. (1) The Corporation’s mandate is to manage and provide a safe and efficient passenger rail service in Canada.

Equipment, facilities and resources

(2) The Corporation may use excess equipment, facilities and resources for any commercial purpose that is ancillary to its mandate with a view to reducing the need for payments to the Corporation out of the Consolidated Revenue Fund.

Legal capacity

9. (1) For the purpose of carrying out its mandate and for any commercial purpose referred to in subsection 8(2), the Corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person.

Borrowing

(2) For greater certainty, the Corporation may borrow money, subject to Part X of the Financial Administration Act.

Not an agent of Her Majesty

10. The Corporation is not an agent of Her Majesty in right of Canada.

HEAD OFFICE

Head office

11. (1) The Corporation’s head office is in Montreal, Quebec.

Change of location

(2) Despite subsection (1), the Governor in Council may, by order, establish the Corporation’s head office in another city in Canada.

BOARD OF DIRECTORS

Establishment

Composition

12. (1) There is hereby established a board of directors of the Corporation consisting of a maximum of 15 directors, including the chair and the chief executive officer.

Chair and chief executive officer

(2) The chair and the chief executive officer shall be appointed by the Governor in Council.

Other directors

(3) The directors, other than the chair and the chief executive officer, shall be appointed by the Minister of Transport, with the approval of the Governor in Council.

Chair

Role of chair

13. (1) The chair must preside at meetings of the board and exercise any powers and perform any duties and functions that are assigned by the by-laws of the Corporation.

Incapacity or vacancy

(2) In the event of the absence or incapacity of, or vacancy in the office of, the chair, the board may designate another director to exercise the powers and perform the duties and functions of the chair for a period of up to 90 days or, with the approval of the Governor in Council, for a longer period.

Chief Executive Officer

Role of chief executive officer

14. (1) The chief executive officer is responsible for the direction and management of the business and day-to-day operations of the Corporation. The chief executive officer must perform any duties and functions that are assigned by the by-laws of the Corporation.

Incapacity or vacancy

(2) In the event of the absence or incapacity of, or vacancy in the office of, the chief executive officer, the board may appoint an officer or employee of the Corporation to exercise the powers and perform the duties and functions of the chief executive officer for a period of up to 90 days or, with the approval of the Governor in Council, for a longer period.

TRANSITIONAL PROVISIONS

Directors continued

15. The members of the board of directors of VIA Rail Canada Inc., its chair and its chief executive officer continue to hold office as directors, chair and chief executive officer, respectively, of the Corporation according to the conditions of their appointments, until the expiry of their terms.

References

16. Every reference to VIA Rail Canada Inc. in any deed, contract, agreement, instrument or other document executed by VIA Rail Canada Inc. in its own name is to be read as a reference to VIA Rail Canada, unless the context requires otherwise.

Property

17. The property of VIA Rail Canada Inc. continues to be the property of the Corporation.

Rights and obligations

18. The Corporation continues to have the rights of and to be liable for the obligations of VIA Rail Canada Inc.

Legal actions or claims

19. (1) No existing cause of action or claim by or against VIA Rail Canada Inc., or liability of VIA Rail Canada Inc. to prosecution, is affected by this Act.

Pending legal proceedings

(2) A civil, criminal or administrative action or proceeding pending by or against VIA Rail Canada Inc. may be continued to be prosecuted by or against the Corporation.

Enforcement of judgements, etc.

(3) A conviction against, or ruling, order or judgment in favour of or against, VIA Rail Canada Inc. may be enforced by or against the Corporation.

By-laws

20. Every by-law of VIA Rail Canada Inc. is, to the extent that it is consistent with this Act, a by-law of the Corporation.

PART 4

CONSEQUENTIAL AND COORDINATING AMENDMENTS AND COMING INTO FORCE

Consequential Amendments

R.S., c. 35 (4th Supp.)

Air Canada Public Participation Act

2000, c. 15, s. 19

75. (1) Subsections 10.1(1) and (2) of the Air Canada Public Participation Act are replaced by the following:

Deemed approval

10.1 (1) The proposed acquisition described in a letter dated December 21, 1999 from 853350 Alberta Ltd. and Air Canada to the Minister of Transport is deemed to be a transaction that has been approved by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act on the day on which that subsection comes into force.

Deemed terms and conditions

(2) The undertakings provided by 853350 Alberta Ltd. and Air Canada to the Minister of Transport in the letter referred to in subsection (1) are deemed to be terms and conditions specified in an approval by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act that relate to national transportation concerns, and the undertakings provided by 853350 Alberta Ltd. and Air Canada to the Commissioner of Competition that are set out in Annex A to a letter from the Commissioner dated December 21, 1999 in respect of the acquisition referred to in that subsection are deemed to be terms and conditions of an approval under subsection 53.2(7) of the Canada Transportation Act that relate to potential prevention or lessening of competition.

2000, c. 15, s. 19

(2) The portion of subsection 10.1(4) of the French version of the Act before paragraph (a) is replaced by the following:

Cessation d’effet des engagements

(4) Le gouverneur en conseil peut, par décret, déclarer que la société 853350 Alberta Ltd. et Air Canada ne sont pas assujetties aux conditions mentionnées au paragraphe (2) si les engagements cessent d’avoir effet et ne reprennent pas effet dans les circonstances prévues :

R.S., c. L-2

Canada Labour Code

1998, c. 10, s. 182

76. The definition “private constable” in subsection 3(1) of the Canada Labour Code is replaced by the following:

“private constable”
« agent de police privé »

“private constable” means a person appointed as a police constable under Part IV.1 of the Railway Safety Act;

R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19

Competition Act

2000, c. 15, s. 12

77. Subsections 29.1(3) to (5) of the Competition Act are replaced by the following:

Contents of request

(3) Requests under this section must be in writing and must

(a) specify the information referred to in any of paragraphs (2)(a) to (f) that is required; and

(b) state that the Minister of Transport requires the information for the purposes of section 53.1 or 53.2 of the Canada Transportation Act and identify the transaction being considered under that section.

Restriction

(4) The information communicated under subsection (1) may be used only for the purposes of section 53.1 or 53.2, as the case may be, of the Canada Transportation Act.

Confidentiality

(5) No person who performs or has performed duties or functions in the administration or enforcement of the Canada Transportation Act shall communicate or allow to be communicated to any other person any information communicated under subsection (1), except to persons who perform duties or functions under section 53.1 or 53.2 of that Act.

2000, c. 15, s. 14

78. Paragraph 94(c) of the Act is replaced by the following:

(c) a merger or proposed merger approved under subsection 53.2(7) of the Canada Transportation Act and in respect of which the Minister of Transport has certified to the Commissioner the names of the parties.

R.S., c. F-8; 1995, c. 17, s. 45(1)

Federal-Provincial Fiscal Arrangements Act

79. Schedule I to the Federal-Provincial Fiscal Arrangements Act is amended by striking out the following:

VIA Rail Canada Inc.

80. Schedule I to the Act is amended by adding the following in alphabetical order:

VIA Rail Canada

R.S., c. F-11

Financial Administration Act

81. Part I of Schedule III to the Financial Administration Act is amended by striking out the following:

VIA Rail Canada Inc.

82. Part I of Schedule III to the Act is amended by adding the following in alphabetical order:

VIA Rail Canada

R.S., c. M-13; 2000, c. 8, s. 2

Payments in Lieu of Taxes Act

83. Schedule III to the Payments in Lieu of Taxes Act is amended by striking out the following:

VIA Rail Canada Inc.

84. Schedule III to the Act is amended by adding the following in alphabetical order:

VIA Rail Canada

Regulations and Other Instruments

References in regulations, etc.

85. Unless the context requires otherwise, every reference to VIA Rail Canada Inc. is replaced by a reference to Via Rail Canada, in regulations as defined in section 2 of the Statutory Instruments Act, and in any other instrument made in the execution of a power conferred by or under an Act of Parliament or by or under the authority of the Governor in Council, and more particularly in

(a) the definition “changes” in subsection 2(1) and subparagraph 4(g)(ii) of the Railway Passenger Services Adjustment Assistance Regulations;

(b) section 7100 of the Income Tax Regulations;

(d) the long title and the definition “VIA” in section 2 of the Railway Passenger Services Contract Regulations;

(e) By-laws Nos. 6 and 8 of VIA Rail Canada Inc., made by Order in Council P.C. 1979-2992 of November 1, 1979 and registered as SOR/79-817;

(f) subparagraph 2(4)(b)(v) of the Railway Lines Abandonment Regulations;

(g) section 2 of the Used Railway Passenger Car Remission Order; and

(h) the schedule to the Canadian Security Intelligence Service Act Deputy Heads of the Public Service of Canada Order.

Coordinating Amendments

1996, c. 10

Canada Transportation Act

86. (1) If section 3 of the VIA Rail Canada Act, as enacted by section 74 of this Act, comes into force before section 49 of this Act, then, on the day on which that section 3 comes into force, the expressions “VIA Rail Canada Inc.” and “VIA Rail” in subsection 143(3) and the expression “VIA Rail” in subsection 143(4) of the Canada Transportation Act are replaced by the expression “VIA Rail Canada”.

(2) If section 3 of the VIA Rail Canada Act, as enacted by section 74 of this Act, comes into force before section 53 of this Act, then, on the day on which that section 3 comes into force, the expression “VIA Rail Canada Inc.” in subsections 146(1) and (2) of the Canada Transportation Act is replaced by the expression “VIA Rail Canada”.

(3) On the later of the coming into force of section 3 of the VIA Rail Canada Act, as enacted by section 74 of this Act, and the definition “public passenger service provider” in section 87 of the Canada Transportation Act, as enacted by section 31 of this Act, the expression “VIA Rail Canada Inc.” in that definition is replaced by the expression “VIA Rail Canada”.

(4) On the later of the coming into force of section 3 of the VIA Rail Canada Act, as enacted by section 74 of this Act, and subsections 144.1(2) and (3) of the Canada Transportation Act, as enacted by section 51 of this Act, the expression “VIA Rail Canada Inc.” in those subsections is replaced by the expression “VIA Rail Canada”.

(5) On the later of the coming into force of section 3 of the VIA Rail Canada Act, as enacted by section 74 of this Act, and subsection 56(3) of this Act, the expression “VIA Rail Canada Inc.” in that subsection is replaced by the expression “VIA Rail Canada”.

2001, c. 29

Transportation Appeal Tribunal of Canada Act

87. On the later of the coming into force of subsection 52(2) of the Transportation Appeal Tribunal of Canada Act and subsection 67(2) of this Act, paragraph 180(2)(c) of the Canada Transportation Act is replaced by the following:

(c) “Minister”, in the case of a violation referred to in subsection 177(1), shall be read as a reference to the Agency or, in any provision other than section 7.9 of the Aeronautics Act, to a person designated by the Agency;

Coming into Force

Order in council

88. The provisions of this Act, other than sections 1, 86 and 87, and the provisions of any Act as enacted by this Act come into force on a day or days to be fixed by order of the Governor in Council.

Explanatory Notes

Canada Transportation Act

Clause 2: Existing text of subsection 4(2):

(2) Nothing in or done under the authority of this Act affects the operation of the Competition Act.

Clause 3: Existing text of section 5:

5. It is hereby declared that a safe, economic, efficient and adequate network of viable and effective transportation services accessible to persons with disabilities and that makes the best use of all available modes of transportation at the lowest total cost is essential to serve the transportation needs of shippers and travellers, including persons with disabilities, and to maintain the economic well-being and growth of Canada and its regions and that those objectives are most likely to be achieved when all carriers are able to compete, both within and among the various modes of transportation, under conditions ensuring that, having due regard to national policy, to the advantages of harmonized federal and provincial regulatory approaches and to legal and constitutional requirements,

(a) the national transportation system meets the highest practicable safety standards,

(b) competition and market forces are, whenever possible, the prime agents in providing viable and effective transportation services,

(c) economic regulation of carriers and modes of transportation occurs only in respect of those services and regions where regulation is necessary to serve the transportation needs of shippers and travellers and that such regulation will not unfairly limit the ability of any carrier or mode of transportation to compete freely with any other carrier or mode of transportation,

(d) transportation is recognized as a key to regional economic development and that commercial viability of transportation links is balanced with regional economic development objectives so that the potential economic strengths of each region may be realized,

(e) each carrier or mode of transportation, as far as is practicable, bears a fair proportion of the real costs of the resources, facilities and services provided to that carrier or mode of transportation at public expense,

(f) each carrier or mode of transportation, as far as is practicable, receives fair and reasonable compensation for the resources, facilities and services that it is required to provide as an imposed public duty,

(g) each carrier or mode of transportation, as far as is practicable, carries traffic to or from any point in Canada under fares, rates and conditions that do not constitute

(i) an unfair disadvantage in respect of any such traffic beyond the disadvantage inherent in the location or volume of the traffic, the scale of operation connected with the traffic or the type of traffic or service involved,

(ii) an undue obstacle to the mobility of persons, including persons with disabilities,

(iii) an undue obstacle to the interchange of commodities between points in Canada, or

(iv) an unreasonable discouragement to the development of primary or secondary industries, to export trade in or from any region of Canada or to the movement of commodities through Canadian ports, and

(h) each mode of transportation is economically viable,

and this Act is enacted in accordance with and for the attainment of those objectives to the extent that they fall within the purview of subject-matters under the legislative authority of Parliament relating to transportation.

Clause 4: Relevant portion of subsection 7(2):

(2) The Agency shall consist of

(a) not more than seven members appointed by the Governor in Council, and

Clause 5: Existing text of subsection 8(3):

(3) Where a member appointed under paragraph 7(2)(a) ceases to hold office, the Chairperson may authorize the member to continue to hear any matter that was before the member on the expiration of the member’s term of office and that member is deemed to be a member of the Agency, but that person’s status as a member does not preclude the appointment of up to seven members under paragraph 7(2)(a) or up to three temporary members under subsection 9(1).

Clause 6: Existing text of subsection 18(2):

(2) The Chairperson shall reside in the National Capital Region described in the schedule to the National Capital Act or within any distance of it that the Governor in Council determines.

Clause 7: (1) Existing text of subsections 27(2) and (3):

(2) Where an application is made to the Agency by a shipper in respect of a transportation rate or service, the Agency may grant the relief sought, in whole or in part, but in making its decision the Agency must be satisfied, after considering the circumstances of the particular case, that the applicant would suffer substantial commercial harm if the relief were not granted.

(3) The circumstances to be considered by the Agency in making its decision under subsection (2) may include, but are not limited to, the following:

(a) the market or market conditions relating to the goods involved;

(b) the location and volume of traffic of the goods;

(d) the type of traffic or service involved;

(e) the availability to the applicant of alternative means of transporting the goods; and

(f) any other matters that appear to the Agency to be relevant.

(2) Existing text of subsection 27(5):

(5) This section does not apply in respect of final offer arbitration under Part IV.

Clause 8: Existing text of subsection 33(1):

33. (1) A decision or an order of the Agency may be made an order of any superior court and is enforceable in the same manner as such an order.

Clause 9: New.

Clause 10: (1) to (3) Relevant portion of subsection 50(1):

50. (1) The Minister may, with the approval of the Governor in Council, make regulations requiring carriers or transportation or grain handling undertakings to which the legislative authority of Parliament extends to provide information to the Minister, when and in the form and manner that the regulations may specify, for the purposes of

...

(b) annual reporting under section 52;

...

(d) any safety or subsidy program;

(4) New.

Clause 11: New.

Clause 12: (1) Existing text of subsection 51(2):

(2) Subsection (1) does not apply so as to prohibit

(a) the communication of information to the Agency or to a minister of the Crown in right of Canada, the agent of any such minister or an officer or employee of Her Majesty in right of Canada for the purposes of the administration of this Act or any other Act of Parliament;

(b) the reporting of information in an aggregated form that prevents information obtained from an identifiable person from being related to that person; or

(c) the communication of information by the Minister for the purpose of monitoring the grain transportation and handling system.

(2) New.

Clause 13: (1) Relevant portion of subsection 52(1):

52. (1) Each year the Minister shall, before the end of May, lay before Parliament a report briefly reviewing the state of transportation in Canada in respect of the preceding year, including

(2) Existing text of subsection 52(2):

(2) Subsection (1) does not apply in respect of the year in which this Act comes into force if this Act was not in force for more than four months in that year.

Clause 14: (1) Existing text of subsections 53(1) and (2):

53. (1) The Minister shall, no later than four years after the day this Act comes into force, appoint one or more persons to carry out a comprehensive review of the operation of this Act and any other Act of Parliament for which the Minister is responsible that pertains to the economic regulation of a mode of transportation and transportation activities under the legislative authority of Parliament.

(2) The person or persons conducting the review shall assess whether the legislation referred to in subsection (1) provides Canadians with an efficient, effective, flexible and affordable transportation system, and, where necessary or desirable, recommend amendments to

(a) the national transportation policy set out in section 5; and

(b) the legislation referred to in subsection (1).

(2) Existing text of subsection 53(5):

(5) The review shall be completed and a report of the review submitted to the Minister within one year after the appointment referred to in subsection (1).

Clause 15: New.

Clause 16: (1) Existing text of subsection 56(1):

56. (1) This Part does not apply to aircraft that are used by the Canadian Armed Forces or by any other armed forces cooperating with the Canadian Armed Forces and that bear the insignia or markings of the Canadian Armed Forces or those other armed forces.

(2) New.

Clause 17: Existing text of the heading and sections 56.1 to 56.7:

Review of Mergers and Acquisitions

56.1 (1) Every person who is required to notify the Commissioner under subsection 114(1) of the Competition Act in respect of a transaction that involves an air transportation undertaking shall give notice, containing, subject to the regulations, the information required under that subsection, of the transaction to the Minister and the Agency, when notice is given to the Commissioner and, in any event, no later than when the person is required to notify the Commissioner.

(2) If the Minister is of the opinion that the transaction does not raise concerns with respect to the public interest as it relates to national transportation, the Minister shall, within 42 days after a person gives notice under subsection (1), give notice of the opinion to that person.

(3) Sections 56.2 and 56.3 do not apply in respect of the transaction if the Minister gives notice under subsection (2).

(4) In this section and sections 56.2, 56.4 and 56.5, “Commissioner” has the same meaning as in subsection 2(1) of the Competition Act.

56.2 (1) No person shall complete a transaction referred to in subsection 56.1(1) unless the Agency determines that the transaction would result in an air transportation undertaking that is Canadian and the transaction is approved by the Governor in Council.

(2) The Commissioner shall, as soon as feasible, report to the Minister and the parties to the transaction on any concerns regarding potential prevention or lessening of competition that may occur as a result of the transaction.

(3) After receiving the Commissioner’s report and before the Minister makes a recommendation for the purposes of subsection (6), the Minister shall inform the Commissioner and the parties to the transaction

(a) of any national transportation concerns that the Minister has in respect of the transaction; and

(b) of which of the Commissioner’s concerns the Minister believes the parties should address with the Commissioner.

(4) After conferring with the Minister and the Commissioner, the parties to the transaction shall inform the Minister and the Commissioner of any measures they are prepared to undertake to address the Minister’s and the Commissioner’s concerns and may propose revisions to the transaction.

(5) Before making a recommendation for the purposes of subsection (6), the Minister shall obtain the Commissioner’s assessment of the adequacy of any undertaking proposed by the parties to address the Commissioner’s concerns and the effects on those concerns of any proposed revisions to the transaction.

(6) If the Governor in Council is satisfied that it is in the public interest to approve the transaction, taking into account any revisions to it proposed by the parties and measures they are prepared to undertake, the Governor in Council may, by order made on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The order shall indicate which of the terms and conditions relate to potential prevention or lessening of competition and which relate to national transportation concerns.

(7) On application by a person who is subject to terms and conditions specified in an order, the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation.

(8) If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making the recommendation under subsection (6) or (7), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency.

(9) Every person subject to terms and conditions specified in an order shall comply with them.

56.3 The Agency shall determine whether a transaction referred to in section 56.1 would result in an air transportation undertaking that is Canadian.

56.4 (1) If the Governor in Council is of the opinion that a licensee and its affiliated licensees have, after October 26, 1999, acquired or are about to acquire substantial or complete control over domestic services, otherwise than as a result of a transaction approved under section 56.2, the Governor in Council may, by order made on the recommendation of the Minister, direct the licensee or the affiliated licensees to take any action that the Governor in Council considers reasonable and necessary to protect the public interest from the consequences of that control, including requiring the divestiture of assets.

(2) The Minister shall not make a recommendation under subsection (1) unless the Minister has obtained the Commissioner’s assessment of the state of competition in the domestic airline industry.

(3) On application by a person who is subject to an order made under subsection (1) and on the recommendation of the Minister, the Governor in Council may, by order, vary or rescind the order. If the order to be rescinded or varied affects competition, the Minister shall consult with the Commissioner before making the recommendation.

56.5 (1) If a person contravenes subsection 56.2(1), subsection 56.2(9) with respect to a term or condition that relates to national transportation concerns or an order made under subsection 56.4(1), on application by the Minister, a superior court may order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner before making an application.

(2) If a person contravenes subsection 56.2(9) with respect to a term or condition that relates to potential prevention or lessening of competition, on application by the Commissioner, a superior court may order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application.

56.6 The Governor in Council may, on the recommendation of the Minister, make regulations

(a) specifying information required in a notice under subsection 56.1(1); and

(b) exempting classes of transactions from the application of sections 56.1 to 56.3.

56.7 (1) Every person who contravenes subsection 56.1(1) is guilty of an offence and is liable

(a) on summary conviction, to a fine of not more than $25,000; or

(b) on conviction on indictment, to a fine of not more than $50,000.

(2) Every person who contravenes subsection 56.2(1) or (9) or an order made under subsection 56.4(1) is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years or to a fine not exceeding $10,000,000 or to both.

(3) If an offence under subsection (2) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

(4) If a corporation commits an offence under subsection (1) or (2), any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

(5) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1) or (2).

Clause 18: Existing text of section 59:

59. No person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, where required under this Part, the person holds a licence issued under this Part in respect of that service.

Clause 19: Existing text of section 62:

62. Where the Minister considers it necessary or advisable in the public interest that a domestic licence be issued to a person who is not a Canadian, the Minister may, by order, on such terms and conditions as may be specified in the order, exempt the person from the application of subparagraph 61(a)(i) for the duration of the order.

Clause 20: (1) Existing text of subsection 64(1.2):

(1.2) A licensee shall, as soon as practicable after giving notice under subsection (1) or (1.1), provide an opportunity for elected officials of the municipal or local government of the community of the point or points, as the case may be, to meet and discuss with the licensee the impact of the proposed discontinuance or reduction.

(2) New.

Clause 21: Relevant portion of section 65:

65. Where, on complaint in writing to the Agency by any person, the Agency finds that a licensee has failed to comply with section 64 and that it is practicable in the circumstances for the licensee to comply with an order under this section, the Agency may, by order, direct the licensee to reinstate the service referred to in that section

(a) for such a period, not exceeding sixty days after the date of the finding by the Agency, as the Agency deems appropriate; and

Clause 22: (1) to (6) Existing text of subsections 66(2) to (7):

(2) If, on complaint in writing to the Agency by any person, the Agency finds that a licensee, including affiliated licensees, is the only person providing a domestic service between two points and that it is offering an inadequate range of fares or cargo rates in respect of that service, the Agency may, by order, direct the licensee, for a period that the Agency considers reasonable in the circumstances, to publish and apply in respect of that service one or more additional fares or cargo rates that the Agency considers reasonable in the circumstances.

(a) historical data respecting fares or cargo rates applicable to domestic services between those two points;

(b) fares or cargo rates applicable to similar domestic services offered by the licensee and one or more other licensees using similar aircraft, including terms and conditions of carriage and, in the case of fares, the number of seats available at those fares;

(b.1) the competition from other modes of transportation, if the finding is in respect of a cargo rate, an increase in a cargo rate or a range of cargo rates; and

(c) any other information that may be provided by the licensee, including information that the licensee provides under section 83.

(5) Before making a direction under paragraph (1)(b) or subsection (2), the Agency shall consider any representations that the licensee has made with respect to what is reasonable in the circumstances.

(6) The Agency may make a finding under subsection (1) or (2) on its own motion within two years after the date that this subsection comes into force. The Governor in Council may, by order, extend for a maximum of two years the period within which the Agency may make a finding on its own motion.

(7) During the period during which the Agency may make a finding under subsection (6), every licensee operating a domestic service between two points in accordance with a published timetable or on a regular basis shall

(a) keep the Agency informed of its existing tariffs in respect of that service in the form and manner that the Agency may specify; and

(b) on request, inform the Agency of the tariffs it applied in respect of any of its domestic services during the previous three years and provide the Agency with any information that the Agency considers necessary for the purposes of subsection (6) and that is in support of those tariffs or related to the passenger seating or cargo capacity offered or proposed to be offered in relation to the fares or cargo rates set out in those tariffs.

Clause 23: Relevant portion of subsection 67(1):

67. (1) The holder of a domestic licence shall

(a) publish or display and make available for public inspection at the business offices of the licensee all the tariffs for the domestic service offered by the licensee;

Clause 24: Relevant portion of section 67.1:

67.1 If, on complaint in writing to the Agency by any person or on its own motion, the Agency finds that, contrary to subsection 67(3), the holder of a domestic licence has applied a fare, rate, charge or term or condition of carriage applicable to the domestic service it offers that is not set out in its tariffs, the Agency may order the licensee to

Clause 25: Existing text of subsection 67.2(1):

67.2 (1) If, on complaint in writing to the Agency by any person, the Agency finds that the holder of a domestic licence has applied terms or conditions of carriage applicable to the domestic service it offers that are unreasonable or unduly discriminatory, the Agency may suspend or disallow those terms or conditions and substitute other terms or conditions in their place.

Clause 26: Existing text of subsection 68(1):

68. (1) Sections 66, 67, 67.1 and 67.2 do not apply in respect of fares, rates, charges or terms and conditions of carriage applicable to a domestic service provided for under a contract between a holder of a domestic licence and another person whereby the parties to the contract agree to keep its provisions confidential.

Clause 27: New.

Clause 28: Existing text of the heading and section 85.1:

Air Travel Complaints Commissioner

85.1 (1) The Minister shall designate a temporary member to act as the Air Travel Complaints Commissioner for the purposes of this section.

(2) A person shall file in writing with the Air Travel Complaints Commissioner a complaint against a licensee in respect of its air service if the person made the complaint to the licensee and the complaint was not resolved to the person’s satisfaction.

(3) The Commissioner, or a person authorized to act on the Commissioner’s behalf, shall review and attempt to resolve every complaint filed under subsection (2) for which no other remedy exists and may, if appropriate, mediate or arrange for the mediation of a complaint filed under that subsection.

(4) On request by the Commissioner or a person authorized to act on the Commissioner’s behalf, a person shall produce for examination by the Commissioner any document, record or thing that is in the possession or under the control of the person and is, in the opinion of the Commissioner, relevant to a complaint.

(5) The Commissioner or a person authorized to act on the Commissioner’s behalf shall provide to the parties a report that outlines their positions and any settlement that they reached.

(6) The Commissioner shall, at least semi-annually, prepare a report to the Governor in Council through the Minister setting out the number and nature of complaints filed under subsection (2), including the names of the licensees against whom the complaints were made and describing the manner in which they were dealt with and any systemic problems observed. The Agency shall include the Commissioner’s reports in its annual report.

Clause 29: (1) and (2) Relevant portion of subsection 86(1):

86. (1) The Agency may make regulations

...

(h) respecting traffic and tariffs, fares, rates, charges and terms and conditions of carriage for international service and

...

(iii) authorizing the Agency to direct a licensee to take corrective measures that the Agency considers appropriate and to pay compensation for any expense incurred by a person adversely affected by the licensee’s failure to apply the fares, rates, charges or terms or conditions of carriage applicable to the service it offers that were set out in its tariffs;

...

(j) requiring licensees to include in contracts and arrangements with tour operators, charterers and other persons in conjunction with whom air services are provided to the public, or to make such contracts and arrangements subject to, terms and conditions specified or referred to in the regulations;

(3) Existing text of subsection 86(3):

(3) A regulation or order made under this Part may be conditional or unconditional or qualified or unqualified and may be general or restricted to a specific area, person or thing or group or class of persons or things.

Clause 30: New.

Clause 31: New.

Clause 32: New.

Clause 33: Existing text of the heading and section 104:

Mortgages and Hypothecs

104. (1) A mortgage or hypothec issued by a railway company, or an assignment or other document affecting the mortgage or hypothec, may be deposited in the office of the Registrar General of Canada, and notice of the deposit must be published in the Canada Gazette without delay.

(2) The mortgage or hypothec, assignment or other document need not be deposited, registered or filed under any other law or statute respecting real or personal property if it has been deposited and a notice has been published in accordance with subsection (1).

Clause 34: (1) Existing text of subsections 105(1) and (2):

105. (1) A document, or a copy or summary of a document, evidencing any of the following transactions may be deposited in the office of the Registrar General of Canada:

(a) a lease, sale, conditional sale, mortgage, hypothec, bailment or security agreement relating to rolling stock or any accessories or appurtenances relating thereto; and

(b) an amendment, assignment or discharge of a document mentioned in paragraph (a).

(2) A summary of a document must include any information that the Governor in Council may prescribe by regulation.

(2) Existing text of subsection 105(4):

(4) Notice of the deposit must be published in the Canada Gazette without delay.

Clause 35: New.

Clause 36: Existing text of subsections 106(5) and (6):

(5) No order of the Federal Court or any other court restraining action against the railway company affects the right of any person to take possession of the rolling stock of the company as a creditor under a security agreement, bailment, mortgage or hypothec or as a lessor or conditional vendor, whether as trustee or otherwise, unless

(a) within 60 days after filing the scheme of arrangement, or any extended period to which the person may agree, the railway company agrees to perform all its obligations under the security agreement, bailment, mortgage, hypothec, lease or conditional sale agreement; and

(b) any event that occurred before or after the scheme was filed and that constitutes a default under the security agreement, bailment, mortgage, hypothec, lease or conditional sale agreement is cured before the later of

(i) 30 days after the event, and

(ii) the end of the period mentioned in paragraph (a).

(6) An extension of the 60 day period under paragraph (5)(a) does not prejudice the right to take possession of the rolling stock.

Clause 37: (1) Existing text of subsection 108(2):

(2) Notice of the application must be published in the Canada Gazette.

(2) Existing text of subsection 108(5):

(5) Notice of the confirmation and registration of the scheme must be published in the Canada Gazette.

Clause 38: (1) and (2) Existing text of the definitions:

“competitive line rate” means a rate determined with respect to a shipper in accordance with section 133;

“connecting carrier” means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route in respect of which the railway company and the shipper agree on the movement of the traffic, including the applicable rate;

(3) New.

Clause 39: Existing text of section 119:

119. (1) A railway company that proposes to increase a rate in a tariff for the movement of traffic shall publish a notice of the increase at least twenty days before its effective date.

(2) If a railway company issues and publishes a tariff of rates for the movement of traffic in accordance with this Division and Division VI,

(a) the rates are the lawful rates of the railway company and, subject to subsection (1), they take effect on the date stated in the tariff;

(b) the tariff supersedes any preceding tariff or any portion of it in so far as any rate in the tariff is varied; and

(c) a railway company that owns or operates a railway line in respect of which the tariff is issued shall charge the rates in the tariff until they expire or until the tariff is superseded by a new tariff.

Clause 40: Relevant portion of subsection 128(1):

128. (1) The Agency may make regulations

...

(b) determining the rate per car to be charged for interswitching traffic, or prescribing the manner of determining that rate, including the adjustments to be made to that rate as a result of changes in costs, and establishing distance zones for those purposes; and

Clause 41: Existing text of the heading:

Competitive Line Rates

Clause 42: Existing text of subsection 129(1):

129. (1) Sections 130 to 136 apply where

(a) a shipper has access to the lines of only one railway company at the point of origin or destination of the movement of the shipper’s traffic; and

(b) a continuous route between those points is operated by two or more companies.

Clause 43: Existing text of subsections 130(1) and (2):

130. (1) Subject to section 131, the local carrier serving the shipper at the point of origin or destination, as the case may be, shall, on the request of the shipper, establish a competitive line rate applicable to the movement of the traffic between the point of origin or destination, whichever is served exclusively by the local carrier, and the nearest interchange with a connecting carrier.

(2) The local carrier shall establish the competitive line rate even if it is able to move the traffic over the whole of the continuous route or a portion of that route that is longer than the portion in respect of which the competitive line rate is to apply.

Clause 44: Existing text of sections 131 to 133:

131. (1) A competitive line rate must not be established unless the shipper agrees with the connecting carrier, and with any other company, other than the local carrier, that moves traffic over a portion of the continuous route, on the terms and conditions governing their movement of the traffic, including the applicable rate.

(2) If an interswitching rate determined under paragraph 128(1)(b) is available for a portion of the route operated by the local carrier, no other rate may be applied to that portion of the route.

(3) A competitive line rate must not be established for the movement of trailers on flat cars, containers on flat cars or less than carload traffic, unless they arrive at a port in Canada by water for movement by rail or by rail for movement by water.

(4) The portion of a movement of traffic in respect of which a competitive line rate may be established must not exceed 50 per cent of the total number of kilometres over which the traffic is moved by rail or 1 200 km, whichever is greater.

(5) On application of a shipper, the Agency may establish a competitive line rate for a greater portion of a movement of traffic if the Agency is satisfied that no interchange exists within the maximum portion referred to in subsection (4).

(6) If a competitive line rate has been established for a movement of traffic of a shipper, no other competitive line rate may be established in respect of that movement while the rate is in effect.

132. (1) On the application of a shipper, the Agency shall, within forty-five days after receiving the application, establish any of the following matters in respect of which the shipper and the local carrier do not agree:

(a) the amount of the competitive line rate;

(b) the designation of the continuous route;

(d) the manner in which the local carrier shall fulfil its service obligations.

(2) If a matter is established by the Agency under this section, the shipper is not entitled to submit the matter to the Agency for final offer arbitration under section 161.

133. (1) A competitive line rate in respect of the movement of traffic of a shipper is the result obtained by applying the following formula:

A + (B/C x (D - E))

where

A is the amount resulting from the application of the interswitching rate;

B is the total revenue that the local carrier received in respect of all movement over its lines of railway

(a) of traffic that

(i) is the same as or substantially similar to, the traffic moved, and

(ii) is moved over similar distances, unless no such traffic is moved over similar distances; and

(b) during the most recent period designated by the local carrier or any other period determined by the Agency, if the Agency determines that the designated period is not appropriate in the circumstances;

C is the total number of tonne kilometres of the movement of traffic that generated the total revenue;

D is the number of kilometres over which the competitive line rate is to apply; and

E is the total number of kilometres to which the interswitching rate is applicable.

(2) If a shipper performs any of the activities in respect of which an interswitching rate is applicable, the applicable interswitching rate in the description of A in the formula must be adjusted to account for the performance of those activities.

(3) The Agency may make an order in respect of a particular shipper or railway company, or make regulations that apply generally to shippers or railway companies, establishing an alternative method of determining the amount of a competitive line rate if the amount cannot be determined in accordance with this section.

(4) A competitive line rate determined under this section must not be less than the variable costs of moving the traffic, as determined by the Agency.

Clause 45: New.

Clause 46: (1) Existing text of subsection 136(1):

136. (1) If a competitive line rate is established, a railway company, other than the local carrier, shall provide the shipper with an adequate supply of cars for the traffic being moved.

(2) Existing text of subsection 136(4):

(4) The tariff setting out a competitive line rate must set out the manner in which the local carrier issuing the tariff shall, subject to subsection (1), fulfil its service obligations

(a) as agreed on by the shipper and the local carrier, if they agree on the amount of the competitive line rate; or

(b) as determined by the Agency, if the amount of the competitive line rate is established by the Agency under section 132.

Clause 47: New.

Clause 48: Existing text of subsection 141(3):

(3) A railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation.

Clause 49: Existing text of subsections 143(3) and (4):

(3) The advertisement must also disclose the existence of any agreement between the railway company and VIA Rail Canada Inc. in respect of the operation of a rail passenger service on the railway line if VIA Rail advises the railway company that it agrees to the transfer of the company’s rights and obligations under the agreement to any person to whom the line, or the company’s operating interest in it, is transferred.

(4) If VIA Rail has not advised the railway company that it agrees to the transfer, or has advised that it does not agree to the transfer, the agreement terminates in respect of the railway line on the effective date of any transfer of the line, or the company’s operating interest, under this Division.

Clause 50: Existing text of subsection 144(2):

(2) If the advertisement has disclosed the existence of an agreement mentioned in subsection 143(3), the railway company shall, in evaluating each offer, consider whether the offeror is willing to assume the company’s rights and obligations under the agreement in respect of the railway line.

Clause 51: New.

Clause 52: (1) to (5) Existing text of section 145:

145. (1) The railway company shall offer to transfer all of its interest in the railway line to the governments mentioned in this section for not more than its net salvage value to be used for any purpose if

(a) no person makes their interest known to the railway company, or no agreement with an interested person is reached, within the required time; or

(b) an agreement is reached within the required time, but the transfer is not completed in accordance with the agreement.

(2) After the requirement to make the offer arises, the railway company shall send it simultaneously

(a) to the Minister if the railway line passes through

(i) more than one province or outside Canada,

(ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act, or

(iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims;

(b) to the minister responsible for transportation matters in the government of each province that the railway line passes through; and

(c) to the clerk or other senior administrative officer of each municipal or district government through whose territory the railway line passes.

(3) After the offer is received

(a) by the Minister, the Government of Canada may accept it within thirty days;

(b) by a provincial minister, the government of the province may accept it within thirty days, unless the offer is received by the Minister, in which case the government of each province may accept it within an additional thirty days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph; and

(c) by a municipal or district government, it may accept it within an additional thirty days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs.

(4) Once a government communicates its written acceptance of the offer to the railway company, the right of any other government to accept the offer is extinguished and the railway company shall notify the other governments of the acceptance.

(5) If a government accepts the offer, but cannot agree with the railway company on the net salvage value within ninety days after the acceptance, the Agency may, on the application of the government or the railway company, determine the net salvage value.

Clause 53: Existing text of sections 146 and 146.1:

146. (1) Where a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest therein is not entered into through that process, the railway company may discontinue operating the line on providing notice thereof to the Agency. Thereafter, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by VIA Rail Canada Inc. over the railway line.

(2) If the railway line, or any interest of the railway company therein, is sold, leased or otherwise transferred by an agreement entered into through the process prescribed by sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by VIA Rail Canada Inc. over the railway line as and from that date.

146.1 A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

Clause 54: (1) Relevant portion of subsection 151(4):

(4) The following rules are applicable to the volume-related composite price index:

...

(c) the Agency shall make adjustments to the index to reflect the incremental costs incurred by the prescribed railway companies for the purpose of obtaining cars as a result of the sale, lease or other disposal or withdrawal from service of government hopper cars.

(2) New.

Clause 55: New.

Clause 56: (1) New.

Clause 57: Existing text of subsection 157.1(1):

Clause 58: Existing text of the heading and section 158:

Police Constables

158. (1) A judge of a superior court may appoint a person as a police constable for the enforcement of this Part and for the enforcement of the laws of Canada or a province in so far as their enforcement relates to the protection of property owned or administered by a railway company and the protection of persons and property on that property.

(2) The appointment must only be made on the application of a railway company that owns or administers property located within the judge’s jurisdiction.

(3) The police constable has jurisdiction on property under the administration of the railway company and in any place within 500 m of property that it owns or administers.

(4) The police constable may take a person charged with an offence under this Part, or any law referred to in subsection (1), before a court that has jurisdiction in such cases over any area where property owned or administered by the railway company is located, whether or not the person was arrested, or the offence occurred or is alleged to have occurred, within that area.

(5) The court shall deal with the person as though the person had been arrested, and the offence had occurred, within the area of the court’s jurisdiction, but the court shall not deal with the person if the offence is alleged to have occurred outside the province in which the court is sitting.

Clause 59: Existing text of section 160:

160. Sections 161 to 169 also apply, with such modifications as the circumstances require, in respect of the rates charged or proposed to be charged by, or any of the conditions associated with the provision of services by, a railway company to

(a) a commuter rail authority designated by the government of a province; or

(b) a railway company engaged in passenger rail services.

Clause 60: Existing text of subsection 161(1):

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.

Clause 61: Relevant portion of section 164.1:

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:

Clause 62: New.

Clause 63: New.

Clause 64: (1) and (2) Relevant portion of section 177:

177. The Agency may, by regulation,

...

(b) prescribe the maximum amount payable for each violation, but the amount shall not exceed

(i) $5,000, in the case of an individual, and

(ii) $25,000, in the case of a corporation.

(3) New.

Clause 65: (1) Relevant portion of subsection 178(1):

178. (1) The Agency may

(2) Existing text of subsection 178(3):

(3) Every person designated as an enforcement officer pursuant to paragraph (1)(a) shall receive an authorization in prescribed form attesting to the person’s designation and shall, on demand, present the authorization to any person from whom the enforcement officer requests information in the course of the enforcement officer’s duties.

Clause 66: Existing text of subsection 179(1):

179. (1) Every person who contravenes a provision, requirement or condition designated under section 177 commits a violation and is liable to a penalty fixed pursuant to that section.

Clause 67: (1) Existing text of subsection 180(1):

180. (1) Where a person designated as an enforcement officer pursuant to paragraph 178(1)(a) believes that a person has committed a violation, the enforcement officer may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out

(a) the penalty, established in accordance with the regulations, for the violation that the person is liable to pay; and

(b) particulars concerning the time for paying and the manner of paying the penalty.

(2) and (3) Relevant portion of subsection 180(2):

(2) Sections 7.8 to 8.2, 36 and 37 of the Aeronautics Act apply to the contravention of a provision, requirement or condition designated under section 177, with such modifications as are necessary, and a reference in any of those provisions or in any document issued under any of those provisions to

...

(b) “designated provision” shall be read as a reference to a provision, requirement or condition designated under paragraph 177(a);

(c) “Minister” shall be read as a reference to the Agency or, in any provision other than subsection 7.8(1) of the Aeronautics Act, to a person designated by the Agency;

...

(e) “regulations made under paragraph 7.6(1)(b)” shall be read as a reference to regulations made under paragraph 177(b).

Clause 68: New.

Clause 70: New.

Railway Safety Act

Clause 72: Existing text of subsection 34(1):

34. (1) An order or emergency directive made by the Minister may be made an order of any superior court, and shall be enforced in the same manner as an order of the court.

Clause 73: (1) New.

Air Canada Public Participation Act

Clause 75: (1) Existing text of subsections 10.1(1) and (2):

10.1 (1) The proposed acquisition described in a letter dated December 21, 1999 from 853350 Alberta Ltd. and Air Canada to the Minister of Transport is deemed to be a transaction that has been approved by the Governor in Council under subsection 56.2(6) of the Canada Transportation Act on the day on which that subsection comes into force.

(2) The undertakings provided by 853350 Alberta Ltd. and Air Canada to the Minister of Transport in the letter referred to in subsection (1) are deemed to be terms and conditions of an order made under subsection 56.2(6) of the Canada Transportation Act that relate to national transportation concerns, and the undertakings provided by 853350 Alberta Ltd. and Air Canada to the Commissioner of Competition that are set out in Annex A to a letter from the Commissioner dated December 21, 1999 in respect of the acquisition referred to in that subsection are deemed to be terms and conditions of an order made under subsection 56.2(6) of the Canada Transportation Act that relate to potential prevention or lessening of competition.

(2) Relevant portion of subsection 10.1(4):

(4) The Governor in Council may, by order, declare that 853350 Alberta Ltd. and Air Canada are not subject to the terms and conditions referred to in subsection (2) if the undertakings cease to have effect and are not revived in the circumstances described in

Canada Labour Code

Clause 76: Existing text of the definition:

“private constable” means a person appointed as a constable under Part III of the Canada Transportation Act;

Competition Act

Clause 77: Existing text of subsections 29.1(3) to (5):

(3) Requests under this section must be in writing and must

(a) specify the information referred to in any of paragraphs (2)(a) to (f) that is required; and

(b) state that the Minister of Transport requires the information for the purposes of section 56.1 or 56.2 of the Canada Transportation Act and identify the transaction being considered under that section.

(4) The information communicated under subsection (1) may be used only for the purposes of section 56.1 or 56.2, as the case may be, of the Canada Transportation Act.

Clause 78: Relevant portion of section 94:

94. The Tribunal shall not make an order under section 92 in respect of

...

(c) a merger or proposed merger approved under subsection 56.2(6) of the Canada Transportation Act and in respect of which the Minister of Transport has certified to the Commissioner the names of the parties.

SCHEDULE

(Section 70)

SCHEDULE III

(Section 172.02)

BRIDGES AND TUNNELS ACTS

An Act respecting Niagara Lower Arch Bridge Company Limited, S.C. 1956, c. 64

Loi concernant la « Niagara Lower Arch Bridge Company Limited »

An Act respecting Niagara River Bridge Company, S.C. 1922, c. 63

Loi concernant la « Niagara River Bridge Company »

An Act respecting the acquisition, operation and disposal of the Windsor-Detroit Tunnel by the City of Windsor, S.C. 1987, c. 55

Loi concernant l’acquisition, l’exploitation et l’aliénation du Tunnel Windsor-Détroit par la cité de Windsor

An Act respecting the Canada Southern Bridge Company, S.C. 1877, c. 63

Acte concernant la Compagnie du Pont du Sud du Canada

An Act respecting the International Bridge Company, S.C. 1869, c. 65

Acte concernant la Compagnie du Pont International

An Act to incorporate Baudette and Rainy River Municipal Bridge Company, S.C. 1955, c. 61

Loi constituant en corporation « Baudette and Rainy River Municipal Bridge Company »

An Act to incorporate Buffalo and Fort Erie Public Bridge Company, S.C. 1923, c. 74

Loi constituant en corporation la « Buffalo and Fort Erie Public Bridge Company »

An Act to incorporate Lake of the Woods International Bridge Company, S.C. 1932, c. 59

Loi constituant en corporation la « Lake of the Woods International Bridge Company »

An Act to incorporate Ogdensburg Bridge Authority, S.C. 1952, c. 57

Loi constituant en corporation « Ogdensburg Bridge Authority »

An Act to incorporate St. Mary’s River Bridge Company, S.C. 1955, c. 64

Loi constituant en corporation « St. Mary’s River Bridge Company »

An Act to incorporate the Brockville and New York Bridge Company, S.C. 1886, c. 91

Acte constituant en corporation la Compagnie du Pont de Brockville et New-York

An Act to incorporate the Buffalo and Fort Erie Bridge Company, S.C. 1891, c. 65

Acte constituant en corporation la Compagnie du pont de Buffalo et Fort-Erié

An Act to incorporate the Calais and St. Stephen Railway Bridge Company, S.C. 1882, c. 75

Acte à l’effet d’incorporer la Compagnie du Pont de chemin de fer de Calais à St.-Stephen

An Act to incorporate the Canada and Detroit River Bridge Company, S.C. 1873, c. 90

Acte pour incorporer la Compagnie du Pont du Canada et de la Rivière Détroit

An Act to incorporate the Canada and Michigan Tunnel Company, S.C. 1888, c. 93

Acte constituant en corporation la Compagnie du tunnel du Canada et du Michigan

An Act to incorporate the Canada and New York Bridge and Tunnel Company, S.C. 1872, c. 88

Acte pour incorporer la compagnie du pont et tunnel du Canada et de New-York

An Act to incorporate the Canadian-Minnesota Bridge Company, S.C. 1906, c. 76

Acte constituant en corporation la Canadian-Minnesota Bridge Company

An Act to incorporate The Canadian Niagara Bridge Company, S.C. 1918, c. 62

Loi constituant en corporation « The Canadian Niagara Bridge Company »

An Act to incorporate The Canadian Transit Company, S.C. 1921, c. 57

Loi constituant en corporation « The Canadian Transit Company »

An Act to incorporate The Detroit and Windsor Subway Company, S.C. 1926-27, c. 83

Loi constituant en corporation « The Detroit and Windsor Subway Company »

An Act to incorporate The Detroit River Canadian Bridge Company, S.C. 1928, c. 58

Loi constituant en corporation « The Detroit River Canadian Bridge Company »

An Act to incorporate the Detroit River Tunnel Company, S.C. 1870, c. 51

Acte pour incorporer la compagnie du tunnel de la rivière Détroit

An Act to incorporate the Fort Erie and Buffalo Bridge Company, S.C. 1909, c. 83

Loi constituant en corporation la Fort Erie and Buffalo Bridge Company

An Act to incorporate the Grenville International Bridge Company, S.C. 1888, c. 90

Acte constituant en corporation la Compagnie du Pont International de Grenville

An Act to incorporate the International Bridge and Terminal Company, S.C. 1905, c. 108

Acte constituant en corporation la compagnie dite International Bridge and Terminal Company

An Act to incorporate the Mather Bridge and Power Company, S.C. 1896 (2nd), c. 13

Acte constituant en corporation la Compagnie de pont et de force Mather

An Act to incorporate the Niagara Falls Bridge Company, S.C. 1887, c. 96

Acte constituant en corporation la Compagnie du Pont des Chutes de Niagara

An Act to incorporate the Niagara Frontier Bridge Company, S.C. 1884, c. 81

Acte à l’effet d’incorporer la Compagnie du Pont de la Frontière de Niagara

An Act to incorporate the Niagara Grand Island Bridge Company, S.C. 1874, c. 77

Acte pour incorporer la Compagnie du Pont de la Grande Ile de Niagara

An Act to incorporate the Niagara Peninsula Bridge Company, S.C. 1882, c. 88

Acte à l’effet d’incorporer la Compagnie du Pont de la Péninsule de Niagara

An Act to incorporate the Ontario and New York Bridge Company, S.C. 1891, c. 67

Acte constituant en corporation la Compagnie du pont d’Ontario et New-York

An Act to incorporate The Ontario Niagara Connecting Bridge Company, S.C. 1916, c. 31

Loi constituant en corporation The Ontario Niagara Connecting Bridge Company

An Act to incorporate the Père Marquette International Bridge Company, S.C. 1903, c. 175

Acte constituant en corporation la compagnie dite The Père Marquette International Bridge Company

An Act to incorporate the Queenston Heights Bridge Company, S.C. 1896, c. 43

Acte constituant en corporation la Compagnie du pont des Hauteurs de Queenston

An Act to incorporate the River Detroit Winter Railway Bridge Company, S.C. 1888, c. 91

Acte constituant en corporation la Compagnie du pont d’hiver pour chemin de fer de la rivière Détroit

An Act to incorporate the River St. Clair Railway Bridge and Tunnel Company, S.C. 1872, c. 87

Acte pour incorporer la compagnie du pont et tunnel de chemin de fer de la rivière Ste. Claire

An Act to incorporate the Sault Ste Marie Bridge Company, S.C. 1882, c. 89

Acte à l’effet d’incorporer la Compagnie du Pont du Sault Sainte-Marie

An Act to incorporate the Shore Line Railway Bridge Company, S.C. 1890, c. 94

Acte constituant en corporation la Compagnie du pont de chemin de fer de la Ligne riveraine

An Act to incorporate the St. Clair Transit Company, S.C. 1928, c. 64

Loi constituant en corporation la « St. Clair Transit Company »

An Act to incorporate the St. John River Bridge Company, S.C. 1895, c. 74

Acte constituant en corporation la Compagnie des ponts de la rivière Saint-Jean

An Act to incorporate The St. Lawrence River Bridge Company, S.C. 1928, c. 65

Loi constituant en corporation « The St. Lawrence River Bridge Company »

An Act to incorporate the St. Mary River Bridge Company, S.C. 1901, c. 112

Acte constituant en corporation la Compagnie du pont de la rivière Sainte-Marie

An Act to incorporate the Trans-Niagara Bridge Company, S.C. 1906, c. 171

Acte constituant en corporation la Trans-Niagara Bridge Company

An Act to incorporate the Windsor and Detroit Union Bridge Company, S.C. 1898, c. 120

Acte constituant en corporation la Compagnie du Pont Union de Windsor à Détroit

An Act to incorporate Thousand Islands Bridge Company, S.C. 1934, c. 66

Loi constituant en corporation la « Thousand Islands Bridge Company »

Blue Water Bridge Authority Act, S.C. 1964-65, c. 6

Loi sur l’Administration du pont Blue Water

Campobello-Lubec Bridge Act, S.C. 1958, c. 23

Loi relative au pont de Campobello à Lubec

Fort-Falls Bridge Authority Act, S.C. 1970-71-72, c. 51

Loi sur l’Administration du pont Fort-Falls

Milltown Bridge Act, S.C. 1966-67, c. 9

Loi sur le pont de Milltown

Pigeon River Bridge Act, S.C. 1959, c. 51

Loi concernant un pont sur la rivière Pigeon

Queenston Bridge Act, S.C. 1959, c. 53

Loi relative au pont de Queenston

The Grand Trunk (International Bridge), Act, 1872, S.C. 1872, c. 63

L’Acte du Grand Tronc (pont international), 1872

The St. Lawrence International Bridge Act, 1872, S.C. 1872, c. 90

L’Acte du pont international du St. Laurent, 1872

Published under authority of the Speaker of the House of Commons

Available from:
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Table of Contents

CANADA TRANSPORTATION ACT

Amendments

Mediation

Review of Mergers and Acquisitions

Issuance Of International Charter Permits

Air Travel Complaints

Noise

Security

Regulations

Competitive Connection Rates

List of Available Sidings

Public Passenger Service Providers

Dispute Resolution

Agreements

INTERNATIONAL BRIDGES AND TUNNELS

Interpretation and Application

Construction and Alteration

Maintenance and Repair

Operation

Security and Safety

Incorporation By Letters Patent

Shares of a Corporation

Enforcement

Transitional Provisions

MANDATE, CAPACITY AND POWERS

Chief Executive Officer

TRANSITIONAL PROVISIONS

CONSEQUENTIAL AND COORDINATING AMENDMENTS AND COMING INTO FORCE

Consequential Amendments

Air Canada Public Participation Act

Canada Labour Code

Competition Act

Federal-Provincial Fiscal Arrangements Act

Financial Administration Act

Payments in Lieu of Taxes Act

Regulations and Other Instruments

Coordinating Amendments

Canada Transportation Act

Transportation Appeal Tribunal of Canada Act

Coming into Force

Schedule 1

BRIDGES AND TUNNELS ACTS