Bill C-13

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C-13

Second Session, Fortieth Parliament,

57-58 Elizabeth II, 2009

HOUSE OF COMMONS OF CANADA

BILL C-13

An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004

first reading, February 23, 2009

MINISTER OF AGRICULTURE AND AGRI-FOOD

90444

SUMMARY

This enactment amends the Canada Grain Act by

(a) clarifying the Canadian Grain Commission’s objects;

(b) combining terminal elevators and transfer elevators into a single class of elevators called “terminal elevators”;

(d) extending the right to require the Commission to determine the grade and dockage of grain at process elevators and grain dealers’ premises;

(e) eliminating the Grain Appeal Tribunals;

(f) eliminating the Commission’s ability to require security as a condition for obtaining or maintaining a licence;

(g) creating additional regulatory powers for the Commission;

(h) modifying enforcement provisions and creating certain new offences; and

(i) ensuring that some of the requirements and procedures set out are clarified and modernized and that certain language is updated.

The enactment also amends 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 as well as another Act, and includes transitional provisions and coordinating amendments.

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

2nd Session, 40th Parliament,

57-58 Elizabeth II, 2009

house of commons of canada

BILL C-13

An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004

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

R.S., c. G-10

CANADA GRAIN ACT

1994, c. 45, s. 1(6)(F)

1. (1) The definitions “export standard sample”, “foreign grain”, “overage”, “primary standard sample”, “shortage” and “transfer elevator” in section 2 of the Canada Grain Act are repealed.

(2) The definition “appellation de grade” in section 2 of the French version of the Act is repealed.

R.S., c. 37 (4th Supp.) s. 1(1); 1994, c. 45, ss. 1(3) and (6)(F)

(3) The definitions “contaminated”, “official sample” and “terminal elevator” in section 2 of the Act are replaced by the following:

“contaminated”
« contaminé »

“contaminated” means, in respect of grain, containing any substance in sufficient quantity that the grain is unfit for consumption by persons or animals, or is adulterated within the meaning of the regulations;

“official sample”
« échantillon officiel »

“official sample” means a sample taken from a parcel of grain by a device that is approved by the Commission and that is operated or whose use is monitored by a person authorized by the Commission;

“terminal elevator”
« installation terminale » ou « silo terminal »

“terminal elevator” means an elevator whose principal uses are the receiving of grain from other elevators and the cleaning, storing and treating of the grain before it is officially inspected and officially weighed;

(4) The definitions “arrêté” and “stockage en cellule” in section 2 of the French version of the Act are replaced by the following:

« arrêté »
“order”

« arrêté » S’entend notamment de toute instruction ou de tout ordre donné en matière de commerce de grains par la Commission.

« stockage en cellule »
“special binning”

« stockage en cellule » Stockage d’un ou plusieurs lots de grain effectué aux termes d’un contrat, et ce dans un espace spécial d’une installation précisé dans ce contract, dans le but d’en préserver l’identité.

(5) Subparagraph (b)(ii) of the definition “lawfully” in section 2 of the Act is replaced by the following:

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

(6) Subparagraph (a)(iii) of the definition “installation” or “silo” in section 2 of the French version of the Act is replaced by the following:

(iii) construites en vue de la manutention et du stockage des grains dans le cadre de l’exploitation d’une minoterie, d’une provenderie, d’une usine de nettoyage des semences, d’une malterie, d’une distillerie, d’une usine d’oléifaction ou de toute autre usine de transformation, et équipées pour la réception, la pesée, le levage et le stockage des grains ainsi que pour leur déchargement en vue de la transformation notamment;

(7) Paragraph (e) of the definition “installation” or “silo” in section 2 of the French version of the Act is replaced by the following:

e) les installations situées dans la région de l’Est et construites en vue de la manutention et du stockage des grains dans le cadre de l’exploitation d’une minoterie, d’une provenderie, d’une usine de nettoyage des semences, d’une malterie, d’une distillerie, d’une usine d’oléifaction ou de toute autre usine de transformation, et équipées pour la réception, la pesée, le levage, le stockage des grains ainsi que pour leur déchargement en vue de la transformation notamment.

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

“imported grain”
« grain importé »

“imported grain” means any grain grown outside Canada and includes any screenings from that grain and every grain product manufactured or processed from that grain;

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

« nom de grade »
“grade name”

« nom de grade » Nom ou nom et numéro attribués à un grade de grain établi sous le régime de la présente loi, y compris toute abréviation réglementaire correspondante.

1994, c. 45, s. 4

2. Paragraph 12(g) of the Act is replaced by the following:

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

3. Section 13 of the Act is replaced by the following:

Objects

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

(a) 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; and

(b) protect the interests of grain producers with respect to deliveries to elevators and grain dealers, the allocation of producer railway cars and the binding determination of grade and dockage of grain by the Commission.

4. Section 15 of the Act and the heading before it are repealed.

5. (1) Paragraph 20(1)(a) of the Act is replaced by the following:

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

(2) Paragraph 20(2)(b) of the Act is repealed.

6. The heading before section 23 of the Act is replaced by the following:

Standard Samples

7. (1) The portion of section 23 of the Act before paragraph (a) is replaced by the following:

Preparation of samples

23. Each crop year, the Commission shall cause to be collected representative samples of the crop of western grain and the crop of eastern grain and, from those samples and from any other samples of the stocks of grain from any previous crop year that the Commission considers to be representative of the existing stock of any grain, cause to be prepared representative samples of

(2) Paragraph 23(b) of the Act is replaced by the following:

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

8. Subsection 24(4) of the Act is replaced by the following:

Recommendation of standard samples

(4) The Western Standards Committee shall examine the samples of each grade of western grain that are supplied to the Committee by the Commission and select and recommend to the Commission samples of the grade that, in the Committee’s opinion, represent as accurately as possible the average quality of grain of that grade received at any or all elevators at any or all inspection points.

R.S., c. 37 (4th Supp.), s. 11

9. Sections 26 and 27 of the Act are replaced by the following:

Designation of standard samples

26. The Commission shall, for each crop year, after considering the recommendations of a grain standards committee made under subsection 24(2) or (4), designate standard samples of each grade of grain for which a representative sample is prepared under paragraph 23(a) and of any other grades of grain that the Commission considers advisable.

Standard samples

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

(a) the visual grading standard to be used in the grading of grain of that grade; and

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

Non-visual criterion

(2) If a criterion of a grade of grain cannot be determined visually by comparison with a standard sample, that criterion must be taken into consideration in determining the grade of the grain.

Limitation

(3) No person shall, on the basis of the use of a 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.

10. Section 29 of the Act is replaced by the following:

Provision for inspection

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

R.S., c. 37 (4th Supp.), s. 13

11. Section 31 of the Act is replaced by the following:

Commission’s property

31. A sample of grain taken under section 30 or otherwise sent to the Commission becomes the Commission’s property and shall be used, sold or disposed of by the Commission in the prescribed manner.

12. Paragraph 32(1)(b) of the Act is replaced by the following:

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

13. Section 33 of the Act is replaced by the following:

Transmission of inspection certificate

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

1994, c. 45, s. 8; 2003, c. 22, par. 224(n)(E)

14. The heading before section 35 and sections 35 to 38 of the Act are repealed.

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

Right of appeal

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

Time for appeal

(2) Except with the Commission’s permission, no appeal lies under this section unless, within 15 days after the decision that is the subject of the appeal is made, notice of the appeal is given to the chief grain inspector for Canada.

R.S., c. 37 (4th Supp.), s. 15

16. Section 41 of the Act is replaced by the following:

Duties on appeal

41. (1) When an appeal is taken, the chief grain inspector for Canada shall

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

(b) review the decision appealed from;

(d) if 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.

Delegation

(2) The chief grain inspector for Canada may delegate all or part of the functions conferred on him or her under this section.

Decision is final

(3) Every decision of the chief grain inspector for Canada under this section, or any person to whom the chief inspector has delegated all or part of his or her functions, is final and conclusive and not subject to appeal to or review by any court.

17. Paragraph 42(c) of the Act is repealed.

1994, c. 45, s. 9

18. Section 43 of the Act is replaced by the following:

Subclasses of licences

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

(a) establishing classes of licences for the operation of elevators other than the elevators referred to in paragraphs 42(a) to (d);

(b) establishing subclasses to the classes of licences established under paragraph (a) and section 42; and

1994, c. 45, s. 10; 2001, c. 4, s. 88(E)

19. (1) Subsections 45(1) and (2) of the Act are replaced by the following:

Issue of licences — elevator operators and grain dealers

45. (1) When a person who proposes to operate an 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 and any conditions that the Commission may require of applicants, the Commission may issue to the applicant the 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.

1994, c. 45, s. 10

(2) Paragraph 45(3)(b) of the Act is replaced by the following:

(b) subject to any conditions, in addition to any prescribed conditions, that the Commission considers appropriate in the public interest.

1994, c. 45, s. 10

20. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following:

Refusal to issue elevator licence

46. (1) The Commission may refuse to issue an elevator licence if the applicant fails to establish to the Commission’s satisfaction that

1994, c. 45, s. 10

(2) Subsection 46(2) of the Act is replaced by the following:

Refusal to issue licence

(2) The Commission may refuse to issue a licence if the applicant fails to establish to the Commission’s satisfaction that the applicant has met the requirements of this Act or the conditions set by the Commission.

R.S., c. 37 (4th Supp.), s. 17(1); 1994, c. 45, s. 12; 1998, c. 22, s. 6(3) and par. 25(b)(F)

21. Section 49 of the Act is repealed.

1994, c. 45, s. 14

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

R.S., c. 37 (4th Supp.), s. 20(1)

23. (1) Subsection 54.1(1) of the Act is replaced by the following:

Recovery of charges

54.1 (1) If an elevator receipt issued by the licensee of a terminal 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 Commission’s written permission, after giving any notice of sale to the last known holder of the receipt as may be specified by the Commission, may, on any terms and conditions that 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.

R.S., c. 37 (4th Supp.), s. 20(1)

(2) Subsection 54.1(3) of the Act is replaced by the following:

Warning

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

“WARNING: If the charges accruing under this receipt have been unpaid for more than one year, the grain may be sold, in which case 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.

AVERTISSEMENT : En cas de non-paiement, pendant plus d’un an, des droits exigibles aux termes d’un récépissé, le grain peut être vendu, le détenteur du récépissé n’ayant droit par la suite, sur remise de ce document, qu’au produit de la vente, déduction faite de ces droits et des frais exposés pour la vente.”

24. Paragraph 57(a) of the Act is repealed.

25. The Act is amended by adding the following after section 60:

Mandatory weighing

60.1 Except as may be authorized by regulation or by order of the Commission, no operator of a licensed primary elevator shall receive into the elevator any grain, grain product or screenings unless it is weighed at the elevator immediately before or during receipt.

1994, c. 45, s. 16

26. (1) The portion of section 61 before subparagraph (b)(i) of the Act is replaced by the following:

Procedure on receipt of grain

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

(a) if the producer, or a person delivering the grain on the producer’s behalf, and the operator of the elevator agree on the grain’s grade and dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a cash purchase ticket or elevator receipt stating the grain’s grade name, grade and dockage, and shall provide the producer with it without delay; or

(b) if the producer, or a person delivering the grain on the producer’s behalf, and the operator of the elevator do not agree on the grain’s grade or dockage, the operator shall

1994, c. 45, s. 16

(2) Clause 61(b)(i) of the French version of the Act is replaced by the following:

(i) prélève un échantillon du grain selon les modalités réglementaires,

1998, c. 22, par. 25(d)(F)

27. Subsection 62(4) of the Act is replaced by the following:

Restriction

(4) No order shall be made under subsection (3) unless written notice of the dispute has been received by the Commission within 30 days after the delivery of the grain that is the subject of the dispute to a terminal elevator or process elevator.

28. The portion of section 63 of the French version of the Act before paragraph (a) is replaced by the following:

Traitement particulier

63. L’exploitant d’une installation primaire agréée effectue la pesée, la manutention et le traitement du grain, qui lui est légalement offert pour stockage, conformément à la demande qui lui est faite et aux modalités réglementaires et délivre ensuite un récépissé dans le cas suivant :

29. Paragraph 65(3)(c) of the Act is replaced by the following:

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

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

Discharge of grain from primary elevator

67. (1) The operator of a licensed primary elevator shall, subject to section 86, without delay discharge into a conveyance referred to in paragraph (b), to the extent that the conveyance’s capacity allows, the identical grain or grain of the same kind, grade and quantity, that any elevator receipt from that licensed primary elevator requires, if the holder of the receipt who is entitled to the delivery of grain referred to in the receipt

(a) may lawfully deliver the grain to a terminal elevator, 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.

R.S., c. 37 (4th Supp.), s. 21(1); 1994, c. 45, ss. 18 and 19; 1998, c. 22, par. 25(f)(F); 2005, c. 24, s. 2

31. Sections 68.1 to 73 of the Act are replaced by the following:

Terminal Elevators

Receipt of grain

69. (1) Subject to section 58 and any order made under subsection (2) or section 118, an operator of a licensed terminal 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.

Orders respecting receipt of grain

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

Weighing on request

69.1 (1) Unless exempted by regulation or by order of the Commission, an operator of a licensed terminal elevator shall, if requested to do so by the person who caused the grain received into the elevator to be delivered, cause that grain to be weighed in a manner authorized by the Commission.

Access

(2) If requested to do so by the person who caused the grain to be delivered, the operator shall provide that person, or a third party selected by that person, with access at all reasonable times to the operator’s premises to permit that person or the third party to observe the weighing of the grain.

Inspection on request

70. (1) Unless exempted by regulation or by order of the Commission, an operator of a licensed terminal elevator shall, if requested to do so by the person who caused the grain received into the elevator to be delivered, cause that grain to be inspected, including graded, in a manner authorized by the Commission.

Inspection to be made by operator or third party

(2) The inspection shall be made by the operator unless the person who caused the grain to be delivered requests the grading of the grain be done by a third party chosen by that person, in which case the inspection shall be made by that third party.

Grading on basis of sample

(3) As part of the inspection under this section, all grading of grain shall be done on the basis of a sample taken by the operator in a manner authorized by the Commission.

Access

(4) If grain is to be graded by a third party, the operator shall provide the third party with access at all reasonable times to the operator’s premises to permit the third party to observe the sampling of the grain and to grade the grain.

Disagreement — application to chief grain inspector for Canada

(5) If there is any disagreement following an inspection under this section between the operator and the person who caused the grain to be delivered on the grain’s grade or dockage, either may, in the prescribed manner and within the prescribed time, apply to the chief grain inspector for Canada for a determination of the grain’s grade or dockage, and if the application is made, the operator shall forward the sample of grain taken for the purpose of the inspection, or a prescribed portion of it, to the chief grain inspector for Canada within the prescribed time.

Report

(6) On receipt of the sample or portion, the chief grain inspector for Canada shall examine it and assign it a grade, determine the dockage and provide the person who caused the grain to be delivered and the operator with a report of his or her determination respecting the grain’s grade and dockage.

Application to entire delivery of grain

(7) The determination of the chief grain inspector for Canada applies to the entire delivery of grain to which the sample relates.

Delegation

(8) The chief grain inspector for Canada may delegate all or part of the functions conferred on him or her under this section.

Determination is final

(9) The determination of the chief grain inspector for Canada, or any person to whom the chief grain inspector has delegated all or part of his or her functions, is final and conclusive and not subject to appeal to or review by any court.

Inspection — required by regulation or order

70.1 If required by regulation or by order of the Commission, every operator of a licensed terminal elevator shall weigh or inspect, or shall cause to be weighed or inspected or officially weighed or officially inspected, or any combination of those, grain received into the elevator, in the manner authorized by the Commission, as specified in the regulation or order.

Weighing and inspecting before discharge of grain

70.2 Unless exempted by regulation or by order of the Commission, every operator of a licensed terminal elevator shall cause all grain in the elevator other than grain that is destined for another licensed elevator to be officially weighed and officially inspected immediately before or during the discharge of the grain from the elevator.

Elevator receipt

71. (1) On receipt of grain into a licensed terminal elevator, the operator of the elevator shall, if the grain has been weighed under subsection 69.1(1), or inspected under subsection 70(1) or weighed or inspected — officially or otherwise — under section 70.1,

(a) without delay issue an elevator receipt for the grain and any screenings that he or she 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 its receipt into the elevator, deliver the elevator receipt to or on the order of the holder of the bill of lading.

Receipt for grain containing excessive moisture or intermixed with other material

(2) Despite 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, if the operator of a licensed terminal elevator issues an elevator receipt for grain to which any grade would be assignable but for its excessive moisture or intermixture with another material removable by treatment, that operator, on the drying or treatment of the grain, as the case may be, shall recall the receipt, assign the grain a grade and issue a new elevator receipt for grain of that grade that is adjusted to the grain’s dried quantity or quantity remaining after the treatment.

Warning

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

Grain owned by licensee

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

Specially binning grain restricted

72. The operator or manager of a licensed terminal elevator shall not, except as may be authorized by regulation, specially bin any grain.

Priority of claims

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

32. Subsection 74(1) of the Act is replaced by the following:

Discharge from elevator

74. (1) The operator of a licensed terminal elevator shall, subject to section 86, without delay discharge into a conveyance referred to in paragraph (b), to the extent that the conveyance’s capacity allows, the identical grain or grain of the same kind, grade and quantity, that any elevator receipt for grain issued by him or her requires, if the holder of the receipt 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.

33. The portion of section 75 of the Act before paragraph (a) is replaced by the following:

Limitation on receipt and discharge

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

34. (1) The portion of subsection 76(1) of the Act before paragraph (a) is replaced by the following:

Procedure if grain requires treatment or must be disposed of

76. (1) If any grain in a licensed terminal elevator 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,

2004, c. 25, s. 107(2)(E)

(2) Subsection 76(3) of the English version of the Act is replaced by the following:

Costs of treatment, etc.

(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 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.

(3) Subsection 76(4) of the Act is replaced by the following:

Operator not relieved of statutory or contractual obligation

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

35. (1) Subsection 77(1) of the Act is replaced by the following:

Compulsory removal of grain

77. (1) The operator of a licensed terminal elevator may, with the Commission’s written permission on at least 30 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) Subsection 77(2) of the English version of the Act is replaced by the following:

Sale of grain

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

(3) Subsection 77(4) of the Act is replaced by the following:

Warning

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

1994, c. 45, s. 20

36. Subsections 78(2) and (3) of the Act are replaced by the following:

Mandatory weighing

(2) Except as may be authorized by regulation or by order of the Commission, no operator of a licensed process elevator shall receive into the elevator any grain, grain product or screenings unless it is weighed at the elevator immediately before or during receipt.

Procedure on receipt of grain

(3) When grain is lawfully offered at a licensed process elevator for sale,

(a) if the producer, or the person delivering the grain on the producer’s behalf, and the operator of the elevator agree on the grain’s grade and dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a cash purchase ticket or grain receipt stating the grain’s grade name, grade and dockage, and shall provide the producer with it without delay; or

(b) if the producer, or the person delivering the grain on the producer’s behalf, and the operator of the elevator do not agree on the grain’s grade or dockage, the operator shall

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

(ii) deal with the sample in the prescribed manner,

(iii) issue an interim grain receipt in the prescribed form, and

(iv) on receipt of a report from the Commission in which a grade is assigned for the sample and the dockage is determined, issue, at the prescribed time and in the prescribed manner, a cash purchase ticket or grain receipt stating the grain’s grade name, the grade assigned for the sample and the dockage so determined, and shall provide the producer with it without delay.

R.S., c. 37 (4th Supp.), s. 23; 1994, c. 45, s. 21

37. The heading before section 79 and sections 79 and 80 of the Act are repealed.

1994, c. 45, s. 22

38. Subsection 81(1) of the Act is replaced by the following:

Procedure on receipt of grain

81. (1) When grain is lawfully offered to a licensed grain dealer for sale,

(a) if the producer, or the person delivering the grain on the producer’s behalf, and the grain dealer agree on the grain’s grade and dockage, the grain dealer shall, at the prescribed time and in the prescribed manner, issue a cash purchase ticket or grain receipt stating the grain’s grade name, grade and dockage, and shall provide the producer with it without delay; or

(b) if the producer, or the person delivering the grain on the producer’s behalf, and the grain dealer do not agree on the grain’s grade or dockage, the grain dealer shall

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

(ii) deal with the sample in the prescribed manner,

(iii) issue an interim grain receipt in the prescribed form, and

(iv) on receipt of a report from the Commission in which a grade for the sample is assigned and the dockage is determined, issue, at the prescribed time and in the prescribed manner, a cash purchase ticket or grain receipt stating the grain’s grade name, the grade assigned for the sample and the dockage so determined, and shall provide the producer with it without delay.

R.S., c. 37 (4th Supp.), s. 25(1); 1994, c. 45, s. 23.

39. Section 82.1 of the Act and the heading before it are repealed.

1994, c. 45, s. 25

40. Section 84 of the Act is replaced by the following:

Transport into Canada

84. (1) The Commission may

(a) with the approval of the Governor in Council, make regulations respecting the transport of grain into Canada, other than by a public carrier, including prohibiting or imposing conditions on that transport; and

(b) make orders that contain any provision that may be contained in any regulation made under paragraph (a) but that are directed at a single person or body or apply for a period of time terminating not later than the end of the crop year in respect of which the orders are made.

Transport out of Canada

(2) Except with the Commission’s written permission or in accordance with prescribed terms and conditions, no person, other than a public carrier, shall transport or cause to be transported any grain out of Canada.

41. Subsection 85(3) of the Act is replaced by the following:

Inspection of conveyances

(3) An inspector may, at any reasonable time, inspect any conveyance that is at any elevator to receive grain.

42. Section 86 of the Act is replaced by the following:

Discharge of grain into unfit conveyance prohibited

86. No person shall discharge or permit the discharge of any grain from an elevator into a conveyance, if the person has reason to believe that the conveyance is unfit to receive grain because it fails to meet the prescribed conditions.

1998, c. 22, par. 25(h)(F)

43. Subsection 87(1) of the Act is replaced by the following:

Application for railway cars

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

1998, c. 22, s. 17

44. The portion of subsection 88(1) of the Act before paragraph (b) is replaced by the following:

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 grain dealer in which he or she believes on reasonable grounds there is any grain, grain product or screenings or any books, records or other documents relating to the operation of the elevator or the business of the grain dealer;

(a.1) any elevator that he or she believes on reasonable grounds is being operated, or any premises in which he or she believes on reasonable grounds a person is carrying on business as a grain dealer, without the licence that is required under this Act; or

45. Subsection 89(2) of the Act is repealed.

1988, c. 65, s. 127; 1994, c. 45, s. 29

46. Section 90 of the Act is replaced by the following:

Seizure and report

90. (1) An inspector may seize any documents or records that he or she believes, on reasonable grounds, contain or are evidence that an offence under this Act was committed — and, in any event, shall without delay report to the Commission the facts ascertained by him or her — if he or she believes on reasonable grounds that

(a) any offence under this Act was 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 in it; or

(e) grain, grain products or screenings are not being accurately weighed at an elevator.

Detention

(2) The documents or records seized may not be detained after the expiry of 180 days from the seizure unless before that time proceedings for 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.

47. Paragraph 91(1)(c) of the Act is repealed.

48. Subsection 95(1) of the Act is replaced by the following:

Revocation of licence

95. (1) The Commission may, by order, revoke a licence to operate an elevator to which an order or a finding of guilt relates or a licence to carry on business as a grain dealer, as the case may be, if

(a) the licensee has failed or refused to comply with an order made under subsection 93(1), in relation to the operation of the elevator, or any order made under paragraph 94(3)(b);

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

49. Paragraph 97(c) of the Act is repealed.

50. Section 106 of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or’’ at the end of paragraph (c) and by adding the following after paragraph (c):

(d) knowingly make any false or misleading statements, either orally or in writing to the Commission, an inspector or any other person carrying out his or her functions under this Act, or in any report or other document required under this Act.

R.S., c. 37 (4th Supp.), s. 27; 1988, c. 65, s. 131

51. Section 107 of the Act is replaced by the following:

False statement

106.1 No person shall knowingly make a false statement in a declaration required under regulations made under paragraph 116(1)(p.1).

Offence and punishment

107. Every person who contravenes any provision of this Act 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 the person is an individual, is liable

(i) on summary conviction, to a fine of not more than $50,000 or to imprisonment for a term of not more than one year, or to both, or

(ii) on conviction on indictment, to a fine of not more than $200,000 or to imprisonment for a term of not more than two years, or to both; or

(b) if the person is a corporation, is liable

(i) on summary conviction, to a fine of not more than $250,000, or

(ii) on conviction on indictment, to a fine of not more than $500,000.

52. Subsection 108(2) of the Act, as enacted by section 23 of 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, chapter 22 of the Statutes of Canada, 1998, is replaced by the following:

Offence or violation by employee, agent or mandatary

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

53. The Act is amended by adding the following after section 109:

Orders of the court

109.1 When an offender has been found guilty of an offence under this Act, in addition to any other punishment that may be imposed under this Act, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order having any or all of the following effects:

(a) prohibiting the offender from doing any act or engaging in any activity that may result in the continuation or repetition of the offence;

(b) directing the offender to comply with any other conditions that the court considers appropriate.

54. Subsection 110(1) of the Act is replaced by the following:

Time for commencing proceedings

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

55. Subsection 111(2) of the Act is repealed.

1998, c. 22, par. 25(s)(F)

56. Sections 113 and 114 of the Act are repealed.

R.S., c. 37 (4th Supp.), s. 28(E)

57. Paragraph 115(d) of the Act is replaced by the following:

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

58. (1) Paragraphs 116(1)(h) and (i) of the Act are replaced by the following:

(h) respecting the receipt, inspection, handling and storage at elevators of imported grain and prescribing the period during which imported grain may remain in storage at any elevator;

(i) respecting the procedure to be followed on appeals as to grades of grain;

1994, c. 45, s. 33(4); 2001, c. 4, s. 89(E)

(2) Paragraphs 116(1)(k) and (k.1) of the Act are repealed.

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

(o.1) prescribing, for the purposes of this Act, the circumstances in which a document in electronic form is deemed to be issued, delivered or transferred to a person, or endorsed, surrendered, tendered or recalled by a person;

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

(p.1) respecting the making of declarations by licensees or by persons who sell or deliver grain to a licensee;

(5) Paragraph 116(1)(r) of the French version of the Act is replaced by the following:

r) fixer le montant ou le mode de détermination des droits exigibles pour les services fournis par la Commission ou en son nom et de ceux à payer pour les licences qu’elle délivre, ainsi que les modalités de temps et autres modalités de paiement de ces droits;

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

(r.1) defining “adulterated” for the purposes of the definition “contaminated” in section 2;

1994, c. 45, s. 33(6)

(7) Subsection 116(2) of the Act is repealed.

59. The Act is amended by adding the following after section 116:

Forms and systems other than prescribed

116.1 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 documents designated by the Commission in addition to or in place of a prescribed form or system.

60. (1) Paragraph 118(a) of the Act is replaced by the following:

(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 among shipping points on any line of railway;

(2) Section 118 of the Act is amended by adding the following after paragraph (b):

(b.1) requiring an operator of a licensed terminal elevator to weigh or inspect grain received into the elevator, or cause that grain to be weighed or inspected or officially weighed or officially inspected, or any combination of those, and specifying the manner of weighing or inspecting;

(3) Paragraph 118(f) of the Act is replaced by the following:

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

2005, c. 24, s. 2.1

61. Section 120.1 of the Act and the heading before it are repealed.

62. The French version of the Act is amended by replacing “appellation” and “appellations” with “nom” and “noms” respectively, with any grammatical changes that the circumstances require, in the following provisions:

(a) subsection 16(1);

(b) section 19;

(d) subparagraph 61(b)(iv);

(e) subsection 81(3);

(f) paragraph 83(2)(a);

(g) subsection 102(1); and

(h) paragraphs 105(a) and (b).

63. The French version of the Act is amended by replacing “ordonnance” and “ordonnances” with “arrêté” and “arrêtés” respectively, with any grammatical changes that the circumstances require, in the following provisions:

(a) subsection 14(3);

(b) section 58;

(d) section 93 and the heading before it; and

(e) the heading before section 100.

1998, c. 22

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

64. (1) Subsection 1(1) of 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, chapter 22 of the Statutes of Canada, 1998, is repealed.

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

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

“penalty”
« sanction »

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

“violation”
« violation »

“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;

65. Sections 2 to 5 of the Act are replaced by the following:

1994, c. 45, s. 10

5. Subsection 46(3) of the Act is replaced by the following:

Refusal of licence re convictions

(3) The Commission may refuse to issue a licence to any applicant who has, within the 12 months immediately before the application for the license, 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.

66. Subsections 6(1) and (2) of the Act are repealed.

67. Section 7 of the Act is repealed.

68. Sections 9 and 10 of the Act are repealed.

69. Sections 15 and 16 of the Act are repealed.

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

1994, c. 45, s. 30

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

Restriction of operations and suspension of licence

93. (1) If, on receiving the report of an inspector under section 90 or on making an investigation under 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 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 any period not exceeding 30 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 the manner and within the time that is specified in the order,

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

(iii) prohibit, for any period not exceeding 30 days that 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 for any period not exceeding 30 days that is specified in the order.

71. Subsections 24(2) and (3) of the Act are repealed.

2004, c. 25

THE FEDERAL LAW–CIVIL LAW HARMONIZATION ACT, NO. 2

72. Subsection 207(5) of the Federal Law–Civil Law Harmonization Act, No. 2 is repealed.

TRANSITIONAL PROVISIONS

Transfer elevators

73. As of the day on which subsection 1(1) comes into force, any reference to a transfer elevator is to be read as a reference to a terminal elevator in any order, licence, elevator receipt or other document made or issued under the Canada Grain Act.

Appellation de grade

74. As of the day on which subsection 1(2) comes into force, any reference to an appellation de grade is to be read as a reference to a nom de grade in any order, licence, elevator receipt or other document made or issued under the Canada Grain Act.

Ordonnance

75. As of the day on which section 63 comes into force, any reference to an ordonnance of the Canadian Grain Commission is to be read as a reference to an arrêté of that Commission in any order, licence, elevator receipt or other document made or issued under the Canada Grain Act.

Appeals

76. Despite sections 14 to 16, sections 39 to 41 of the Canada Grain Act, as they read immediately before the day on which section 15 comes into force, continue to apply in relation to official inspections made under the Canada Grain Act before that day; and the mandate of the members of the grain appeal tribunals is extended for that purpose and the members continue to receive the allowance and expenses to which they are entitled.

Security

77. A security given before the day on which section 19 comes into force may be retained on and after that day and used for any purpose for which it was given.

Documents and records

78. (1) Subsection 90(2) of the Canada Grain Act, as enacted by section 46, does not apply to documents or records seized before the day on which it comes into force.

Documents and records

(2) Subsection 90(2) of the Canada Grain Act, as enacted by subsection 80(2), does not apply to documents or records seized before the day on which it comes into force.

Time for commencing proceedings

79. Subsection 110(1) of the Canada Grain Act, as that subsection read before the day on which section 54 comes into force, continues to apply in respect of acts or omissions that occurred before the coming into force of that section.

COORDINATING AMENDMENTS

1998, c. 22

80. (1) In this section, “other Act” means 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, chapter 22 of the Statutes of Canada, 1998.

(2) On the first day on which both section 18 of the other Act and section 46 of this Act are in force, section 90 of the Canada Grain Act is replaced by the following:

Seizure and report

90. (1) An inspector may seize any documents or records that he or she believes, on reasonable grounds, contain or are evidence that an offence under this Act or any violation was committed and, in any event, shall without delay report to the Commission the facts ascertained by him or her, if he or she believes on reasonable grounds that

(a) any offence under this Act or any violation was 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 in it; or

(e) grain, grain products or screenings are not being accurately weighed at an elevator.

Detention

(2) The documents or records seized may not be detained after the expiry of 180 days from the seizure unless before that time proceedings for an offence under this Act or a violation, 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.

(3) On the first day on which both section 21 of the other Act and section 48 of this Act are in force, subsection 95(1) of the Canada Grain Act is replaced by the following:

Revocation of licence

(a) the licensee has failed or refused to comply with an order made under subsection 93(1), in relation to the operation of the elevator, or any order made under paragraph 94(3)(b);

(b) the licensee, or the manager, of a licensed elevator is found guilty of an offence under this Act or has committed a violation; or

(4) On the first day on which both section 23 of the other Act and section 51 of this Act are in force, section 107 of the Canada Grain Act is replaced by the following:

Offence and punishment

(a) if the person is an individual, is liable

(i) on summary conviction, to a fine of not more than $50,000 or to imprisonment for a term of not more than one year, or to both, or

(ii) on conviction on indictment, to a fine of not more than $200,000 or to imprisonment for a term of not more than two years, or to both; or

(b) if the person is a corporation, is liable

(i) on summary conviction, to a fine of not more than $250,000, or

(ii) on conviction on indictment, to a fine of not more than $500,000.

COMING INTO FORCE

Order in council

81. The provisions of this Act, except sections 52 and 64 to 80, come into force on a day or days to be fixed by order of the Governor in Council.

Published under authority of the Speaker of the House of Commons

Available from:
Publishing and Depository Services
Public Works and Government Services Canada

Explanatory Notes

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

(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

(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:

...

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

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

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

...

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

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;

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(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.

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;

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

(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.

Table of Contents

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

THE FEDERAL LAW–CIVIL LAW HARMONIZATION ACT, NO. 2

TRANSITIONAL PROVISIONS

COORDINATING AMENDMENTS

COMING INTO FORCE