Bill C-18

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

7. (1) Subject to subsection (1.1), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act,

(2) Subsection 7(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(3) Section 7 of the Act is amended by adding the following after subsection (2):

69. Subsection 9(2) of the Act is replaced by the following:

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

71. The portion of section 10 of the Act before paragraph (a) is replaced by the following:

10. Every person who contravenes any provision of this Act or the regulations or fails to do anything that the person is ordered to do by an inspector under this Act is guilty of

72. Sections 10.1 and 11 of the Act are replaced by the following:

11. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

11.1 Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

SEEDS ACT

73. The long title of the Seeds Act is replaced by the following:

An Act respecting seeds

74. (1) The definition “grade” in section 2 of the Act is replaced by the following:

“grade”, in respect of seed, includes any class of seed;

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

75. The Act is amended by adding the following after section 3:

76. (1) Paragraph 4(1)(a.1) of the Act is replaced by the following:

(a.1) providing, with respect to grades requiring varietal purity, for the determination of varietal purity of seed crops and, in particular, for any such determination to be made by the Canadian Seed Growers’ Association and any standards established by that Association to be used;

(2) Paragraph 4(1)(f) of the Act is replaced by the following:

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

(4) Paragraph 4(1)(j.1) of the Act is replaced by the following:

(j.1) requiring persons to prepare, keep or maintain documents and to provide the Minister or an inspector with, or with access to, those documents, and respecting

(i) the information in those documents,

(ii) the manner in which they are to be prepared, kept or maintained,

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

(2) The Minister may, by order, specify the kinds of plants whose seeds are, for the purposes of this Act, weed seeds.

77. The Act is amended by adding the following after section 4:

78. Subsection 5(1) of the French version of the Act is replaced by the following:

79. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following:

6. (1) Subject to subsection (1.1), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act,

(2) Subsection 6(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):

(3) Section 6 of the Act is amended by adding the following after subsection (2):

80. Subsection 8(2) of the Act is replaced by the following:

81. The Act is amended by adding the following after section 8:

82. (1) The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:

9. (1) Every person who contravenes any provision of this Act or the regulations or fails to do anything that the person is ordered to do by an inspector under this Act is guilty of

(2) Subsections 9(2) to (5) of the Act are replaced by the following:

(3) In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

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

10. Summary conviction proceedings for an offence under this Act may be instituted no later than three years after the day on which the subject matter of the proceedings arises.

HEALTH OF ANIMALS ACT

84. (1) The definition “produit vétérinaire biologique” in subsection 2(1) of the French version of the Health of Animals Act is repealed.

(2) The definition “veterinary biologic” in subsection 2(1) of the English version of the Act is replaced by the following:

“veterinary biologic” means a thing that is manufactured, sold or represented for use in restoring, correcting or modifying organic functions in animals or for use in the diagnosis, treatment, mitigation or prevention of a disease, disorder or abnormal physical state — or its symptoms — in animals and that is

(a) a helminth, protozoa or micro-organism,

(b) a substance or mixture of substances derived from animals, helminths, protozoa, micro-organisms or plants, or

(c) a substance of synthetic origin;

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

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

85. Section 6 of the Act is repealed.

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

87. Section 12 of the French version of the Act is replaced by the following:

88. Subsection 16(1) of the French version of the Act is replaced by the following:

89. Sections 17 and 18 of the Act are replaced by the following:

17. Subject to section 18, if the Minister determines that an animal or thing has been imported — or an attempt has been made to import an animal or thing — in contravention of this Act or the regulations or that a requirement imposed by or under the regulations in respect of an imported animal or thing has not been met, it is forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

18. (1) An inspector or officer who has reasonable grounds to believe that an imported animal or thing has been imported in contravention of this Act or the regulations, is or could be affected or contaminated by a disease or toxic substance or is a vector or that a requirement imposed by or under the regulations in respect of an imported animal or thing has not been met may, by notice, whether the animal or thing is seized or not, order its owner or importer or the person having possession, care or control of it to remove it from Canada or, if removal is not possible, to dispose of it.

(2) The notice must either be delivered personally to the owner or importer of the animal or thing or to the person having possession, care or control of it or be sent by registered mail to the owner’s, importer’s or person’s address in Canada.

(3) If the animal or thing is not removed from Canada, or disposed of, within the period specified in the notice — or, if no period was specified, within 90 days after the day on which the notice was delivered or sent — it is, despite subsection 45(1), forfeited to Her Majesty in right of Canada and may be disposed of as the Minister may direct.

(4) An inspector or officer may, for a period that he or she specifies, suspend the application of subsection (3) if he or she is satisfied that

(a) harm to human or animal health or, in the case of a veterinary biologic, to the environment is unlikely to result;

(b) the animal or thing will not be sold within that period;

(c) the measures that should have been taken for the animal or thing not to have been imported in contravention of a provision of this Act or the regulations will be taken within that period; and

(d) if the animal or thing does not meet the requirements of the regulations, it will be brought into compliance with the regulations within that period.

(5) An inspector or officer may cancel the notice if he or she is satisfied that

(a) harm to human or animal health or, in the case of a veterinary biologic, to the environment is unlikely to result;

(b) the animal or thing has not been sold within the period referred to in subsection (6);

(c) the measures referred to in paragraph (4)(c) were taken within that period; and

(d) if the animal or thing did not meet the requirements of the regulations when it was imported, it was brought into compliance with the regulations within that period.

(6) The period for the purposes of subsection (5) is

(a) if the application of subsection (3) was suspended under subsection (4), the period of the suspension; and

(b) if the application of subsection (3) was not suspended, the period specified in the notice or, if no period was specified, the period that ends 90 days after the day on which the notice was delivered or sent.

(7) Section 17 does not apply to the animal or thing that is required to be removed from Canada.

90. Section 36 of the Act is replaced by the following:

91. The portion of subsection 38(1) of the Act before paragraph (a) is replaced by the following:

38. (1) For the purpose of detecting diseases or toxic substances or for a purpose related to verifying compliance or preventing non-compliance with this Act, an inspector or officer may

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

(2) Subsection 45(2) of the English version of the Act is replaced by the following:

(2) If proceedings are instituted in relation to an animal or thing seized under this Act and it has not been disposed of or forfeited under this Act, the owner of the animal or thing or the person having the possession, care or control of it at the time of its seizure may apply for an order that it be returned. The application may be made, in the case of a violation, to the Tribunal or, in the case of an offence, to the court before which the proceedings are being held.

93. Subsection 47(1) of the Act is replaced by the following:

47. (1) If the Tribunal or the court, as the case may be, orders the forfeiture of an animal or thing under subsection 46(1), the animal or thing shall be disposed of as the Minister may direct.

94. Section 50 of the Act is replaced by the following:

50. If a person must, under this Act, do anything or permit an inspector or officer to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

95. (1) Paragraph 64(1)(a) of the French version of the Act is replaced by the following:

(2) Subsection 64(1) of the Act is amended by adding the following after paragraph (o):

(3) Paragraph 64(1)(s) of the Act is replaced by the following:

(s) prohibiting or regulating the importation, exportation, preparation, manufacturing, preserving, packaging, labelling, storing, testing, transportation, sale, conditions of sale, advertising for sale, use and disposal of veterinary biologics and regulating their purity, potency, efficacy and safety;

(4) Paragraph 64(1)(v) of the Act is replaced by the following:

(v) regulating the importation, exportation, preparation, manufacturing, preserving, packaging, labelling, storing, distribution, sale, conditions of sale and advertising for sale of products of animal deadyards, rendering plants and animal food factories;

(5) Subsection 64(1) of the Act is amended by adding the following after paragraph (w):

(6) Paragraph 64(1)(z.3) of the Act is replaced by the following:

(7) Section 64 of the Act is amended by adding the following after subsection (1):

96. The Act is amended by adding the following after section 64:

97. Section 68 of the Act is replaced by the following:

68. Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

98. Sections 71 and 72 of the Act are replaced by the following:

71. If a person other than an individual commits an offence under this Act, any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

72. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

PLANT PROTECTION ACT

99. (1) The definitions “pest” and “violation” in section 3 of the Plant Protection Act are replaced by the following:

“pest” means any thing that is injurious or potentially injurious, whether directly or indi- rectly, to plants or to products or by-products of plants;

“violation” means any of the following that may be proceeded with in accordance with the Agriculture and Agri-Food Administrative Monetary Penalties Act:

(a) any contravention of any provision of this Act or of a regulation made under this Act,

(b) any contravention of any order made by the Minister under this Act, and

(c) any refusal or neglect to perform any duty imposed by or under this Act.

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

100. The Act is amended by adding the following after section 6:

101. Sections 7 and 8 of the Act are replaced by the following:

7. No person shall import or admit into Canada or export from Canada any thing that is a pest, that is or could be infested with a pest or that constitutes or could constitute a biological obstacle to the control of a pest, unless

(a) the person has produced to an inspector all permits, certificates and other documentation required by the regulations;

(b) the thing is or has been presented to an inspector — if required by the regulations or an inspector — in the manner and under the conditions specified by the inspector and at a place designated by the regulations or an inspector; and

(c) the thing is imported or exported in accordance with any other requirements of the regulations.

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

103. (1) The portion of subsection 25(1) of the Act before paragraph (a) is replaced by the following:

25. (1) For the purpose of detecting pests or for a purpose related to verifying compliance or preventing non-compliance with this Act, an inspector may

(2) Paragraph 25(2)(b) of the English version of the Act is replaced by the following:

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

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

(2) Subsection 32(2) of the English version of the Act is replaced by the following:

(2) If proceedings are instituted in relation to a thing seized under this Act and it has not been disposed of or forfeited under this Act, the owner of the thing or the person having the possession, care or control of it at the time of its seizure may apply for an order that it be returned. The application may be made, in the case of a violation, to the Tribunal or, in the case of an offence, to the court before which the proceedings are being held.

105. Subsection 34(1) of the Act is replaced by the following:

34. (1) If the Tribunal or the court, as the case may be, orders the forfeiture of a thing under subsection 33(1), the thing shall be disposed of as the Minister may direct.

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

107. Section 38 of the Act is replaced by the following:

38. If a person must, under this Act, do anything or permit an inspector to do anything, Her Majesty in right of Canada is not liable

(a) for any costs, loss or damage resulting from the compliance; or

(b) to pay any fee, including any rent or charge, for what is done or permitted to be done.

108. (1) Paragraph 47(a) of the Act is replaced by the following:

(a) prohibiting or regulating the carrying out of any activity in respect of pests and of other things that are or could be infested with pests or that constitute or could constitute biological obstacles to the control of pests, including their importation and admission into Canada, their exportation from Canada and their movement within Canada;

(2) Section 47 of the Act is amended by adding the following after paragraph (b):

(3) Paragraph 47(r) of the Act is replaced by the following:

(r) requiring documents to be furnished by inspectors;

(4) Section 47 of the Act is amended by adding “and’’ at the end of paragraph (s) and by adding the following after that paragraph:

(5) Section 47 of the Act is renumbered as subsection 47(1) and is amended by adding the following:

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

110. The portion of subsection 48(1) of the French version of the Act before paragraph (a) is replaced by the following:

48. (1) Quiconque contrevient aux dispositions de la présente loi — à l’exception de l’article 9 — ou des règlements ou refuse ou néglige d’accomplir une obligation imposée sous le régime de la présente loi commet une infraction et encourt, sur déclaration de culpabilité :

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

51. Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings arises.

112. Sections 54 and 55 of the Act are replaced by the following:

54. If a person other than an individual commits an offence under this Act, any of the person’s directors, officers or agents or mandataries who directs, authorizes, assents to or acquiesces or participates in the commission of the offence is a party to the offence and is liable on conviction to the punishment provided for by this Act, even if the person is not prosecuted for the offence.

55. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or an agent or mandatary of the accused, even if the employee or the agent or mandatary is not identified or prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

AGRICULTURE AND AGRI-FOOD ADMINISTRATIVE MONETARY PENALTIES ACT

113. The definition “Minister” in section 2 of the Agriculture and Agri-Food Administrative Monetary Penalties Act is replaced by the following:

“Minister” means the Minister of Agriculture and Agri-Food, except that

(a) it means the Minister of Health in relation to a violation involving a contravention of

(i) the Pest Control Products Act, or

114. (1) Subsection 4(1) of the Act is amended by adding the following after paragraph (b):

(2) Paragraph 4(2)(b) of the Act is replaced by the following:

(b) in any other case, $5,000 for a minor violation, $15,000 for a serious violation and $25,000 for a very serious violation.

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

6. The Minister may designate persons, or classes of persons, who are authorized to issue notices of violation.

116. The portion of subsection 7(2) of the English version of the Act before paragraph (a) is replaced by the following:

(2) If a person designated under section 6 has reasonable grounds to believe that a person has committed a violation, the designated person may issue, and shall cause to be served on the person, a notice of violation that names the person, identifies the violation and

117. Subsection 11(3) of the English version of the Act is replaced by the following:

(3) If a person does not, in the prescribed time and manner, either pay the amount referred to in paragraph (1)(a) or request a review under paragraph (1)(b), the person is deemed to have committed the violation identified in the notice of violation.

118. Subsection 15(2) of the French version of the Act is replaced by the following:

119. Section 26 of the Act is replaced by the following:

26. No proceedings in respect of a violation may be commenced later than

(a) six months after the day on which the subject matter of the proceedings arises, in the case of a minor violation; or

(b) two years after the day on which the subject matter of the proceedings arises, in the case of a serious violation or a very serious violation.

AGRICULTURAL MARKETING PROGRAMS ACT

120. (1) Paragraph (b) of the definition “administrator” in subsection 2(1) of the Agricultural Marketing Programs Act is replaced by the following:

(b) an organization, other than a lender, that the Minister, taking into account any criteria prescribed by regulation, determines to be an organization that represents producers who produce, in an area, a significant portion of an agricultural product to which Part I applies; or

(2) Paragraph (b) of the definition “producer” in subsection 2(1) of the Act is replaced by the following:

(3) The portion of the definition “produc- er” in subsection 2(1) of the Act after para- graph (d) is repealed.

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

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

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

(2) In the absence of proof to the contrary, a producer is presumed to be related to another producer in any of the following circumstances:

(3) For the purposes of subsection (2), “group of persons” means a producer that is a partnership, cooperative or other association of persons.

122. The heading of Part I of the French version of the Act is replaced by the following:

123. Subsections 4.1(2) and (3) of the Act are replaced by the following:

(2) Subject to any regulations made under paragraph (3)(b), animals that are or were used as breeding animals are not agricultural prod- ucts that are subject to this Part.

(3) The Governor in Council may make regulations

(a) designating any agricultural product as being subject to this Part; and

124. (1) The portion of paragraph 5(3)(e) of the Act before subparagraph (iii) is replaced by the following:

(e) to take steps, in accordance with the advance guarantee agreement, to ensure that, before an advance is made

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accord- ance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(2) Paragraph 5(3)(g) of the Act is repealed.

(3) Paragraph 5(3)(h) of the Act is replaced by the following:

(h) to pay to the Minister any additional interest resulting from its failure to make payments required by paragraph (f);

(4) Paragraph 5(3)(i) of the Act is replaced by the following:

(i) to pay to the Minister, within the period specified in the advance guarantee agreement, the amount repaid to the administrator under a repayment agreement by a defaulting producer if the Minister has previously made a payment for the producer under subsection 23(1) or (1.1); and

(5) Subsection 5(3.01) of the Act is replaced by the following:

(3.01) An advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment:

(c) the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; and

(d) the producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule to

(i) the administrator, to the extent of the producer’s liability under section 22, and

(ii) the Minister, to the extent of the producer’s liability under section 23.

(6) Subsection 5(3.1) of the Act is replaced by the following:

(3.1) The terms described in paragraphs (3)(c) and (f) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) — are not required if the Minister and an administrator are the only parties to the agreement.

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

(4) The administrator may, subject to any terms and conditions of the advance guarantee agreement, charge fees to producers for the purpose of recovering any costs under this Part, including costs related to the recovery of outstanding amounts from producers who are in default under a repayment agreement and costs of receiving and dealing with applications for advances, administering advances and any other administrative services.

(8) Subsection 5(6) of the Act is replaced by the following:

125. Paragraph 5.1(2)(a) of the Act is replaced by the following:

(a) paragraphs 5(3)(c), (e), (f) and (h);

126. (1) Paragraphs 7(4)(a) to (e) of the Act are replaced by the following:

(a) paragraph 5(3)(e);

(b) subsection 5(3.01);

(c) paragraphs 10(1)(g) and (h);

(d) paragraphs 10(2)(b) to (c); and

(e) paragraph 19(1)(c) and subsection 19(3).

(2) Subsection 7(5) of the Act is repealed.

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

9. (1) The Minister must, in relation to each producer, pay to the lender specified in an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts:

(a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and

(b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are attributable to the producer under subsection (2).

(2) Subsection 9(2) of the Act is replaced by the following:

(2) If a producer is related to another producer, the amounts received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

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

10. (1) For a producer to be eligible for a guaranteed advance during a program year,

(a) the Minister must determine, taking into account any criteria prescribed by regulation, that the producer has owned the agricultural product on a continuous basis, is responsible for marketing it and either is or was producing it;

(b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on;

(c) if the producer is a corporation with only one shareholder,

(i) the individual who makes the application for an advance on the producer’s behalf must have attained the age of majority in the province where the produc- er’s farming operation is carried on, and

(ii) the shareholder must agree in writing to be personally liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for any of the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

(d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,

(i) the individual who makes the application for an advance on behalf of the corporation, partnership, cooperative or association must have attained the age of majority in the province where the produc- er’s farming operation is carried on, and

(ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

(2) Paragraph 10(1)(f.1) of the Act is replaced by the following:

(f.1) the producer must demonstrate to the administrator that they are capable of meeting their obligations under the repayment agreement and that they are meeting all of their obligations under any other repayment agreement;

(3) Paragraph 10(1)(h) of the Act is replaced by the following:

(h) the producer must demonstrate that

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accord- ance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; and

(4) Subsection 10(1.1) of the Act is replaced by the following:

(1.1) For the purpose of paragraph (1)(g), the producer’s eligibility is not affected by the administrator sharing the security referred to in section 12 with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.

(5) Subparagraphs 10(2)(a)(v) and (vi) of the Act are replaced by the following:

(vii) by paying the administrator using a combination of the means described in subparagraphs (i) to (vi);

(6) Subsection 10(2) of the Act is amended by adding the following after paragraph (a):

(7) Paragraph 10(2)(b) of the Act is replaced by the following:

(b) to ensure that

(i) in the case of an agricultural product that is storable,

(A) it is of marketable quality and will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

(ii) in the case of an agricultural product that is not storable,

(A) it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

(B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

(iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;

(8) Section 10 of the Act is amended by adding the following after subsection (2):

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

11. If an agricultural product for which a guaranteed advance is made ceases, in whole or in part, to be in marketable condition, through no fault of the producer, the producer becomes liable to repay to the administrator that made the advance, within the period specified in the advance guarantee agreement, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural prod- uct.

130. Section 12 of the Act is replaced by the following:

12. An administrator that makes a guaranteed advance for an agricultural product to a producer in a program year shall take the security required by regulations made under paragraph 40(1)(f.2) for the amount of the producer’s liability under sections 22 and 23.

131. The Act is amended by adding the following after section 12:

132. (1) Paragraph 19(1)(b) of the Act is replaced by the following:

(b) the rate per production unit that is specified by the Minister for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made.

(2) Subsection 19(1) of the Act is amended by adding the following after paragraph (b):

(3) Section 19 of the Act is amended by adding the following after subsection (1):

(4) Subsection 19(3) of the Act is replaced by the following:

(3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule or the security referred to in section 12, the maximum amount of an advance eligible for a guarantee under this Part is

(a) in the case when the advance is covered by such a program, the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program; or

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

20. (1) Subject to subsection (1.1), the maximum amount of advances in any program year that are eligible for a guarantee under this Act is

(2) Subsection 20(2) of the Act is replaced by the following:

(2) If a producer is related to another producer, the amounts of advances received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

134. (1) Paragraph 21(1)(a) of the Act is replaced by the following:

(a) has not met all of their obligations under the agreement within 21 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the administrator’s opinion, adequate opportunity to meet the obligations, and requesting the producer to meet them;

(2) Subsection 21(1) of the Act is amended by adding the following after paragraph (c):

(c.2) has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement;

(3) Subsection 21(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by adding the following after that paragraph:

(4) Subsection 21(2) of the Act is replaced by the following:

(2) Subject to any regulations, if a default is impending, the Minister may, at the administrator’s request, order the default to be stayed for a specified period on any terms and conditions that the Minister may establish.

(5) Subsection 21(4) of the Act is replaced by the following:

(4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance from the administrator for any period specified in the agreement, even though the producer has ceased to be in default.

135. (1) The portion of section 22 of the French version of the Act before paragraph (a) is replaced by the following:

(2) Section 22 of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(c) the costs, including legal costs, incurred by the administrator to recover the outstanding amounts and interest, if those costs are approved by the Minister, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4); and

136. Subsections 23(1) and (2) of the Act are replaced by the following:

23. (1) If the producer is in default under the repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, in accordance with the advance guarantee agreement and subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as the case may be, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance.

(2) The Minister is, to the extent of any payment under subsection (1) or (1.1), subrogated to the administrator’s rights against the producer in default and against persons who are liable under paragraphs 10(1)(c) and (d) and may maintain an action, in the name of the administrator or in the name of the Crown, against that producer and those persons.

137. Subsections 34(3) and (4) of the Act are repealed.

138. (1) Subsection 40(1) of the Act is amended by adding the following after paragraph (a.1):

(2) The portion of paragraph 40(1)(b) of the Act before subparagraph (i) is replaced by the following:

(b) for the purpose of subsection 4.1(1) and any regulations made under subsection 4.1(3), prescribing criteria for

(3) Paragraphs 40(1)(c) to (e) of the Act are replaced by the following:

(c) fixing an amount for the purposes of each of subsection 5(5), paragraphs 7(3)(a) and (b), subsection 9(1), paragraph 20(1)(b) and subsection 20(1.1), which amount may, for the purposes of subsection 9(1), paragraph 20(1)(b) or subsection 20(1.1), differ with regard to classes of producers;

(d) prescribing criteria for the purposes of paragraph 7(1)(b);

(e) fixing a percentage for the purposes of each of paragraphs 7(3)(a) and (b), section 13 and subsection 19(2);

(e.01) for the purposes of subsections 9(2) and 20(2), fixing the percentage or percent- ages of the amounts received by, or attributed to, related producers that are to be attributable to a producer, which percentage or percentages may differ depending on the type of producer or related producer;

(4) Subsection 40(1) of the Act is amended by adding the following after paragraph (e.1):

(5) Subsection 40(1) of the Act is amended by adding the following after paragraph (f):

(6) Paragraph 40(1)(f.2) of the Act is replaced by the following:

(f.2) respecting the security or classes of security that administrators are required to take for the purposes of section 12;

(f.3) determining, for the purposes of paragraph 19(1)(c), the administrator’s percentage or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance;

(7) Subsection 40(1) of the Act is amended by striking out “and” at the end of paragraph (h.1) and by adding the following after that paragraph:

(8) Subsection 40(2) of the Act is replaced by the following:

(2) Regulations made under paragraph (1)(c) or (e) may be made only on the Minister’s recommendation with the concurrence of the Minister of Finance.

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

42. (1) Every five years after the coming into force of this subsection, the Minister must review the provisions and operation of this Act in consultation with the Minister of Finance.

140. The schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following:

(Sections 5, 10, 19 and 33.1)