Bill S-2

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SUMMARY
Short Title
Motor Vehicle Safety Act
Consequential Amendment to the Transportation Appeal Tribunal of Canada Act
Coming into Force
EXPLANATORY NOTES

First Session, Forty-second Parliament,

64-65 Elizabeth II, 2015-2016

SENATE OF CANADA

BILL S-2
An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act

FIRST READING, May 11, 2016

THE HONOURABLE SENATOR HARDER, P.‍C.

90793

SUMMARY

This enactment amends the Motor Vehicle Safety Act for the purpose of strengthening the enforcement and compliance regime to further protect the safety of Canadians and to provide additional flexibility to support advanced safety technologies and other vehicle innovations. It provides the Minister of Transport with the authority to order companies to correct a defect or non-compliance and establishes a tiered penalty structure for offences committed under the Act. The enactment also makes a consequential amendment to the Transportation Appeal Tribunal of Canada Act.

Available on the Senate of Canada website at the following address:

www.sencanada.ca/en

1st Session, 42nd Parliament,

64-65 Elizabeth II, 2015-2016

SENATE OF CANADA

BILL S-2

An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act

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

Short Title

Short title

1 This Act may be cited as the Strengthening Motor Vehicle Safety for Canadians Act.

1993, c. 16

Motor Vehicle Safety Act

2 Section 2 of the Motor Vehicle Safety Act is amended by adding the following in alphabetical order:

Tribunal means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act; (Tribunal)

3 The Act is amended by adding the following after section 2:

Exercise of Powers

Exercise of powers

2.‍1 The Minister may, in writing, authorize any person designated by the Minister to exercise any of the Minister’s powers and duties under this Act, either generally or as otherwise provided in the instrument of authorization.

Administrative Agreements

Administrative agreements

2.‍2 The Minister may enter into an agreement to further the purposes of this Act.

Contact Person

Contact person

2.‍3 A company designated by the Minister that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports into Canada any vehicle or equipment of a class for which standards are prescribed is required to provide the Minister, for a purpose related to verifying compliance with this Act, with the contact information for a person for the purpose of correspondence.

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

Compliance by companies of prescribed class

(2) No company of a prescribed class shall apply a national safety mark to any vehicle or equipment, sell any vehicle or equipment to which a national safety mark has been applied or import into Canada any vehicle or equipment of a prescribed class unless the company acquires and maintains, as provided for in the regulations and in relation to a vehicle or equipment that is substantially similar to that vehicle or equipment, records related to prescribed subject matters.

Regulations

(2.‍1) The Governor in Council may make regulations defining, for the purposes of subsection (2), any term used in it.

2014, c. 20, s. 218

5 Section 8 of the Act is replaced by the following:

Analytical aids

8 A company that applies a national safety mark to any vehicle or equipment, Insertion start sells any vehicle or equipment to which a national safety mark has been applied Insertion end or imports any vehicle or equipment of a class for which standards are prescribed shall, on the Minister’s request, provide the Minister with the means to retrieve Insertion start or Insertion end analyze information created or recorded by the vehicle or equipment.

Power to order tests, analyses or studies

8.‍1 (1) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to

(a) conduct tests, analyses or studies on the vehicle or equipment in order to obtain information related to defects, or to verify compliance with this Act, that the Minister considers necessary; and
(b) provide the results to the Minister in the time and manner that the Minister specifies.
End of inserted block

Statutory Instruments Act

(2) The Statutory Instruments Act does not apply to an order made under subsection (1).

1999, c. 33, s. 353; 2014, c. 20, s. 219

6 Subsections 9(1) to (4) of the Act are replaced by the following:

Exemption from standards

9 (1) On application by a company as provided for in the regulations, the Insertion start Minister Insertion end may, by order, grant an exemption for a specified period, in accordance with any conditions specified in the order, for any model of vehicle manufactured or imported by the company from conformity with any prescribed standard if Insertion start the exemption from Insertion end that standard would, in the opinion of the Insertion start Minister Insertion end , Insertion start promote Insertion end the development of

(a) new safety features that are equivalent to or superior to those that conform to prescribed standards; or
(b) new kinds of vehicles, Insertion start technologies Insertion end , vehicle systems or components.

Conditions for granting exemption

(2) An exemption Insertion start must only Insertion end be granted for a model if the exemption would Insertion start not Insertion end substantially diminish the Insertion start overall safety Insertion end performance of the model.

Publication

(3) Each exemption order must, as soon as feasible, be published through the Internet or by any other means that the Minister considers appropriate.

2014, c. 20, s. 220

7 The heading before section 10 of the Act is replaced by the following:

Notices of Defect and of Non-Compliance Insertion start and Orders Insertion end

2014, c. 20, s. 222

8 Subsection 10.‍1(7) of the English version of the Act is replaced by the following:

Power to order

(7) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to give a notice of non-compliance in the manner specified Insertion start in the order Insertion end , if the Minister considers that it is in the interest of safety.

2014, c. 20, s. 222

9 Section 10.‍3 of the Act is replaced by the following:

Make information available

10.‍3 A company Insertion start designated by the Minister Insertion end that gives notice to the Minister in respect of a vehicle or equipment shall, as provided for in Insertion start the Insertion end regulations, make information available for the vehicle Insertion start or equipment Insertion end in respect of which the notice was given.

Correction date

10.‍4 (1) The notice given by a company under paragraph 10(1)‍(b) or 10.‍1(1)‍(b) shall specify the earliest date by which the parts and facilities that are necessary to correct the defect or non-compliance are expected to be available.

Notice

(2) Despite subsection (1), if the company cannot reasonably specify the earliest date at the time the notice is sent, the company shall send the notice without that date. The company shall send a subsequent notice that provides the earliest date as soon as it has been determined.

Copy for Minister

(3) The company shall immediately provide the Minister with a copy of any notice referred to in subsections (1) and (2).

Power to require information

(4) The Minister may, by order, require a company to provide, in the manner and within the period specified in the order, any information or documents that the Minister considers necessary for verifying that the date specified by the company under subsection (1) or (2) is the earliest date by which the parts and facilities that are necessary to correct a defect or non-compliance are expected to be available.

Power to order correction of defect or non-compliance

10.‍5 The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to correct a defect or non-compliance, in accordance with any terms and conditions specified in the order, if a notice of defect or non-compliance has been given and the Minister considers that it is in the interest of safety.

Correction

10.‍51 A company that is subject to an order made under section 10.‍5 may correct a defect or non-compliance

(a) by repairing the vehicle or equipment, including by adding to, removing anything from or modifying the vehicle or equipment, as the circumstances require;
(b) by replacing the vehicle or equipment with a reasonable equivalent; or
(c) by reimbursing
- (i) the reasonable cost of repairs to the vehicle or equipment that have already been undertaken before a notice of defect or non-compliance has been given, or
- (ii) the sale price of the vehicle or equipment, less reasonable depreciation, on return of the vehicle or equipment.
  End of inserted block

Power to order payment of costs

10.‍6 (1) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to pay the costs of correcting a defect or non-compliance, in accordance with any terms and conditions specified in the order, if a notice of defect or non-compliance has been given.

Time limit

(2) This section does not apply to any vehicle or equipment that was manufactured 15 years or more before the date of an order under subsection (1).

Power to prohibit offering for sale—defect or non-compliance

10.‍61 (1) The Minister may, by order, require a company to ensure that any defect or non-compliance in a vehicle or equipment is corrected before the vehicle is offered for sale to the first retail purchaser, in accordance with any terms and conditions specified in the order.

For greater certainty

(2) For greater certainty, a company is not prohibited from doing any promotion activities prior to offering for sale any vehicle or equipment under subsection (1).

Process

10.‍7 (1) For the purposes of subsections 10(4) and 10.‍1(7) and sections 10.‍5 to 10.‍61, the Minister shall, before issuing any order,

(a) make a preliminary determination, on the basis of testing, analysis, inspection, examination or research that the Minister considers appropriate and in consultation with the company, that an order may be necessary in the interest of safety;
(b) notify the company of the preliminary determination, including the rationale on which it is based, and invite the company to provide information in writing, in the time and manner specified by the Minister; and
(c) publish a notice of preliminary determination and invite any person to make comments in writing, within the time that the Minister specifies.
End of inserted block

Final decision

(2) The Minister shall not make a final decision that an order is necessary unless the Minister has taken into account information that he or she considers relevant.

Notice to company

(3) After making a final decision, the Minister shall notify the company of the decision and the rationale on which it is based.

Publication

(4) After making a final decision, the Minister shall publish a notice of it through the Internet or by any other means that he or she considers appropriate.

Power to vary or revoke order

10.‍8 The Minister may vary or revoke an order if new relevant information becomes available.

Statutory Instruments Act

10.‍9 The Statutory Instruments Act does not apply to an order made under section 10.‍4, 10.‍5, 10.‍6 or 10.‍61.

10 Subsection 13(1) of the Act is replaced by the following:

Interim order

13 (1) Insertion start If Insertion end an enactment of a foreign government corresponds to regulations made under this Act and that enactment is amended by that government or its operation is affected by a decision of a foreign court, the Minister may issue an order, effective for a period not exceeding Insertion start three years Insertion end , suspending or modifying the operation of the regulations to the extent that they are inconsistent with the enactment as amended or given effect. Insertion start The Minister may renew the order for a further period not exceeding three years Insertion end .

11 The Act is amended by adding the following after section 13:

Order to suspend, modify or adapt regulation

13.‍1 The Minister may issue an order, effective for a period not exceeding three years, that suspends, modifies or adapts a regulation, in whole or in part, if the Minister is of the opinion that it is in the public interest to do so, including to promote innovation or for reasons of safety.

12 Section 14 of the Act is amended by adding the following after subsection (1):

Investigation — collisions

(1.‍1) For greater certainty, the Minister may designate as a collision investigator any person whom the Minister considers qualified, and that person may collect information with respect to an investigation of any motor vehicle collision.

2014, c. 20, s. 226

13 (1) The portion of subsection 15(1) of the Act before paragraph (c) is replaced by the following:

Entry by inspector

15 (1) For Insertion start a Insertion end purpose Insertion start related to Insertion end verifying compliance with this Act, an inspector may at any reasonable time enter any place, Insertion start other than a dwelling-house but including a collision site Insertion end , in which the inspector believes on reasonable grounds there is

(a) any vehicle or equipment of a class for which standards are prescribed;
(b) any component Insertion start that is used Insertion end or intended to be used in the manufacture of a vehicle or equipment for which safety standards are prescribed; or

(2) Subsections 15(2) to (4) of the Act are replaced by the following:

Entry by inspector

(2) In carrying out their duties, an inspector and any person accompanying the inspector may enter on and pass through or over private property, other than a dwelling-house, without being liable for doing so and without any person having the right to object to that use of the property.

Power to require attendance of persons

(3) An inspector who enters a place may require the attendance of persons whom the inspector considers relevant to the carrying out of the inspector’s functions.

Powers

(4) The inspector may, for the purpose referred to in subsection (1),

(a) examine any vehicle, equipment or component that is in the place;
(b) open and examine any package or receptacle that the inspector believes contains any equipment or component referred to in that subsection;
(c) examine any document that is in the place, make copies of it or take extracts from it;
(d) disassemble and remove any constituent components;
(e) order the owner or person having possession, care or control of any vehicle or equipment to which this Act applies that is in the place to move it or, for any time that may be necessary, not to move it or to restrict its movement;
(f) use or cause to be used a computer or other device that is in the place to examine data that is contained in or available to a computer system or reproduce it or cause it to be reproduced in the form of a printout or other intelligible output and remove the output for examination or copying;
(g) use or cause to be used copying equipment that is in the place and remove the copies for examination;
(h) take photographs or make recordings or sketches; and
(i) remove any vehicle, equipment or component from the place for the purpose of examination or conducting tests.
End of inserted block

Assistance to inspector

(5) Any person who owns or has charge of a place entered by an inspector Insertion start under Insertion end subsection (1) and every person present there Insertion start shall answer all of the inspector’s reasonable questions related to the inspection, provide access to all electronic data that the inspector may reasonably require, Insertion end provide all reasonable assistance in their power to enable the inspector to carry out his or her duties and furnish Insertion start any Insertion end information Insertion start that Insertion end the inspector reasonably requires for the purposes of the administration of this Act.

Seizure of property

(6) An inspector may seize and, subject to sections 489.‍1 to 491.‍2 of the Criminal Code, detain any vehicle, equipment or component described in subsection (1)

(a) by means of which or in relation to which the inspector believes on reasonable grounds that this Act has been contravened; or
(b) that the inspector believes on reasonable grounds will afford evidence in respect of a contravention of this Act.
End of inserted block

Interference with seized property

(7) Except with the authorization of an inspector, no person shall remove, alter or otherwise interfere with any vehicle, equipment or component seized by an inspector under subsection (6).

14 Section 16 of the Act is replaced by the following:

Production of documents, information or electronic data

15.‍1 An inspector may, for a purpose related to verifying compliance with this Act, order a person, in writing, to provide, on the date, at the time and place and in the manner specified by the inspector, any document, information or electronic data specified by the inspector.

False statements

16 No person shall obstruct or hinder, or make any false or misleading statement either orally or in writing to, an inspector Insertion start who is Insertion end engaged in carrying out his or her functions.

Consent Agreement

Consent agreement

16.‍01 (1) The Minister may enter into a consent agreement with any corporation, company or individual that has contravened the Act or its regulations, or that the Minister believes has contravened the Act or its regulations.

Contents of agreement

(2) A consent agreement may include any term or condition, including the payment of an amount by a corporation, company or individual that may be different from the amount determined under this Act for the contravention.

Filing and registration of agreement

(3) A consent agreement shall be filed with the Federal Court for registration as soon as feasible. The consent agreement is deemed to be an order of the court and is enforceable in the same manner.

Effect of registration

(4) On registration of a consent agreement, any proceedings commenced in relation to a contravention that gave rise to the agreement are terminated and no further proceedings under this Act shall be taken against the corporation, company or individual with respect to the contravention.

Amendment

(5) The Minister and any party to the consent agreement may modify its terms at the request of either at any time and the amended agreement replaces the original agreement and must be filed and registered accordingly.

Publication

(6) On registration, the Minister shall cause each consent agreement to be published through the Internet or by any other means that the Minister considers appropriate.

15 The Act is amended by adding the following after section 16.‍01:

Administrative Monetary Penalties

Regulations

16.‍1 The Governor in Council may, by regulation,

(a) designate as a provision the contravention of which may be proceeded with as a violation in accordance with sections 16.‍13 to 16.‍23 of this Act, or any regulations or orders made under this Act;
(b) prescribe the maximum amount payable for each violation, but not more than
- (i) $4,000, in the case of an individual, and
- (ii) $200,000, in the case of a corporation or company;
(c) establish what constitutes a related series or class of violations; and
(d) prescribe the total maximum amount payable for a related series or class of violations.
End of inserted block

Designation of enforcement officers

16.‍11 (1) The Minister may designate persons, or classes of persons, as enforcement officers.

Certification of enforcement officers

(2) Every person who is designated as an enforcement officer shall receive a certificate of designation attesting to their designation and shall, on demand, present the certificate to any person from whom the enforcement officer requests information in the course of the enforcement officer’s duties.

Entry by officer

(3) For the purpose of determining whether a violation referred to in section 16.‍13 has been committed, an enforcement officer may at any reasonable time enter any place, other than a dwelling-house, in which the enforcement officer believes on reasonable grounds there is

(a) any vehicle or equipment of a class for which standards are prescribed;
(b) any component that is used or intended to be used in the manufacture of a vehicle or equipment for which safety standards are prescribed; or
(c) any record that is referred to in paragraph 5(1)‍(g).
End of inserted block

Entry by enforcement officer

(4) In carrying out his or her duties, an enforcement officer and any person accompanying him or her may enter on and pass through or over private property, other than a dwelling-house, without being liable for doing so and without any person having the right to object to that use of the property.

Power to require attendance of persons

(5) An enforcement officer who enters a place may require the attendance of persons whom the enforcement officer considers relevant to the carrying out of the enforcement officer’s functions.

Search of premises

(6) An enforcement officer who enters a place under subsection (3) may examine any vehicle and may exercise the powers and carry out the duties or functions of an inspector under subsection 15(2).

Production of documents, information or electronic data

(7) An enforcement officer may, for a purpose related to determining whether a violation referred to in section 16.‍13 has been committed, order a person in writing to provide, on the date, at the time and place and in the manner specified by the enforcement officer, any document, information or electronic data specified by the enforcement officer.

Assistance to enforcement officer

(8) Any person who owns or has charge of a place entered by an enforcement officer under subsection (3) and every person present there shall answer all of the enforcement officer’s reasonable questions related to the functions of the enforcement officer, provide access to all electronic data that the enforcement officer may reasonably require, provide all reasonable assistance in their power to enable the enforcement officer to carry out the enforcement officer’s duties and furnish any information that the enforcement officer reasonably requires for the purposes of the administration of this Act.

Notices of violation

16.‍12 The Minister may establish the form and content of notices of violation.

Violation

16.‍13 (1) Every person who contravenes a provision designated under paragraph 16.‍1(a) commits a violation and is liable to a penalty of not more than the maximum amount prescribed under paragraph 16.‍1(b) or (d).

Purpose of penalty

(2) The purpose of the penalty is to promote compliance with this Act and not to punish.

Continuing violation

(3) A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued.

Clarification

(4) If a contravention of a provision designated under paragraph 16.‍1(a) may be proceeded with as a violation or as an offence, proceeding with it in one manner precludes proceeding with it in the other.

Nature of violation

(5) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Due diligence available

(6) Due diligence is a defence in a proceeding in respect of a violation.

Issuance of notice of violation

16.‍14 When an enforcement officer believes on reasonable grounds that a person has committed a violation, the enforcement officer may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out

(a) the penalty for the violation that the person is liable to pay; and
(b) particulars concerning the time for and manner of paying the penalty and the procedure for requesting a review.
End of inserted block

Service of documents

16.‍15 The Minister may establish procedures respecting the service of documents that are required or authorized under this Act, including the manner and proof of service and the circumstances under which documents are deemed to have been served. In the absence of those procedures, notices of violation may be served by personal service or by registered or certified mail sent to the person at their latest known address.

Payment

16.‍16 If a person who is served with a notice of violation pays the amount specified in the notice in accordance with the particulars set out in it, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the contravention and no further proceedings under this Act shall be taken against the person in respect of that contravention.

Failure to pay penalty deemed contravention

16.‍17 A person who fails to pay the amount of the penalty specified in a notice of violation within the specified time and who does not file a request for a review is deemed to have committed the contravention alleged in the notice.

Request for review

16.‍18 (1) A person served with a notice of violation that wishes to have the Minister’s decision regarding the facts of the alleged contravention or the amount of the penalty reviewed shall, within 30 days after the notice of violation is served — or within any further time that the Tribunal on application may allow — file a request for a review with the Tribunal.

Time and place for review

(2) On receipt of the request, the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing.

Review procedure

(3) The member of the Tribunal who is assigned to conduct the review shall provide the Minister and the person who filed the request with an opportunity that is consistent with procedural fairness and natural justice to present evidence and make representations.

Burden of proof

(4) The Minister has the burden of establishing on a balance of probabilities that a person has committed a violation.

Person not compelled to testify

(5) A person who is alleged to have committed a violation is not required to give any evidence or testimony in the matter.

Determination by Tribunal member

16.‍19 At the conclusion of a review, the member of the Tribunal who conducts the review shall without delay inform the Minister and the person who is alleged to have committed a violation

(a) that the person has not committed a violation, in which case, subject to section 16.‍19, no further proceedings under this Act shall be taken against the person in respect of the alleged violation; or
(b) that the person has committed a violation and, subject to any regulations made under paragraph 16.‍1(b) or (d), of the amount determined by the member to be payable to the Tribunal by or on behalf of the person and the time within which it must be paid.
End of inserted block

Right of appeal

16.‍2 (1) Within 30 days after a determination is made under section 16.‍18, the Minister or a person to whom it applies may appeal the determination to the Tribunal.

Loss of right of appeal

(2) A party who does not appear at a review hearing is not entitled to appeal the determination, unless the party establishes that there was sufficient reason to justify their absence.

Disposition of appeal

(3) The appeal panel of the Tribunal that is assigned to hear an appeal may dismiss it or allow it and, in allowing the appeal, the panel may substitute its decision for the determination.

Finding of violation

(4) If the appeal panel finds that a person has committed a violation, the panel shall immediately inform the person and the Minister of the finding and, subject to any regulations made under paragraph 16.‍1(b) or (d), of the amount determined by the panel to be payable to the Tribunal by or on behalf of the person in respect of the violation and the time within which it must be paid.

Finding of no violation

(5) If the appeal panel finds that a person has not committed a violation, the panel shall immediately inform the person and the Minister of the finding.

Certificate

16.‍21 The Minister may obtain from the Tribunal or the member, as the case may be, a certificate in the form established by the Governor in Council setting out the amount of the penalty required to be paid by a person who fails, within the time required,

(a) to pay the amount of a penalty set out in a notice of violation or to file a request for a review under section 16.‍16;
(b) to pay an amount determined under paragraph 16.‍18(b) or to file an appeal under section 16.‍19; or
(c) to pay an amount determined under subsection 16.‍19(4).
End of inserted block

Registration of certificate

16.‍22 (1) On production in any superior court, a certificate issued under section 16.‍2 shall be registered in the court and, when so registered, a certificate has the same force and effect, and proceedings may be taken in connection with it, as if it were a judgment in that court obtained by Her Majesty in right of Canada against the person who is named in the certificate for a debt of the amount set out in the certificate.

Recovery of costs and charges

(2) All reasonable costs and charges attendant on the registration of the certificate are recoverable in the same manner as if they had been certified and the certificate had been registered under subsection (1).

Amounts received deemed public money

(3) An amount received by the Minister or the Tribunal under this section is deemed to be public money within the meaning of the Financial Administration Act.

Time limit for proceedings

16.‍23 Proceedings in respect of a violation may not be instituted later than two years after the time when the subject matter of the proceedings arose.

Publication

16.‍24 At any time after a notice of violation is issued and served, the Minister may make public the nature of a violation, the name of the person who committed it and the amount of the penalty.

Notations removed

16.‍25 (1) Unless the Minister is of the opinion that it is not in the public interest to do so, five years after the person pays every penalty that the person is liable to pay, the Minister shall remove a notice of violation from the public record of notices of violation.

Duty to notify

(2) If the Minister is of the opinion that removal of a notation is not in the public interest, he or she shall give notice of that fact to the person in writing, and provide the grounds for that opinion.

Contents of notice

(3) The notice shall include the date that is 30 days after the day on which the notice is served and the particulars concerning the procedure for requesting a review.

Request for review

(4) The person may, no later than the date specified in the notice or within any further time that the Tribunal on application may allow, file a written request for a review with the Tribunal.

Time and place for review

(5) On receipt of a request filed under subsection (4), the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing.

Review procedure

(6) The member of the Tribunal who is assigned to conduct the review shall provide the Minister and the person who filed the request with an opportunity that is consistent with procedural fairness and natural justice to present evidence and make representations.

Determination

(7) The member may confirm the Minister’s decision or refer the matter back to the Minister for reconsideration.

Right of appeal

(8) The person who requested the review may, within 30 days after the day on which a determination is made under subsection (7), appeal the determination to the Tribunal.

Loss of right of appeal

(9) A person who does not appear at the review hearing is not entitled to appeal the determination, unless the person establishes that there was sufficient reason to justify their absence.

Disposition of appeal

(10) The appeal panel of the Tribunal that is assigned to hear an appeal may dismiss it or refer the matter back to the Minister for reconsideration.

16 (1) Section 17 of the Act is amended by adding the following after subsection (2):

Continuing offence

(2.‍1) An offence that is committed or continued on more than one day constitutes a separate offence for each day on which it is committed or continued.

(2) Section 17 of the Act is amended by adding the following after subsection (3):

Due diligence defence

(4) In a prosecution for a contravention of section 16, a person is not to be found guilty of an offence under subsection (1) or (2) if they establish that they exercised all due diligence to prevent the commission of the offence.

17 The Act is amended by adding the following after section 19:

Forfeiture

Forfeiture — conviction for offence

19.‍1 (1) If a person is convicted of an offence under this Act, the court may order that a seized vehicle, equipment or component by means of or in relation to which the offence was committed be forfeited to Her Majesty in right of Canada.

Disposal

(2) A seized vehicle, equipment or component that is forfeited may be stored and disposed of at the expense of its owner or the person who was entitled to possess it at the time of its seizure.

Forfeiture—on consent

19.‍2 If the owner of a seized vehicle, equipment or component consents to its forfeiture, the seized vehicle, equipment or component is forfeited to Her Majesty in right of Canada and may be stored and disposed of at the owner’s expense.

2001, c. 29

Consequential Amendment to the Transportation Appeal Tribunal of Canada Act

2012, c. 31, s. 345

18 Subsection 2(3) of the Transportation Appeal Tribunal of Canada Act is replaced by the following:

Jurisdiction in respect of other Acts

(3) The Tribunal also has jurisdiction in respect of reviews and appeals in connection with administrative monetary penalties provided for under sections 177 to 181 of the Canada Transportation Act, sections 43 to 55 of the International Bridges and Tunnels Act, sections 129.‍01 to 129.‍19 of the Canada Marine Act, Insertion start sections 16.‍1 to 16.‍25 of the Motor Vehicle Safety Act Insertion end and sections 39.‍1 to 39.‍26 of the Navigation Protection Act.

Coming into Force

Order in council

19 Sections 4 and 15 come into force on a day or days to be fixed by order of the Governor in Council.

Published under authority of the Senate of Canada

EXPLANATORY NOTES

Motor Vehicle Safety Act

Clause 2: New.

Clause 3: New.

Clause 4: New.

Clause 5: Existing text of section 8:

8 A company that applies a national safety mark to any vehicle or equipment or that imports any vehicle or equipment of a class for which standards are prescribed shall, on the Minister’ request, provide the Minister with the means to retrieve and analyse information created or recorded by the vehicle or equipment.

Clause 6: Existing text of subsections 9(1) to (4):

9 (1) On application by a company as provided for in the regulations, the Governor in Council may, by order, grant an exemption for a specified period, in accordance with any conditions specified in the order, for any model of vehicle manufactured or imported by the company from conformity with any prescribed standard if conformity with that standard would, in the opinion of the Governor in Council,

(a) create substantial financial hardship for the company;
(b) impede the development of new safety features that are equivalent to or superior to those that conform to prescribed standards; or
(c) impede the development of new kinds of vehicles, vehicle systems or components.

(2) An exemption for a model may be granted for a period not exceeding

(a) three years, where paragraph (1)‍(a) applies; or
(b) two years, in respect of a stated number of units of that model not exceeding one thousand units, where paragraph (1)‍(b) or (c) applies.

(3) An exemption may not be granted for a model if the exemption would substantially diminish the safe performance of the model or if the company applying for the exemption has not attempted in good faith to bring the model into conformity with all prescribed standards applicable to it.

(4) An exemption applied for by a company for any period may not be granted on the basis referred to in paragraph (1)‍(a) where

(a) the world production of vehicles manufactured by the company or by the manufacturer of the model that is the subject of the application exceeded ten thousand vehicles in the twelve month period beginning two years before the beginning of that period; or
(b) the total number of vehicles manufactured for, or imported into, the Canadian market by the company exceeded one thousand vehicles in that twelve month period.

Clause 7: Existing text of the heading:

NOTICE OF SAFETY DEFECTS AND OF NON-COMPLIANCE

Clause 8: Existing text of subsection 10.‍1(7):

(7) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to give a notice of non-compliance in the manner specified by the Minister, if the Minister considers that it is in the interest of safety.

Clause 9: Existing text of section 10.‍3:

10.‍3 A company that gives notice to the Minister in respect of a vehicle shall, as provided for in regulations, make information available for the vehicle in respect of which the notice was given.

Clause 10: Existing text of subsection 13(1):

13 (1) Where an enactment of a foreign government corresponds to regulations made under this Act and that enactment is amended by that government or its operation is affected by a decision of a foreign court, the Minister may issue an order, effective for a period not exceeding one year, suspending or modifying the operation of the regulations to the extent that they are inconsistent with the enactment as amended or given effect.

Clause 11: New.

Clause 12: New.

Clause 13: (1) Relevant portion of subsection 15(1):

15 (1) For the purpose of verifying compliance with this Act, an inspector may at any reasonable time enter any place in which the inspector believes on reasonable grounds there is

(a) any vehicle or equipment of a class for which standards have been prescribed that is owned by, or is on the premises of, a company or a consignee of imported vehicles or imported equipment;
(b) any component intended to be used in the manufacture of a vehicle or equipment for which safety standards have been prescribed; or

(2) Existing text of subsections 15(2) to (4):

(2) An inspector who enters a place pursuant to subsection (1) may examine any vehicle, equipment or component found there, and may open any package or receptacle in that place that the inspector believes on reasonable grounds contains any equipment or component referred to in that subsection.

(3) An inspector may require any person to produce for examination any books, records, reports, test data, shipping bills, bills of lading or other documents or electronically stored data that the inspector believes on reasonable grounds contain any information relevant to the enforcement of this Act or to the identification or analysis of a defect referred to in subsection 10(1), and may make copies of or take extracts from any of them.

(4) An inspector may seize and, subject to sections 489.‍1 to 491.‍2 of the Criminal Code, detain any vehicle, equipment or component described in subsection (1)

(a) by means of which or in relation to which the inspector believes on reasonable grounds this Act has been contravened; or
(b) that the inspector believes on reasonable grounds will afford evidence in respect of a contravention of this Act.

Clause 14: Existing text of section 16:

16 (1) Any person who owns or has charge of a place entered by an inspector pursuant to subsection 15(1) and every person present there shall provide all reasonable assistance in their power to enable the inspector to carry out the inspector’s duties, and shall furnish such information as the inspector reasonably requires for purposes of the administration of this Act.

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

(3) Except with the authorization of an inspector, no person shall remove, alter or otherwise interfere with any vehicle, equipment or component seized by an inspector pursuant to subsection 15(4).

Clause 15: New.

Clause 16: New.

Clause 17: New.

Transportation Appeal Tribunal of Canada Act

Clause 18: Existing text of subsection 2(3):

(3) The Tribunal also has jurisdiction in respect of reviews and appeals in connection with administrative monetary penalties provided for under sections 177 to 181 of the Canada Transportation Act, sections 43 to 55 of the International Bridges and Tunnels Act, sections 129.‍01 to 129.‍19 of the Canada Marine Act and sections 39.‍1 to 39.‍26 of the Navigation Protection Act.