Transportation Modernization Act (S.C. 2018, c. 10)
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Assented to 2018-05-23
Transitional Provisions (continued)
Marginal note:Information — service and performance indicators
77 (1) This section applies until the first regulation made under paragraph 50(1.01)(b) of the Act comes into force.
Marginal note:Information to be provided
(2) A class 1 rail carrier shall provide to the Minister, in the form and manner that the Minister may specify, a report containing the information specified in paragraphs 1250.2(a)(1) to (8) of Title 49 of the United States Code of Federal Regulations as amended from time to time.
Marginal note:Adaptations
(3) For the purpose of subsection (2), the provisions of the United States Code of Federal Regulations are adapted as follows:
(a) a reference to “should” is to be read as “must”;
(b) unless the context requires otherwise, a reference to “railroad” is to be read as “class 1 rail carrier”;
(c) a reference to “state” is to be read as “province”;
(d) a reference to “dedicated train service” is to be read as “dedicated train program and fleet integration program”; and
(e) paragraph 1250.2(a)(7) is to be read without reference to “aggregated for the following STCCs: 01131 (barley), 01132 (corn), 01133 (oats), 01135 (rye), 01136 (sorghum grains), 01137 (wheat), 01139 (grain, not elsewhere classified), 01144 (soybeans), 01341 (beans, dry), 01342 (peas, dry) and 01343 (cowpeas, lentils, or lupines)”.
Marginal note:Explanation
(4) A class 1 rail carrier shall, in its first report, provide an explanation of the methodology it used to derive the data, including the definition of unit train used by the class 1 rail carrier. The definition of unit train shall be based on the class 1 rail carrier’s normal business practices. If the methodology changes, the class 1 rail carrier shall provide an updated explanation of its methodology in any subsequent report in which that methodology is used for the first time, including any updated definition of unit train.
Marginal note:Time limit
(5) The class 1 rail carrier shall provide the report for each period of seven days commencing on Saturday and ending on Friday, no later than five days after the last day of the period of seven days to which the information relates.
Marginal note:First report
(6) The first report that is to be provided by a class 1 rail carrier is to contain information related to the seven day period that commences on the first Saturday that follows the day on which this section comes into force.
Marginal note:Deeming
(7) Information provided to the Minister under subsection (2) is deemed to be information required by regulations made under paragraph 50(1.01)(b) of the Act.
Marginal note:Arrangements concluded before coming into force of section 14
78 Persons that have entered into an arrangement, as defined in section 53.7 of the Act, before the day on which section 14 comes into force, may still provide a notice of the arrangement under subsection 53.71(1) of that Act as though the arrangement had not been entered into, in which case section 53.72 of that Act does not apply to that arrangement.
Marginal note:Interswitching rate
79 (1) Until December 31 of the first year in which the Agency makes a determination of the interswitching rate under subsection 127.1(1) of the Act, the interswitching rate determined under paragraph 128(1)(b) of the Act as it read immediately before the day on which subsection 28(1) comes into force continues to apply and is deemed to be a rate determined by the Agency in accordance with section 127.1 of the Act.
Marginal note:First determination
(2) If section 127.1 of the Act comes into force after August 1 of any calendar year, the Agency is not required to determine the interswitching rate in accordance with subsection 127.1(1) until December 1 of the following calendar year.
Marginal note:Volume-related composite price index
80 (1) For the crop year in which this Act receives royal assent, the value of F in subsection 151(1) of the Act that applies to each prescribed railway company is to be the volume-related composite price index for that crop year that was determined by the Agency in accordance with section 151 of the Act as it read immediately before the day on which this Act receives royal assent.
Marginal note:Volume-related composite price index
(2) For the purpose of determining the value of F in subsection 151(1) of the Act for the crop year that follows the crop year in which this Act receives royal assent,
(a) immediately before making the determination, the Agency shall adjust the volume-related composite price index described in subsection (1) to reflect costs incurred by the prescribed railway companies to earn the revenue described in paragraphs 150(3)(d) and (e) of the Act; and
(b) the volume-related composite price index that applies to each prescribed railway company shall be determined by the Agency in accordance with section 151 of the Act as amended by this Act, based on the volume-related composite price index adjusted in accordance with paragraph (a).
Marginal note:Redetermination
(3) If, before the day on which this Act receives royal assent, the Agency has already determined the volume-related composite price index for the crop year that follows the crop year in which this Act receives royal assent, the Agency shall redetermine the volume-related composite price index for that crop year in accordance with subsection (2).
Marginal note:First adjustment to maximum amount of freight charges
81 No later than March 31, 2021, the Agency shall, in accordance with section 164.2 of the Act, make the first adjustment to the maximum amount referred to in section 164.1 of the Act. The adjusted amount applies for the three-year period starting April 1, 2021.
Related and Consequential Amendments
R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act
Marginal note:2007, c. 36, s. 1(1)
82 The definition corporation in section 2 of the Bankruptcy and Insolvency Act is replaced by the following:
- corporation
corporation means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, insurance companies, trust companies or loan companies; (personne morale)
R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19Competition Act
83 Subsection 29(1) of the Competition Act is amended by adding the following after paragraph (b):
(b.1) any information obtained under any of sections 53.71 to 53.81 of the Canada Transportation Act;
84 (1) Subsection 29.1(2) of the Act is amended by adding the following after paragraph (c):
(c.1) any information obtained under any of sections 53.71 to 53.81 of the Canada Transportation Act;
Marginal note:2007, c. 19, s. 61
(2) Paragraph 29.1(3)(b) of the Act is replaced by the following:
(b) state that the Minister of Transport requires the information for the purposes of section 53.1 or 53.2 or any of sections 53.71 to 53.81 of the Canada Transportation Act and identify the transaction being considered under that section.
Marginal note:2007, c. 19, s. 61
(3) Subsections 29.1(4) and (5) of the Act are replaced by the following:
Marginal note:Restriction
(4) The information communicated under subsection (1) may be used only for the purposes of section 53.1 or 53.2 or any of sections 53.71 to 53.81, as the case may be, of the Canada Transportation Act.
Marginal note:Confidentiality
(5) No person who performs or has performed duties or functions in the administration or enforcement of the Canada Transportation Act shall communicate or allow to be communicated to any other person any information communicated under subsection (1), except to persons who perform duties or functions under section 53.1 or 53.2 or any of sections 53.71 to 53.81 of that Act.
85 Subsection 45(6) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) is an arrangement, as defined in section 53.7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked, if the conspiracy, agreement or arrangement is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.
Marginal note:R.S., c. 19 (2nd Supp.), s. 33
86 Subsection 47(3) of the Act is replaced by the following:
Marginal note:Exception
(3) This section does not apply to
(a) an agreement or arrangement that is entered into or a submission that is arrived at only by companies each of which is, in respect of every one of the others, an affiliate; or
(b) an agreement or arrangement that is an arrangement, as defined in section 53.7 of the Canada Transportation Act, or a submission that is arrived at under that arrangement, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked, if the agreement, arrangement or submission is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.
87 Subsection 90.1(9) of the Act is amended by striking out “or” at the end of subparagraph (b)(ii), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) an agreement or arrangement that constitutes an existing or proposed arrangement, as defined in section 53.7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked.
88 Section 94 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) a merger or proposed merger that constitutes an existing or proposed arrangement, as defined in section 53.7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked.
R.S., c. C-36Companies’ Creditors Arrangement Act
Marginal note:2005, c. 47, s. 124(2)
89 The definition company in subsection 2(1) of the Companies’ Creditors Arrangement Act is replaced by the following:
- company
company means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, telegraph companies, insurance companies and companies to which the Trust and Loan Companies Act applies; (compagnie)
R.S., c. 35 (4th Supp.)Air Canada Public Participation Act
Marginal note:2000, c. 15, s. 17(1)
90 (1) Paragraphs 6(1)(b) and (c) of the Air Canada Public Participation Act are repealed.
Marginal note:2001, c. 35, ss. 1(2) and (3)
(2) Subsections 6(2) and (3) of the Act are repealed.
Marginal note:2000, c. 15, s. 17(2)
(3) Subsections 6(6) to (7) of the Act are replaced by the following:
Marginal note:Definition of aircraft
(6) In this section, aircraft has the same meaning as in subsection 3(1) of the Aeronautics Act.
2009, c. 2Budget Implementation Act, 2009
91 Parts 14 and 15 of the Budget Implementation Act, 2009 are repealed.
2014, c. 8Fair Rail for Grain Farmers Act
92 Subsection 5.1(2) of the Fair Rail for Grain Farmers Act is repealed.
93 Subsection 8(2) of the Act is repealed.
94 Subsection 15(1) of the Act is replaced by the following:
Marginal note:August 1, 2016
15 (1) Subsections 6(2), 7(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).
Coordinating Amendments
Marginal note:2014, c. 8
95 (1) In this section, other Act means the Fair Rail for Grain Farmers Act.
(2) If subsection 5.1(2) of the other Act comes into force before section 92 of this Act, then:
(a) that section 92 is deemed never to have come into force and is repealed;
(b) subsection 23(4) of this Act is deemed never to have come into force and is repealed; and
(c) 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 fulfil 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 fulfil its service obligations, order the company to pay that amount to the shipper;
(3) If subsection 5.1(2) of the other Act comes into force on the same day as section 92 of this Act, then that subsection 5.1(2) and that section 92 are deemed never to have come into force and are repealed.
(4) On the first day on which both subsection 7(2) of the other Act and subsection 26(1) of this Act are in force, subsections 127(2) and (3) of the Canada Transportation Act are replaced by the following:
Marginal note:Order
(2) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km of an interchange, the Agency may order
(a) one of the companies to interswitch the traffic; and
(b) the railway companies to provide reasonable facilities for the convenient interswitching of traffic in both directions at an interchange between the lines of either railway and those of other railway companies connecting with them.
Marginal note:Interswitching limits
(3) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations and the interswitching rate.
(5) On the first day on which both subsection 7(2) of the other Act and section 29 of this Act are in force,
(a) paragraph 129(3)(a) of the Canada Transportation Act is replaced by the following:
(a) if the point of origin or destination that is served exclusively by the local carrier is within a radius of 30 km of an interchange in Canada that is in the reasonable direction of the shipper’s traffic and its destination;
(b) paragraph 135(1)(a) of the Canada Transportation Act is replaced by the following:
(a) for the first 30 km, the rate is to be the interswitching rate; and
(6) If subsection 8(2) of the other Act comes into force before section 93 of this Act, then
(a) that section 93 is deemed never to have come into force and is repealed;
(b) section 169.31 of the Canada Transportation 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).
(c) this Act is amended by adding the following after section 81:
Marginal note:Revival of regulations — operational terms
81.1 The Regulations on Operational Terms for Rail Level of Services Arbitration, except sections 6 and 7 of those regulations, as they read immediately before the day on which subsection 8(2) of the Fair Rail for Grain Farmers Act comes into force, are revived and are deemed to be regulations made under subsection 169.31(1.1) of the Canada Transportation Act as amended by this Act.
(7) If subsection 8(2) of the other Act comes into force on the same day as section 93 of this Act, then that subsection 8(2) and that section 93 are deemed never to have come into force and are repealed.
(8) If subsections (2) and (6) or subsections (3) and (7) apply, then section 94 is deemed never to have come into force and is repealed.
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