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Bill S-237

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Second Session, Forty-third Parliament,

69-70 Elizabeth II, 2020-2021

SENATE OF CANADA

BILL S-237
An Act respecting measures in relation to the financial stability of post-secondary institutions
FIRST READING, June 15, 2021

THE HONOURABLE SENATOR Moncion
4322112


SUMMARY

This enactment provides for the development of a proposal for federal initiatives designed to ensure the financial stability of post-secondary institutions. It also amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude post-secondary educational institutions from the definitions of corporation and company under those Acts, respectively.

Available on the Senate of Canada website at the following address:
www.sencanada.ca/en


2nd Session, 43rd Parliament,

69-70 Elizabeth II, 2020-2021

SENATE OF CANADA

BILL S-237

An Act respecting measures in relation to the financial stability of post-secondary institutions

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 Post-Secondary Institutions Bankruptcy Protection Act.

Interpretation

Interpretation

2 The following definitions apply in this Act.

institution means an educational institution set out in any of the following:

  • (a) the Master List of Designated Educational Institutions published by the Government of Canada on its website;

  • (b) the Master List of Certified Educational Institutions published by the Government of Canada on its website;

  • (c) the Directory of Educational Institutions and Programs published by the Government of Quebec on its website. (établissement)

Minister means the member of the Queen’s Privy Council for Canada designated by the Governor in Council as the Minister for the purposes of this Act. (ministre)

Designation of Minister

Power of Governor in Council

3 The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act.

Proposal

Proposal

4 (1) The Minister must develop a proposal for federal initiatives designed to

  • (a) reduce the risk that an institution becomes bankrupt or insolvent;

  • (b) protect students, faculty and staff in the event that an institution becomes bankrupt or insolvent; and

  • (c) support communities that would be impacted by an institution becoming bankrupt or insolvent.

Consultation

(2) The proposal under subsection (1) must be developed in consultation with representatives from

  • (a) institutions;

  • (b) provincial and municipal governments;

  • (c) groups and associations of — or advocating on behalf of — students, faculty and staff of institutions.

Inclusion

(3) The proposal must include both a list of legislative amendments that the Government of Canada intends to introduce and a timeline for their introduction in order to achieve the objectives described in paragraphs (1)‍(a) to (c).

Time limit

(4) The preparation of the proposal must be completed as soon as practicable, but no later than one year after the day on which this section comes into force.

Tabling in Parliament

(5) The Minister must cause the proposal to be tabled in each House of Parliament as soon as practicable after it has been prepared.

Action plan made public

(6) After the proposal is tabled, the Minister must make it public.

R.‍S.‍, c. B-3

Bankruptcy and Insolvency Act

5 The definition corporation in section 2 of the Bankruptcy and Insolvency Act is replaced by the following:

corporation means Insertion start any Insertion end company, Insertion start corporation Insertion end or legal person incorporated by or under an Act of Parliament or of the legislature of a province, Insertion start any Insertion end incorporated company Insertion start having assets or doing Insertion end business in Canada, wherever incorporated, Insertion start and any Insertion end income trust, but does not include

  • Start of inserted block

    (a) post-secondary educational institutions that receive from a government or a municipality funds that are paid for the purpose of assisting them in the ongoing provision of educational services to the general public,

    End of inserted block

  • Insertion start (b) Insertion end  banks Insertion start and Insertion end authorized foreign banks within the meaning of section 2 of the Bank Act,

  • Insertion start (c) Insertion end  insurance companies, Insertion start and Insertion end

  • Insertion start (d) Insertion end  companies Insertion start to which the Trust and Loan Companies Act applies Insertion end ; (personne morale)

R.‍S.‍, c. C-36

Companies’ Creditors Arrangement Act

6 The definition company in section 2 of the Companies’ Creditors Arrangement Act is replaced by the following:

company means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include

  • Start of inserted block

    (a) post-secondary educational institutions that receive from a government or a municipality funds that are paid for the purpose of assisting them in the ongoing provision of educational services to the general public,

    End of inserted block

  • Insertion start (b) Insertion end  banks Insertion start and Insertion end authorized foreign banks within the meaning of section 2 of the Bank Act,

  • Insertion start (c) Insertion end  telegraph companies,

  • Insertion start (d) Insertion end  insurance companies, and

  • Insertion start (e) Insertion end  companies to which the Trust and Loan Companies Act applies; (compagnie)

Coming into Force

Order in council

7 (1) Sections 5 and 6 come into force on a day or days to be fixed by order of the Governor in Council, on recommendation of the Minister.

Recommendation

(2) The Minister may only make a recommendation under subsection (1) if the Minister considers that doing so is consistent with the proposal developed under section 4.

Published under authority of the Senate of Canada


EXPLANATORY NOTES

Bankruptcy and Insolvency Act
Clause 5: Existing text of the definition:

corporation means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, insurance companies, trust companies or loan companies; (personne morale)

Companies’ Creditors Arrangement Act
Clause 6: Existing text of the definition:

company means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, telegraph companies, insurance companies and companies to which the Trust and Loan Companies Act applies; (compagnie)


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