Bill C-2

Coordinating Amendment

226. On the later of the day on which section 81 of the Parliament of Canada Act, as enacted by section 28 of this Act, comes into force and the day on which section 24 of the Public Servants Disclosure Protection Act comes into force ― or, if those days are the same day, then on that day ― section 24 of the Public Servants Disclosure Protection Act is amended by adding the following after subsection (2):

(2.1) The Commissioner must refuse to deal with a disclosure or to commence an investigation if he or she is of the opinion that the subject-matter of the disclosure or the investigation is within the jurisdiction of the Conflict of Interest and Ethics Commissioner under the Conflict of Interest Act and must refer the matter to the Conflict of Interest and Ethics Commissioner.

Salaries Act

227. The Salaries Act is amended by adding the following after section 1:

PUBLIC APPOINTMENTS COMMISSION

1.1 (1) The Governor in Council may establish a Public Appointments Commission, consisting of a chairperson and not more than four other members

(a) to oversee, monitor, review and report on the selection process for appointments and reappointments by the Governor in Council to agencies, boards, commissions and Crown corporations, and to ensure that every such process is widely made public and conducted in a fair, open and transparent manner and that the appointments are based on merit;

(b) to evaluate and approve the selection processes proposed by ministers to fill vacancies and determine reappointments within their portfolios, monitor and review those processes, and ensure that they are implemented as approved, giving special attention to any instances in which ministers make appointments that are inconsistent with the recommendations of appointment panels;

(c) to develop and establish a code of practice for appointments by the Governor in Council and ministers that sets out the steps that are necessary for a fair, open and transparent appointment process, including requirements for appointments and criteria for appointments to be made fully public;

(d) to audit appointment policies and practices in order to determine whether the code of practice is being observed;

(e) to report publicly on compliance with the code of practice, in particular by providing an annual report to the Prime Minister to be transmitted to the Speaker of each House of Parliament for tabling and referral to the appropriate committee of that House for study;

(f) to provide public education and training of public servants involved in appointment and reappointment processes regarding the code of practice; and

(g) to perform any other function specified by the Governor in Council.

(2) Before making a recommendation to the Governor in Council that a person be appointed to the Commission, the Prime Minister shall consult with the leader of every recognized party in the House of Commons. An announcement of an appointment shall be transmitted to the Speaker of the House of Commons for tabling in that House.

(3) Members of the Commission hold office during good behaviour for a term of five years and may be reappointed for a further term or terms, but are removable for cause by the Governor in Council.

(4) In its report, the Commission shall identify any material failure to comply with its code of practice by any department, Minister or official.

1.2 (1) Members of the Public Appointments Commission shall be paid the remuneration and expenses fixed by the Governor in Council.

(2) Any employees that are required by the Commission to enable it to carry out its functions shall be appointed in accordance with the Public Service Employment Act.

Coming into Force

228. (1) Sections 3.01 and 3.1 of the Access to Information Act, as enacted by section 142 of this Act, and section 3.01 of the Privacy Act, as enacted by section 182 of this Act, as well as subsection 141(2), sections 143 to 149, 154 and 157 to 160, subsection 163(1), sections 164 to 179, subsection 181(2) and sections 183, 184 and 186 to 193 of this Act and any provisions enacted by those provisions come into force on a day or days to be fixed by order of the Governor in Council.

(2) Despite subsection (1), the definition “government institution” in section 3 of the Access to Information Act, as enacted by subsection 141(2) of this Act, and the definition “government institution” in section 3 of the Privacy Act, as enacted by subsection 181(2) of this Act, do not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds of the included provinces, within the meaning of subsection 114(1) of the Canada Pension Plan, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the application of those definitions to the Board.

PART 4

ADMINISTRATIVE OVERSIGHT AND ACCOUNTABILITY

Business Development Bank of Canada Act

229. Subsection 6(4) of the Business Development Bank of Canada Act is replaced by the following:

(4) The other directors are to be appointed by the Designated Minister, with the approval of the Governor in Council, for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than half of the directors.

Canada Council for the Arts Act

230. Subsection 4(2) of the Canada Council for the Arts Act is replaced by the following:

(2) Each of the other members of the Council shall be appointed for a term of four years.

Canada Mortgage And Housing Corporation Act

231. (1) The definition “Chairman” in section 2 of the English version of the Canada Mortgage and Housing Corporation Act is repealed.

(2) Section 2 of the English version of the Act is amended by adding the following in alphabetical order:

“Chairperson” means the Chairperson of the Board, appointed pursuant to subsection 6(2);

232. Subsection 6(4) of the Act is replaced by the following:

(4) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

233. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions:

(a) subsections 6(1) to (3);

(b) section 9;

(c) subsection 10(2);

(d) subsection 12(1); and

(e) section 15.

Canada Post Corporation Act

234. (1) The definition “Chairman” in subsection 2(1) of the English version of the Canada Post Corporation Act is repealed.

(2) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order:

“Chairperson” means the Chairperson of the Board, appointed pursuant to section 7;

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

(2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

236. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions:

(a) subsection 6(1);

(b) subsection 6(5);

(c) section 7 and the heading before it;

(d) paragraph 11(c); and

(e) subsections 13(3) and (4).

Canada Revenue Agency Act

237. Subsection 30(1) of the Canada Revenue Agency Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following at the end of paragraph (d):

(e) internal audit in the Agency.

Canadian Commercial Corporation Act

238. Subsection 3.1(3) of the Canadian Commercial Corporation Act is replaced by the following:

(3) Each director of the Corporation, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

Canadian Dairy Commission Act

Amendments to Act

239. The definition “Commission” in section 2 of the Canadian Dairy Commission Act is replaced by the following:

“Commission” means the Canadian Dairy Commission continued by section 3;

240. (1) Subsection 3(1) of the Act is replaced by the following:

3. (1) The Canadian Dairy Commission is continued as a corporation consisting of a Chairperson, a Chief Executive Officer and one other member.

(2) Subsection 3(4) of the Act is repealed.

241. Subsection 5(1) of the English version of the Act is replaced by the following:

5. (1) The Minister shall appoint a Consult­ative Committee consisting of a chairperson and eight other members.

Transitional Provision

242. On the day on which this section comes into force, the person occupying the position of Chairman of the Canadian Dairy Commission ceases to occupy that position and becomes the Chief Executive Officer of the Commission as if appointed to that position under section 3 of the Canadian Dairy Commission Act for a period equal to the remainder of the person’s term of office as Chairman.

Canadian Race Relations Foundation Act

243. Subsection 7(1) of the Canadian Race Relations Foundation Act is replaced by the following:

7. (1) Each director shall be appointed to hold office for a term not exceeding four years.

244. Subsection 17(3) of the Act is replaced by the following:

(3) Part X of the Financial Administration Act, except for sections 131 to 148 and 154.01, does not apply to the Foundation.

Cape Breton Development Corporation Act

245. Subsection 4(2) of the Cape Breton Development Corporation Act is replaced by the following:

(2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years.

Criminal Code

246. Subsection 750(3) of the Criminal Code is replaced by the following:

(3) No person who is convicted of

(a) an offence under section 121, 124 or 418,

(b) an offence under section 380 committed against Her Majesty, or

(c) an offence under paragraph 80(1)(d), subsection 80(2) or section 154.01 of the Financial Administration Act,

has, after that conviction, capacity to contract with Her Majesty or to receive any benefit under a contract between Her Majesty and any other person or to hold office under Her Majesty.

Enterprise Cape Breton Corporation Act

Amendments to Act

247. (1) The definition “Vice-President” in section 26 of the Enterprise Cape Breton Corporation Act is repealed.

(2) The definition “President” in section 26 of the English version of the Act is repealed.

(3) Section 26 of the Act is amended by adding the following in alphabetical order:

“Chief Executive Officer” means the Chief Executive Officer of the Corporation appointed under subsection 28(1);

(4) Section 26 of the English version of the Act is amended by adding the following in alphabetical order:

“Chairperson” means the President of the Atlantic Canada Opportunities Agency appointed pursuant to subsection 11(1) of the Atlantic Canada Opportunities Agency Act;

248. Section 27 of the Act and the heading before it are replaced by the following:

Corporation Continued

27. The Enterprise Cape Breton Corporation is continued as a corporation consisting of a Board of Directors comprising the Chairperson, a Chief Executive Officer and five other directors appointed in accordance with subsection 28(2).

249. Subsections 28(1) to (3) of the Act are replaced by the following:

28. (1) The Chief Executive Officer shall be appointed by the Governor in Council for a term that the Governor in Council considers appropriate, and may be removed at any time by the Governor in Council.

(2) Each director, other than the Chairperson and the Chief Executive Officer, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. Each director may be removed at any time by the Minister, with the approval of the Governor in Council.

(3) The Chief Executive Officer is eligible for re-appointment on the expiration of a term of office. Notwithstanding subsection 105(3) of the Financial Administration Act, any other director who has served two consecutive terms is not, during the twelve months following the completion of a second term, eligible for appointment except as Chairperson or Chief Executive Officer.

250. Sections 29 and 30 of the Act are replaced by the following:

29. The Chairperson shall preside at meetings of the Board, but in the event of the absence or incapacity of the Chairperson or a vacancy in that office, the Chief Executive Officer shall preside.

30. (1) The Chief Executive Officer of the Corporation has, on behalf of the Board, the direction and control of the business of the Corporation with authority to act in the conduct of that business in all matters that are not by this Part or by the by-laws of the Corporation specifically reserved to be done by the Board.

(2) In the event of the absence or incapacity of the Chief Executive Officer or a vacancy in that office, the Board shall authorize another officer or director of the Corporation to act as the Chief Executive Officer, but no person may act as such for a period exceeding sixty days without the approval of the Governor in Council.

251. (1) Subsection 31(1) of the Act is replaced by the following:

31. (1) The Chief Executive Officer shall be paid by the Corporation a salary to be fixed by the Governor in Council. The other directors, except the Chairperson, shall be paid by the Corporation the fees fixed by the Governor in Council for attendance at meetings of the Board or any committee of the Board.

(2) Subsection 31(2) of the English version of the Act is replaced by the following:

(2) Each director other than the Chairperson is entitled to be paid by the Corporation the travel and living expenses incurred in the performance of the director’s duties that are fixed by by-law of the Corporation.

252. (1) Paragraph 39(c) of the English version of the Act is replaced by the following:

(c) fixing the travel and living expenses to be paid to directors other than the Chairperson;

(2) Paragraph 39(e) of the Act is replaced by the following:

(e) respecting the establishment, management and administration of a pension fund for the Chief Executive Officer and the officers and employees of the Corporation and dependants of those persons, the contributions to be made to the fund by the Corporation and the investment of the pension fund moneys; and

Transitional Provision

253. On the day on which this section comes into force, the person occupying the position of Vice-President of the Enterprise Cape Breton Corporation ceases to occupy that position and becomes the Chief Executive Officer of the Corporation, as if appointed to that position under subsection 28(1) of the Enterprise Cape Breton Corporation Act, for a term of office equivalent to the remainder of the person’s term as Vice-President.

Export Development Act

254. Subsection 4(1) of the Export Development Act is replaced by the following:

4. (1) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

Farm Credit Canada Act

255. Subsection 5(2) of the Farm Credit Canada Act is replaced by the following:

(2) The directors, other than the Chairperson and the President, shall be appointed by the Minister of Agriculture and Agri-Food, with the approval of the Governor in Council, for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

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

8. (1) The Board may establish an executive committee and any other committees that the Board considers advisable, and may determine their composition and duties and the tenure of their members.

Financial Administration Act

Amendments to Act

257. Section 3 of the Financial Administration Act is amended by adding the following after subsection (9):

(10) The Governor in Council may, by order,

(a) add to Part I of Schedule VI the name of any department named in Schedule I;

(b) add to Part II or III of Schedule VI the name of any department and a reference to the accounting officer for the department;

(c) amend Part II or III of Schedule VI by replacing a reference to the accounting officer for a department with a new reference;

(d) move from Part II to Part III of Schedule VI, or from Part III to Part II of that Schedule, the name of a department and the reference to its accounting officer;

(e) amend Part I, II or III of Schedule VI by replacing the former name of a department with the new name; and

(f) delete the name of a department and the reference to its accounting officer from Part I, II or III of Schedule VI, where the department has ceased to exist or become part of another department.

258. Subsection 7(1) of the Act is amended by adding the following after paragraph (e.1):

(e.2) internal audit in the federal public administration;

259. The Act is amended by adding the following after section 16:

PART I.1

INTERNAL AUDIT AND ACCOUNTING OFFICERS

16.1 The deputy head or chief executive officer of a department is responsible for ensuring an internal audit capacity appropriate to the needs of the department.

16.2 Subject to and except as otherwise provided in any directives issued by the Treasury Board under paragraph 7(1)(e.2), the deputy head or chief executive officer of a department shall establish an audit committee for the department.

16.3 In sections 16.4 and 16.5, “accounting officer”

(a) with respect to a department named in Part I of Schedule VI, means its deputy minister; and

(b) with respect to a department named in Part II or III of Schedule VI, means the person occupying the position set out opposite that name.

16.4 (1) Within the framework of the appropriate minister’s responsibilities and his or her accountability to Parliament, and subject to the appropriate minister’s management and direction of his or her department, the accounting officer of a department named in Part I of Schedule VI is accountable before the appropriate committees of the Senate and the House of Commons for

(a) the measures taken to organize the resources of the department to deliver departmental programs in compliance with government policies and procedures;

(b) the measures taken to maintain effective systems of internal control in the department;

(c) the signing of the accounts that are required to be kept for the preparation of the Public Accounts pursuant to section 64; and

(d) the performance of other specific duties assigned to him or her by or under this or any other Act in relation to the administration of the department.

(2) Within the framework of the appropriate minister’s responsibilities under the Act or order constituting the department and his or her accountability to Parliament, the accounting officer of a department named in Part II or III of Schedule VI is accountable before the appropriate committees of the Senate and the House of Commons for

(a) the measures taken to organize the resources of the department to deliver departmental programs in compliance with government policies and procedures;

(b) the measures taken to maintain effective systems of internal control in the department;

(c) the signing of the accounts that are required to be kept for the preparation of the Public Accounts pursuant to section 64; and

(d) the performance of other specific duties assigned to him or her by or under this or any other Act in relation to the administration of the department.

(3) The obligation of an accounting officer under this section is to appear before the appropriate committee of the Senate or the House of Commons and answer questions put to him or her by members of the committee in respect of the carrying out of the responsibilities and the performance of the duties referred to in subsection (1) or (2), as the case may be.

16.5 (1) Where the appropriate minister and the accounting officer for a department named in Part I or II of Schedule VI are unable to agree on the interpretation or application of a policy, directive or standard issued by the Treasury Board, the accounting officer shall seek guid­ance in writing on the matter from the Secretary of the Treasury Board.

(2) Where guidance is provided under subsection (1) and the matter remains unresolved, the appropriate minister shall refer the matter to the Treasury Board for a decision.

(3) A decision by the Treasury Board shall be in writing and a copy shall be provided to the Auditor General of Canada.

(4) The copy of a decision provided to the Auditor General of Canada is a confidence of the Queen’s Privy Council for Canada for the purposes of any Act of Parliament.

260. The Act is amended by adding the following before the heading “PART IV” before section 43:

42.1 (1) Subject to and except as otherwise provided in any directives issued by the Treasury Board, every department shall conduct a review every five years of the relevance and effectiveness of each ongoing program for which it is responsible.

(2) In this section, “program” means a program of grants or contributions made to one or more recipients that are administered so as to achieve a common objective and for which spending authority is provided in an appropriation Act.

261. Section 80 of the Act is renumbered as subsection 80(1) and is amended by adding the following:

(2) Every officer or person acting in any office or employment connected with the collection, management or disbursement of public money who, by deceit, falsehood or other fraudulent means, defrauds Her Majesty of any money, securities, property or service is guilty of an indictable offence and liable on conviction,

(a) if the amount of the money or the value of the securities, property or service does not exceed $5,000, to a fine not exceeding $5,000 and to imprisonment for a term not exceeding five years; or

(b) if the amount of the money or the value of the securities, property or service exceeds $5,000, to a fine not exceeding that amount or that value and to imprisonment for a term not exceeding fourteen years.

262. (1) Subsection 85(1) of the Act is replaced by the following:

85. (1) Divisions I to IV, except for section 154.01, do not apply to the Bank of Canada.

(2) Section 85 of the Act is amended by adding the following after subsection (1):

(1.01) Divisions I to IV, except for section 154.01, do not apply to the Canada Pension Plan Investment Board.

(3) Subsections 85(1.1) and (1.2) of the Act are replaced by the following:

(1.1) Divisions I to IV, except for sections 131 to 148 and 154.01, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, the International Development Research Centre or the National Arts Centre Corporation.

(1.2) Divisions I to IV, except for sections 131 to 148 and 154.01 and subject to subsection 21(2) of the Telefilm Canada Act, do not apply to Telefilm Canada.

263. Subsection 89.2(1) of the Act is replaced by the following:

89.2 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive pursuant to subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the WTO Agreement that pertains to that Crown corporation.

264. Section 89.3 of the Act is replaced by the following:

89.3 Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive pursuant to subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Agreement as that term is defined in section 2 of the Agreement on Internal Trade Implementation Act that pertains to that Crown corporation.

265. Subsection 89.4(1) of the Act is replaced by the following:

89.4 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Canada-Chile Free Trade Agreement that pertains to that Crown corporation.

266. Subsection 89.5(1) of the Act is replaced by the following:

89.5 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Canada–Costa Rica Free Trade Agreement that pertains to that Crown corporation.

267. Subsection 105(1) of the Act is replaced by the following:

105. (1) Each director, other than an officer-director, of a parent Crown corporation shall be appointed by the appropriate Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors of the corporation.

268. Subsection 148(1) of the Act is replaced by the following:

148. (1) Each parent Crown corporation that has four or more directors shall establish an audit committee composed of not less than three directors of the corporation, none of whom may be officers or employees of the corporation or any of its affiliates.

269. The Act is amended by adding the following after section 154:

Offence

154.01 (1) A director, officer or employee of a Crown corporation who, by deceit, falsehood or other fraudulent means, in connection with the collection, management or disbursement of money belonging to the corporation, defrauds the corporation of any money, securities, property or service is guilty of an indictable offence and liable on conviction

(a) if the amount of the money or the value of the securities, property or service does not exceed $5,000, to a fine not exceeding $5,000 and to imprisonment for a term not exceeding five years; or

(b) if the amount of the money or the value of the securities, property or service exceeds $5,000, to a fine not exceeding that amount or that value and to imprisonment for a term not exceeding fourteen years.

(2) A person who is convicted of an offence under subsection (1) in respect of a corporation is, after the time for final appeal has expired, ineligible to be an employee of the corporation.

270. The Act is amended by adding, after Schedule V, the Schedule VI set out in the schedule to this Act.

Coordinating Amendments

271. On the later of the day on which section 68 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by deleting the following from column I:

Office of the Registrar of Lobbyists

and the corresponding reference in column II to the “Registrar of Lobbyists”.

272. On the later of the day on which section 68 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I:

Office of the Commissioner of Lobbying

and a corresponding reference in column II to the “Commissioner of Lobbying”.

273. On the later of the day on which section 121 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part II of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I:

Office of the Director of Public Prosecutions

and a corresponding reference in column II to the “Director of Public Prosecutions”.

274. On the later of the day on which subsection 39(1) of the Public Servants Disclosure Protection Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I:

Office of the Public Sector Integrity Commissioner

and a corresponding reference in column II to the “Public Sector Integrity Commissioner”.

275. On the later of the day on which section 20.7 of the Public Servants Disclosure Protection Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I:

Public Servants Disclosure Protection Tribunal

and a corresponding reference in column II to the “Registrar”.

Freshwater Fish Marketing Act

276. (1) The definition “Chairman” in section 2 of the English version of the Freshwater Fish Marketing Act is repealed.

(2) Section 2 of the English version of the Act is amended by adding the following in alphabetical order:

“Chairperson” means the Chairperson of the Board;

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

(3) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

278. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions:

(a) subsections 3(1) and (2);

(b) subsection 3(8);

(c) section 4;

(d) subsection 6(1); and

(e) subsection 17(1).

Museums Act

279. Subsection 19(2) of the Museums Act is replaced by the following:

(2) The trustees of a museum, other than the Chairperson and Vice-Chairperson, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding four years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than four of those trustees.

National Arts Centre Act

280. The definition “Corporation” in section 2 of the National Arts Centre Act is replaced by the following:

“Corporation” means the National Arts Centre Corporation continued by section 3;

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

3. The National Arts Centre Corporation is continued as a corporation consisting of a Board of Trustees composed of a Chairperson, a Vice-Chairperson, the mayors of the cities of Ottawa and Gatineau and six other members to be appointed as provided in subsection 4(2).

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

(2) Each of the members of the Board, other than the Chairperson and Vice-Chairperson and the mayors referred to in section 3, shall be appointed by the Governor in Council for a term not exceeding four years.

National Capital Act

283. (1) The definition “Vice-Chairperson” in section 2 of the National Capital Act is repealed.

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

“Commission” means the National Capital Commission continued by section 3;

(3) Section 2 of the Act is amended by adding the following in alphabetical order:

“Chief Executive Officer” means the Chief Executive Officer of the Commission;

284. The heading before section 3 of the Act is replaced by the following:

COMMISSION CONTINUED

285. (1) Subsections 3(1) to (3) of the Act are replaced by the following:

3. (1) The corporation called the National Capital Commission is continued, consisting of fifteen members including a Chairperson and a Chief Executive Officer.

(2) Each member, other than the Chairperson and the Chief Executive Officer, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.

(3) The Chairperson and the Chief Executive Officer shall each be appointed by the Governor in Council to hold office during pleasure for a term that the Governor in Council considers appropriate.

(2) The portion of subsection 3(4) of the Act before paragraph (a) is replaced by the following:

(4) The members, other than the Chairperson and the Chief Executive Officer, shall be appointed as follows:

(3) Subsection 3(6) of the Act is replaced by the following:

(6) A person who has served two consecutive terms as a member, other than as Chief Executive Officer, is not eligible to be re-appointed to the Commission, during the twelve months following the completion of the person’s second term, in the same capacity in which the person served.

286. Section 6 of the Act is replaced by the following:

6. In the event of the absence or incapacity of the Chairperson or the Chief Executive Officer or of a vacancy in either office, the Commission shall authorize another member to act as such, but no person may act as such for a period exceeding sixty days without the approval of the Governor in Council.

287. Subsections 7(1) and (2) of the Act are replaced by the following:

7. (1) The Chief Executive Officer shall be paid a salary to be fixed by the Governor in Council.

(2) The Governor in Council may authorize the payment of allowances or other remuneration to the Chairperson and to any other member having special duties.

288. Subsection 9(1) of the Act is replaced by the following:

9. (1) There shall be an Executive Committee of the Commission consisting of the Chairperson, the Chief Executive Officer and three other members to be appointed by the Commission, at least one of whom shall be from the Province of Quebec.

289. Section 22 of the Act is replaced by the following:

22. In a prosecution for the contravention of any regulation made under subsection 20(1), a certificate stating that any property described in it is under the control of the Commission and purporting to be certified by the Commission or the Chief Executive Officer, General Manager, Chief Engineer, or Secretary of the Commission shall be admitted in evidence without proof of the signature or official character of the person appearing to have signed the certificate and without further proof and, in the absence of evidence to the contrary, is proof that the property is under the control of the Commission.

Pilotage Act

290. (1) Subsection 3(3) of the Pilotage Act is replaced by the following:

(3) Each of the other members of an Authority shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding four years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.

(2) Subsection 3(3.1) of the English version of the Act is replaced by the following:

(3.1) The Chairperson and the Vice-Chairperson may be appointed to serve full-time or part-time.

291. Section 10 of the English version of the Act is replaced by the following:

10. The Governor in Council may appoint one of the members, other than the Chairperson, of an Authority to be Vice-Chairperson.

292. Subsection 13(2) of the English version of the Act is replaced by the following:

(2) In the event of the absence or incapacity of the Chairperson of an Authority, or if the office of Chairperson is vacant, the Vice-Chairperson, if any, of the Authority shall act as Chairperson.

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

14. (1) The Chairperson and Vice-Chairperson of an Authority shall be paid remuneration to be fixed by the Governor in Council.

(2) A member, other than the Chairperson or Vice-Chairperson, of an Authority shall be paid a daily allowance to be fixed by the Governor in Council for each day that the member is engaged on the business of the Authority.

294. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions:

(a) subsections 3(1) and (2);

(b) subsections 13(1) and (1.1);

(c) subparagraph 17(1)(b)(i);

(d) subsections 27(1) to (3); and

(e) subsection 27(5).

Public Sector Pension Investment Board Act

295. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:

(6) Part X of the Financial Administration Act, except for sections 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.

296. Subsection 9(1) of the Act is replaced by the following:

9. (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for a term, not exceeding four years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

297. Section 27 of the Act is amended by adding the following after subsection (1):

(1.1) None of the members of the audit committee may be officers or employees of the Board or any of its affiliates, within the meaning of section 83 of the Financial Administration Act.

Royal Canadian Mint Act

298. Section 11 of the Royal Canadian Mint Act is replaced by the following:

11. Each director, other than the Chairperson and the Master of the Mint, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

Standards Council of Canada Act

299. Subsection 6(1) of the Standards Council of Canada Act is replaced by the following:

6. (1) Each member of the Council, other than the persons referred to in paragraphs 3(b) and (c), shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.

Coming into Force

300. (1) Subject to subsection (2), sections 239 to 242, 244, 246 to 253 and 261, subsections 262(1) and (3) and sections 263 to 266, 269, 283 to 289 and 295 come into force on a day or days to be fixed by order of the Governor in Council.

(2) Subsection 262(2) comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

PART 5

PROCUREMENT AND CONTRACTING

Auditor General Act

301. (1) The definitions “not-for-profit corporation” and “recipient corporation” in section 2 of the Auditor General Act are repealed.

(2) The definition “funding agreement” in section 2 of the Act is replaced by the following:

“funding agreement” has the meaning given to that expression by subsection 42(4) of the Financial Administration Act;

(3) Section 2 of the Act is amended by adding the following in alphabetical order:

“recipient” has the meaning given to that expression by subsection 42(4) of the Financial Administration Act;

302. (1) The portion of subsection 2.1(1) of the Act before paragraph (a) is replaced by the following:

2.1 (1) For the purpose of paragraph (d) of the definition “recipient” in subsection 42(4) of the Financial Administration Act, a municipality or government controls a corporation with share capital if

(2) Subsection 2.1(2) of the Act is replaced by the following:

(2) For the purpose of paragraph (d) of the definition “recipient” in subsection 42(4) of the Financial Administration Act, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so.

303. The heading before section 5 of the Act is replaced by the following:

POWERS AND DUTIES

304. Subsection 7.1(1) of the Act is replaced by the following:

7.1 (1) The Auditor General may, with respect to a recipient under any funding agreement, inquire into whether

(a) the recipient has failed to fulfil its obligations under any funding agreement;

(b) money the recipient has received under any funding agreement has been used without due regard to economy and efficiency;

(c) the recipient has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement;

(d) the recipient has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or

(e) money the recipient has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development.

305. The Act is amended by adding the following after section 18:

IMMUNITIES

18.1 The Auditor General, or any person acting on behalf or under the direction of the Auditor General, is not a competent or compellable witness — in respect of any matter coming to the knowledge of the Auditor General or that person as a result of performing audit powers, duties or functions under this or any other Act of Parliament during an examination or inquiry — in any proceedings other than a prosecution for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made under this Act.

18.2 (1) No criminal or civil proceedings lie against the Auditor General, or against any person acting on behalf or under the direction of the Auditor General, for anything done, reported or said in good faith in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament.

(2) For the purposes of any law relating to defamation,

(a) anything said, any information supplied or any document or thing produced in good faith by or on behalf of the Auditor General, in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament, is privileged; and

(b) any report made in good faith by the Auditor General in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament, and any fair and accurate account of the report made in good faith in a newspaper or any other periodical publication or in a broadcast, is privileged.

Department of Public Works and Government Services Act

306. The Department of Public Works and Government Services Act is amended by adding the following after section 22:

PROCUREMENT AUDITOR

22.1 (1) The Governor in Council may appoint a Procurement Auditor for a term of not more than five years.

(2) The Procurement Auditor shall be paid the remuneration and expenses that may be fixed by the Governor in Council.

(3) The Procurement Auditor shall, in accord­ance with the regulations,

(a) review the practices of departments for acquiring materiel and services to assess their fairness, openness and transparency and make any appropriate recommendations to the relevant department for the improvement of those practices;

(b) review any complaint respecting the compliance with any regulations made under the Financial Administration Act of the award of a contract for the acquisition of materiel or services by a department to which the Agreement, as defined in section 2 of the Agreement on Internal Trade Implementation Act, would apply if the value of the contract were not less than the amount referred to in article 502 of that Agreement;

(c) review any complaint respecting the administration of a contract for the acquisition of materiel or services by a department; and

(d) ensure that an alternative dispute resolution process is provided, on request of each party to such a contract.

(4) The Procurement Auditor shall also perform any other duty or function respecting the practices of departments for acquiring materiel and services that may be assigned to the Procurement Auditor by order of the Governor in Council or the Minister.

22.2 (1) A person may only file a complaint referred to in paragraph 22.1(3)(b) or (c) if that person is a Canadian supplier within the meaning of article 518 of the agreement referred to in paragraph 22.1(3)(b) and meets any requirements prescribed by the regulations.

(2) The complaint may only be filed after the award of the contract to which the complaint relates.

(3) The Procurement Auditor shall, within the period after the complaint is filed that may be established by the regulations, provide the complainant, the relevant minister and the Minister with the Procurement Auditor’s fin­dings and any recommendations.

(4) The Procurement Auditor may not recommend the cancellation of the contract to which the complaint relates.

22.3 (1) The Procurement Auditor shall, within four months after the end of each fiscal year, deliver a report respecting the activities of the Procurement Auditor in that year to the Minister.

(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report.

307. The Act is amended by adding the following after section 23:

23.1 The Governor in Council may make regulations respecting

(a) the performing of the duties and functions of the Procurement Auditor referred to in subsection 22.1(3), including the departments in respect of which those duties and functions shall not be performed;

(b) the filing of complaints referred to in paragraphs 22.1(3)(b) and (c), including any conditions that must be met before a complaint may be filed and the manner in which it must be filed; and

(c) the types of recommendations that the Procurement Auditor may make in response to the complaints and the time within which they must be made.

Financial Administration Act

Amendments to Act

308. The Financial Administration Act is amended by adding the following after section 39:

PART III.1

CONTRACTS

309. (1) Section 40 of the French version of the Act is replaced by the following:

(2) Section 40 of the Act is renumbered as subsection 40(1) and is amended by adding the following:

(2) It is a term of every contract for public opinion research entered into by any person with Her Majesty that a written report will be provided by that person.

310. The Act is amended by adding the following after section 40:

40.1 The Government of Canada is committed to taking appropriate measures to promote fairness, openness and transparency in the bidding process for contracts with Her Majesty for the performance of work, the supply of goods or the rendering of services.

311. Subsection 41(1) of the French version of the Act is replaced by the following:

312. The Act is amended by adding the following after section 41:

42. (1) The Governor in Council may make regulations fixing terms that are deemed to be expressly set out in contracts, or classes of contracts, that provide for the payment of any money by Her Majesty or a Crown corporation — or in documents, or classes of documents, relating to such contracts and their formation — including terms

(a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbyists Registration Act applies;

(b) respecting corruption and collusion in the bidding process for contracts for the performance of work, the supply of goods or the rendering of services;

(c) requiring that a bidder on a contract for the performance of work, the supply of goods or the rendering of services make a declaration that the bidder has not committed an offence under section 121, 124 or 418 of the Criminal Code;

(d) respecting the provision of information or records to enable the Auditor General of Canada to inquire into the use of funds provided under funding agreements; and

(e) requiring the public disclosure of basic information on contracts entered into with Her Majesty for the performance of work, the supply of goods or the rendering of services and having a value in excess of $10,000.

(2) Regulations made under subsection (1) may not infringe on the powers of the Auditor General under section 7.1 of the Auditor General Act.

(3) The Governor in Council may, in respect of contracts for public opinion research, make regulations

(a) prescribing the form and content of the term of the contract and of the written report referred to in subsection 40(2); and

(b) requiring the report to be made available to the public in the manner, and subject to the conditions, specified in the regulations.

(4) The following definitions apply in this section.

“funding agreement”, in respect of a recipient, means an agreement in writing under which the recipient receives a grant, contribution or other funding from Her Majesty in right of Canada or a Crown corporation, either directly or through an agent or mandatary of Her Majesty, including by way of loan, but excludes contracts for the performance of work, the supply of goods or the rendering of services.

“recipient” means an individual, body corporate, partnership or unincorporated organization that has, in any five consecutive fiscal years, received a total of one million dollars or more under one or more funding agreements, but does not include

(a) a Crown corporation;

(b) a departmental corporation;

(c) the government of a foreign state, a provincial government or a municipality, or any of their agencies;

(c.1) a band, as defined in subsection 2(1) of the Indian Act, any member of the council or any agency of the band or an aboriginal body that is party to a self-government agreement given effect by an Act of Parliament or any of their agencies;

(d) a corporation that is controlled by a municipality or a government other than the Government of Canada; or

(e) an international organization.

Coordinating Amendment

313. On the day on which section 66 of this Act comes into force, paragraph 42(1)(a) of the Financial Administration Act is replaced by the following:

(a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbying Act applies;

Coming into Force

314. (1) Sections 306 and 307 come into force on a day or days to be fixed by order of the Governor in Council.

(2) Notwithstanding subsection 114(4) of the Canada Pension Plan, section 312 comes into force on the day on which this Act is assented to, but that section does not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds of the included provinces, within the meaning of subsection 114(1) of that Act, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment made by that section.