Bill C-39

An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act

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

1. (1) The definitions “cash purchase ticket”, “grain receipt”, “licence” and “licensee” in section 2 of the Canada Grain Act are replaced by the following:

“cash purchase ticket” means a document in prescribed form issued in respect of grain delivered to a primary elevator, process elevator, grain dealer or special crops dealer as evidence of the purchase of the grain by the operator of the elevator or the dealer and entitling the holder of the document to payment, by the operator or dealer, of the purchase price stated in the document;

“grain receipt” means a document in prescribed form issued in respect of grain delivered to a process elevator, grain dealer or special crops dealer acknowledging receipt of the grain and entitling the holder of the document to payment by the operator of the elevator or the dealer for the grain;

“licence” means a licence to operate an elevator or to carry on business as a grain dealer or as a special crops dealer issued by the Commission under section 45;

“licensee” means a person who holds a licence;

(2) Existing text of subsection 1(3):

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

“penalty” means an administrative monetary penalty imposed under the Agriculture and Agri-Food Administrative Monetary Penalties Act for a violation;

“special crop” means any grain designated by regulation as a special crop;

“special crops dealer” means an operator of an elevator or a grain dealer who deals in or handles only grain that is a special crop;

“violation” means any contravention of this Act or the regulations or any order that may be proceeded with in accordance with the Agriculture and Agri-Food Administrative Monetary Penalties Act;

Clause 65: Existing text of sections 2 to 5:

2. Section 42 of the Act is amended by striking out the word “and” at the end of paragraph (d), by adding the word “and” at the end of paragraph (e) and by adding the following after paragraph (e):

(f) a special crops dealer’s licence, being a licence to carry on business as a special crops dealer.

3. (1) Subparagraph 44(a)(i) of the Act is replaced by the following:

(i) that person is the holder of a licence issued in respect of the elevator that is of a class appropriate to that type of elevator or, if the person is a special crops dealer, is the holder of a special crops dealer’s licence, or

(2) Subparagraph 44(b)(i) of the Act is replaced by the following:

(i) that person is the holder of a grain dealer’s licence or, if the person is a special crops dealer, a special crops dealer’s licence,

4. Subsection 45(1) of the Act is replaced by the following:

45. (1) If a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer or a special crops 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 dealer; and

(b) if the application is for a primary elevator, process elevator or grain dealer’s licence, subject to the regulations, fix the security to be given by the applicant, by way of bond, 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 other than special crops produced by the holders.

5. Subsections 46(1) to (3) of the Act are replaced by the following:

46. (1) The Commission may refuse to issue an elevator licence if

(a) the applicant has not given the security fixed pursuant to section 45;

(b) the applicant intends that the elevator receive special crops, the insurance plan described in section 49.01 is in effect and the applicant has not been approved by the insurer of that plan; or

(c) the applicant fails to establish to the satisfaction of the Commission that

(i) the premises that the applicant proposes to use are appropriate for the storage and handling of grain, or

(ii) the elevator is or will be of such a type and in such condition and the equipment of the elevator is or will be of such a type and size and in such condition as to enable the applicant to provide, at the location where the applicant proposes to operate the elevator, the services required by or pursuant to this Act to be provided at that location by a licensee holding a licence of the class for which the applicant has applied.

(2) The Commission may refuse to issue a grain dealer’s licence if

(a) the applicant has not given the security fixed pursuant to section 45; or

(b) the applicant intends to deal in special crops, the insurance plan described in section 49.01 is in effect and the applicant has not been approved by the insurer of that plan.

(2.1) The Commission may refuse to issue a special crops dealer’s licence if the insurance plan described in section 49.01 is in effect and the applicant has not been approved by the insurer of that plan.

(3) The Commission may refuse to issue a licence to any applicant who has, within the twelve months immediately preceding the application for the licence, been convicted of an offence under this Act or has been found to have committed a violation if the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant.

Clause 66: Existing text of subsections 6(1) and (2):

6. (1) Subsection 49(2) of the Act is replaced by the following:

(2) Any security given by a licensee as a condition of a licence may only be realized or enforced by the Commission on behalf of any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to

(a) comply with this Act or any regulation or order made under it; or

(b) 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 in respect of grain other than a special crop.

(2) Paragraph 49(3)(a) of the Act is replaced by the following:

(a) the ticket or receipt is issued in respect of grain other than a special crop and the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain within such period following the issuance of the ticket or receipt by the licensee as may be prescribed; and

Clause 67: Existing text of section 7:

7. The Act is amended by adding the following after section 49:

49.01 (1) In this section and section 49.02, “agent” means the Commission or any other person or organization designated as agent by the Minister on the recommendation of the Special Crops Advisory Committee referred to in section 49.02.

(2) The agent may, in accordance with the regulations, establish an insurance plan to insure producers of special crops who are holders of cash purchase tickets, elevator receipts or grain receipts against the refusal or failure of licensees to meet their payment or delivery obligations under the receipt or ticket.

(3) A producer of special crops who delivers or causes to be delivered such a crop to a licensee when an insurance plan described in subsection (2) is in effect shall pay to the licensee in the prescribed manner the prescribed levy.

(4) A licensee shall collect the levy from the producer and shall remit it to the agent within such period and in such manner as may be prescribed.

(5) The agent shall use the levies to pay any premiums owed to the insurer, any expenses related to the administration of the insurance plan and any remuneration or reimbursement of expenses to which a member of the Special Crops Advisory Committee may be entitled under subsection 49.02(4).

(6) A producer of special crops participating in the insurance plan may make a claim related to a grain receipt, elevator receipt or cash purchase ticket issued in respect of a special crop by a licensee only if

(a) prior to the expiration of such period following the issuance of the receipt or ticket by the licensee as may be prescribed, the licensee fails or refuses to meet any of their payment or delivery obligations to the producer; and

(b) the producer has given notice in writing of the failure or refusal to the agent within such period following the failure or refusal as may be prescribed.

(7) 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.

(8) A producer of special crops may, in the prescribed manner, withdraw from the insurance plan described in this section. The agent must reimburse the producer for the amount of any levy the producer paid under subsection (3) for the period after the producer’s withdrawal from the plan.

49.02 (1) The Minister shall establish a committee, referred to as the Special Crops Advisory Committee, composed of not more than nine members named by the Minister for a term not exceeding three years, which term may be renewed for one or more further terms.

(2) The Special Crops Advisory Committee shall make recommendations regarding the designation of special crops, the selection of a person or organization as agent or insurer under section 49.01 and any other issues concerning special crops submitted to it by the Minister.

(3) The majority of the members of the Special Crops Advisory Committee shall be special crops producers who are not special crops dealers, grain dealers or operators of primary elevators.

(4) The agent shall pay to the members of the Special Crops Advisory Committee such remuneration as is fixed by the Minister and reimburse them for any reasonable travel and living expenses incurred by them in the course of their duties while absent from their ordinary places of residence.

Clause 68: Existing text of sections 9 and 10:

9. Subsections 51(3) to (5) of the Act are repealed.

10. The heading “ELEVATORS AND GRAIN DEALERS AND THE HANDLING OF GRAIN BY LICENSEES AND OTHER PERSONS” before section 55 of the Act is replaced by the following:

ELEVATORS, GRAIN DEALERS AND SPECIAL CROPS DEALERS AND THE HANDLING OF GRAIN BY LICENSEES AND OTHER PERSONS

Clause 69: Existing text of sections 15 and 16:

15. The Act is amended by adding the following after section 68.1:

68.2 For greater certainty, in sections 60 to 68.1, “licensed primary elevator” means a primary elevator operating under a primary elevator licence referred to in paragraph 42(a).

16. The heading before section 81 and sections 81 and 82 of the Act are replaced by the following:

Grain Dealers and Special Crops Dealers

81. (1) With respect to the purchase of western grain from a producer of that grain, every licensed grain dealer or special crops 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.

(2) No licensed grain dealer or special crops dealer who acts for any person on a commission basis in relation to the purchase or sale of western grain by a grade name shall, except with the consent of that person, buy, sell or have any interest directly or indirectly beyond the dealer’s agreed commission in the purchase or sale of the grain.

(3) No licensed grain dealer or special crops dealer shall

(a) except with the permission of the Commission, enter into a contract relating to western grain that the dealer has reason to believe is infested or contaminated; or

(b) enter into a contract that provides for the delivery of western grain to an elevator or a consignee if the grain is not lawfully receivable by the operator of the elevator or other consignee.

82. Every licensed grain dealer or special crops dealer shall maintain such records of the dealer’s business and make such reports to the Commission in respect of that business as may be prescribed.

Clause 70: Existing text of section 19:

19. Subsection 93(1) of the Act is replaced by the following:

93. (1) If, on receiving the report of an inspector pursuant to section 90 or on making an investigation pursuant to section 91, the Commission believes on reasonable grounds that an offence under this Act or a violation has been committed by a licensee of an elevator or by a licensed grain dealer or special crops dealer or that a condition referred to in paragraph 90(1)(b), (c), (d) or (e) exists in a licensed elevator, the Commission may, by order,

(a) require a weigh-over of any grain, grain products or screenings in the elevator by the licensee or a person authorized for the purpose by the Commission and, for that purpose, prohibit, for such period not exceeding thirty days as is specified in the order, the receipt into or removal from the premises of the elevator, or both, of any grain, grain products or screenings;

(b) in the case of a condition referred to in paragraph 90(1)(b), (c) or (d),

(i) require that the condition be remedied in such manner and within such time as is specified in the order,

(ii) require that such grain, grain products and screenings in the elevator as are specified in the order be stored or disposed of in such manner as the Commission considers equitable, and

(iii) prohibit, for such period not exceeding thirty days as is specified in the order, any particular use of the elevator or its equipment; and

(c) whether or not the Commission exercises any of the powers conferred by paragraphs (a) and (b), in its discretion, suspend the licence to operate the elevator or the licence to carry on business as a grain dealer or special crops dealer for such period not exceeding thirty days as is specified in the order.

Clause 71: Existing text of subsections 24(2) and (3):

(2) Subsection 116(1) of the Act is amended by adding the following after paragraph (a):

(a.1) designating any grain, except wheat, oats, barley, rye, canola and flax, as a special crop;

(3) Subsection 116(1) of the Act is amended by adding the following after paragraph (k.1):

(k.2) for the purposes of section 49.01

(i) fixing the amount of the levy to be paid by producers of special crops and determining the method by which it is to be paid,

(ii) providing for the time and manner in which licensees are to remit any levies collected to the agent,

(iii) governing the reimbursement by the agent of expenses related to the administration of the insurance plan from the levies remitted to the agent,

(iv) fixing the period of insurance coverage following the issuance of an elevator receipt, grain receipt or cash purchase ticket,

(v) governing the retention and maintenance of records and the provision of information,

(vi) specifying the terms and conditions for participation in and withdrawal from the insurance plan by producers of special crops, and

(vii) providing for any other measures necessary to implement and maintain the insurance plan;

Federal Law–Civil Law Harmonization Act, No. 2

Clause 72: Existing text of subsection 207(5):

(5) On the later of the coming into force of section 109 of this Act and section 23 of the other Act, section 108 of the English version of the Canada Grain Act is replaced by the following:

108. (1) Any manager of an elevator, or any other employee, or agent or mandatary, of the operator or licensee of an elevator, who does any act or thing directed to the commission of an offence under this Act or a violation by the operator or licensee is a party to and guilty of the offence or violation, as the case may be.

(2) Any employee, or agent or mandatary, 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.