Bill C-48: An Act to amend the Canada Grain Act and to make consequential amendments to other Acts

C-48 Second Session, Forty-first Parliament, 62-63 Elizabeth II, 2013-2014 HOUSE OF COMMONS OF CANADA BILL C-48 An Act to amend the Canada Grain Act and to make consequential amendments to other Acts first reading, December 9, 2014 MINISTER OF AGRICULTURE AND AGRI-FOOD 90753 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Grain Act and to make consequential amendments to other Acts”. SUMMARY This enactment amends the Canada Grain Act to (a) update the objects and functions of the Canadian Grain Commission (“Commission”) including with respect to research and monitoring of grain quality and safety; (b) create a grain producers compensation fund; (c) extend the right to require the Commission to determine the grade and dockage of grain at process elevators, container-loading elevators and grain dealers’ premises; (d) revise the Commission’s authority with respect to the Eastern Division; (e) allow the Commission to require grain samples from elevators in the Eastern Division for the purposes of research related to grain quality and safety; (f) provide for an administrative monetary penalties scheme; (g) modify enforcement provisions; and (h) reflect current practices in the grain industry. The enactment also makes consequential amendments to other Acts and provides for transitional provisions. Available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca TABLE OF PROVISIONSAN ACT TO AMEND THE CANADA GRAIN ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTSSHORT TITLE 1.       Modernization of Canada’s Grain Industry Act.CANADA GRAIN ACT 2–70.       AmendmentsCONSEQUENTIAL AMENDMENTS 71.       Bank Act 72–74.       Agriculture and Agri-Food Administrative Monetary Penalties Act 75–80.       An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act 81.       Canadian Wheat Board (Interim Operations) Act 82.       Safe Food for Canadians Act 83–84.       Jobs and Growth Act, 2012 85.       Fair Rail for Grain Farmers ActTRANSITIONAL PROVISIONS 86.       Receipts 87.       New security 88.       SecurityCOORDINATING AMENDMENTS 89.       Bill C-8 90.       2011, c. 25 91.       2012, c. 24COMING INTO FORCE 92.       Order in council 2nd Session, 41st Parliament, 62-63 Elizabeth II, 2013-2014 house of commons of canada BILL C-48 An Act to amend the Canada Grain Act and to make consequential amendments to other Acts 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 Modernization of Canada’s Grain Industry Act. R.S., c. G-10 CANADA GRAIN ACT 2. The heading before section 2 of the French version of the Canada Grain Act is replaced by the following: DÉFINITIONS ET INTERPRÉTATION R.S., c. 37 (4th Supp.), s. 1(3) 3. (1) The definitions “elevator receipt” and “grain receipt” in section 2 of the Act are repealed. R.S., c. 37 (4th Supp.), s. 1(1) (2) The definitions “export standard sample”, “foreign grain”, “manager” and “primary standard sample” in section 2 of the Act are repealed. (3) The definition “appellation de grade” in section 2 of the French version of the Act is repealed. R.S., c. 37 (4th Supp.), s. 1(1) (4) The definition “Minister” in section 2 of the Act is replaced by the following: “Minister”« ministre » “Minister” means the Minister designated under section 2.1; R.S., c. 37 (4th Supp.), ss. 1(1) and (2); 1994, c. 45, s. 1(3) (5) The definitions “contaminated”, “elevator”, “grain dealer” and “official sample” in section 2 of the Act are replaced by the following: “contaminated”« contaminé » “contaminated” means, in respect of grain, containing any substance in sufficient quantity that the grain is unfit for consumption by persons or animals or is adulterated within the meaning of the regulations made under subsection 30(1) of the Food and Drugs Act; “elevator”« installation » ou « silo » “elevator” means any of the following premises, including those owned or operated by Her Majesty in right of Canada or a province or any of their agents or mandataries, (a) any premises in the Western Division that are (i) equipped to receive or discharge grain directly from or to a conveyance, (ii) constructed for the purpose of handling and storing grain received directly from producers, otherwise than as a part of the farming operation of a particular producer, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged, or (iii) constructed for the purpose of han-dling and storing grain as part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise, (b) any premises in the Eastern Division that are situated along Lake Superior, Lake Huron, Lake St. Clair, Lake Erie, Lake Ontario or the canals or other navigable waters connecting those Lakes or the St. Lawrence River or any tidal waters, and into which grain may be received directly from railway cars or ships and out of which grain may be discharged directly to ships, and (c) the portion of any premises in the Eastern Division that is used for the purpose of handling and storing only western grain; “grain dealer”« négociant en grains » “grain dealer” means a person who, for reward, on his or her own behalf or on behalf of another person, deals in or handles western grain or grain delivered in the Western Division; “official sample”« échantillon officiel » “official sample” means a sample taken from a parcel of grain by a device that is approved by the Commission and that is operated or whose use is monitored by a person authorized by the Commission; (6) The definition “storage charge” in section 2 of the Act is replaced by the following: “storage charge”« frais de stockage » “storage charge” means the charge made by the licensee of an elevator for maintaining in that elevator a stock of grain available for delivery on presentation of a receipt that entitles the holder to the delivery of grain in accordance with the receipt; (7) Section 2 of the Act is amended by adding the following in alphabetical order: “conveyance”« véhicule » “conveyance” means any ship, motor vehicle, trailer or other means of transportation and includes a container and a railway car; “eastern elevator”« installation de la région de l’Est » “eastern elevator” means any premises in the Eastern Division, other than premises described in paragraph (b) or (c) of the definition of “elevator”, that are (a) equipped to receive or discharge grain directly from or to a conveyance, (b) constructed for the purpose of handling and storing grain received directly from producers, other than as a part of the farming operation of a particular producer, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged, or (c) constructed for the purpose of handling and storing grain as a part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise; “imported grain”« grain importé » “imported grain” means any grain grown outside Canada and includes any screenings from that grain and every grain product manufactured or processed from that grain; “standard sample”« échantillon-type » “standard sample” means, in respect of a grade of grain, a sample designated by the Commission under section 26; (8) Section 2 of the Act is amended by adding the following in alphabetical order: “container-loading elevator”« installation de chargement de conteneurs » ou « silo de chargement de conteneurs » “container-loading elevator” means an elevator whose principal use is the receiving of grain for the purpose of forwarding it by container; “receipt”« reçu » “receipt” means a document in prescribed form issued in respect of grain delivered to a licensee; (9) Section 2 of the Act is amended by adding the following in alphabetical order: “violation”« violation » “violation” means any contravention of this Act or the regulations or any order that may be proceeded with in accordance with the Agriculture and Agri-Food Administrative Monetary Penalties Act; (10) Section 2 of the French version of the Act is amended by adding the following in alphabetical order: « nom de grade »“grade name” « nom de grade » Nom — ou nom et numéro — attribué à un grade de grain établi sous le régime de la présente loi, y compris toute abréviation réglementaire correspondante. (11) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following: Electronic documents and communication (2) A document or other communication for the purpose of this Act may be in electronic form and a reference in this Act or the regulations to a form, record, book, notice or any other document includes a document in electronic form. 4. The Act is amended by adding the following after section 2: DESIGNATION OF MINISTER Minister 2.1 The Governor in Council may, by order, designate any federal minister to be the Minister referred to in this Act. HER MAJESTY Binding on Her Majesty 2.2 This Act is binding on Her Majesty in right of Canada or a province. 2010, c. 12, s. 1662 5. Section 10 of the Act is replaced by the following: Staff 10. Any officers and employees that are necessary for the proper conduct of the business of the Commission shall be appointed in the manner authorized by law. 6. (1) Paragraph 12(c) of the Act is replaced by the following: (c) specifying the duties of officers and employees appointed as described in section 10; (2) Section 12 of the Act is amended by striking out “and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following after paragraph (g): (h) fixing the allowance to be paid to members of the review panels established under section 113. 7. Section 13 of the Act is replaced by the following: Objects 13. Subject to this Act and any directions to the Commission issued from time to time under this Act by the Governor in Council or the Minister, the Commission shall — in the interests of Canadians and grain producers — establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada to ensure a dependable commodity for domestic and export markets. 8. (1) The heading before section 14 of the French version of the Act is replaced by the following: Attributions de la Commission 1988, c. 65, s. 124; 2012, c. 31, s. 353 (2) Paragraphs 14(1)(d) to (e.1) of the Act are replaced by the following: (e) undertake, sponsor and promote research in relation to grain and grain products — including in relation to monitoring and assessing grain quality and safety — and, in so doing, (i) may require that a grain dealer, an operator of an elevator or an operator of an eastern elevator provide it with any sample of grain, grain products or screenings in their possession that the Commission specifies, (ii) may use information, including confidential business information, collected by any department or agency of the Government of Canada or any technical, economic and statistical information and advice from such a department or agency, and (iii) shall maintain an efficient and adequately equipped laboratory; and R.S., c. 37 (4th Supp.), s. 4 (3) Subsections 14(2) and (3) of the Act are replaced by the following: Information and data (2) The Commission may, for the purposes of the Act, collect, maintain and disseminate information and data with respect to grain and grain handling. Delegation (3) The Commission may, by by-law, authorize any person to exercise or perform on its behalf, subject to any restrictions or limitations that the Commission may specify, any of the powers, duties or functions of the Commission under this Act other than the power to make any regulation, order or by-law. 9. Section 15 of the Act and the heading before it are replaced by the following: Contracts, agreements or arrangements 15. The Commission may enter into contracts, agreements or other arrangements in the name of Her Majesty in right of Canada. 10. (1) Paragraph 20(1)(a) of the Act is replaced by the following: (a) recommending specifications for grades of grain and selecting and recommending standard samples; and (2) The portion of subsection 20(2) of the Act before paragraph (a) is replaced by the following: Membership of Western Standards Committee (2) The Minister shall, on the recommendation of the Commission, appoint to the Western Standards Committee (3) The portion of subsection 20(3) of the Act before paragraph (a) is replaced by the following: Membership of Eastern Standards Committee (3) The Minister shall, on the recommendation of the Commission, appoint to the Eastern Standards Committee (4) Subsection 20(4) of the English version of the Act is replaced by the following: Chairperson (4) A commissioner shall preside as chairperson at each meeting of a grain standards committee. (5) Section 20 of the Act is amended by adding the following after subsection (4): Minister’s powers (5) The Minister may suspend, remove or reinstate any member of a grain standards committee who is not employed in the federal public administration or he or she may appoint, on the recommendation of the Commission, a person to act in the place of that member. 2003, c. 22, par. 224(n)(E) 11. Subsection 21(2) of the Act is replaced by the following: Terms of office (2) The Minister shall, on the recommendation of the Commission, establish the terms of office of those members of a grain standards committee who are not employed in the federal public administration. 1994, c. 45, s. 6; 2003, c. 22, par. 224(n)(E) 12. Paragraph 22(a) of the Act is replaced by the following: (a) if the member is not a commissioner or a person employed in the federal public administration, an allowance for the member’s services in an amount to be fixed by by-law of the Commission; and 13. The heading before section 23 of the Act is replaced by the following: Standard Samples 14. (1) Section 23 of the Act before paragraph (a) is replaced by the following: Preparation of samples 23. Each crop year the Commission shall cause to be collected representative samples of the crop of western grain and the crop of eastern grain of that crop year and, from those samples and from any other samples of the stocks of grain from any previous crop year that the Commission considers to be representative of the existing stock of any grain, cause to be prepared representative samples of (2) Paragraph 23(b) of the Act is replaced by the following: (b) any other grade of western grain or eastern grain for which, in the opinion of the Commission, it would be appropriate to designate standard samples; and 15. Subsection 24(4) of the Act is replaced by the following: Recommendation of standard samples (4) The Western Standards Committee shall examine the samples of each grade of western grain that are supplied to the Committee by the Commission and select and recommend to the Commission samples of the grade that, in the Committee’s opinion, represent as accurately as possible the average quality of grain of that grade received at any or all elevators at any or all inspection points. R.S., c. 37 (4th Supp.), s. 11 16. Section 26 of the Act is replaced by the following: Designation of standard samples 26. The Commission shall, for each crop year, after considering the recommendations of a grain standards committee made under subsection 24(2) or (4), designate standard samples of each grade of grain for which a representative sample was prepared under paragraph 23(a) and of any other grades of grain that it considers advisable. 2012, c. 31, s. 355 17. (1) Subsections 27(1) and (2) of the Act are replaced by the following: Standard samples 27. (1) The standard sample that is designated for a grade of grain constitutes (a) the visual grading standard to be used in the grading of grain of that grade; and (b) the minimum visual quality of the grade for that grain. (2) Subsection 27(3) of the Act is replaced by the following: Non-visual criterion of quality (3) If a criterion of quality that applies to a grade of grain cannot be determined visually by comparison with a standard sample, that criterion must be taken into consideration in determining the grade of the grain. (3) The portion of subsection 27(4) of the Act before paragraph (a) is replaced by the following: Limitation (4) No person shall, on the basis of the use of a standard sample, R.S., c. 37 (4th Supp.), s. 13 18. Section 31 of the Act is replaced by the following: Sample to be property of Commission 31. A sample of grain taken under section 30 or otherwise sent to the Commission becomes the Commission’s property and the Commission may conduct research on the grain sample before selling it or disposing of it in the prescribed manner. 19. Paragraph 32(1)(b) of the Act is replaced by the following: (b) if the grain was grown outside Canada, stating the grain’s country of origin or stating that the grain is imported grain and, in the prescribed circumstances, (i) assigning to the grain a grade established by or under this Act or, if the grain is eligible to be assigned more than one grade, assigning to the grain the grade constituting the highest level of excellence for which the grain is eligible, and (ii) stating the dockage to be separated from the grain in order that it may be eligible for the assigned grade. 20. The Act is amended by adding the following after section 41: Samples of Grain for Research Request for sample and information — research 41.1 (1) The Commission may, for the purpose of research related to grain quality and safety, request that a person who applies for the registration of a variety of grain under the Seeds Act provide the Commission, in the manner, at the time and in the quantity specified by it, with a sample of the variety and any information that is required under that Act or under any regulations made under that Act. Person to provide sample (2) The person referred to in subsection (1) shall, in accordance with that subsection, provide the sample requested by the Commission. Research 41.2 The Commission may conduct any research on the grain samples that relates to grain quality and safety. 21. Section 42 of the Act is amended by adding the following after paragraph (b): (c) a container-loading elevator licence, being a licence to operate a container-loading elevator; 1994, c. 45, s. 10 22. (1) The portion of subsection 45(1) of the Act before paragraph (a) is replaced by the following: Issue of licences 45. (1) If a person who proposes to operate a primary, process or container-loading elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may 1994, c. 45, s. 10; 2001, c. 4, s. 88(1)(E) (2) Paragraph 45(1)(b) of the Act is replaced by the following: (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s potential obligations for the payment of money or the delivery of grain to producers of grain who are holders of receipts or cash purchase tickets issued under this Act in relation to grain produced by the holders. 1994, c. 45, s. 10 (3) Subsections 45(1) and (2) of the Act are replaced by the following: Issue of licences — elevator operators and grain dealers 45. (1) If a person who proposes to operate an elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act and any conditions that the Commission may specify, the Commission may issue to the applicant the licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer. 23. The Act is amended by adding the following after section 45: Security 45.1 (1) Unless exempted by regulation or by order of the Commission, a licensee shall obtain or give any prescribed security for the purpose of covering the licensee’s potential obligations for the payment of money or the delivery of grain to holders of receipts or cash purchase tickets issued under this Act and shall maintain that security for as long as they are a licensee. Proof of security (2) The licensee shall, on request, provide the Commission with proof of that security. 1994, c. 45, s. 10 24. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following: Refusal to issue elevator licence 46. (1) The Commission may refuse to issue an elevator licence if the applicant has not obtained or given security as required by subsection 45.1(1) or fails to establish to the satisfaction of the Commission that 1994, c. 45, s. 10 (2) Subsection 46(2) of the Act is replaced by the following: Refusal to issue grain dealer’s licence (2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not obtained or given security as required by subsection 45.1(1). 1994, c. 45, s. 10 (3) Subsection 46(3) of the Act is replaced by the following: Refusal of licence — convictions (3) The Commission may refuse to issue a licence to any applicant who, within the 12 months immediately before the application for the licence, has been convicted of an offence under this Act or has been found to have committed a violation if the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant. R.S., c. 37 (4th Supp.), s. 17(1) 25. (1) Subparagraph 49(2)(b)(ii) of the Act is replaced by the following: (ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any receipt or cash purchase ticket issued by the licensee under this Act. 1994, c. 45, s. 12(3) (2) The portion of subsection 49(3) of the Act before paragraph (b) is replaced by the following: Limitation (3) Despite subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a receipt or cash purchase ticket only if (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the receipt or cash purchase ticket relates within the prescribed period beginning on the day on which the grain was delivered to the licensee; and 1994, c. 45, s. 12(3) (3) Subsections 49(4) and (5) of the Act are replaced by the following: Limitation — terminal (4) Despite subsection (2), a security given by a licensee as a condition of a licence to operate a terminal elevator may be realized or enforced in relation to a receipt only if the holder of the receipt has given notice in writing to the Commission within 30 days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder. Limitation — prescribed percentage (5) Despite any other provision of this Act, the Commission may prescribe the percentage of the value of a receipt or cash purchase ticket that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the receipt or cash purchase ticket only to the extent of the prescribed percentage. R.S., c. 37 (4th Supp.), s. 17; 1994, c. 45, ss. 12(1) and (2); 1998, c. 22, s. 6(3) and par. 25(b)(F) (4) Section 49 of the Act is replaced by the following: Additional security 49. (1) If the Commission has reason to believe that any security obtained or given by a licensee under this Act is not sufficient, the Commission may, by order, require the licensee to obtain or give, within any period that the Commission considers reasonable, any additional security that it considers is sufficient. Limitation — prescribed percentage (2) Despite any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a receipt or cash purchase ticket that may be realized or enforced by the Commission or by a prescribed person or class of persons against security obtained or given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket or receipt only to the extent of the prescribed percentage. Interpretation — failure to meet payment obligations (3) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer. 1994, c. 45, s. 13; 1998, c. 22, s. 8 26. Section 49.1 of the Act is replaced by the following: Restriction 49.1 (1) Her Majesty in right of Canada is not liable to a producer who has delivered grain (a) to a person who is not a licensee; or (b) to a licensee, if the producer has not obtained a receipt or cash purchase ticket from the licensee. No liability (2) Her Majesty in right of Canada is not liable if a licensee fails or refuses to meet any payment or delivery obligation to a holder of a receipt or cash purchase ticket. 1994, c. 45, s. 14 27. Subsections 51(3) to (5) of the Act are repealed. 28. (1) The portion of subsection 52(1) of the Act before paragraph (b) is replaced by the following: Time limitation on charges 52. (1) No storage charge in respect of grain referred to in a receipt is to be made by the licensee in respect of time subsequent to (a) the delivery of the grain out of the elevator into a conveyance; or (2) Subparagraph 52(1)(b)(i) of the Act is replaced by the following: (i) a conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered has been placed at the elevator to receive the grain, R.S., c. 37 (4th Supp.), s. 19 29. Subsection 53(1) of the Act is replaced by the following: Charges when licensee is unable to deliver grain 53. (1) If, by reason of the condition of any licensed elevator or as a result of any labour stoppage by employees of a licensee or any lockout at any licensed elevator, the licensee is, for any period, unable to deliver grain, grain products or screenings stored in any type of storage in the elevator in accordance with a receipt issued by the licensee, whether or not the holder has requested delivery in accordance with the receipt, despite section 51, the licensee shall not charge the holder of the receipt, in respect of any part of that period after the first seven days, any storage charge that accrues under the receipt that exceeds the appropriate maximum storage charge prescribed under subsection (2) with respect to that type of storage. 30. The Act is amended by adding the following after section 54.1: PART III.1 PRODUCER COMPENSATION FUND Producer Compensation Fund 54.11 (1) There is established in the accounts of Canada an account to be known as the Producer Compensation Fund. Amounts to be credited to Fund (2) The following are to be paid into the Consolidated Revenue Fund and credited to the Producer Compensation Fund: (a) all payments received under section 54.13 or paragraph 54.15(1)(a); (b) all amounts recovered by the Crown as a result of a subrogation under section 54.16; (c) all amounts realized or enforced by the Commission against security obtained or given under section 45.1; and (d) the interest computed in accordance with section 54.12. Amounts charged to Fund (3) All amounts that are directed by the Commission to be paid under subsection 54.14(4) are to be paid out of the Consolidated Revenue Fund with the Minister’s approval and are to be charged to the Producer Compensation Fund. Interest to be credited to Fund 54.12 The Minister of Finance shall, at the times that the Governor in Council directs, credit, from the Consolidated Revenue Fund to the Producer Compensation Fund, interest — calculated in the manner and at a rate determined by the Governor in Council — on the balance from time to time of the Fund. Payment into Fund 54.13 (1) An applicant for a licence or a licensee shall pay to the Commission a contribution amount, payable for the prescribed period and determined by the Commission. In determining the contribution amount, the Commission must consider the risk categories prescribed by regulation that take into account the risk that the licensee will fail to meet any of its payment or delivery obligations to a holder on the surrender of any receipt or cash purchase ticket issued by the licensee under this Act. Receiver General (2) The contribution amount is payable to the Receiver General. Zero contribution amount (3) The Commission may set the contribution amount at zero. Claim 54.14 (1) Any holder of a receipt or cash purchase ticket who has suffered loss or damage by reason of the failure or refusal of the licensee to meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any receipt or cash purchase ticket issued by the licensee under this Act may make a claim to the Commission for that loss or damage up to the lesser of the value of the receipt or cash purchase ticket and, if a percentage is prescribed, the amount that results from applying that percentage to the value of the receipt or cash purchase ticket. Maximum amount (2) A claim must not exceed any prescribed maximum amount. Eligibility of claim (3) A claim is eligible if the Commission is satisfied that (a) it has been made within the prescribed period and in the prescribed manner; (b) the licensee has failed or refused to meet any of their payment or delivery obligations to the holder of the receipt or cash purchase ticket within the prescribed period beginning on the day on which the grain was delivered to the licensee; and (c) the holder of the receipt or cash purchase ticket has suffered loss or damage by reason of the failure or refusal. Payment (4) If the claim is eligible, the Commission shall, after the end of the prescribed period referred to in paragraph (3)(a), determine the amount of compensation to be paid to the claimant and direct that the payment be made. Fund insufficient — additional measures 54.15 (1) If, at any time, the Commission considers that the balance in the Producer Compensation Fund is or will be insufficient to compensate eligible claims or claims that it reasonably expects to be made before the end of the fiscal year, it may (a) impose an additional contribution amount to be paid; (b) postpone the payment of compensation to the fiscal year following the current fiscal year; (c) provide payment of compensation on a pro-rated basis; and (d) stop providing payment of compensation. Deficit (2) At no time is the balance in the Fund to be less than zero. Subrogation 54.16 The Crown is subrogated to all rights of any claimant in respect of an amount that is paid under subsection 54.14(4) and may maintain or commence any proceedings, including arbitration, against any person against whom the proceedings lie, in the name of the claimant or in its own name in respect of the recovery of that amount. 31. Section 55 of the Act is replaced by the following: Works for general advantage of Canada 55. All existing and future elevators in Canada are collectively and individually works for the general advantage of Canada. 32. Section 58 of the Act is replaced by the following: Grain out of condition 58. Except as required by order of the Commission, no operator of a licensed elevator is required to receive into the elevator any grain that has gone or is likely to go out of condition or any grain that is produced from seed of a variety that is not registered under the Seeds Act for sale in or importation into Canada. 1994, c. 45, s. 16 33. (1) The portion of section 61 of the Act before subparagraph (b)(i) is replaced by the following: Procedure on receipt of grain 61. If grain is lawfully offered at a licensed primary elevator for sale or storage, other than for special binning, (a) if the producer, or a person delivering the grain on the producer’s behalf, and the operator of the elevator agree on the grain’s grade and the dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a receipt or cash purchase ticket stating the grain’s grade name, grade and dockage, and shall provide the producer with it without delay; or (b) if the producer, or a person delivering the grain on the producer’s behalf, and the operator of the elevator do not agree on the grain’s grade or dockage, the operator shall 1994, c. 45, s. 16 (2) Subparagraph 61(b)(i) of the French version of the Act is replaced by the following: (i) prélève un échantillon du grain selon les modalités réglementaires, (3) Subparagraph 61(b)(iv) of the Act is replaced by the following: (iv) on receipt of the report referred to in subsection (3), issue, at the prescribed time and in the prescribed manner, a receipt or cash purchase ticket stating the grain’s grade name, the grade assigned and the dockage determined in respect of the sample, and without delay, provide the producer with it. 1994, c. 45, s. 16 (4) Section 61 of the Act is renumbered as subsection 61(1) and is amended by adding the following: Right (2) The receipt entitles its holder, subject to any conditions contained in the receipt or in this Act (a) to the delivery of grain of the same kind, grade and quantity as the grain referred to in the receipt, or (b) in the case of a receipt issued for specially binned grain, to delivery of the identical grain. Report (3) If there is no agreement on the grain’s grade or dockage, the inspector shall prepare a report in which the inspector assigns the grade and determines the dockage in respect of the sample taken by the operator. Re-examination (4) If the producer or the operator is dissatisfied with the inspector’s report, they may, within the prescribed time, ask the chief grain inspector for Canada to re-examine the sample. Decision final (5) The decision of the chief grain inspector for Canada is final and conclusive and not subject to appeal to or review by any court. 34. (1) The portion of section 63 of the French version of the Act before paragraph (a) is replaced by the following: Traitement particulier 63. L’exploitant d’une installation primaire agréée effectue la pesée, la manutention et le traitement du grain, qui lui est légalement offert pour stockage, conformément à la demande qui lui est faite et aux modalités réglementaires et délivre ensuite un récépissé dans le cas suivant : (2) Section 63 of the Act is replaced by the following: Requested treatment of grain 63. The operator shall, in the prescribed manner, weigh, handle and treat the grain as requested and shall issue a receipt for the grain when (a) a person lawfully offers grain for storage at a licensed primary elevator equipped to treat the grain in a particular manner and requests that the grain be treated in that manner before the type of storage or the grade of the grain or both are determined; and (b) the operator of the elevator agrees to receive the grain or is required by this Act or an order of the Commission to receive the grain. 2012, c. 31, s. 368(2)(E) 35. Paragraph 67(1)(b) of the Act is replaced by the following: (b) has caused to be placed at the elevator, to transport the grain, a conveyance that is equipped to receive grain discharged out of the elevator and to which the grain may lawfully be delivered. 36. Section 71 of the Act is amended by adding the following after subsection (1): Right (1.1) The receipt entitles its holder, subject to any conditions contained in the receipt or in this Act, (a) to the delivery of grain of the same kind, grade and quantity as the grain referred to in the receipt; or (b) in the case of a receipt issued for specially binned grain, to delivery of the identical grain. 2012, c. 31, s. 370 37. Section 72 of the Act is repealed. 2012, c. 31, s. 373 38. The portion of section 75 of the Act before paragraph (a) is replaced by the following: Limitation on receipt and discharge 75. No operator of a licensed terminal elevator shall, except with the Commission’s written permission, 1994, c. 45, s. 20 39. Subsections 78(1) and (2) of the Act are replaced by the following: Receipt 78. (1) Unless exempted by regulation or by order of the Commission, the operator of a licensed process elevator shall receive into the elevator, in the order determined by the operator, grain lawfully delivered to that elevator. Procedure on receipt of grain — agreement (2) If the producer, or the person delivering the grain on the producer’s behalf, and the operator agree on the grain’s grade and dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a receipt or cash purchase ticket stating the grain’s grade name, grade and dockage, and shall without delay provide the producer with it. Right (2.1) The receipt entitles its holder to payment by the operator. Procedure on receipt of grain — disagreement (2.2) If the producer, or the person delivering the grain on the producer’s behalf, and the operator do not agree on the grain’s grade or dockage, the operator shall (a) take a sample of the grain in the prescribed manner; (b) deal with the sample in the prescribed manner; (c) issue an interim receipt in the prescribed form; and (d) on receipt of the report referred to in subsection (2.3), issue, at the prescribed time and in the prescribed manner, a receipt or cash purchase ticket stating the grain’s grade name, the grade assigned and the dockage determined in respect of the sample, and without delay provide the producer with it. Report (2.3) If there is no agreement on the grain’s grade or dockage, the inspector shall prepare a report that sets out the grade assigned and the dockage determined in respect of the sample taken by the operator. Re-examination (2.4) If the producer or the operator is dissatisfied with the inspector’s report, they may, within the prescribed period, ask the chief grain inspector for Canada to re-examine the sample. Decision final (2.5) The decision of the chief grain inspector for Canada is final and conclusive and not subject to appeal to or review by any court. 40. The Act is amended by adding the following after section 78: Container-loading Elevators Receipt 79. (1) Unless exempted by regulation or by order of the Commission, the operator of a licensed container-loading elevator shall receive into the elevator, in the order determined by the operator, grain lawfully delivered to that elevator. Issuance of receipt or ticket (2) On the receipt of grain from a producer into a licensed container-loading elevator, the operator shall, at the prescribed time and in the prescribed manner, issue a receipt or cash purchase ticket stating the grain’s grade name, grade and dockage, and shall without delay provide the producer with it. Right (3) The receipt entitles its holder to payment by the operator. Procedure on receipt of grain — agreement (4) If the producer, or a person delivering the grain on the producer’s behalf, and the operator agree on the grain’s grade and dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a receipt or cash purchase ticket stating the grain’s grade name, grade and dockage, and shall without delay provide the producer with it. Procedure on receipt of grain — disagreement (5) If the producer, or a person delivering the grain on the producer’s behalf, and the operator do not agree on the grain’s grade or dockage, the operator shall (a) take a sample of the grain in the prescribed manner; (b) deal with the sample in the prescribed manner; (c) issue an interim receipt in the prescribed form; and (d) on receipt of the report referred to in subsection (6), issue, at the prescribed time and in the prescribed manner, a receipt or cash purchase ticket stating the grain’s grade name, the grade assigned and the dockage determined in respect of the sample, and without delay provide the producer with it. Report (6) If there is a disagreement, the inspector shall prepare a report that sets out the grade assigned and the dockage determined in respect of the sample taken by the operator. Re-examination (7) If the producer or the operator is dissatisfied with the inspector’s report, they may, within the prescribed time, ask the chief grain inspector for Canada to re-examine the sample. Decision final (8) The decision of the chief grain inspector for Canada is final and conclusive and not subject to appeal to or review by any court. Inspection — required by regulation or order 80. If required by regulation or by order of the Commission, the operator of a licensed container-loading elevator shall cause grain discharged to a conveyance to be weighed or inspected in the manner specified in the regulation or order or cause it to be officially weighed or officially inspected, or any combination of those weighings and inspections. 1994, c. 45, s. 22(E); 2004, c. 25, s. 108 41. Section 81 of the Act is replaced by the following: Procedure on receipt of grain 81. (1) When grain is lawfully offered to a licensed grain dealer for sale, (a) if the producer, or a person delivering the grain on the producer’s behalf, and the grain dealer, or a person acting on the grain dealer’s behalf, agree on the grain’s grade and dockage, the grain dealer, or the person acting on their behalf, shall, at the prescribed time and in the prescribed manner, issue a receipt or cash purchase ticket stating the grain’s grade name, grade and dockage, and shall without delay provide the producer with it; or (b) if the producer, or the person delivering the grain on the producer’s behalf, and the grain dealer, or the person acting on the grain dealer’s behalf, do not agree on the grain’s grade or dockage, the grain dealer, or the person acting on their behalf, shall (i) take a sample of the grain in the prescribed manner, (ii) deal with the sample in the prescribed manner, (iii) issue an interim receipt in the prescribed form, and (iv) on receipt of the report referred to in subsection (3), issue, at the prescribed time and in the prescribed manner, a receipt or cash purchase ticket stating the grain’s grade name, the grade assigned and the dockage determined in respect of the sample, and shall without delay provide the producer with it. Right (2) The receipt entitles its holder to payment by the grain dealer. Report (3) If there is no agreement on the grain’s grade of the grain or dockage, the inspector shall prepare a report that sets out the grade assigned and the dockage determined in respect of the sample taken by the grain dealer or the person acting on the grain dealer’s behalf. Re-examination (4) If the producer or the grain dealer is dissatisfied with the inspector’s report, they may, within the prescribed time, ask the chief grain inspector for Canada to re-examine the sample. Determination final (5) The determination of the chief grain inspector for Canada is final and conclusive and is not subject to appeal to or review by any court. Commission contracts (6) No licensed grain dealer who acts for any person on a commission basis in relation to the purchase or sale of grain by a grade name shall, except with the consent of that person, buy, sell or have any interest or right, directly or indirectly beyond the dealer’s agreed commission in the purchase or sale of the grain. Prohibitions (7) No licensed grain dealer shall (a) except with the permission of the Commission, enter into a contract relating to grain that the dealer has reason to believe is infested or contaminated; or (b) enter into a contract that provides for the delivery of grain to an elevator or a consignee if the grain is not lawfully receivable by the operator of the elevator or other consignee. 1994, c. 45, s. 25 42. Section 84 of the Act is replaced by the following: Transport into Canada 84. (1) The Commission may (a) with the approval of the Governor in Council, make regulations respecting the transport of grain into Canada, other than by a public carrier, including prohibiting or imposing conditions on that transport; and (b) make orders that contain any provision that may be contained in any regulation made under paragraph (a) but that are directed at a single person or body or apply for a period of time terminating not later than the end of the crop year in respect of which the orders are made. Transport out of Canada (2) Except with the Commission’s written permission or in accordance with prescribed terms and conditions, no person, other than a public carrier, shall transport or cause to be transported any grain out of Canada. 43. Subsection 85(3) of the Act is replaced by the following: Inspection of conveyance (3) An inspector may, at any reasonable time, inspect any conveyance that is at any elevator to receive grain. 44. Section 86 of the Act is replaced by the following: Discharge of grain into unfit conveyance prohibited 86. No person, including a public carrier, shall discharge or permit the discharge of any grain from an elevator into any conveyance, if they have reason to believe that the conveyance is unfit to receive grain because it fails to meet the prescribed conditions. 2011, c. 25, s. 29; 2012, c. 31, s. 379 45. Subsection 88(1) of the Act is replaced by the following: Inspection 88. (1) Subject to subsection (1.1), an inspector may, for a purpose related to verifying compliance with this Act, enter (a) any elevator, any premises of the licensee of an elevator or any premises of a licensed grain dealer in which the inspector has reasonable grounds to believe there is any grain, grain product or screenings owned or possessed by the licensee or any books, records or other documents relating to the operation of the elevator or the business of the grain dealer; and (b) any elevator that the inspector has reasonable grounds to believe is being operated without the licence that is required under this Act or any premises in which he or she has reasonable grounds to believe a person is carrying on business as a grain dealer without the licence that is required under this Act. Powers (1.01) On entering the elevator or premises the inspector may, for that purpose, (a) examine the premises and any equipment, grain, grain products and screenings found in the premises and take samples of the grain, grain products or screenings; and (b) examine any books, records, bills of lading and other documents that the inspector has reasonable grounds to believe contain any information relevant to verifying compliance with this Act and make copies of them or take extracts from them. 46. The Act is amended by adding the following after section 88: Request for sample 88.1 (1) The Commission may, for the purpose of verifying compliance with this Act or of furthering the objects of this Act, request that a grain dealer or an operator of an elevator or of an eastern elevator provide the Commission with a sample of grain, grain products or screenings that they have in their possession. Provision of sample (2) The grain dealer or operator shall provide the sample requested in the prescribed manner. 47. Subsection 89(2) of the Act is repealed. 2012, c. 31, s. 380 48. (1) The portion of subsection 90(1) before paragraph (b) is replaced by the following: Seizure and report 90. (1) An inspector may seize any documents or records that he or she has reasonable grounds to believe contain, or are, evidence that an offence under this Act or a violation was committed — and, in any event, shall without delay report to the Commission the facts ascertained by him or her — if he or she has reasonable grounds to believe that (a) any offence under this Act or any violation was committed; (2) Subsection 90(1) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) grain, grain products or screenings are not being accurately weighed at an elevator. (3) Subsection 90(2) of the Act is replaced by the following: Detention (2) The documents or records seized under subsection (1) are not permitted to be detained after the expiry of 180 days from the seizure unless before that time proceedings for an offence under this Act, in respect of which the documents or records contain or are evidence, have been instituted, in which event the documents or records may be detained until the proceedings are finally concluded. (4) Subsection 90(2) of the Act is replaced by the following: Detention (2) The documents or records seized under subsection (1) are not permitted to be detained after the expiry of 180 days from the seizure unless before that time a prosecution for an offence under this Act or a proceeding for a violation, in respect of which the documents or records contain or are evidence, have been instituted, in which event the documents or records may be detained until the proceedings are finally concluded. 2012, c. 31, s. 382(1) and (2)(F) 49. The portion of subsection 93(1) of the Act before paragraph (a) is replaced by the following: Restriction of operations and suspension of licence 93. (1) If, on receiving the report of an inspector under section 90 or on making an investigation under section 91, the Commission has reasonable grounds to believe that a licensee has failed to comply with any condition of a licence or has committed an offence under this Act or committed a violation or that a condition referred to in paragraph 90(1)(b), (c) or (d) exists in a licensed elevator, the Commission may, by order, 50. Paragraph 94(3)(a) of the Act is replaced by the following: (a) before the expiry of 30 days after the beginning of the period of prohibition or suspension, a prosecution has been instituted against the licensee in respect of an offence under this Act or a proceeding for a violation has been commenced, in which event the period of prohibition or suspension is deemed to be extended, unless otherwise ordered by the Commission, until 14 days after the proceedings are finally concluded; or 2012, c. 31, s. 383 51. Paragraph 95(1)(b) of the Act is replaced by the following: (b) the licensee is found guilty of an offence under this Act or is found to have committed a violation; 1998, c. 22, par. 25(m)(F) 52. Paragraph 97(a) of the Act is replaced by the following: (a) for the payment, by any complainant, licensee or other person to whom the jurisdiction of the Commission extends, of compensation to any person for loss or damage sustained by that person resulting from a violation or from a contravention of or failure to comply with any provision of this Act or any regulation, order or licence made or issued under this Act; and 1994, c. 45, s. 32 53. Section 103 of the Act is replaced by the following: Prohibition respecting forms 103. No person other than a licensee shall issue a receipt or cash purchase ticket or any other document that so closely resembles one of them that confusion may be caused. 54. Paragraphs 104(a) and (b) of the Act are replaced by the following: (a) issue a receipt or cash purchase ticket acknowledging the purchase of any grain or a receipt or other document purporting to acknowledge the receipt of any grain if the grain has not been purchased or received into the elevator; (b) permit to be outstanding in respect of a quantity of grain in the elevator more than one receipt, cash purchase ticket or other document acknowledging receipt of the grain; 1988, c. 65, s. 130 55. (1) Paragraph 106(b) of the Act is replaced by the following: (b) represent any grain inspection certificate as relating to any grain other than grain to which it properly relates; or (2) Section 106 of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or’’ at the end of paragraph (c) and by adding the following after paragraph (c): (d) make any false or misleading statements, either orally or in writing, to the Commission, an inspector or any other person carrying out his or her functions under this Act, or in any report or other document required under this Act. R.S., c. 37 (4th Supp.), s. 27; 2011, c. 25, s. 32 56. Section 107 of the Act is replaced by the following: False statement 106.1 No person shall make a false statement in a declaration required under regulations made under paragraph 116(1)(p.1). Offence and punishment 107. Every person who contravenes any provision of this Act or of the regulations or any order of the Commission, other than an order for the payment of any money or apportionment of any loss, is guilty of an offence and (a) if the person is an individual, is liable (i) on summary conviction, to a fine of not more than $50,000 or to imprisonment for a term of not more than one year, or to both, or (ii) on conviction on indictment, to a fine of not more than $200,000 or to imprisonment for a term of not more than two years, or to both; or (b) if the person is a corporation, is liable (i) on summary conviction, to a fine of not more than $250,000, or (ii) on conviction on indictment, to a fine of not more than $500,000. 2004, c. 25, s. 109(E) 57. Section 108 of the Act is replaced by the following: Offence or violation by manager, employee, agent or mandatary 108. (1) Any manager of an elevator or any other employee or agent or mandatary of the operator or licensee, who does any act or thing directed to the commission of an offence under this Act or a violation by the operator or licensee is a party to and guilty of the offence or liable for the violation, as the case may be. Offence or violation by employee, agent or mandatary (2) Any employee or agent or mandatary of a licensed grain dealer who does any act or thing directed to the commission of an offence under this Act or a violation by the dealer is a party to and guilty of the offence or liable for the violation, as the case may be. 58. (1) Section 109 of the Act is replaced by the following: Documentary evidence 109. In any prosecution for an offence under this Act or in a proceeding for a violation, a document purporting to have been signed by a commissioner or any officer or employee of the Commission in the course of the performance of his or her duties is evidence of the facts stated in the document without proof of the signature or of the official character of the person appearing to have signed the document. (2) The Act is amended by adding the following after section 109: Orders of court 109.1 When an offender has been found guilty of an offence under this Act, in addition to any other punishment that may be imposed under this Act, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order having any or all of the following effects: (a) prohibiting the offender from doing any act or engaging in any activity that may result in the continuation or repetition of the offence; (b) directing the offender to comply with any other conditions that the court considers appropriate. 59. Subsection 110(1) of the Act is replaced by the following: Time for commencing proceedings 110. (1) Any proceedings by way of summary conviction for an offence under this Act may be instituted at any time within three years after the time when the subject-matter of the prosecution arose. 60. Section 111 of the Act is replaced by the following: Transfer from holder to holder 111. A receipt or cash purchase ticket in the prescribed form that entitles the holder named in that document to the payment of money or delivery of grain in accordance with the terms of the document, and the rights arising under the document, may be transferred from holder to holder by the endorsement and delivery of the document to the endorsee. 61. The Act is amended by adding the following after section 112: Review of Certain Decisions Request 113. (1) Any person who is dissatisfied with a prescribed decision of the Commission may, in the prescribed manner and within the prescribed time, ask the Commission to review its decision. Resolution (2) Within the prescribed time, the Commission shall attempt to resolve issues raised in the request and, in doing so, may confirm, rescind or vary its decision, in whole or in part. Review panel (3) If the Commission does not resolve the issues raised in the request within the prescribed time it shall, in the prescribed manner and within the prescribed time, establish a review panel. Composition of panel (4) The review panel must be composed of three members consisting of a representative chosen by the Commission, a representative chosen by the person who requested the review and another person chosen by the two other representatives. Disagreement (5) If the representatives do not choose another person within the prescribed time, that person must be chosen in accordance with the regulations. Recommendations (6) The review panel shall, in the prescribed manner and within the prescribed time, provide its recommendations to the Commission for the resolution of the issues raised in the request. Notice to person who requested review (7) After considering the recommendations of the review panel, the Commission may confirm, rescind or vary its decision, in whole or in part. The Commission shall, in all cases and in the prescribed manner and within the prescribed time, inform the person who requested the review of its decision. Remuneration and expenses (8) Each member of a review panel is entitled to be paid (a) if the member is not a commissioner or a person employed in the federal public administration, an allowance for the member’s services in an amount to be fixed by by-law of the Commission; and (b) reasonable travel and other expenses while absent from their ordinary place of residence in the course of their duties under this Act. 62. (1) Paragraph 116(1)(d) of the Act is replaced by the following: (c.1) requiring that a grain dealer, an operator of an elevator or an operator of an eastern elevator provide it with any sample of grain, grain products or screenings in their possession; (d) respecting the special binning of grain; (2) Paragraph 116(1)(h) of the Act is replaced by the following: (h) respecting the receipt, inspection, handling and storage at elevators of imported grain and prescribing the period during which imported grain may remain in storage at any elevator; 2012, c. 31, s. 388(2) (3) Paragraph 116(1)(k.1) of the Act is replaced by the following: (k.1) specify the person or class of persons who may realize on or enforce security obtained or given by a licensee; (4) Subsection 116(1) of the Act is amended by adding the following after paragraph (k.3): (k.4) respecting, for the purposes of subsection 54.13(1), the risk categories; (k.5) prescribing, for the purposes of subsection 54.14(1), a percentage of the value of a receipt or cash purchase ticket and, for the purposes of subsection 54.14(2), a maximum amount; (5) Paragraph 116(1)(n) of the Act is replaced by the following: (n) prescribing the form of receipts and cash purchase tickets and prescribing other forms to be used under this Act and the manner in which those forms are to be used, transmitted and related to each other; (6) Subsection 116(1) of the Act is amended by adding the following after paragraph (p): (p.1) respecting the making of declarations by licensees or by persons who sell or deliver grain to a licensee; (7) Subsection 116(1) of the Act is amended by adding the following after paragraph (s.3): (s.4) designating any decision that may be reviewed under section 113 — including those of specific or general application made by order — other than the decisions referred to in the following provisions: (i) section 19, (ii) subsection 56(1), (iii) paragraphs 57(b) and (d), (iv) section 58, (v) subsections 69.1(1) and (2), (vi) subsections 70(1) and (2), (vii) subsection 70.2(1), (viii) subsections 70.3(1) to (3), (ix) section 70.6, (x) section 75, (xi) subsection 78(3), (xii) paragraph 84(1)(b), (xiii) section 87, (xiv) subsection 93(1) with respect to a condition referred to in paragraph 90(1)(b), (c) or (d), (xv) section 94 with respect to a condition referred to in paragraph 90(1)(b), (c) or (d), and (xvi) paragraphs 118(a), (b), (c), (d) and (h); (s.5) prescribing, for the purposes of section 113, rules of procedure and rules of confidentiality; (s.6) providing, for the purposes of subsection 113(5), the manner of choosing a representative; 1994, c. 45, ss. 33(6) and (7) (8) Subsections 116(2) and (3) of the Act are replaced by the following: Forms and systems other than prescribed (2) The Commission may, in writing, permit a licensee to use any form or any system of keeping or issuing receipts, cash purchase tickets or any other document designated by the Commission in addition to or in place of a prescribed form or system. 1994, c. 45, s. 34; 1998, c. 22, par. 25(t)(F) 63. Section 117 of the Act is replaced by the following: Exemption — type of elevator or type of grain handling operation 117. (1) When, in the opinion of the Commission, the control of any type of elevator or type of grain handling operation is not essential for maintaining the quality, safe-keeping and orderly and efficient handling of grain in Canada, it may, by regulation made with the approval of the Governor in Council, exempt that type of elevator or operation from the licensing or any other requirements of this Act or the regulations, in accordance with any terms and conditions and for any period set out in the regulations. Exemption — particular elevator or grain handling operation (2) When, in the opinion of the Commission, the control of any particular elevator or grain handling operation, or any portion of it, is not essential for maintaining the quality, safe-keeping and orderly and efficient handling of grain in Canada, it may, by order, exempt that particular elevator or operation, or portion of it, from the licensing or any other requirements of this Act or the regulations, in accordance with any conditions and for any period set out in the order. 64. Section 119 of the Act is repealed. 2005, c. 24, s. 2.1 65. The heading before section 120.1 and sections 120.1 and 121 of the Act are repealed. 66. The Act is amended by replacing “elevator receipt” and “elevator receipts” with “receipt” and “receipts” respectively, with any grammatical changes that the circumstances require, in the following provisions: (a) paragraph 45(2)(b); (b) section 52; (c) sections 54 and 54.1; (d) subparagraph 61(b)(iii); (e) subsections 62(1) and (3); (f) sections 65 to 68; (g) section 71; (h) sections 73 and 74; (i) section 77; (j) the heading “Cash Purchase Tickets and Elevator Receipts” before section 111; (k) section 112; (l) paragraph 116(1)(o); and (m) paragraph 120(a). 67. The French version of the Act is amended by replacing “appellation” and “appellations” with “nom” and “noms” respectively, with any grammatical changes that the circumstances require, in the following provisions: (a) subsection 16(1); (b) section 19; (c) paragraph 24(2)(b); (d) paragraph 83(2)(a); (e) subsection 102(1); and (f) paragraphs 105(a) and (b). 68. The French version of the Act is amended by replacing “inspecteur en chef des grains pour le Canada” with “inspecteur en chef des grains du Canada”, with any grammatical changes that the circumstances require, in the following provisions: (a) section 39; (b) section 41; and (c) subsections 70(5) to (10). 69. The French version of the Act is amended by replacing “ordonnance” and “ordonnances” with “arrêté” and “arrêtés” respectively, with any grammatical changes that the circumstances require, in the following provisions: (a) subparagraph 49(2)(b)(i); and (b) the heading before section 93. 70. The French version of the Act is amended by replacing “véhicule de transport” and “véhicules de transport” with “véhicule” and “véhicules” respectively, with any grammatical changes that the circumstances require, in the following provisions: (a) subsection 52(2); (b) the portion of subsection 67(1) before paragraph (a); (c) paragraph 67(2)(a); (d) the portion of subsection 74(1) before paragraph (a); (e) paragraph 74(1)(b); (f) subsection 74(2); and (g) section 85. CONSEQUENTIAL AMENDMENTS 1991, c. 46 Bank Act 71. Paragraph (d) of the definition “warehouse receipt” in subsection 425(1) of the Bank Act is replaced by the following: (d) Lake Shippers’ Clearance Association receipts and transfer certificates, British Columbia Grain Shippers’ Clearance Association receipts and transfer certificates, and all documents recognized by the Canada Grain Act as receipts, and 1995, c. 40 Agriculture and Agri-Food Administrative Monetary Penalties Act 1997, c. 21, s. 29 72. The long title of the Agriculture and Agri-Food Administrative Monetary Penalties Act is replaced by the following: An Act to establish a system of administrative monetary penalties for the enforcement of the Canada Agricultural Products Act, the Canada Grain Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act and the Seeds Act 1997, c. 21, s. 30; 2002, c. 28, s. 82 73. The definitions “agri-food Act” and “Minister” in section 2 of the Act are replaced by the following: “agri-food Act”« loi agroalimentaire » “agri-food Act” means the Canada Agricultural Products Act, the Canada Grain Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act or the Seeds Act; “Minister”« ministre » “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 (ii) a provision relating to food safety of an agri-food Act or of a regulation made under such an Act, (b) it means the Minister of Public Safety and Emergency Preparedness in relation to a notice of violation issued in respect of the contravention of program legislation referred to in subsection 11(5) of the Canadian Food Inspection Agency Act, and (c) it means the Minister within the meaning of section 2 of the Canada Grain Act in relation to a violation involving a contravention of that Act; 74. Paragraph 4(1)(a) of the Act is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii): (iv) the contravention of any specified order made by the Canadian Grain Commission under the Canada Grain Act, 1998, c. 22 An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act 75. Subsection 1(3) of An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act is repealed. 76. Section 5 of the Act is repealed. 77. Section 9 of the Act is repealed. 78. Section 13 of the Act is repealed. 79. Sections 18 to 23 of the Act are repealed. 80. Sections 26 to 28 of the Act are repealed. 2011, c. 25, s. 14 Canadian Wheat Board (Interim Operations) Act 81. Section 39 of the French version of the Canadian Wheat Board (Interim Operations) Act is replaced by the following: Nom de grade 39. Le nom de grade du grain désigné dans tout règlement pris en vertu du paragraphe 38(1) est celui qui lui est donné sous le régime de la Loi sur les grains du Canada, suivi du terme « désigné ». 2012, c. 24 Safe Food for Canadians Act 82. Section 109 of the Safe Food for Canadians Act is repealed. 2012, c. 31 Jobs and Growth Act, 2012 83. Sections 361 to 364 of the Jobs and Growth Act, 2012 are repealed. 84. Sections 407 and 408 of the Act are repealed. 2014, c. 8 Fair Rail for Grain Farmers Act 85. Section 14 of the Fair Rail for Grain Farmers Act and the heading before it are repealed. TRANSITIONAL PROVISIONS Receipts 86. The elevator receipts and grain receipts, within the meaning of section 2 of the Canada Grain Act, that are held by a holder, within the meaning of section 2 of that Act, on the day on which subsection 3(8) of this Act comes into force, continue to have effect as if they were receipts issued under section 2 of that Act as it read on that day. New security 87. Every licensee who has given security under the Canada Grain Act before the coming into force of section 23 of this Act, shall obtain or give security as required by subsection 45.1(1), as enacted by that section, within 90 days after the day on which that section 23 comes into force. Security 88. Security given under the Canada Grain Act before the day on which section 23 of this Act comes into force may be retained for the duration of its validity, but in no case for no more than 180 days from the day on which that section comes into force, and used for any purpose for which it was given. COORDINATING AMENDMENTS Bill C-18 89. (1) Subsections (2) and (3) apply if Bill C-18, introduced in the 2nd Session of the 41st Parliament and entitled the Agricultural Growth Act (in this section referred to as the “other Act”), receives royal assent. (2) If section 73 of this Act comes into force before section 113 of the other Act, then that section 113 is repealed. (3) If section 113 of the other Act comes into force on the same day as section 73 of this Act, then that section 113 is deemed to have come into force before that section 73. 2011, c. 25 90. (1) In this section, “other Act” means the Marketing Freedom for Grain Farmers Act. (2) If section 59 of the other Act comes into force before section 31 of this, then that section 31 is replaced by the following: 31. Section 55 of the Act is replaced by the following: Works for general advantage of Canada 55. (1) All existing and future elevators in Canada are collectively and individually works for the general advantage of Canada. Other works (2) Every flour mill, feed mill, feed warehouse and seed cleaning mill is a work for the general advantage of Canada. (3) If section 31 of this Act comes into force before section 59 of the other Act, then that section 59 is replaced by the following: 59. Section 55 of the Canada Grain Act is renumbered as subsection 55(1) and amended by adding the following after subsection (1): Other works (2) Every flour mill, feed mill, feed warehouse and seed cleaning mill is a work for the general advantage of Canada. (4) If section 31 of this Act comes into force on the same day as section 59 of the other Act then, that section 59 is deemed to have come into force before that section 31 and subsection (2) applies as a consequence. 2012, c. 24 91. (1) In this section, “other Act” means the Safe Food for Canadians Act. (2) On the first day on which both section 97 of the other Act and section 72 of this Act are in force, the long title of the Agriculture and Agri-Food Administrative Monetary Pen-alties Act is replaced by the following: An Act to establish a system of administrative monetary penalties for the enforcement of the Canada Grain Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Pest Control Products Act, the Plant Protection Act, the Safe Food for Canadians Act and the Seeds Act (3) On the first day on which both section 98 of the other Act and section 73 of this Act are in force, the definition “agri-food Act” in section 2 of the Agriculture and Agri-Food Administrative Monetary Penalties Act is replaced by the following: “agri-food Act”« loi agroalimentaire » “agri-food Act” means the Canada Grain Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Pest Control Products Act, the Plant Protection Act, the Safe Food for Canadians Act or the Seeds Act; COMING INTO FORCE Order in council 92. (1) Section 2, subsections 3(1) to (3) and (5) to (8), (10) and (11), sections 5 to 8, 10 to 21, 26 and 28 to 33, subsection 34(2), sections 35 to 47, subsections 48(2) and (3), sections 53 to 56, subsection 58(2) and sections 59 to 63, 65 to 71 and 81 come into force on a day or days to be fixed by order of the Governor in Council. Order in council (2) Subsections 22(1) and (2) and 25(1) to (3) come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Subsection 22(3), section 23 and subsections 24(1) and (2) and 25(4) come into force on a day to be fixed by order of the Governor in Council which may not be earlier than one day after the day on which subsections 22(1) and (2) and 25(1) to (3) come into force. Order in council (4) Subsections 3(9), 24(3) and 48(1) and (4), sections 49 to 52 and 57, subsection 58(1) and sections 72 to 74 come into force on a day to be fixed by order of the Governor in Council which may not be earlier than one day after the day on which subsection 48(3) comes into force. Published under authority of the Speaker of the House of Commons Explanatory NotesCanada Grain Act Clause 2: Existing text of the heading: INTERPRETATION Clause 3: (1) Existing text of the definitions: “elevator receipt” means a document in prescribed form issued in respect of grain delivered to an elevator acknowledging receipt of the grain and, subject to any conditions contained therein or in this Act, entitling the holder of the document (a) to the delivery of grain of the same kind, grade and quantity as the grain referred to in the document, or (b) in the case of a document issued for specially binned grain, to delivery of the identical grain; “grain receipt” means a document in prescribed form issued in respect of grain delivered to a process elevator or grain dealer acknowledging receipt of the grain and entitling the holder of the document to payment by the operator of the elevator or the grain dealer for the grain; (2) Existing text of the definitions: “export standard sample” means, in respect of a grade of grain, a sample of grain of that grade designated by the Commission pursuant to paragraph 26(b); “foreign grain” means any grain grown outside Canada and includes screenings from such a grain and every grain product manufactured or processed from such a grain; “manager” means, in respect of an elevator, the chief executive officer employed at the elevator by the operator or licensee of the elevator; “primary standard sample” means, in respect of a grade of grain, a sample of grain of that grade designated by the Commission pursuant to paragraph 26(a); (3) Existing text of the definition: “grade name” means the name, or name and number, assigned to any grade of grain established by or under this Act and includes any abbreviation prescribed for that grade name; (4) Existing text of the definition: “Minister” means such member of the Queen’s Privy Council for Canada as is designated by the Governor in Council as the Minister for the purposes of this Act; (5) Existing text of the definitions: “contaminated” means, in respect of grain, containing any substance in sufficient quantity that the grain is unfit for consumption by persons and animals or is adulterated within the meaning of the regulations made pursuant to paragraph 30(1)(a) of the Food and Drugs Act; “elevator” means (a) any premises in the Western Division (i) into which grain may be received or out of which grain may be discharged directly from or to railway cars or ships, (ii) constructed for the purpose of handling and storing grain received directly from producers, otherwise than as a part of the farming operation of a particular producer, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged, or (iii) constructed for the purpose of handling and storing grain as part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise, (b) any premises in the Eastern Division, situated along Lake Superior, Lake Huron, Lake St. Clair, Lake Erie, Lake Ontario or the canals or other navigable waters connecting those Lakes or the St. Lawrence River or any tidal waters, and into which grain may be received directly from railway cars or ships and out of which grain may be discharged directly to ships, (c) the portion of any premises in the Eastern Division designated by regulation pursuant to subsection 116(3) that is used for the purpose of storing grain, (d) any premises in the Eastern Division constructed for the purpose of handling and storing grain received directly from producers, otherwise than as a part of the farming operation of a particular producer, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged, and (e) any premises in the Eastern Division constructed for the purpose of handling and storing grain as a part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extraction plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged for processing or otherwise, including any such premises owned or operated by Her Majesty in right of Canada or a province or any agent thereof; “grain dealer” means a person who, for reward, on his own behalf or on behalf of another person, deals in or handles western grain; “official sample” means a sample taken from a parcel of grain by a person authorized by the Commission to take the sample or by any sampling device authorized by the Commission; (6) Existing text of the definition: “storage charge” means the charge made by the licensee of an elevator for maintaining in the elevator a stock of grain available for delivery on presentation of an elevator receipt entitling the holder to the delivery of grain in accordance with the receipt; (7) New. (8) New. (9) New. (10) New. (11) New. Clause 4: New. Clause 5: Existing text of section 10: 10. Any officers and employees that are necessary for the proper conduct of the business of the Commission, including managers and employees employed at elevators constructed or acquired by Her Majesty in right of Canada and administered by the Commission under this Act, shall be appointed in the manner authorized by law. Clause 6: (1) Relevant portion of section 12: 12. The Commission may make by-laws ... (c) specifying the duties of officers, managers and employees appointed as described in section 10; (2) New. Clause 7: Existing text of section 13: 13. Subject to this Act and any directions to the Commission issued from time to time under this Act by the Governor in Council or the Minister, the Commission shall, in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets. Clause 8: (1) Existing text of the heading: Functions of the Commission (2) Relevant portion of subsection 14(1): 14. (1) Subject to this Act, the Commission shall, in furtherance of its objects, ... (d) manage, operate and maintain every elevator constructed or acquired by Her Majesty in right of Canada, the administration of which is assigned by the Governor in Council to the Commission; (e) undertake, sponsor and promote research in relation to grain and grain products and, in so doing, (i) may request that a grain dealer or an operator of an elevator provide it with any sample of grain, grain products or screenings in their possession that the Commission specifies, (ii) wherever appropriate, utilize technical, economic and statistical information and advice from any department or agency of the Government of Canada, and (iii) maintain an efficient and adequately equipped laboratory; (e.1) monitor compliance with end-use certificates provided pursuant to section 87.1; and (3) Existing text of subsections 14(2) and (3): (2) The Commission shall not, in operating any elevator as a primary elevator pursuant to paragraph (1)(d), purchase grain. (3) The Commission may, by by-law, authorize any person to exercise or perform on the Commission’s behalf, subject to such restrictions or limitations as the Commission may specify, any of the powers, duties or functions of the Commission under this Act other than the power to make any regulation, order or by-law. Clause 9: Existing text of the heading and section 15: Report 15. The Commission shall during the month of February in each year submit to the Minister a report, in such form as the Minister may direct, on the activities of the Commission during the crop year immediately preceding and the Minister shall cause the report to be laid before Parliament within fifteen days after the receipt thereof or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting. Clause 10: (1) Relevant portion of subsection 20(1): 20. (1) The Commission shall, by by-law, constitute a western grain standards committee and an eastern grain standards committee, in this Part referred to as the Western Standards Committee and the Eastern Standards Committee, for the purpose of (a) recommending specifications for grades of grain and selecting and recommending primary standard samples and export standard samples of grain; and (2) Relevant portion of subsection 20(2): (2) The Commission shall, with the approval of the Minister, appoint to the Western Standards Committee (3) Relevant portion of subsection 20(3): (3) The Commission shall, with the approval of the Minister, appoint to the Eastern Standards Committee (4) Existing text of subsection 20(4): (4) A commissioner shall preside as chairman at each meeting of a grain standards committee. (5) New. Clause 11: Existing text of subsection 21(2): (2) The Commission shall, by by-law, establish the terms of office of those members of a grain standards committee who are not employed in the federal public administration. Clause 12: Relevant portion of section 22: 22. Each member of a grain standards committee is entitled to be paid (a) if the member is not employed in the federal public administration, an allowance for the member’s services in an amount to be fixed by by-law of the Commission; and Clause 13: Existing text of the heading: Primary Standard Samples and Export Standard Samples Clause 14: (1) and (2) Relevant portion of section 23: 23. As early as possible in each crop year the Commission shall cause to be collected representative samples of the crop of western grain and the crop of eastern grain of that crop year and, from those samples and from such other samples of the stocks of grain from any previous crop year as the Commission considers to be representative of the existing stock of any grain, cause to be prepared representative samples of ... (b) any other grade of western grain or eastern grain for which, in the opinion of the Commission, it would be appropriate to designate primary standard samples or export standard samples or both; and Clause 15: Existing text of subsection 24(4): (4) The Western Standards Committee shall, in respect of (a) each grade of western red spring wheat and western amber durum wheat that, in the opinion of the Commission, is likely to be sold for export, and (b) any other grade of western grain that the Commission refers to it for consideration, examine the samples of grain of that grade supplied to the Committee by the Commission and select and recommend to the Commission samples of the grade that, in the opinion of the Committee, represent as accurately as possible the average of grain of that grade received at any or all elevators at any or all inspection points. Clause 16: Existing text of section 26: 26. The Commission shall, for each crop year, (a) on considering the recommendations of a grain standards committee made pursuant to subsection 24(2), designate primary standard samples of each grade of grain for which a representative sample was prepared pursuant to paragraph 23(a) and of such other grades of grain as the Commission considers advisable; and (b) on considering the recommendations of the Western Standards Committee made pursuant to subsection 24(4), designate export standard samples of each grade of western grain for which a representative sample was prepared pursuant to paragraph 23(a) and of such other grades of western grain as the Commission considers advisable. Clause 17: (1) Existing text of subsections 27(1) and (2): 27. (1) The export standard sample that is designated for a grade of grain (a) shall be used as the visual grading standard in the grading of western grain of that grade discharged from a terminal elevator or process elevator; and (b) constitutes the minimum visual quality of the grade for that grain. (2) The primary standard sample that is designated for a grade of grain (a) shall be used as a visual grading guide in the grading of grain of that grade, other than western grain discharged from a terminal elevator or process elevator; and (b) constitutes the minimum visual quality of the grade for that grain. (2) Existing text of subsection 27(3): (3) Where (a) protein content is a criterion of quality that applies to a grade of grain, or (b) any other criterion of quality that cannot be determined visually by comparison with a primary standard sample or export standard sample applies to a grade of grain, that criterion shall be taken into consideration in determining the grade of the grain. (3) Relevant portion of subsection 27(4): (4) No person shall, on the basis of the use of a primary standard sample, Clause 18: Existing text of section 31: 31. A sample of grain taken pursuant to section 30 or otherwise sent to the Commission thereupon becomes the property of the Commission and shall be sold or disposed of by the Commission in the prescribed manner. Clause 19: Relevant portion of subsection 32(1): 32. (1) Subject to this Act, an inspector, after making an official inspection of grain pursuant to this Act, shall issue an inspection certificate in prescribed form, ... (b) where the grain was grown outside Canada, stating the country of origin of the grain or stating that the grain is foreign grain. Clause 20: New. Canada Grains Act Clause 21: Relevant portion of section 42: 42. The following classes of licences are hereby established for the purposes of this Act: Clause 22: (1) to (3): Existing text of subsections 45(1) and (2): 45. (1) Where a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer; and (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s potential obligations for the payment of money or the delivery of grain to producers of grain who are holders of cash purchase tickets, elevator receipts or grain receipts issued pursuant to this Act in relation to grain produced by the holders. (2) Where a person who proposes to operate a terminal or transfer elevator applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator; and (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s obligations for the payment of money or the delivery of grain to holders of elevator receipts issued pursuant to this Act. Clause 23: New. Clause 24: (1) Relevant portion of subsection 46(1): 46. (1) The Commission may refuse to issue an elevator licence if the applicant has not given the security fixed pursuant to section 45 or fails to establish to the satisfaction of the Commission that (2) Existing text of subsection 46(2): (2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not given the security fixed pursuant to section 45. (3) Existing text of subsection 46(3): (2) The Commission may refuse to issue a licence if the applicant has been convicted of an offence under this Act within the twelve months immediately preceding the application for the licence and the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant. Clause 25: (1) to (4): Existing text of section 49: 49. (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient. (2) Any security given by a licensee as a condition of a licence may only be realized or enforced by (a) the Commission; or (b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to (i) comply with this Act or any regulation or order made thereunder, or (ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act. (2.1) [Repealed, 1994, c. 45, s. 12] (3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal. (4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder. (5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage. (6) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer. (7) [Repealed, 1998, c. 22, s. 6] (8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator. Clause 26: Existing text of section 49.1: 49.1 (1) The Commission is not liable to a producer who has delivered grain (a) to a person who is not a licensee; or (b) to a licensee, if the producer has not obtained a cash purchase ticket, an elevator receipt or a grain receipt from the licensee. (2) The Commission is not liable if a licensee fails to fulfill any payment or delivery obligation owed to a holder of a grain receipt, elevator receipt or cash purchase ticket. Clause 27: Existing text of subsections 51(3) to (5): (3) Notwithstanding subsection (1), the Commission, on receiving a written complaint from an interested person with respect to the charge for a service provided by the operator of a licensed elevator, may, by order, after giving all interested persons an opportunity to be heard, fix the maximum charge or a manner for determining the maximum charge for that service. (4) An order made under subsection (3) becomes effective on the day specified in the order, which day shall not be earlier than the day the Commission determines that the facts giving rise to the complaint occurred, and ceases to be effective at the end of the crop year in which the order is made or on such earlier day as is set out in the order for its expiration. (5) Subsections (3) and (4) cease to be in force on July 31, 1996. Clause 28: (1) and (2): Relevant portion of subsection 52(1): 52. (1) No storage charge in respect of grain referred to in an elevator receipt shall be made by the licensee of an elevator in respect of time subsequent to (a) the delivery of the grain out of the elevator into a railway car or other conveyance; or (b) the expiration of twenty-four hours after (i) a railway car or other conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered has been placed at the elevator to receive the grain, Clause 29: Existing text of subsection 53(1): 53. (1) Where, by reason of the condition of any licensed elevator or as a result of any labour stoppage by employees of a licensee of an elevator or any lockout at any licensed elevator, the licensee of the elevator is, for any period, unable to deliver grain, grain products or screenings stored in any type of storage in the elevator in accordance with an elevator receipt issued by the licensee, whether or not the holder has requested delivery pursuant to the receipt, notwithstanding section 51, the licensee shall not charge the holder of the receipt, in respect of any part of that period after the first seven days thereof, any storage charge that accrues under the receipt that exceeds the appropriate maximum storage charge prescribed pursuant to subsection (2) with respect to that type of storage. Clause 30: New. Clause 31: Existing text of section 55: 55. (1) All elevators in Canada heretofore or hereafter constructed, except elevators referred to in subsection (2) or (3), are and each of them is hereby declared to be a work or works for the general advantage of Canada. (2) All elevators in the Eastern Division heretofore or hereafter constructed, as defined in paragraph (d) of the definition “elevator” in section 2, are and each of them is hereby declared to be a work or works for the general advantage of Canada. (3) All elevators in the Eastern Division heretofore or hereafter constructed, as defined in paragraph (e) of the definition “elevator” in section 2, are and each of them is hereby declared to be a work or works for the general advantage of Canada. Clause 32: Existing text of section 58: 58. Except as required by order of the Commission, no operator of a licensed elevator is required to receive into the elevator any grain that has gone or is likely to go out of condition. Clause 33: (1) to (3) Relevant portion of section 61: 61. Where grain is lawfully offered at a licensed primary elevator for sale or storage, other than for special binning, (a) if the producer and the operator of the elevator agree as to the grade of the grain and the dockage, the operator shall, at the prescribed time and in the prescribed manner, issue a cash purchase ticket or elevator receipt stating the grade name, grade and dockage of the grain, and forthwith provide the producer with the cash purchase ticket or elevator receipt; and (b) if the producer and the operator of the elevator do not agree as to the grade of the grain or the dockage, the operator shall (i) take a sample of the grain in the manner prescribed, ... (iv) on receipt of a report from the Commission assigning a grade in respect of the sample and determining the dockage, issue, at the prescribed time and in the prescribed manner, a cash purchase ticket or elevator receipt stating the grade name of the grain, the grade assigned in respect of the sample and the dockage so determined, and forthwith provide the producer with the cash purchase ticket or elevator receipt. (4) New. Clauses 34: (1) Existing text of section 63: 63. Where (a) a person lawfully offers grain for storage at a licensed primary elevator equipped to treat the grain in a particular manner and requests that the grain be treated in that manner before the type of storage or the grade of the grain or both are determined, and (b) the operator of the elevator agrees to receive the grain or is required by this Act or an order of the Commission to receive the grain, the operator shall, in such manner as may be prescribed, weigh, handle and treat the grain as requested and shall issue an elevator receipt for the grain. Clause 35: Relevant portion of subsection 67(1): 67. (1) Subject to section 86, the operator of a licensed primary elevator shall without delay discharge into a conveyance referred to in paragraph (b), to the extent of the conveyance’s capacity, the identical grain or grain of the same kind, grade and quantity that any elevator receipt issued by the operator requires if the holder of the receipt who is entitled to the delivery of grain referred to in that receipt ... (b) has caused to be placed at the elevator, to transport the grain, a railway car or other conveyance that is capable of receiving grain discharged out of the elevator and to which the grain may lawfully be delivered. Clause 36: New. Clause 37: Existing text of section 72: 72. The operator of a licensed terminal elevator shall not specially bin any grain except as may be authorized by regulation and in the prescribed manner. Clause 38: Relevant portion of section 75: 75. No operator or manager of a licensed terminal elevator shall, except with the Commission’s written permission, Clause 39: Existing text of subsections 78(1) and (2): 78. (1) Subject to any provision of this Act, any regulation or any order of the Commission, the operator of a licensed process elevator shall receive into the elevator grain lawfully delivered to the elevator at the discretion of the operator. (2) On the receipt of grain from a producer into a licensed process elevator, the operator of the elevator shall, at the prescribed time and in the prescribed manner, issue a grain receipt or a cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide the producer with the grain receipt or cash purchase ticket. Clause 40: New. Clause 41: Existing text of section 81: 81. (1) With respect to the purchase of western grain from a producer of that grain, every licensed grain dealer shall, at the prescribed time and in the prescribed manner, issue a grain receipt or cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide it to the producer. (2) [Repealed, R.S., 1985, c. 37 (4th Supp.), s. 24] (3) No licensed grain dealer who acts for any person on a commission basis in relation to the purchase or sale of western grain by a grade name shall, except with the consent of that person, buy, sell or have any interest or right, directly or indirectly beyond the dealer’s agreed commission in the purchase or sale of the grain. (4) No licensed grain dealer shall (a) except with the permission of the Commission, enter into a contract relating to western grain that the dealer has reason to believe is infested or contaminated; or (b) enter into a contract that provides for the delivery of western grain to an elevator or a consignee if the grain is not lawfully receivable by the operator of the elevator or other consignee. Clause 42: Existing text of section 84: 84. Except with the written permission of the Commission or in accordance with prescribed terms and conditions, no person, other than a public carrier, shall transport or cause to be transported any grain (a) from the Western Division to the Eastern Division or from the Eastern Division to the Western Division; or (b) into or out of Canada. Clause 43: Existing text of subsection 85(3): (3) An inspector (a) may, at any reasonable time, inspect any conveyance that has been placed at any elevator to receive grain; and (b) where the inspector believes on reasonable grounds that any prescribed condition exists in the conveyance to such extent that the conveyance is not in fit condition to receive grain, shall direct that grain not be discharged into the conveyance until the condition has been corrected. Clause 44: Existing text of section 86: 86. No person shall discharge any grain out of an elevator into a conveyance and no public carrier or other person shall permit the discharge of any grain out of an elevator into any conveyance owned or operated by him, where (a) the person or public carrier has reason to believe that any prescribed condition exists in the conveyance to such extent that the conveyance is not in fit condition to receive grain; or (b) an inspector has directed, pursuant to subsection 85(3), that grain not be discharged into the conveyance. Clause 45: Existing text of subsection 88(1): 88. (1) Subject to subsection (1.1), an inspector may, at any reasonable time, enter any elevator, any premises of the licensee of an elevator or any premises of a licensed grain dealer in which the inspector has reasonable grounds to believe there is any grain, grain product or screenings owned or possessed by the licensee or any books, records or other documents relating to the operation of the elevator or the business of the grain dealer and may (a) examine the premises and any equipment, grain, grain products and screenings found in the premises; (a.1) take samples of the grain, grain products or screenings; and (b) examine any books, records, bills of lading and other documents that, on reasonable grounds, the inspector believes contain any information relevant to verifying compliance with this Act and make copies of them or take extracts from them. Clause 46: New. Clause 47: Existing text of subsection 89(2): (2) No person shall knowingly make any false or misleading statements, either orally or in writing, to an inspector engaged in carrying out his duties and functions under this Act. Clause 48: (1) and (2) Relevant portion of subsection 90(1): 90. (1) An inspector may seize any documents or records that he or she has reasonable grounds to believe contain or are evidence that an offence under this Act was committed — and, in any event, shall without delay report to the Commission the facts ascertained by him or her — if he or she has reasonable grounds to believe that (a) any offence under this Act was committed; (3) Existing text of subsection 90(2): (2) Documents or records seized pursuant to subsection (1) shall not be detained after the expiration of thirty days from the seizure unless before that time proceedings in respect of an offence under this Act, in respect of which the documents or records contain or are evidence, have been instituted, in which event the documents or records may be detained until the proceedings are finally concluded. Clause 49: Relevant portion of subsection 93(1): 93. (1) If, on receiving the report of an inspector under section 90 or on making an investigation under section 91, the Commission has reasonable grounds to believe that a licensee has failed to comply with any condition of a licence or has committed an offence under this Act or that a condition referred to in paragraph 90(1)(b), (c) or (d) exists in a licensed elevator, the Commission may, by order, Clause 50: Relevant portion of subsection 94(3): (3) A period of prohibition or suspension ordered pursuant to subsection 93(1) shall not be extended for any period that would result in the aggregate period of the prohibition or suspension being longer than thirty days unless (a) before the expiration of thirty days from the commencement of the period of prohibition or suspension, proceedings have been instituted against the licensee or against the manager of the elevator in respect of an offence under this Act, in which event the period of prohibition or suspension is deemed to be extended, unless otherwise ordered by the Commission, until fourteen days after the proceedings are finally concluded; or Clause 51: Relevant portion of subsection 95(1): 95. (1) The Commission may, by order, revoke a licence to operate an elevator or a licence to carry on business as a grain dealer, as the case may be, if ... (b) the licensee or the manager of a licensed elevator is found guilty of an offence under this Act; Clause 52: Relevant portion of section 97: 97. The Commission may, after any investigation instituted under section 91 and after affording all persons having an interest in the matter under investigation a full and ample opportunity to be heard, make an order (a) for the payment, by any complainant, licensee or other person to whom the jurisdiction of the Commission extends, of compensation to any person for loss or damage sustained by that person resulting from a contravention of or failure to comply with any provision of this Act or any regulation, order or licence made or issued pursuant to this Act; and Clause 53: Existing text of section 103: 103. No person other than a licensee shall issue a cash purchase ticket, an elevator receipt or a grain receipt or any other document that so closely resembles one of them that confusion may be caused. Clause 54: Relevant portion of section 104: 104. No operator of a licensed elevator shall (a) issue a cash purchase ticket acknowledging the purchase of any grain or an elevator receipt or other document purporting to acknowledge the receipt of any grain if the grain has not been purchased or received into the elevator; (b) permit to be outstanding in respect of a quantity of grain in the elevator more than one cash purchase ticket or more than one elevator receipt or other document acknowledging receipt of the grain; Clause 55: (1) and (2) Relevant portion of section 106: 106. No person shall ... (b) represent any grain inspection certificate or end-use certificate as relating to any grain other than grain to which it properly relates; or Clause 56: Existing text of section 107: 107. (1) Every operator of an elevator who contravenes or fails to comply with section 72 is guilty of an offence and (a) if an individual, is liable (i) on summary conviction, to a fine not exceeding nine thousand dollars or to imprisonment for a term not exceeding two years, or to both, or (ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars or to imprisonment for a term not exceeding four years, or to both; or (b) if a corporation, is liable (i) on summary conviction, to a fine not exceeding thirty thousand dollars, or (ii) on conviction on indictment, to a fine not exceeding sixty thousand dollars. (1.1) [Repealed, 2011, c. 25, s. 32] (2) Every person who contravenes any provision of this Act, other than section 72, or of the regulations or any order of the Commission, other than an order for the payment of any money or apportionment of any loss, is guilty of an offence and (a) if an individual, is liable (i) on summary conviction, to a fine not exceeding six thousand dollars or to imprisonment for a term not exceeding one year, or to both, or (ii) on conviction on indictment, to a fine not exceeding twelve thousand dollars or to imprisonment for a term not exceeding two years, or to both; or (b) if a corporation, is liable (i) on summary conviction, to a fine not exceeding nine thousand dollars, or (ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars. Clause 57: Existing text of section 108: 108. (1) Any manager of an elevator, or any other employee, or agent or mandatary, of the operator or licensee of an elevator, who does any act or thing directed to the commission of an offence under this Act by the operator or licensee of the elevator is a party to and guilty of the offence. (2) Any employee, or agent or mandatary, of a licensed grain dealer who does any act or thing directed to the commission of an offence under this Act by the licensed grain dealer is a party to and guilty of the offence. Clause 58: Existing text of section 109: 109. In any prosecution for an offence under this Act, a document purporting to have been signed by a commissioner or any officer or employee of the Commission in the course of the performance of his duties is evidence of the facts stated in the document without proof of the signature or of the official character of the person appearing to have signed the document. (2) New. Clause 59: Existing text of subsection 110(1): 110. (1) Any proceedings by way of summary conviction in respect of an offence under this Act may be instituted at any time within two years after the time when the subject-matter of the prosecution arose. Clause 60: Existing text of section 111: 111. (1) A cash purchase ticket or elevator receipt in prescribed form entitling the holder named in that document to the payment of money or delivery of grain in accordance with the terms of the document, and the rights arising under the document, may be transferred from holder to holder by the endorsement and delivery of the document to the endorsee. (2) [Repealed, 2012, c. 31, s. 385] Clause 61: New. Clause 62: (1) to (7) Relevant portion of subsection 116(1): 116. (1) The Commission may, with the approval of the Governor in Council, make regulations ... (d) specifying the procedure to be followed by the parties to any contract for special binning for the purpose of ensuring the preservation of the identity of specially binned grain; ... (h) respecting the receipt, inspection, handling and storage at elevators of foreign grain and prescribing the period of time that foreign grain may remain in storage at any elevator; ... (k.1) specify the person or class of persons who may realize on or enforce security obtained by a licensee; ... (n) prescribing the form of cash purchase tickets and elevator receipts and prescribing other forms to be used pursuant to this Act and the manner in which those forms are to be used, transmitted and related to each other; (8) Existing text of subsections 116(2) and (3): (2) The Commission may, in writing, permit a licensee to use any form or any system of keeping or issuing cash purchase tickets, elevator receipts or any other document designated by the Commission in addition to or in place of a prescribed form or system. (3) The Commission may, by regulation made with the approval of the Governor in Council, establish a list of premises in the Eastern Division used either in whole or in part for the storage of grain. Clause 63: Existing text of section 117: 117. Where, in the opinion of the Commission, the control of any type of elevator or type of grain handling operation or any particular elevator or grain handling operation is not essential for maintaining the quality, safe-keeping and orderly and efficient handling of grain in Canada, the Commission may, (a) by regulation made with the approval of the Governor in Council, exempt that type of elevator or operation from the licensing or any other requirements of this Act or the regulations, or (b) by order, exempt that particular elevator or operation from the licensing or any other requirements of this Act or the regulations, on such conditions and for such period as may be set out in the regulation or order. Clause 64: Existing text of section 119: 119. This Act is binding on Her Majesty in right of Canada or a province. Clause 65: Existing text of the heading and sections 120.1 and 121: REVIEW AND REPORT 120.1 Within a year after the coming into force of this section, the Minister shall cause (a) an independent and comprehensive review of the Commission and of the provisions and operation of this Act to be conducted; and (b) a report on the review to be laid before each House of Parliament, including a statement of any changes recommended by the authors of the review. COMING INTO FORCE *121. (1) Paragraphs (d) and (e) of the definition “elevator” in section 2 and subsections 55(2) and (3) or any of those provisions shall come into force on a day or days to be fixed by proclamation. (2) A proclamation bringing into force paragraph (d) or (e) of the definition “elevator” in section 2 or subsection 55(2) or (3) shall fix as the day on which such paragraph or subsection is to come into force a day that is not earlier than six months after the day the issue of the proclamation is authorized. * [Note: Paragraphs (d) and (e) of the definition “elevator” in section 2 and subsections 55(2) and (3) not in force.] Bank Act Clause 71: Relevant portion of the definition: “warehouse receipt” includes ... (d) Lake Shippers’ Clearance Association receipts and transfer certificates, British Columbia Grain Shippers’ Clearance Association receipts and transfer certificates, and all documents recognized by the Canada Grain Act as elevator receipts, and Agriculture and Agri-Food Administrative Monetary Penalties Act Clause 72: Existing text of the long title: An Act to establish a system of administrative monetary penalties for the enforcement of the Canada Agricultural Products Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act and the Seeds Act Clause 73: Existing text of the definition: “agri-food Act” means the Canada Agricultural Products Act, the Farm Debt Mediation Act, the Feeds Act, the Fertilizers Act, the Health of Animals Act, the Meat Inspection Act, the Pest Control Products Act, the Plant Protection Act or the Seeds Act; “Minister” means the Minister of Agriculture and Agri-Food, except that, in relation to a violation involving a contravention of the Pest Control Products Act , it means the Minister of Health; Clause 74: Relevant portion of paragraph 4(1)(a): 4. (1) The Minister may make regulations (a) designating as a violation that may be proceeded with in accordance with this Act (i) the contravention of any specified provision of an agri-food Act or of a regulation made under an agri-food Act, (ii) the contravention of any specified order, or class of orders, made by the Minister under the Plant Protection Act, or (iii) the refusal or neglect to perform any specified duty, or class of duties, imposed by or under the Plant Protection Act or the Health of Animals Act, if the contravention, or the failure or neglect to perform the duty, as the case may be, is an offence under an agri-food Act; Canadian Wheat Board (Interim Operations) Act Clause 81: Existing text of section 39: 39. L’appellation de grade du grain désigné dans tout règlement pris en vertu du paragraphe 38(1) est celle qui lui est donnée sous le régime de la Loi sur les grains du Canada, suivie du terme « désigné ».