Bill C-39

Canada Grain Act

Clause 1: (1) Existing text of the definitions:

“export standard sample” means, in respect of a grade of grain, a sample of grain of that grade designated by the Commission pursuant to paragraph 26(b);

“foreign grain” means any grain grown outside Canada and includes screenings from such a grain and every grain product manufactured or processed from such a grain;

“overage” means the amount by which the aggregate of the quantity of grain of any grade discharged from an elevator in a period between two consecutive weigh-overs of grain of that grade in the elevator and the quantity of grain of that grade in storage in the elevator at the end of that period exceeds the aggregate of the quantity of grain of that grade in storage in the elevator at the beginning of that period and the quantity of grain of that grade received into the elevator during that period;

“primary standard sample” means, in respect of a grade of grain, a sample of grain of that grade designated by the Commission pursuant to paragraph 26(a);

“shortage” means the amount by which the aggregate of the quantity of grain of any grade discharged from an elevator in a period between two consecutive weigh-overs of grain of that grade in the elevator and the quantity of grain of that grade in storage in the elevator at the end of that period is less than the aggregate of the quantity of grain of that grade in storage in the elevator at the beginning of that period and the quantity of grain of that grade received into the elevator during that period;

“transfer elevator” means

(a) an elevator in the Western Division or the Eastern Division the principal use of which is the transfer of grain that has been officially inspected and officially weighed at another elevator, and

(b) an elevator in the Eastern Division the principal uses of which are the transfer of grain that has been officially inspected and officially weighed at another elevator and the receiving, cleaning and storing of eastern grain or foreign grain;

(2) Existing text of the definition:

“grade name” means the name, or name and number, assigned to any grade of grain established by or under this Act and includes any abbreviation prescribed for that grade name;

(3) Existing text of the definitions:

“contaminated” means, in respect of grain, containing any substance in sufficient quantity that the grain is unfit for consumption by persons and animals or is adulterated within the meaning of the regulations made pursuant to paragraph 30(1)(a) of the Food and Drugs Act;

“official sample” means a sample taken from a parcel of grain by a person authorized by the Commission to take the sample or by any sampling device authorized by the Commission;

“terminal elevator” means an elevator the principal uses of which are the receiving of grain on or after the official inspection and official weighing of the grain and the cleaning, storing and treating of the grain before it is moved forward;

(4) Existing text of the definitions:

“order” includes any directive to the trade issued by the Commission;

“special binning” means the storing of a parcel or parcels of grain pursuant to a contract, in space in an elevator that is specified in the contract, for the purpose of preserving the identity of the grain;

(5) Relevant portion of the definitions:

“lawfully” means

...

(b) in respect of

...

(ii) the delivery of grain to a terminal elevator, transfer elevator or process elevator or to a consignee at a destination other than an elevator, or

...

deliverable by the owner of the grain, receivable by the public carrier for carriage to the elevator or consignee and receivable by the operator of the elevator or consignee, in accordance with this Act and the Canadian Wheat Board Act;

(6) and (7) Relevant portion of the definition:

“elevator” means

(a) any premises in the Western Division

...

(iii) constructed for the purpose of handling and storing grain as part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise,

...

(e) any premises in the Eastern Division constructed for the purpose of handling and storing grain as a part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise,

including any such premises owned or operated by Her Majesty in right of Canada or a province or any agent thereof;

(8) New.

(9) New.

Clause 2: Relevant portion of section 12:

12. The Commission may make by-laws

...

(g) fixing the allowance to be paid to members of grain standards committees and grain appeal tribunals.

Clause 3: Existing text of section 13:

13. Subject to this Act and any directions to the Commission issued from time to time under this Act by the Governor in Council or the Minister, the Commission shall, in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets.

Clause 4: Existing text of the heading and section 15:

Report

15. The Commission shall during the month of February in each year submit to the Minister a report, in such form as the Minister may direct, on the activities of the Commission during the crop year immediately preceding and the Minister shall cause the report to be laid before Parliament within fifteen days after the receipt thereof or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.

Clause 5: (1) Relevant portion of subsection 20(1):

20. (1) The Commission shall, by by-law, constitute a western grain standards committee and an eastern grain standards committee, in this Part referred to as the Western Standards Committee and the Eastern Standards Committee, for the purpose of

(a) recommending specifications for grades of grain and selecting and recommending primary standard samples and export standard samples of grain; and

(2) Relevant portion of subsection 20(2):

(2) The Commission shall, with the approval of the Minister, appoint to the Western Standards Committee

...

(b) the chairman of the grain appeal tribunal for the Western Division;

Clause 6: Existing text of the heading:

Primary Standard Samples and Export Standard Samples

Clause 7: (1) and (2) Relevant portion of section 23:

23. As early as possible in each crop year the Commission shall cause to be collected representative samples of the crop of western grain and the crop of eastern grain of that crop year and, from those samples and from such other samples of the stocks of grain from any previous crop year as the Commission considers to be representative of the existing stock of any grain, cause to be prepared representative samples of

...

(b) any other grade of western grain or eastern grain for which, in the opinion of the Commission, it would be appropriate to designate primary standard samples or export standard samples or both; and

Clause 8: Existing text of subsection 24(4):

(4) The Western Standards Committee shall, in respect of

(a) each grade of western red spring wheat and western amber durum wheat that, in the opinion of the Commission, is likely to be sold for export, and

(b) any other grade of western grain that the Commission refers to it for consideration,

examine the samples of grain of that grade supplied to the Committee by the Commission and select and recommend to the Commission samples of the grade that, in the opinion of the Committee, represent as accurately as possible the average of grain of that grade received at any or all elevators at any or all inspection points.

Clause 9: Existing text of sections 26 and 27:

26. The Commission shall, for each crop year,

(a) on considering the recommendations of a grain standards committee made pursuant to subsection 24(2), designate primary standard samples of each grade of grain for which a representative sample was prepared pursuant to paragraph 23(a) and of such other grades of grain as the Commission considers advisable; and

(b) on considering the recommendations of the Western Standards Committee made pursuant to subsection 24(4), designate export standard samples of each grade of western grain for which a representative sample was prepared pursuant to paragraph 23(a) and of such other grades of western grain as the Commission considers advisable.

27. (1) The export standard sample that is designated for a grade of grain

(a) shall be used as the visual grading standard in the grading of western grain of that grade discharged from a terminal elevator, transfer elevator or process elevator; and

(b) constitutes the minimum visual quality of the grade for that grain.

(2) The primary standard sample that is designated for a grade of grain

(a) shall be used as a visual grading guide in the grading of grain of that grade, other than western grain discharged from a terminal elevator, transfer elevator or process elevator; and

(b) constitutes the minimum visual quality of the grade for that grain.

(3) Where

(a) protein content is a criterion of quality that applies to a grade of grain, or

(b) any other criterion of quality that cannot be determined visually by comparison with a primary standard sample or export standard sample applies to a grade of grain,

that criterion shall be taken into consideration in determining the grade of the grain.

(4) No person shall, on the basis of the use of a primary standard sample,

(a) assign a grade to any grain that does not meet the specifications for that grade established by or under this Act; or

(b) refuse to assign a grade to any grain that meets the specifications so established for that grade.

Clause 10: Existing text of section 29:

29. The Commission shall make provision for the inspection of grain at such places as the Commission may, by by-law, determine.

Clause 11: Existing text of section 31:

31. A sample of grain taken pursuant to section 30 or otherwise sent to the Commission thereupon becomes the property of the Commission and shall be sold or disposed of by the Commission in the prescribed manner.

Clause 12: Relevant portion of subsection 32(1):

32. (1) Subject to this Act, an inspector, after making an official inspection of grain pursuant to this Act, shall issue an inspection certificate in prescribed form,

...

(b) where the grain was grown outside Canada, stating the country of origin of the grain or stating that the grain is foreign grain.

Clause 13: Existing text of section 33:

33. An inspection certificate issued when grain is discharged out of a terminal elevator or transfer elevator shall be transmitted with the shipping documents relating to the grain.

Clause 14: Existing text of the heading and sections 35 to 38:

Grain Appeal Tribunals

35. (1) The Commission shall, by by-law, constitute a grain appeal tribunal for each Division.

(2) The Commission shall appoint to the grain appeal tribunal for the Western Division

(a) a chairman who is an officer of the Commission and is, in the opinion of the Commission, qualified to inspect and grade grain; and

(b) not more than eight other persons who are qualified to inspect and grade grain, are engaged in buying, selling, milling or exporting grain and are not employed in the federal public administration.

(3) The Commission shall appoint to the grain appeal tribunal for the Eastern Division

(a) a chairman who shall be the principal inspector of the Commission in that Division; and

(b) not more than eight other persons who are qualified to inspect and grade grain, are engaged in buying, selling, milling or exporting grain and are not employed in the federal public administration.

(4) Where the chairman of a grain appeal tribunal is unable to act, the Commission shall appoint to act as chairman another person who, in the opinion of the Commission, is qualified to inspect and grade grain.

36. (1) The Commission shall, by by-law, establish the terms of office of members of a grain appeal tribunal.

(2) Each member of a grain appeal tribunal, except a chairman employed in the federal public administration, shall, before entering on his duties as a member of the tribunal, take an oath of office in prescribed form.

(3) A quorum of a grain appeal tribunal shall consist of the chairman and two other members of the tribunal to be selected by him.

(4) No member of a grain appeal tribunal shall act as a member of the tribunal on an appeal relating to grain in which that member has any pecuniary interest.

37. Each member of a grain appeal tribunal is entitled to be paid

(a) if the member is not employed in the federal public administration, an allowance for the member’s services in an amount to be fixed by by-law of the Commission; and

(b) reasonable travel and other expenses while absent from his ordinary place of residence in the course of his duties under this Act.

38. The Commission may assign to the chairman of the grain appeal tribunal for the Western Division such duties, in addition to his duties as chairman of the tribunal, as, in the opinion of the Commission, will not prejudice his independence as chairman but, in so doing, shall not assign duties that require the chairman to inspect or grade grain other than as chairman of the tribunal.

Clause 15: Existing text of section 39:

39. (1) Any person who is dissatisfied with the grade assigned to grain by an inspector on an official inspection of the grain may appeal from the decision of that inspector in respect of any characteristics of the grain, by way of an application for reinspection of the grain, to

(a) the principal inspector at the place or for the district in which the grain then is;

(b) the chief grain inspector for Canada; or

(c) the grain appeal tribunal for the Division.

(2) Where an appeal is taken to a principal inspector pursuant to subsection (1), a further appeal, by way of an application for reinspection, lies to the chief grain inspector for Canada or the grain appeal tribunal for the Division.

(3) Where an appeal is taken to the chief grain inspector for Canada pursuant to subsection (1) or (2), a further appeal, by way of an application for reinspection, lies to the grain appeal tribunal for the Division.

(4) Except with the permission of the Commission, no appeal lies under this section unless, within fifteen days of the making of the decision that is the subject of the appeal, notice of the appeal is given to the inspector or tribunal to whom or to which the appeal is being taken.

Clause 16: Existing text of section 41:

41. Where an appeal is taken pursuant to section 39 to a principal inspector or the chief grain inspector for Canada or to a grain appeal tribunal, the inspector or tribunal shall

(a) inspect the grain or a sample of the grain to which the appeal relates;

(b) review the decision appealed from;

(c) assign to the grain the grade that the inspector or tribunal considers to be the appropriate grade for the grain; and

(d) where a grade is assigned to the grain that is different from the grade previously assigned to it, require all inspection certificates, and all other documents specified by the Commission, relating to the grain to be revised accordingly.

Clause 17: Relevant portion of section 42:

42. The following classes of licences are hereby established for the purposes of this Act:

...

(c) a transfer elevator licence, being a licence to operate a transfer elevator;

Clause 18: Existing text of section 43:

43. The Commission may, with the approval of the Governor in Council, make regulations prescribing

(a) subclasses of the licences established by section 42; and

(b) any terms and conditions of a licence of any class or subclass.

Clause 19: (1) Existing text of subsections 45(1) and (2):

45. (1) Where a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

(a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer; and

(b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s potential obligations for the payment of money or the delivery of grain to producers of grain who are holders of cash purchase tickets, elevator receipts or grain receipts issued pursuant to this Act in relation to grain produced by the holders.

(2) Where a person who proposes to operate a terminal or transfer elevator applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

(a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator; and

(b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s obligations for the payment of money or the delivery of grain to holders of elevator receipts issued pursuant to this Act.

(2) Relevant portion of subsection 45(3):

(3) A licence issued pursuant to this section shall be

...

(b) subject to such conditions, in addition to any prescribed conditions, as the Commission deems appropriate in the public interest for facilitating trade in grain.

Clause 20: (1) Relevant portion of subsection 46(1):

46. (1) The Commission may refuse to issue an elevator licence if the applicant has not given the security fixed pursuant to section 45 or fails to establish to the satisfaction of the Commission that

(2) Existing text of subsection 46(2):

(2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not given the security fixed pursuant to section 45.

Clause 21: Existing text of section 49:

49. (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient.

(2) Any security given by a licensee as a condition of a licence may only be realized or enforced by

(a) the Commission; or

(b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to

(i) comply with this Act or any regulation or order made thereunder, or

(ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act.

(2.1) [Repealed, 1994, c. 45, s. 12]

(3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if

(a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and

(b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal.

(4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder.

(5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.

(6) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.

(7) [Repealed, 1998, c. 22, s. 6]

(8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator.

Clause 22: Existing text of subsections 51(3) to (5):

(3) Notwithstanding subsection (1), the Commission, on receiving a written complaint from an interested person with respect to the charge for a service provided by the operator of a licensed elevator, may, by order, after giving all interested persons an opportunity to be heard, fix the maximum charge or a manner for determining the maximum charge for that service.

(4) An order made under subsection (3) becomes effective on the day specified in the order, which day shall not be earlier than the day the Commission determines that the facts giving rise to the complaint occurred, and ceases to be effective at the end of the crop year in which the order is made or on such earlier day as is set out in the order for its expiration.

(5) Subsections (3) and (4) cease to be in force on July 31, 1996.

Clause 23: (1) Existing text of subsection 54.1(1):

54.1 (1) Where an elevator receipt issued by the licensee of a terminal elevator or transfer elevator has been outstanding for more than one year and any charges accruing under the receipt have accrued for more than one year and are unpaid, the licensee, with the written permission of the Commission, after giving such notice of sale to the last known holder of the receipt as may be specified by the Commission, may, on such terms and conditions as may be specified in writing by the Commission, sell the grain referred to in the receipt or grain of the same kind, grade and quantity to recover the charges.

(2) Existing text of subsection 54.1(3):

(3) Each elevator receipt issued by the licensee of a terminal elevator or transfer elevator shall bear the following warning:

“WARNING: Where the charges accruing under this receipt have been unpaid for more than one year, the grain may be sold and thereafter the holder is entitled to receive, on surrender of this receipt, only the money received for the grain less those charges and the costs of sale.

Clause 24: Relevant portion of section 57:

57. Except as may be authorized by regulation or by order of the Commission, no licensee operating an elevator shall receive into the elevator

(a) any grain, grain product or screenings unless the grain, grain product or screenings is weighed at the elevator immediately before or during receipt;

Clause 25: New.

Clause 26: (1) and (2) Relevant portion of section 61:

61. Where grain is lawfully offered at a licensed primary elevator for sale or storage, other than for special binning,

(a) if the producer and the operator of the elevator agree as to the grade of the grain and the dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a cash purchase ticket or elevator receipt stating the grade name, grade and dockage of the grain, and forthwith provide the producer with the cash purchase ticket or elevator receipt; and

(b) if the producer and the operator of the elevator do not agree as to the grade of the grain or the dockage, the operator shall

(i) take a sample of the grain in the manner prescribed,

Clause 27: Existing text of subsection 62(4):

(4) No order shall be made under subsection (3) unless written notice of the dispute has been received by the Commission within thirty days from the delivery of the grain that is the subject of the dispute to a terminal elevator, transfer elevator or process elevator.

Clause 28: Relevant portion of section 63:

63. Where

...

the operator shall, in such manner as may be prescribed, weigh, handle and treat the grain as requested and shall issue an elevator receipt for the grain.

Clause 29: Relevant portion of subsection 65(3):

(3) Where the holder of an elevator receipt issued by the operator of a licensed primary elevator fails to take delivery of the grain referred to in a notice given pursuant to subsection (1) within a period for taking delivery set out in the notice, whether or not the notice has been brought to the attention of the holder, and the holder or a subsequent holder later requests delivery of the grain referred to in the receipt, the operator of the elevator may, at the option of the operator, on surrender of the elevator receipt and payment of all charges accruing under this Act to the day on which the receipt is surrendered,

...

(c) deliver to the holder of the surrendered receipt an elevator receipt issued by the operator of a licensed terminal elevator or licensed transfer elevator for grain of the same kind, grade and quantity as the grain referred to in the surrendered receipt.

Clause 30: Existing text of subsection 67(1):

67. (1) Where the holder of an elevator receipt who is entitled to the delivery of grain referred to in the receipt from a licensed primary elevator

(a) may lawfully deliver the grain to a terminal elevator, transfer elevator or process elevator or to a consignee at a destination other than an elevator, and

(b) has caused to be placed at the elevator, to transport the grain, a railway car or other conveyance that is capable of receiving grain discharged out of the elevator and to which the grain may lawfully be delivered,

the operator of the elevator shall, subject to section 86, discharge forthwith into the conveyance, to the extent of the capacity of the conveyance, the identical grain or grain of the same kind, grade and quantity, as the elevator receipt requires.

Clause 31: Existing text of sections 68.1 to 73:

68.1 An elevator receipt issued pursuant to section 61 or 62 entitles its holder to delivery of grain only if the elevator receipt is surrendered for the delivery of grain within such period as is prescribed and, where an elevator receipt is not surrendered within that period,

(a) the elevator operator who issued the elevator receipt is deemed to have purchased the grain to which the receipt relates on the day the period expires and at the market price of that day less any charges accrued under this Act in respect of the grain; and

(b) the elevator operator shall issue a cash purchase ticket in respect of the grain.

Terminal Elevators and Transfer Elevators

69. (1) Subject to section 58 and any order made under subsection (2) or section 118, the operator of every licensed terminal elevator and licensed transfer elevator shall, at all reasonable hours on each day on which the elevator is open, without discrimination and in the order in which grain arrives and is lawfully offered at the elevator, receive into the elevator all grain so lawfully offered for which there is, in the elevator, available storage accommodation of the type required by the person by whom the grain is offered.

(2) The Commission may, by order, on such conditions as it may specify, authorize or require the operator of a licensed terminal elevator or licensed transfer elevator to receive grain lawfully offered for storage or transfer at the elevator otherwise than as required by subsection (1).

70. Except as may be authorized or required by regulation or by order of the Commission, every operator of a licensed terminal elevator or licensed transfer elevator shall

(a) cause grain received into the elevator to be officially weighed;

(b) unless the grain has been officially inspected prior to receipt, cause it to be officially inspected forthwith on receipt;

(c) remove from the grain the dockage that is required by the inspection certificate relating to the grain to be removed therefrom; and

(d) on discharge of the grain from the elevator, cause the grain to be again officially weighed and officially inspected.

71. (1) On the receipt of grain into a licensed terminal elevator or licensed transfer elevator, the operator of the elevator shall

(a) forthwith issue an elevator receipt for the grain and any screenings that he is required to report; and

(b) on surrender of the bill of lading relating to the grain, together with evidence of the payment of the charges accrued on the grain prior to the receipt into the elevator of the grain, deliver the elevator receipt to or on the order of the holder of the bill of lading.

(2) Notwithstanding any provision of this Act relating to the delivery of grain of the same kind, grade and quantity as that referred to in an elevator receipt, where the operator of a licensed terminal elevator or licensed transfer elevator issues an elevator receipt for grain to which any grade would, but for excessive moisture in the grain or its intermixture with another material removable by treatment, be assignable, that operator, on the drying or treatment of the grain, as the case may be, to such extent that it meets the grade, shall recall the receipt and, on surrender thereof, issue a new elevator receipt for grain of that grade adjusted to its dried quantity or quantity remaining after the treatment.

(3) An elevator receipt issued for grain referred to in subsection (2) on the receipt of the grain into a licensed terminal elevator or licensed transfer elevator shall state that the receipt is subject to recall and adjustment.

(4) Where the operator of a licensed terminal elevator or licensed transfer elevator becomes the owner of grain removed from screenings in that elevator, the operator may, with the permission of the Commission, issue an elevator receipt in his own name for the grain.

72. (1) The operator or manager of a licensed terminal elevator or licensed transfer elevator

(a) [Repealed, 2005, c. 24, s. 2]

(b) shall not, except as may be authorized by regulation, specially bin any grain.

(2) and (3) [Repealed, 2005, c. 24, s. 2]

73. Subject to subsection 77(3), the holder of an elevator receipt issued in respect of grain in a licensed terminal elevator or licensed transfer elevator is entitled, in priority to all other claims affecting the grain, to the grain described in the receipt or to grain in the elevator of the same kind, grade and quantity as the grain described in the receipt.

Clause 32: Existing text of subsection 74(1):

74. (1) Where the holder of an elevator receipt for grain issued by the operator of a licensed terminal elevator or licensed transfer elevator who may lawfully deliver grain referred to in the receipt to another elevator or to a consignee at a destination other than an elevator

(a) requests that the grain be shipped,

(b) causes to be placed at the elevator to transport the grain a conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered, and

(c) surrenders the elevator receipt and pays the charges accrued under this Act in respect of the grain referred to in the receipt,

the operator of the elevator shall, subject to section 86, forthwith discharge into the conveyance, to the extent of the capacity of the conveyance, the identical grain or grain of the same kind, grade and quantity, as the receipt requires.

Clause 33: Relevant portion of section 75:

75. No operator or manager of a licensed terminal elevator or licensed transfer elevator shall, except with the written permission of the Commission,

Clause 34: (1) Relevant portion of subsection 76(1):

76. (1) Where, in a licensed terminal elevator or licensed transfer elevator, any grain is found to be infested or contaminated, or to have gone or to be likely to go out of condition or otherwise to require treatment,

(2) and (3) Existing text of subsections 76(3) and (4):

(3) If, under a direction given under subsection (1), grain referred to in an elevator receipt indicating special binning issued by the operator of a licensed terminal elevator or licensed transfer elevator has been treated, shipped or otherwise disposed of, the costs incurred by the operator of the elevator in complying with the direction are recoverable from the persons having an interest or right in the grain in proportion to their respective interests or rights.

(4) Nothing in this section shall be construed as relieving the operator of a licensed terminal elevator or licensed transfer elevator from the performance of any obligation imposed on that operator by or pursuant to this Act or any contract under which any grain came into or remains in the operator’s possession.

Clause 35: (1) and (2) Existing text of subsections 77(1) and (2):

77. (1) The operator of a licensed terminal elevator or licensed transfer elevator may, with the written permission of the Commission on at least thirty days notice in writing, in a form and manner prescribed, to the last known holder of an elevator receipt issued by the operator, require the holder to take delivery from the elevator of the grain referred to in the receipt.

(2) Where the holder of an elevator receipt issued by the operator of a licensed terminal elevator or licensed transfer elevator fails to take delivery of the grain referred to in a notice given pursuant to subsection (1) within a period for taking delivery set out in the notice, whether or not the notice has been brought to his attention, the operator of the elevator may, on such terms and conditions as may be specified in writing by the Commission, sell the identical grain or grain of the same kind, grade and quantity.

(3) Existing text of subsection 77(4):

(4) Each elevator receipt issued by the operator of a licensed terminal elevator or licensed transfer elevator shall bear the warning set out in subsection 65(4).

Clause 36: Existing text of subsections 78(2) and (3):

(2) On the receipt of grain from a producer into a licensed process elevator, the operator of the elevator shall, at the prescribed time and in the prescribed manner, issue a grain receipt or a cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide the producer with the grain receipt or cash purchase ticket.

(3) Except with the permission of the Commission, no operator of a licensed process elevator shall discharge grain from the elevator, otherwise than for direct manufacture or processing into another product, unless the grain is officially inspected and officially weighed at the time of discharge and assigned a grade pursuant to this Act.

Clause 37: Existing text of the heading and sections 79 and 80:

Weigh-overs at Elevators

79. The operator of a licensed primary elevator shall, in such manner and at such intervals as may be prescribed,

(a) weigh over the grain, grain products and screenings contained in the elevator to determine whether there is an overage or shortage of grain, grain products or screenings in the elevator; and

(b) thereupon supply to the Commission a stock report in prescribed form.

80. (1) The Commission shall weigh over the grain, grain products and screenings contained in every licensed terminal elevator and licensed transfer elevator within such intervals, or on the basis of such volume of handling of grain, as may be specified by the Commission or prescribed to determine whether there is an overage or shortage of grain, grain products or screenings in the elevator.

(2) The Commission shall prescribe the maximum overage arising out of the operation of a licensed terminal elevator or licensed transfer elevator that may be retained in respect of any grain of any grade by the operator of the elevator.

(3) The maximum overage prescribed pursuant to subsection (2) in respect of grain of any grade shall not be less than one-sixteenth of one per cent of the total quantity of grain of that grade received between consecutive weigh-overs at an elevator.

(4) Subject to subsection (5), where, on a weigh-over at a licensed terminal elevator or a licensed transfer elevator, it appears that the handling of grain in that elevator has resulted in an overage of grain of any grade, the grain in excess of the prescribed maximum overage shall

(a) if the grain is grain of any kind that the Canadian Wheat Board is required to market pursuant to the Canadian Wheat Board Act, be the property of that Board,

(b) if the grain is grain of any kind that will be marketed by a single person or agency, be the property of that person or agency, and

(c) if the grain is grain other than grain referred to in paragraph (a) or (b), be the property of the Commission,

and any grain that is the property of the Commission pursuant to paragraph (c) shall be disposed of by the Commission in such manner as the Governor in Council may direct.

(5) Where, on a weigh-over at a licensed terminal elevator or licensed transfer elevator, it appears that the handling of grain in that elevator has resulted in an overage of grain of any grade and a shortage of grain of another grade, the Commission may, before determining the amount of any overage, make an allowance for any shortage.

Clause 38: Existing text of subsection 81(1):

81. (1) With respect to the purchase of western grain from a producer of that grain, every licensed grain dealer shall, at the prescribed time and in the prescribed manner, issue a grain receipt or cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide it to the producer.

Clause 39: Existing text of the heading and section 82.1:

Grain Receipts

82.1 Where a grain receipt issued by the operator of a licensed process elevator or by a licensed grain dealer is not surrendered for payment within such period as is prescribed,

(a) the purchase price of the grain to which the receipt relates is deemed to be the market price of the grain on the day the period expires; and

(b) the operator of the licensed process elevator or the licensed grain dealer shall issue a cash purchase ticket in respect of the grain.

Clause 40: Existing text of section 84:

84. Except with the written permission of the Commission or in accordance with prescribed terms and conditions, no person, other than a public carrier, shall transport or cause to be transported any grain

(a) from the Western Division to the Eastern Division or from the Eastern Division to the Western Division; or

(b) into or out of Canada.

Clause 41: Existing text of subsection 85(3):

(3) An inspector

(a) may, at any reasonable time, inspect any conveyance that has been placed at any elevator to receive grain; and

(b) where the inspector believes on reasonable grounds that any prescribed condition exists in the conveyance to such extent that the conveyance is not in fit condition to receive grain, shall direct that grain not be discharged into the conveyance until the condition has been corrected.

Clause 42: Existing text of section 86:

86. No person shall discharge any grain out of an elevator into a conveyance and no public carrier or other person shall permit the discharge of any grain out of an elevator into any conveyance owned or operated by him, where

(a) the person or public carrier has reason to believe that any prescribed condition exists in the conveyance to such extent that the conveyance is not in fit condition to receive grain; or

(b) an inspector has directed, pursuant to subsection 85(3), that grain not be discharged into the conveyance.

Clause 43: Existing text of subsection 87(1):

87. (1) One or more producers of grain, not exceeding the number designated by order of the Commission, having grain, in sufficient quantity to fill a railway car, that may be lawfully delivered to a railway company for carriage to a terminal elevator, transfer elevator or process elevator or to a consignee at a destination other than an elevator may apply in writing to the Commission, in prescribed form, for a railway car to receive and carry the grain to the elevator or other consignee.

Clause 44: Relevant portion of subsection 88(1):

88. (1) Subject to subsection (1.1), an inspector may, at any reasonable time, enter

(a) any elevator, any premises of the licensee of an elevator or any premises of a licensed grain dealer or special crops dealer in which the inspector believes on reasonable grounds there is any grain, grain product or screenings owned or possessed by the licensee or any books, records or other documents relating to the operation of the elevator or the business of the grain dealer or special crops dealer, or

Clause 45: Existing text of subsection 89(2):

(2) No person shall knowingly make any false or misleading statements, either orally or in writing, to an inspector engaged in carrying out his duties and functions under this Act.

Clause 46: Existing text of section 90:

90. (1) An inspector who believes on reasonable grounds that

(a) any offence under this Act has been committed,

(b) any grain, grain product or screenings in an elevator is infested or contaminated,

(c) any equipment in an elevator is in such condition that grain, grain products or screenings cannot safely or accurately be weighed or handled in the elevator,

(d) an elevator is in such condition as to cause danger to persons or loss or deterioration of grain, grain products or screenings stored therein, or

(e) an overage at a primary elevator is in excess of a prescribed maximum amount,

may seize any documents or records that the inspector believes, on reasonable grounds, contain or are evidence that an offence under this Act has been committed and, in any event, shall forthwith report to the Commission the facts ascertained by the inspector.

(2) Documents or records seized pursuant to subsection (1) shall not be detained after the expiration of thirty days from the seizure unless before that time proceedings in respect of an offence under this Act, in respect of which the documents or records contain or are evidence, have been instituted, in which event the documents or records may be detained until the proceedings are finally concluded.

Clause 47: Relevant portion of subsection 91(1):

91. (1) The Commission has jurisdiction to and may, on receiving a report from an inspector pursuant to section 90 or at any other time, investigate

...

(c) any overage or shortage appearing on the delivery of grain into or out of an elevator;

Clause 48: Existing text of subsection 95(1):

95. (1) Where

(a) a licensee has failed or refused to comply with any requirement of an order made under subsection 93(1), in relation to the operation of an elevator, before the expiration of any period of prohibition or suspension specified in that order or any order made under paragraph 94(3)(b),

(b) a licensee or the manager of a licensed elevator is convicted of an offence under this Act, or

(c) a licensee has failed to give additional security as required by any order made under subsection 49(1),

the Commission may, by order, revoke the licence to operate the elevator to which the order or conviction relates or the licence to carry on business as a grain dealer, as the case may be.

Clause 49: Relevant portion of section 97:

97. The Commission may, after any investigation instituted under section 91 and after affording all persons having an interest in the matter under investigation a full and ample opportunity to be heard, make an order

...

(c) in the case of any shortage of grain delivered into or out of any licensed elevator, for the apportionment of any loss among any complainant, the licensee of the elevator and any public carrier taking part in the carriage of the grain, having regard, in the discretion of the Commission, to any overage accruing to any person concerned.

Clause 50: Relevant portion of section 106:

106. No person shall

Clause 51: Existing text of section 107:

107. (1) Every operator of an elevator who contravenes or fails to comply with section 72 is guilty of an offence and

(a) if an individual, is liable

(i) on summary conviction, to a fine not exceeding nine thousand dollars or to imprisonment for a term not exceeding two years, or to both, or

(ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars or to imprisonment for a term not exceeding four years, or to both; or

(b) if a corporation, is liable

(i) on summary conviction, to a fine not exceeding thirty thousand dollars, or

(ii) on conviction on indictment, to a fine not exceeding sixty thousand dollars.

(1.1) Every person who contravenes section 105.1 is guilty of an offence and is liable

(a) on summary conviction

(i) if an individual, to a fine not exceeding nine thousand dollars, or to imprisonment for a term not exceeding two years, or to both, or

(ii) if a corporation, to a fine not exceeding thirty thousand dollars; or

(b) on conviction on indictment

(i) if an individual, to a fine the amount of which is at the discretion of the court, or to imprisonment for a term not exceeding four years, or to both, or

(ii) if a corporation, to a fine the amount of which is at the discretion of the court.

(2) Every person who contravenes any provision of this Act, other than section 72 or 105.1, or of the regulations or any order of the Commission, other than an order for the payment of any money or apportionment of any loss, is guilty of an offence and

(a) if an individual, is liable

(i) on summary conviction, to a fine not exceeding six thousand dollars or to imprisonment for a term not exceeding one year, or to both, or

(ii) on conviction on indictment, to a fine not exceeding twelve thousand dollars or to imprisonment for a term not exceeding two years, or to both; or

(b) if a corporation, is liable

(i) on summary conviction, to a fine not exceeding nine thousand dollars, or

(ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars.

Clause 52: Existing text of subsection 108(2):

(2) Any employee or agent of a licensed grain dealer or special crops dealer who does any act or thing directed to the commission of an offence under this Act or a violation by the dealer is a party to and guilty of the offence or violation, as the case may be.

Clause 53: New.

Clause 54: Existing text of subsection 110(1):

110. (1) Any proceedings by way of summary conviction in respect of an offence under this Act may be instituted at any time within two years after the time when the subject-matter of the prosecution arose.

Clause 55: Existing text of subsection 111(2):

(2) Subsection (1) does not apply to an elevator receipt issued by the operator of a licensed transfer elevator in prescribed form that has clearly appearing on the face of it the words “Not Negotiable”.

Clause 56: Existing text of sections 113 and 114:

113. (1) The Commission shall register elevator receipts issued for grain by the operators of licensed terminal elevators and licensed transfer elevators at such places and in such manner as may be prescribed.

(2) The operator of each licensed terminal elevator or licensed transfer elevator shall transmit to the Commission for registration each elevator receipt for grain issued in respect of grain received into the elevator before delivery of the receipt to the person delivering the grain.

(3) An elevator receipt issued pursuant to this Act by the operator of a licensed terminal elevator or licensed transfer elevator does not confer on the holder of the receipt any rights to the grain referred to in the receipt unless the receipt is registered pursuant to this section.

114. The operator of a licensed terminal elevator or licensed transfer elevator shall, within such time and together with such reports as may be prescribed, tender to the Commission for cancellation of registration,

(a) where grain is discharged from the elevator,

(i) registered receipts for grain of the same kind, grade and quantity as the grain discharged from the elevator, or

(ii) where grain of different grades has been mixed, such registered receipts as the Commission may direct; and

(b) in such other circumstances as may be required by order of the Commission or prescribed, such registered receipts as are referred to in the order or prescribed.

Clause 57: Relevant portion of section 115:

115. The Governor in Council may, by order,

...

(d) direct that any grade established pursuant to this Act be assigned only to grain being officially inspected on discharge from a terminal elevator or a transfer elevator;

Clause 58: (1) to (6) Relevant portion of subsection 116(1):

116. (1) The Commission may, with the approval of the Governor in Council, make regulations

...

(h) respecting the receipt, inspection, handling and storage at elevators of foreign grain and prescribing the period of time that foreign grain may remain in storage at any elevator;

(i) prescribing the procedure to be followed on appeals as to grades of grain to an inspector or a grain appeal tribunal;

...

(k) respecting the security to be given, by way of bond, suretyship, insurance or otherwise, by applicants for licences and by licensees;

(k.1) prescribing the types and amounts of insurance that applicants for and holders of primary, transfer and terminal elevator licences must obtain;

...

(r) fixing, or prescribing the manner for determining, the fees for any service performed by or on behalf of the Commission and the fees for any licence issued by the Commission and prescribing the time and manner of payment of those fees;

(7) Existing text of subsection 116(2):

(2) The Commission may, in writing, permit a licensee to use any form or any system of keeping or issuing cash purchase tickets, elevator receipts or any other document designated by the Commission in addition to or in place of a prescribed form or system.

Clause 59: New.

Clause 60: (1) to (3) Relevant portion of section 118:

118. The Commission may make orders

(a) subject to any order made by the Governor in Council under section 115, governing the allocation of available railway cars to terminal elevators and transfer elevators and among shipping points on any line of railway;

...

(f) providing for the equitable apportionment among shippers of the use of elevator storage space in licensed terminal elevators and licensed transfer elevators;

Clause 61: Existing text of the heading and section 120.1:

Review and Report

120.1 Within a year after the coming into force of this section, the Minister shall cause

(a) an independent and comprehensive review of the Commission and of the provisions and operation of this Act to be conducted; and

(b) a report on the review to be laid before each House of Parliament, including a statement of any changes recommended by the authors of the review.