Transportation Modernization Act (S.C. 2018, c. 10)

Assented to 2018-05-23

Transportation Modernization Act

S.C. 2018, c. 10

Assented to 2018-05-23

An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts

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 Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts”.

SUMMARY

This enactment amends the Canada Transportation Act in respect of air transportation and railway transportation.

With respect to air transportation, it amends the Canada Transportation Act to require the Canadian Transportation Agency to make regulations establishing a new air passenger rights regime and to authorize the Governor in Council to make regulations requiring air carriers and other persons providing services in relation to air transportation to report on different aspects of their performance with respect to passenger experience or quality of service. It amends the definition of Canadian in that Act in order to raise the threshold of voting interests in an air carrier that may be owned and controlled by non-Canadians while retaining its Canadian status, while also establishing specific limits related to such interests. It also amends that Act to create a new process for the review and authorization of arrangements involving two or more transportation undertakings providing air services to take into account considerations respecting competition and broader considerations respecting public interest.

With respect to railway transportation, it amends the Act to, among other things,

  • (a) provide that the Canadian Transportation Agency will offer information and informal dispute resolution services;

  • (b) expand the Governor in Council’s powers to make regulations requiring major railway companies to provide to the Minister of Transport and the Agency information relating to rates, service and performance;

  • (c) repeal provisions of the Act dealing with insolvent railway companies in order to allow the laws of general application respecting bankruptcy and insolvency to apply to those companies;

  • (d) clarify the factors that must be applied in determining whether railway companies are fulfilling their service obligations;

  • (e) shorten the period within which a level of service complaint is to be adjudicated by the Agency;

  • (f) enable shippers to obtain terms in their contracts dealing with amounts to be paid in relation to a failure to comply with conditions related to railway companies’ service obligations;

  • (g) require the Agency to set the interswitching rate annually;

  • (h) create a new remedy for shippers who have access to the lines of only one railway company at the point of origin or destination of the movement of traffic in circumstances where interswitching is not available;

  • (i) change the process for the transfer and discontinuance of railway lines to, among other things, require railway companies to make certain information available to the Minister and the public and establish a remedy for non-compliance with the process;

  • (j) change provisions respecting the maximum revenue entitlement for the movement of Western grain and require certain railway companies to provide to the Minister and the public information respecting the movement of grain; and

  • (k) change provisions respecting the final offer arbitration process by, among other things, increasing the maximum amount for the summary process to $2 million and by making a decision of an arbitrator applicable for a period requested by the shipper of up to two years.

It amends the CN Commercialization Act to increase the maximum proportion of voting shares of the Canadian National Railway Company that can be held by any one person to 25%.

It amends the Railway Safety Act to prohibit a railway company from operating railway equipment and a local railway company from operating railway equipment on a railway unless the equipment is fitted with the prescribed recording instruments and the company, in the prescribed manner and circumstances, records the prescribed information using those instruments, collects the information that it records and preserves the information that it collects. This enactment also specifies the circumstances in which the prescribed information that is recorded can be used and communicated by companies, the Minister of Transport and railway safety inspectors.

It amends the Canadian Transportation Accident Investigation and Safety Board Act to allow the use or communication of an on-board recording, as defined in subsection 28(1) of that Act, if that use or communication is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001.

It amends the Canadian Air Transport Security Authority Act to authorize the Canadian Air Transport Security Authority to enter into agreements for the delivery of screening services on a cost-recovery basis.

It amends the Coasting Trade Act to enable repositioning of empty containers by ships registered in any register. These amendments are conditional on Bill C-30, introduced in the 1st session of the 42nd Parliament and entitled the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act, receiving royal assent and sections 91 to 94 of that Act coming into force.

It amends the Canada Marine Act to permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada Infrastructure Bank. These amendments are conditional on Bill C-44, introduced in the 1st session of the 42nd Parliament and entitled the Budget Implementation Act, 2017, No. 1, receiving royal assent.

Finally, it makes related and consequential amendments to the Bankruptcy and Insolvency Act, the Competition Act, the Companies’ Creditors Arrangement Act, the Air Canada Public Participation Act, the Budget Implementation Act, 2009 and the Fair Rail for Grain Farmers Act.

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

 This Act may be cited as the Transportation Modernization Act.

1996, c. 10Canada Transportation Act

 Section 6 of the Canada Transportation Act is amended by adding the following in alphabetical order:

class 1 rail carrier

class 1 rail carrier means

  • (a) the Canadian National Railway Company,

  • (b) the Canadian Pacific Railway Company,

  • (c) BNSF Railway Company,

  • (d) CSX Transportation, Inc.,

  • (e) Norfolk Southern Railway Company,

  • (f) Union Pacific Railroad Company, and

  • (g) any railway company, as defined in section 87, that is specified in the regulations; (transporteur ferroviaire de catégorie 1)

radioactive material

radioactive material has the same meaning as in subsection 1(1) of the Packaging and Transport of Nuclear Substances Regulations, 2015. It includes a dangerous good with any of UN numbers 2908 to 2913, 2915 to 2917, 2919, 2977, 2978, 3321 to 3333 and 3507 that are set out in Column 1 of the Dangerous Goods List in Chapter 3.2 of the Recommendations on the Transport of Dangerous Goods — Model Regulations, Eighteenth revised edition, 2013, published by the United Nations; (matière radioactive)

 The Act is amended by adding the following after section 6:

Power of the Governor in Council

Marginal note:Governor in Council

6.1 The Governor in Council may make regulations specifying railway companies for the purpose of paragraph (g) of the definition class 1 rail carrier.

 Subsection 27(1) of the English version of the Act is replaced by the following:

Marginal note:Relief
  • 27 (1) The Agency may grant the whole or part of an application, or may make any order or grant any further or other relief that the Agency considers appropriate.

 The Act is amended by adding the following after section 36.1:

Information and Informal Dispute Resolution Services

Marginal note:Information and guidance
  • 36.11 (1) The Agency shall take measures to inform the public in respect of the provisions of Parts III and IV, including

    • (a) publishing general information on its Internet site; and

    • (b) providing information and guidance to any interested person on the manner in which remedies under those provisions may be accessed, having regard to their particular circumstances.

  • Marginal note:Informal resolution

    (2) A member of the Agency or its staff may attempt to resolve in an informal manner with a railway company any issue raised by an interested person to whom it has provided information and guidance. In doing so, the member or staff shall not reveal the identity of the interested person without their consent.

  • Marginal note:Person not to act in proceedings

    (3) A person who exercises the powers or performs the duties or functions under paragraph (1)(b) or subsection (2) shall not act in any proceedings before the Agency that are related to an issue in respect of which the person provided information, guidance or informal dispute resolution services.

 Section 42 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Railway transportation

    (2.1) The report shall include the number and nature of the applications, complaints and submissions for arbitration made under Parts III and IV, the manner they were dealt with and the systemic trends observed. The report shall also include the number of disputes that were mediated by the Agency and the number that were resolved through mediation by the Agency.

  • Marginal note:Confidential information

    (2.2) The Agency shall ensure that the report does not include any confidential information.

 Section 48 of the Act and the heading “Support Agreements” before it are repealed.

 Section 49 of the Act is renumbered as subsection 49(1) and is amended by adding the following:

  • Marginal note:Powers

    (2) For greater certainty, sections 38 and 39 apply in respect of an inquiry.

  • Marginal note:Summary of findings

    (3) The Agency shall make public a summary of its findings that does not include any confidential information.

  •  (1) Section 50 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Class 1 rail carrier

      (1.01) The Governor in Council may make regulations requiring any class 1 rail carrier or class of those carriers to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister or Agency, when and in the form and manner that the regulations may specify, for the purposes of

      • (a) determining the long-haul interswitching rate referred to in paragraph 134(1)(a); and

      • (b) communicating service and performance indicators to the public.

  • Marginal note:2007, c. 19, s. 8(4)

    (2) The portion of subsection 50(1.1) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Personnes visées

      (1.1) Pour l’application du paragraphe (1), les renseignements peuvent être exigés des personnes suivantes :

  • (3) The portion of subsection 50(2) of the Act before paragraph (c) is replaced by the following:

    • Marginal note:Information to be provided

      (2) Information that is required to be provided under this section may include the following:

      • (a) financial information;

      • (b) information respecting traffic and operations;

  • (4) Subsection 50(2) of the Act is amended by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

    • (d) information respecting the performance of air carriers and providers of services in relation to air transportation with regard to passenger experience and the quality of service.

  • Marginal note:1999, c. 31, s. 36(E)

    (5) Subsection 50(4) of the Act is replaced by the following:

    • Marginal note:Exemptions

      (4) The Minister may exempt a carrier or transportation undertaking from the application of all or any part of a regulation made under this section if the Minister is satisfied that it is not practicable for the carrier or transportation undertaking to provide the information.

Marginal note:2013, c. 31, s. 4

 Subsection 50.01(1) of the Act is replaced by the following:

Marginal note:Externally produced documents
  • 50.01 (1) A regulation made under subsection 50(1) or (1.01) may incorporate by reference any document that is produced by a person or body other than the Minister.

Marginal note:2007, c. 19, s. 9

 Section 50.1 of the Act is replaced by the following:

Marginal note:Information already provided

50.1 For the purposes of subsection 50(1) or (1.01), if any information referred to in that subsection has already been provided to a department or agency of the Government of Canada, the Minister may request that department or agency to provide the information to the Minister.

 
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