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Fair Rail for Grain Farmers Act (S.C. 2014, c. 8)

Full Document:  

Assented to 2014-05-29

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Fair Rail for Grain Farmers Act

S.C. 2014, c. 8

Assented to 2014-05-29

An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures

SUMMARY

This enactment amends the Canada Grain Act to permit the regulation of contracts relating to grain and the arbitration of disputes respecting the provisions of those contracts. It also amends the Canada Transportation Act with respect to railway transportation in order to, among other things,

  • (a) require the Canadian National Railway Company and the Canadian Pacific Railway Company to move the minimum amount of grain specified in the Canada Transportation Act or by order of the Governor in Council; and

  • (b) facilitate the movement of grain by rail.

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

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Fair Rail for Grain Farmers Act.

R.S., c. G-10CANADA GRAIN ACT

2. The Canada Grain Act is amended by adding the following after section 92:

Marginal note:Arbitration — certain contracts

  • 92.1 (1) On the written request of one of the parties to a contract that includes provisions that are required by a regulation made under paragraph 116(1)(s.2), the Commission, a commissioner or a third party appointed by the Commission has capacity to act as an arbitrator in any dispute respecting those provisions.

  • Marginal note:Remuneration

    (2) The Commission may fix the remuneration to be paid to it or, if a third party is acting as arbitrator, to the third party for the arbitration.

  • Marginal note:Determination of costs

    (3) The Commission shall determine the costs related to the arbitration.

  • Marginal note:Allocation of remuneration and costs

    (4) The arbitrator shall decide how to allocate between the parties the payment of the remuneration and the costs to the Commission or the third party, as the case may be.

  • Marginal note:Decision binding

    (5) The arbitrator’s decisions are binding on the parties.

  • Marginal note:Third-party arbitrator

    (6) If the arbitrator is a third party, the arbitrator’s decisions are deemed to be the Commission’s decisions.

  • Marginal note:Order to comply

    (7) The Commission may, by order, require a licensee to comply with a decision made under this section.

Marginal note:1998, c. 22, par. 25(j)(F)

3. Subsections 93(2) and (3) of the Act are replaced by the following:

  • Marginal note:Suspension of licence

    (1.1) If the Commission has reasonable grounds to believe that a licensee has failed to comply with an arbitrator’s decision made under section 92.1, the Commission may, by order, suspend the licence for any period not exceeding 30 days that is specified in the order.

  • Marginal note:Licensee’s opportunity to be heard

    (2) Subject to subsection (3), the Commission may not make an order under subsection (1) or (1.1) unless the Commission has afforded the licensee or their representative full and ample opportunity to be heard.

  • Marginal note:Immediate restriction or suspension

    (3) If, in the circumstances of any particular case, the Commission considers it necessary in the public interest to do so, it may make an order under subsection (1) or (1.1) without first affording a licensee or their representative an opportunity to be heard but, in that event, the Commission shall, as soon as feasible after making the order, afford the licensee a full and ample opportunity to be heard.

4. Subsection 95(1) of the Act is amended by adding the following after paragraph (a):

  • (a.1) the licensee has failed to comply with an arbitrator’s decision made under section 92.1;

5. Subsection 116(1) of the Act is amended by adding the following after paragraph (s.1):

  • (s.2) respecting provisions to be included in specified classes of contracts relating to grain, including provisions respecting compensation or penalties for breaches of those provisions;

  • (s.3) respecting arbitration for the purposes of section 92.1, including rules of procedure, eligibility requirements for requests for arbitration, the qualifications required of third parties to act as arbitrators, the rules of confidentiality and the reporting of decisions;

1996, c. 10CANADA TRANSPORTATION ACT

  • 5.1 (1) Subsection 116(4) of the Canada Transportation Act is amended by adding the following after paragraph (c):

    • (c.1) order the company to compensate any person adversely affected for any expenses that they incurred as a result of the company’s failure to fulfill its service obligations or, if the company is a party to a confidential contract with a shipper that requires the company to pay an amount of compensation for expenses incurred by the shipper as a result of the company’s failure to fulfill its service obligations, order the company to pay that amount to the shipper;

  • (2) Paragraph 116(4)(c.1) of the Act is repealed.

  • 6. (1) The Act is amended by adding the following after section 116:

    Traffic of Grain

    Marginal note:Definitions

    116.1 The following definitions apply in this section and in section 116.2.

    “crop year”

    « campagne agricole »

    “crop year” means the period that begins on August 1 in any year and ends on July 31 in the next year.

    “grain”

    « grain »

    “grain” means any grain, crop or product listed in Schedule II.

    “move”

    « transporter »

    “move” means to carry grain over a railway line from a point on any rail line west of Thunder Bay or Armstrong, Ontario, to any point in Canada or the United States or beyond for unloading.

    Marginal note:Obligation to move grain

    • 116.2 (1) Subject to volume demand and corridor capacity, the Canadian National Railway Company and the Canadian Pacific Railway Company must each move at least 500,000 tonnes of grain during each week in the period that

      • (a) begins on the later of April 7, 2014 and the first Monday after the day on which this section comes into force; and

      • (b) ends on August 3, 2014.

    • Marginal note:Order in council

      (2) The Governor in Council may, by order, on the recommendation of the Minister and the Minister of Agriculture and Agri-Food, specify the minimum amount of grain that each company referred to in subsection (1) must move during any period within a crop year that begins on or after August 1, 2014.

    • Marginal note:Amount varied

      (3) The Governor in Council may, by order, on the recommendation of the Minister and the Minister of Agriculture and Agri-Food, vary the minimum amount of grain that each company referred to in subsection (1) must move during the period.

    • Marginal note:Obligation

      (4) Subject to volume demand and corridor capacity, each company referred to in subsection (1) must move the minimum amount of grain that the Governor in Council specifies or varies by order.

    • Marginal note:Agency’s advice

      (5) On or before the July 1 that precedes each crop year, and after consulting with the companies referred to in subsection (1) and the owners or operators of grain handling undertakings, the Agency must provide the Minister with advice on the minimum amount of grain that each company referred to in subsection (1) should move during each month of that crop year. The Agency may also consult with any other person that it considers appropriate.

    • Marginal note:Initial advice

      (6) Despite subsection (5), before the first order is made under subsection (2), the Minister may, by order, set another day on or before which the Agency must provide him or her with the advice.

    • Marginal note:Updated advice

      (7) On the Minister’s request and after consulting with the companies referred to in subsection (1) and the owners or operators of grain handling undertakings, the Agency must update its advice. The Agency may also consult with any other person it considers appropriate.

    Marginal note:Inquiry

    116.3 On the Minister’s request, the Agency must inquire into whether a company is complying with subsection 116.2(1) or (4) and must report the results of its inquiry to the Minister.

  • (2) Sections 116.1 to 116.3 of the Act are repealed.

  • 7. (1) Section 128 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Different distances

      (1.1) A regulation made under paragraph (1)(c) may prescribe different distances for the regions or goods that it specifies.

  • (2) Subsection 128(1.1) of the Act is repealed.

  • 8. (1) Section 169.31 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Regulations

      (1.1) The Agency may make regulations specifying what constitutes operational terms for the purposes of paragraphs (1)(a) to (c).

  • (2) Subsection 169.31(1.1) of the Act is repealed.

  • 9. (1) Section 177 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Subsection 116.2(1) or (4)

      (3) The contravention of subsection 116.2(1) or (4) may be proceeded with as a violation in accordance with sections 179 and 180. The maximum amount payable for each violation is $100,000.

  • (2) Subsection 177(3) of the Act is repealed.

Marginal note:2013, c. 31, s. 13

  • 10. (1) The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Notices of violation

    • 178. (1) The Agency, in respect of a violation referred to in subsection 177(1) or (1.1), or the Minister, in respect of a violation referred to in subsection 177(2) or (3), may

  • (2) The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Notices of violation

    • 178. (1) The Agency, in respect of a violation referred to in subsection 177(1) or (1.1), or the Minister, in respect of a violation referred to in subsection 177(2), may

  • 11. (1) Section 179 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Continuing violation

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

  • (2) Subsection 179(1.1) of the Act is repealed.

Marginal note:2007, c. 19, s. 52

  • 12. (1) Subsection 180.8(2) of the Act is replaced by the following:

    • Marginal note:Delegation by Minister

      (2) In the case of a violation referred to in subsection 177(2) or (3), the Minister may delegate to the Agency any power, duty or function conferred on him or her under this Part.

  • (2) Subsection 180.8(2) of the Act is replaced by the following:

    • Marginal note:Delegation by Minister

      (2) In the case of a violation referred to in subsection 177(2), the Minister may delegate to the Agency any power, duty or function conferred on him or her under this Part.

SOR/2014-55ORDER IMPOSING MEASURES TO ADDRESS THE EXTRAORDINARY DISRUPTION TO THE NATIONAL TRANSPORTATION SYSTEM IN RELATION TO GRAIN MOVEMENT

Marginal note:Validity

13. The Order Imposing Measures to Address the Extraordinary Disruption to the National Transportation System in Relation to Grain Movement is deemed to have been validly made under section 47 of the Canada Transportation Act.

COORDINATING AMENDMENTS

Marginal note:1998, c. 22

  • 14. (1) In this section, “other Act” means 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, chapter 22 of the Statutes of Canada, 1998.

  • (2) If section 4 of this Act comes into force before section 21 of the other Act, then, on the day on which that section 21 comes into force, subsection 95(1) of the Canada Grain Act is amended by adding the following after paragraph (a):

    • (a.1) the licensee has failed to comply with an arbitrator’s decision made under section 92.1;

  • (3) If section 4 of this Act comes into force on the same day as section 21 of the other Act, then that section 21 is deemed to have come into force before that section 4.

COMING INTO FORCE

Marginal note:August 1, 2016

  • 15. (1) Subsections 5.1(2), 6(2), 7(2), 8(2), 9(2), 10(2), 11(2) and 12(2) come into force on August 1, 2016 unless, before that day, their coming into force is postponed by a resolution  —  whose text is established under subsection (2)  —  passed by both Houses of Parliament in accordance with the rules set out in subsection (3).

  • Marginal note:Order in council

    (2) The Governor in Council may, by order, establish the text of a resolution providing for the postponement and specifying the period of the postponement.

  • Marginal note:Rules

    (3) A motion for the adoption of the resolution may be debated in both Houses of Parliament but may not be amended. At the conclusion of the debate, the Speaker of the House of Parliament must immediately put to a vote every question that is necessary to determine whether or not the motion is concurred in.

  • Marginal note:Subsequent postponements

    (4) The postponement may be further extended in accordance with the procedure set out in this section, but the words “August 1, 2016” in subsection (1) are to be read as “the day on which the most recent postponement under this section expires”.

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