Bill C-548: An Act to amend the Canadian Wheat Board Act (increased democratic producer control)

C-548 Third Session, Fortieth Parliament, 59 Elizabeth II, 2010 HOUSE OF COMMONS OF CANADA BILL C-548 An Act to amend the Canadian Wheat Board Act (increased democratic producer control) first reading, June 16, 2010 Mr. Goodale 403088 SUMMARY This enactment amends the Canadian Wheat Board Act to enhance democratic producer control of the Canadian Wheat Board. It also defines and delineates the roles of the Minister and the Governor in Council in the governance of the Canadian Wheat Board. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 3rd Session, 40th Parliament, 59 Elizabeth II, 2010 house of commons of canada BILL C-548 An Act to amend the Canadian Wheat Board Act (increased democratic producer control) R.S., c. C-24 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Subsections 2(4) and (5) of the Canadian Wheat Board Act are replaced by the following: Designating substances as grain products (4) The Governor in Council may, on the recommendation of the Corporation, designate by regulation substances produced by processing or manufacturing wheat, either alone or together with any other material or substance, as wheat products for the purposes of this Act. Designating pooling points (5) The Governor in Council may, on the recommendation of the Corporation, designate by regulation any place in Canada as a pooling point for the purposes of this Act. 2. Subsection 3.02(1) of the Act is replaced by the following: Directors 3.02 (1) Ten directors shall be elected by producers in accordance with sections 3.06 to 3.08 and the regulations. Additional directors (1.1) Four additional directors who have expertise in matters that are relevant to the direction and management of the business and affairs of the Corporation shall be appointed to the board in accordance with subsections (1.2) and (1.3). Appointment of directors (1.2) Two of the directors mentioned in subsection (1.1) shall be appointed by a majority of at least two-thirds of the elected directors. Appointment of directors (1.3) The other two directors mentioned in subsection (1.1) shall be appointed by the Governor in Council on the recommendation of the Minister, who, prior to making a recommendation, shall consult the board with respect to any particular expertise that the board may require. Appointment of president (1.4) The president shall be appointed in accordance with section 3.09. 3. Section 3.06 of the Act is replaced by the following: Regulations 3.06 The Governor in Council may, on the joint recommendation of the Minister and the board, make regulations respecting the election of directors. 4. The portion of section 3.07 of the Act before paragraph (a) is replaced by the following: Administration of election 3.07 Subject to the regulations, the Corporation shall take any measures that the Minister may, following consultation with and approval from the board, determine for the proper conduct and supervision of an election of directors, including 5. (1) Subsection 3.09(1) of the Act is replaced by the following: Appointment of president 3.09 (1) The president is appointed by the Governor in Council on the recommendation of the Minister and holds office during good behaviour for a term established in accordance with paragraph (2)(b). The president may be removed for cause. (2) Subsection 3.09(2) of the Act is amend- ed by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) the Minister and the board have agreed to the term of office of the person whom the Minister is proposing to recommend; and (c) the board has fixed the remuneration to be paid to the person whom the Minister is proposing to recommend and has informed the Minister of the remuneration. (3) Subsection 3.09(3) of the Act is repealed. 6. Subsection 3.1(1) of the Act is replaced by the following: Remuneration 3.1 (1) The president is paid the remuneration fixed in accordance with paragraph 3.09(2)(c). 7. Subsection 3.11(2) of the Act is replaced by the following: Absence or incapacity (2) If the president is absent or unable to act or the office of president is vacant, the Minister may, following consultation with and approval from the board, appoint an interim president. An interim president shall not act for more than 90 days without the approval of the Governor in Council. 8. Subsection 6(2) of the Act is replaced by the following: Regulations (2) The Governor in Council may, on the joint recommendation of the Minister and the Corporation, make regulations authorizing the Corporation to deduct an amount from any amount it receives in the course of its operations under this Act and to credit the amount so deducted to the contingency fund established under paragraph (1)(c.3). 9. Subparagraph 9(1)(b) of the Act is replaced by the following: (b) appoint a firm of chartered accountants for the purpose of auditing accounts and records and certifying reports of the Corporation; 10. Subsection 10(1) of the Act is replaced by the following: Pension fund 10. (1) The Corporation may establish a pension fund for the directors and the officers, clerks and employees employed by the Corporation under this Act and their dependants, including their spouse, common-law partner and children, any other relative of the director, officer, clerk or employee, and any child or other relative of the spouse or common-law partner of the director, officer, clerk or employee. The Corporation may contribute to the pension fund out of funds of the Corporation. 11. The portion of subsection 11(1) of the Act before paragraph (a) is replaced by the following: Group insurance plans 11. (1) The Corporation may enter into a contract with any person 12. Section 18 of the Act is replaced by the following: Directions to the Corporation 18. (1) If the Governor in Council is satisfied on reasonable grounds that the Corporation, through its commercial activities, has placed or may place Canada’s financial interests at material and unwarranted risk in terms of the guarantees provided to the Corporation under this Act, the Governor in Council may, by order, direct the Corporation to alter its commercial activities so as to reasonably mitigate that risk. International treaty obligations (2) If the Governor in Council is satisfied on reasonable grounds that the Corporation has failed to comply with Canada’s international treaty obligations with respect to the trading of goods, the Governor in Council may, by order, direct the Corporation to respect those obligations. Directors (3) The directors shall cause any direction made under subsection (1) or (2) to be implemented and, in so far as they act in accordance with section 3.12, they are not accountable for any consequences arising from the implementation of the direction. Best interests (4) For the purpose of determining whether directors have acted in accordance with section 3.12, compliance by the Corporation with any direction under subsection (1) or (2) is deemed to be in the best interests of the Corporation. Purchase of wheat only (5) Except as directed by the Governor in Council, on the joint recommendation of the Minister and the Corporation, the Corporation shall not buy grain other than wheat. 13. (1) Subsection 19(1) of the Act is replaced by the following: Corporate plan 19. (1) The Corporation shall submit annually a corporate plan to the Minister for review by the Minister in consultation with the Minister of Finance. (2) Subsection 19(3) of the Act is replaced by the following: Borrowing plan 19. (3) The Corporation shall submit annually to the Minister of Finance for approval, in consultation with the Minister, a plan indicating the amount of money that the Corporation intends to borrow in the coming crop year for the purposes of carrying out its corporate plan. 14. The portion of section 28 of the Act before paragraph (a) is replaced by the following: Powers of administration of the Corporation 28. The Corporation may, notwithstanding anything in the Canada Grain Act, but subject to directions, if any, contained in any order of the Governor in Council made under section 18, by order, 15. Sections 29 and 30 of the Act are replaced by the following: Inquiries 29. (1) The Governor in Council may, following consultation with the Corporation, empower the Corporation to make inquiries and investigations to ascertain the availability of delivery and transportation facilities, supplies of grain and all matters connected with the interprovincial or export marketing of grain, and for that purpose empower the Corporation and the directors to exercise the powers of commissioners under Part I of the Inquiries Act. Delivery of grain by other persons (2) The Governor in Council may, on the joint recommendation of the Minister and the Corporation, by regulation, provide that persons other than producers who have become entitled to grain may, notwithstanding anything contained in this Part, deliver grain to an elevator or railway car and the terms and conditions on which the grain may be so delivered. Regulations respecting outside areas 30. The Governor in Council may, on the joint recommendation of the Minister and the Corporation, by regulation, apply this Part to grain produced in any area in Canada outside the designated area specified in the regulation and to producers in respect of that grain, and thereafter, until the regulation is revoked, “grain” in this Part means grain produced in the designated area and in the area so specified in the regulation and “producer” means a producer in respect of that grain. 16. The portion of section 33.5 of the Act before paragraph (a) is replaced by the following: Exemptions 33.5 The Governor in Council may, following consultation with the Corporation, exempt holders of certificates from the deduction under section 33.1 on the basis of 17. Section 34 of the Act is replaced by the following: Action within a grade 34. In taking any action pursuant to section 32, 33 or 37 in respect of a grade of wheat, the Governor in Council, following consultation with the Corporation, or the Corporation may take that action in respect of any wheat within that grade that has an inherent quality characteristic that distinguishes it from any other wheat within that grade as if the wheat having that inherent quality characteristic were wheat of a different grade. 18. The portion of subsection 37(1) of the Act before paragraph (a) is replaced by the following: Regulations 37. (1) The Governor in Council may, following consultation with the Corporation, by regulation, 19. Subsection 40(1) of the Act is replaced by the following: Application to wheat produced outside designated areas 40. (1) The Governor in Council may, following consultation with the Corporation, by regulation, apply the provisions of this Part, in respect of wheat produced in any area in Canada outside the designated area, specified in the regulation. 20. The portion of subsection 41(1) of the Act before paragraph (a) is replaced by the following: Designated wheat 41. (1) The Governor in Council may, following consultation with the Corporation, by regulation, designate for the purposes of this Part 21. (1) The portion of section 46 of the Act before paragraph (a) is replaced by the following: Regulations 46. Subject to section 46.1, the Governor in Council may, in consultation with the Corporation, make regulations 22. The Act is amended by adding the following after section 46: Regulations — joint recommendation 46.1 Any regulation made pursuant to paragraph 46(c), (d) or (e) shall be made by the Governor in Council on the joint recommendation of the Minister and the Corporation. 23. Subsection 47(1) of the Act is replaced by the following: Extension of Parts III and IV to oats and barley 47. (1) Subject to subsection (1.1), the Governor in Council may, on the joint recommendation of the Minister and the Corporation, by regulation, extend the application of Part III or of Part IV or of both Parts III and IV to oats or to barley or to both oats and barley. Vote in favour of extension (1.1) No regulations may be made under subsection (1) unless the producers of oats or barley, as the case may be, have voted in favour of the extension being proposed in accordance with the rules set out in subsections 47.1(2) and (3). 24. Section 47.1 of the Act is replaced by the following: Obligations of ministers and others 47.1 (1) No Senator or Minister or other member of Parliament shall cause to be introduced in Parliament a bill that would exclude any kind, type, class or grade of wheat or barley, or wheat or barley produced in any area in Canada, from the provisions of Part IV, either in whole or in part, or generally, or for any period, or extend the application of Part III or Part IV or both Parts III and IV to any other grain, unless (a) the Senator, or the Minister or the member of Parliament, as the case may be, has consulted with and received the approval of the board for the exclusion or extension being proposed; and (b) the producers of the wheat or barley, or the other grain, as the case may be, have voted in favour of the exclusion or extension being proposed. Voting process (2) The vote referred to in paragraph (1)(b) shall be conducted by secret ballot in accord- ance with a process determined by the Minister in consultation with and subject to the approval of the board. Question asked (3) Any vote under paragraph (1)(b) shall be on a specific, clearly-worded question that shall, in so far as is practicable, be in the form and manner set out in Schedule 2. 25. Section 76 of the Act is replaced by the following: Declaration for the general advantage of Canada 76. For greater certainty, but not so as to restrict the generality of any declaration in the Canada Grain Act that any elevator is a work for the general advantage of Canada, it is hereby declared that all flour mills, feed mills, feed warehouses and seed cleaning mills, whether heretofore constructed or hereafter to be constructed, are and each of them is hereby declared to be works or a work for the general advantage of Canada and, without limiting the generality of the foregoing, every mill or warehouse mentioned or described in Schedule 1 is a work for the general advantage of Canada. 26. (1) The schedule to the Act is renumbered as Schedule 1. (2) The Act is amended by adding, after Schedule 1, the schedule set out in Schedule 1 to this Act. COORDINATING AMENDMENTS Bill C-27 27. (1) Subsections (2) to (5) apply if Bill C-27, introduced in the 3rd session of the 40th Parliament and entitled An Act to amend the Canadian Wheat Board Act (in this section referred to as “the other Act”), receives royal assent. (2) If section 2 of this Act comes into force before section 2 of the other Act, then, on the day on which section 2 of the other Act comes into force, subsection 3.02(1) of the Canadian Wheat Board Act is replaced by the following: Directors 3.02 (1) Ten directors shall be elected by producers in accordance with sections 3.06 to 3.08 and the regulations. (3) If section 2 of this Act comes into force on the same day as section 2 of the other Act, then section 2 of the other Act is deemed to have come into force before section 2 of this Act. (4) If section 18 of this Act comes into force before section 5 of the other Act, then, on the day on which that section 5 comes into force, section 34 of the Canadian Wheat Board Act is replaced by the following: Action within a grade 34. In taking any action pursuant to section 32, 33 or 37 in respect of a grade of wheat, the Governor in Council, following consultation with the Corporation, or the Corporation may take that action in respect of any wheat within that grade that has an inherent quality characteristic that distinguishes it from any other wheat within that grade as if the wheat having that inherent quality characteristic were wheat of a different grade. (5) If section 18 of this Act comes into force on the same day as section 5 of the other Act, then that section 5 is deemed to have come into force before that section 18. 1998, c. 17 28. (1) In this section, “other Act” means An Act to amend the Canadian Wheat Board Act and to make consequential amendments to other Acts, chapter 17 of the Statutes of Canada, 1998. (2) On the first day on which both subsection 47(1) of the Canadian Wheat Board Act, as enacted by section 25 of the other Act, and subsection 47(1) of the Canadian Wheat Board Act, as enacted by section 23 of this Act, are in force, subsection 47(1) of the Canadian Wheat Board Act is replaced by the following: Extension of Parts III and IV to oats and barley 47. (1) Subject to subsection (1.1), the Governor in Council may, on the joint recommendation of the Minister and the Corporation, by regulation, extend the application of Part III or of Part IV or of both Parts III and IV to oats or to barley or to both oats and barley. Vote in favour of extension (1.1) No regulations may be made under subsection (1) unless the producers of oats or barley, as the case may be, have voted in favour of the extension being proposed in accordance with the rules set out in subsections 47.1(2) and (3). (3) On the first day on which both section 47.1 of the Canadian Wheat Board Act, as enacted by section 25 of the other Act, and section 47.1 of the Canadian Wheat Board Act, as enacted by section 24 of this Act, are in force, section 47.1 of the Canadian Wheat Board Act is replaced by the following: Obligations of ministers and others 47.1 (1) No Senator or Minister or other member of Parliament shall cause to be introduced in Parliament a bill that would exclude any kind, type, class or grade of wheat or barley, or wheat or barley produced in any area in Canada, from the provisions of Part IV, either in whole or in part, or generally, or for any period, or extend the application of Part III or Part IV or both Parts III and IV to any other grain, unless (a) the Senator, or the Minister or the member of Parliament, as the case may be, has consulted with and received the approval of the board for the exclusion or extension being proposed; and (b) the producers of the wheat or barley, or the other grain, as the case may be, have voted in favour of the exclusion or extension being proposed. Voting process (2) The vote referred to in paragraph (1)(b) shall be conducted by secret ballot in accord- ance with a process determined by the Minister in consultation with and subject to the approval of the board. Question asked (3) Any vote under paragraph (1)(b) shall be on a specific, clearly-worded question that shall, in so far as is practicable, be in the form and manner set out in Schedule 2. SCHEDULE 1 (Subsection 26(2)) SCHEDULE 2 (Subsection 47.1(3)) Question Attention eligible producers: Please select ONE of the following options: Option 1 - OPEN MARKET OPTION: All domestic and export sales of _____ should be removed entirely from the single desk marketing system of the Canadian Wheat Board and placed on the open market. Option 2 - SINGLE DESK OPTION: The Canadian Wheat Board should remain the single desk seller of all ____, with the continuing exception of feed grain sold domestically. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada