BILL C-33 CLAUSE-BY-CLAUSE ANALYSIS

Amendments to the Railway Safety Act

BILL C-33                                                                                              CLAUSE-BY-CLAUSE  

Amendments to the Railway Safety Act

Clause 3

This clause amends the objectives of the Act to include the recognition of the responsibility of companies to demonstrate that they manage risks related to security by using security management systems.

Currently, the objectives of the Act only reference the responsibility of companies to demonstrate that they manage safety risks by using safety management systems. The proposed clause would address this gap.

This clause also amends Paragraphs 3(a), 3(c) and 3(d) to remove the word “security”.

A new definition for safety that includes security, proposed in clause 5 (2) (added to subsection 4(1)), makes the word “security” redundant in paragraphs 3 (a), 3(c) and 3 (d).

Clause 4

This clause amends Section 3.1 and Paragraph 3.1(a) to remove the word “security”. 

A new definition for safety that includes security, proposed in clause 5 (2) (added to subsection 4(1)), makes the word “security” redundant in section 3.1 and paragraph 3.1(a).

This clause also adds the word “railway” to clarify the matters for which the matter is responsible under the Act.

Clause 5

Clause 5 (1)

This clause amends the definition of “security document” to include orders under section 32 and 32.01 that relate to security and a requirement or authorization, contained in a notice referred to in subsection 39.1(2).

The purpose of amending the definition of “security document” is to ensure that any instrument relating to security that is labeled as a “security document” must be kept confidential in keeping with section 39.2 of the RSA.

Clause 5 (2)

This clause adds a definition for “safety” that includes security, except in the case of a safety management system or anything related to such a system.

Various authorities under the RSA apply solely to safety. Adding a definition of safety that includes security would ensure that a broad range of the existing powers, regulatory authorities, and enforcement tools, that can be exercised in relation to safety, are available to address emerging security concerns. Consequential amendments would be made to remove the word security where it becomes redundant (section 3.1, and paragraphs 3 (a), 3 (b), 3 (d), 3.1 (a) and 6.1(1)(a), and the heading before section 31).

  

This clause adds a definition for a “security management system” (SeMS).

In addition to adding a definition for a security management system (SeMS), this legislative proposal is also adding a regulatory authority associated with SeMS and Ministerial order powers with respect to deficiencies in a company’s SeMS.

 

Clause 6

This clause amends Paragraph 6.1(1)(a) to remove the word “security”.

A new definition for safety that includes security, proposed in clause 5 (2) (added to subsection 4(1)), makes the word “security” redundant in paragraph 6.1(1)(a).

Clause 7

This clause amends subsection 19(5) to provide the Minister with the authority to consult with any interested party when deciding whether to approve rules filed by a company.

Subsection 19(5) currently only provides that the Minister may seek advice from a person or organization having expertise in matters relating to safe railway operations.

In response to a recommendation of the Railway Safety Act Review Report of 2018, it is proposed that the Act be amended to provide additional transparency in the rule making process.

Clause 8

Clause 8 introduces subsections 22(4.1), 22(8) and 22(9), to allow the Minister greater flexibility for assessing exemption applications submitted under subsection 22(4) and the exemptions granted in response to those applications.

Clause 8(1)

This clause introduces subsection 22(4.1), to clarify the requirements for an exemption request filed by a company. This subsection dictates that a company must submit any document or information required by the Minister, in support of an exemption request submitted under subsection 22(4).

Clause 8(2)

Subsection 22(8) ensures that the period to assess an exemption request under 22(4) is suspended until any information or documentation requested under the new subsection 22(4.1) is received.

Subsection 22(9) provides the Minister the ability to renew, cancel or amend an exemption granted under subsection 22(2).

Clause 9

This clause introduces subsections 22.1(2.1), 22.1(4.1) and 22.1(6), to allow the Minister greater flexibility for assessing exemption notices filed by a company under subsection 22.1(1) and the management of said exemptions.

The amendments made in this clause replicate the amendments that are made to section 22, as seen in Clause 8, but for a different form of exemption.

Exemption notices filed under section 22.1(1) pertain to immediate exemptions of short duration and/or exemptions being sought for the purposes of conducting testing.

Clause 9(1)

Subsection 22.1(2.1) is added, to clarify the requirements for a temporary exemption sought by a company. This subsection dictates that a company shall submit any document or information required by the Minister, in support of an exemption sought by notice under subsection 22.1(1).

Clause 9(2)

Subsection 22.1(4.1) ensures that the period to assess an exemption notice filed under 22.1(1) is suspended until any information or documentation requested under the new subsection 22.1(2.1) is received.

Clause 9(3)

Subsection 22.1(6) provides the Minister the ability to renew, cancel or amend an exemption made pursuant to section 22.1.

Clause 10

This clause adds Section 26.3 to prohibit unlawful interference with railway works, railway equipment or railway operations, or damage or destruction of railway works, or railway equipment in a manner that threatens the safety of railway operations; and 

This clause also adds Section 26.4 to prohibit behaviour that endangers or risks endangering the safety of a station, railway equipment or individuals who are at the station or on board the railway equipment, or unruly behaviour towards employees of a railway company.

There has been a disturbing trend of increased levels of security incidents related to Canada’s rail system in the past years. Unlawful interference with railway property, systems, infrastructure, and operations, as well as unruly and dangerous behaviour towards individuals at stations or on board railway equipment can have major impacts on public safety, the environment, and the economy. These prohibitions aim to deter these unlawful interferences and/or dangerous behaviours.

Clause 11

This clause amends the heading before Section 31 to remove the word “security”.

A new definition for safety that includes security, proposed in clause 5 (2) (added to subsection 4(1)), makes the word “security” redundant in the heading before section 31.

Clause 12

Clause 12 (1)

This clause provides the Minister with the authority to order a company to take corrective measures when there is deficiency in the measure taken by a company in complying with a requirement imposed by a security regulation.

Currently, there are insufficient compliance instruments to respond to situations where a company is taking measures to comply with a regulatory requirement. This amendment would address this gap by allowing the Minister to inform the company and order corrective measures.

This amendment would require consequential amendments to reference subsection 32(2.1) in the following provisions: subsection 32(4) (contents of notice) and section 32.3 (stay of order).

Clause 12 (2)

This clause would provide authority for the Minister to order a company to take corrective measures where the security management system established by a company, or the implementation thereof risks compromising railway security.

Currently the RSA provides the Minister the authority to order corrective measures with respect to deficiencies in safety management systems or the implementation thereof. This amendment would ensure that the Minister has the equivalent authority with respect to addressing any deficiency with regards to security management systems.

Clause 12 (3)

This clause is a consequential amendment to add a reference to subsection 32(2.1) Deficiency – regulations under subsection18(2.1), under section 32(4) Contents of Notice.

Section 32(4) stipulates the date that the order contained in a notice under subsection 32(2.1) would take effect and the contents of the notice.

Clause 13

This clause is a consequential amendment, to add a reference to subsection 32(2.1) Deficiency – regulations under subsection18(2.1), under section 32.3 Stay of order.

This will ensure that an order made under subsection 32(2.1) shall not be stayed pending a review under section 32.1, an appeal under section 32.2 or a reconsideration by the Minister under subsection 32.1(5) or 32.2(3)

Clause 14

This clause provides the Minister with the authority to grant or refuse to grant a transportation security clearance to any person or suspend or cancel a security clearance; and

This clause also ensures that limitations described in subsection 47.2(2) would not apply to any fees or charges to be paid in relation to transportation security clearances.

Unlike the air or the marine mode, currently there is no transportation security clearance (TSC) regime for the rail mode. TC is initiating its policy work to develop a TSC framework for the rail mode, in particular to deal with the risk of insider threat. This authority would be necessary should the government decide to expand the TSC Program to the rail industry.

Clause 15

This clause would provide the Governor in Council with the authority, by regulation, to designate security measures as a provision of contravention which may be proceeded with administrative monetary penalty (AMP).

Currently the Governor in Council has this authority to designate by regulation provisions of the Act or regulations, rules, standards, orders, or emergency directives, which may be proceeded with AMPs; yet not for security measures. This amendment would address a gap in the Governor in Council’s regulation making authority related to AMPs.

Clause 16

This clause prohibit any person from refusing to comply with a reasonable request of an enforcement officer or to otherwise obstruct or hinder an enforcement officer.

Currently, such a prohibition exists at subsection 30(2) of the Act with respect to obstruction of railway safety inspectors.  This clause replicates the prohibition to ensure it extends to enforcement officers.

Clause 17

Clause 17 provides a new tool for the Minister to ensure compliance when the Minister has reasonable grounds to believe that a person has committed a violation: Assurance of Compliance.

The new subsections and paragraphs establish the authorities and abilities, limits, penalties, and possible outcomes of this tool.  

Section 40.131 is introduced to establish the Assurance of Compliance regime. An assurance of compliance is available prior to the issuance of a notice of violation. This provides the opportunity for a person to avoid being issued an administrative monetary penalty by agreeing to terms and conditions to bring the person into compliance.

Subsection 40.131(1) outlines when an Assurance of Compliance may be entered into and the content of such an assurance. 

Subsection 40.131(2) provides the Minister the ability to extend the time period for a person to come into compliance.

Subsection 40.131(3) establishes that a person who enters into an assurance of compliance is deemed to have committed the violation in respect of which the assurance was entered.

Subsection 40.131(4) allows a person 48 hours after entering into an assurance of compliance in which they may file a request for review of the facts of violation with the Tribunal.

Subsection 40.131(5) provides the outcomes of a person complying with an assurance of compliance. The Minister shall cause notice to be served on the person and, on the service of the notice, no further proceeding may be taken with respect to the violation in respect of which the assurance was entered into and any security deposit must be returned.

Subsection 40.131(6) provides the consequences of non-compliance with an assurance of compliance. The Minster shall cause a notice of default to be served to the effect that the person is liable to pay twice the amount of the penalty set out in the assurance or any security deposit is forfeited to His Majesty in right of Canada.

Subsection 40.131 (7) outlines the required contents of a notice of default.

Subsection 40.131 (8) prevents a person from using any amount spent under the assurance of compliance as a set-off upon receiving a notice of default.

Subsection 40.131 (9) dictates when a security deposited under 40.131(1) must be returned to a person.

Clause 18

Clause 18 provides an additional tool for the Minister to ensure compliance, after a notice of violation has been issued: the compliance agreement.

The new sections and subsections establish the authorities and abilities, limits, penalties, and possible outcomes of this tool.  

Section 40.151 is introduced to establish the compliance agreement regime. A compliance agreement is available after the issuance of a notice of violation.

Subsection 40.152(1) outlines when a compliance agreement may be entered into and the possible terms and conditions of such an agreement.

Subsection 40.152(2) establishes that a person who enters into a compliance agreement, the violation in question is deemed to have occurred.

Subsection 40.152(3) introduces the notice of compliance, which is issued when a person complies with a compliance agreement, at which time the proceedings commenced in respect of the violation are ended and any security deposited shall be returned.

Subsection 40.152(4) introduces the notice of default, which is issued when a person has not complied with a compliance agreement. The notice is to the effect that, instead of being liable to pay the amount of the penalty set out in the notice of violation, the person is liable to pay twice this amount or that any security deposited is forfeited to His Majesty in right of Canada.

Subsection 40.152(5) establishes the effects of a notice of default. The person served with the notice of default has no right of set-off or compensation against any amount they spent under the compliance agreement and is liable to pay the amount set out in the notice or, if the notice provides for the forfeiture of the security deposited, that security deposited is forfeited to His Majesty in right of Canada and the proceeding commenced in respect of the violation are ended.

Subsection 40.152(6) establishes the effect of payment of amount set out in a notice of default.

Subsection 40.153 (1) provides the Minister the ability to refuse to enter into a compliance agreement and the consequences of such a refusal. Paragraph (b) clarifies that where a compliance agreement is refused by the Minister, a person still has the opportunity to request a review of the violation with the Tribunal.

Subsection 40.153 (2) establishes the effect of payment of amount set out in 40.153 (1) above.

Clause 19

Clause 19 makes amendments and additions that are made necessary by the addition of the assurance of compliance regime. These amendments articulate limits and abilities of Tribunal reviews and decisions as they relate to assurances of compliance.

Clause 19(1)

Subsection 40.16 (1.1) is introduced to allow a person to request a review of a notice of default issued under the new assurance of compliance regime.

Clause 19(2)

Subsection 40.16 (2) is amended to remove the specific reference to requests filed “under subsection (1)”. The revision accounts for a new reference to the ability to file a request for review under the compliance agreement sections, introduced in Clause 18. 

Clause 19(3)

Subsection 40.16 (4) is amended to provide that the Minister has the burden of establishing that a person has not complied with the assurance of compliance when a review of notice of default for an assurance of compliance has been undertaken.

Clause 19(4)

Subsection 40.16 (6) is added to prevent a person, for the purposes of a request for review under subsection (1.1), from using the defence of exercising due diligence to comply with the assurance of compliance.

Clause 20

Clause 20 amends section 40.18, by adding paragraphs (c) and (d), which add two possible results of a Tribunal review.

Paragraph 40.18 (c) provides the option for the Tribunal to determine that the person has complied with an assurance of compliance.

Paragraph 40.18 (d) provides the option for the Tribunal to determine that the person has not complied with the assurance of compliance.

Clause 21

Clause 21 amends subsections 40.19(3) and (4) to account for Tribunal appeal determinations in respect of an assurance of compliance.

Subsection 40.19 (3) is modified to account for the amendments made to section 40.18. The subsection is now separated into paragraphs (a) and (b), to articulate dispositions of appeals relating to the assurance of compliance regime. 

Paragraph 40.19(3)(a) is introduced to describe the outcome of an appeal regarding a Tribunal review determination on a notice of violation.

Paragraph 40.19(3)(b) is introduced to describe the outcome of an appeal regarding a Tribunal review concerning a notice of default served on an assurance of compliance.

Subsection 40.19 (4) is modified to remove the reference to regulations made under paragraph 40.1(b), which will not apply to all decisions of the appeal panel of the Tribunal.

Clause 22

Clause 22 amends paragraphs 40.2(a) and (b) by adding references to new subsections and paragraphs.

Section 40.2 provides the Minister the ability to seek a certificate from the Tribunal, setting out an amount of penalty to be paid by a person who fails to pay an amount within a required time.

Paragraph 40.2 (a) is modified to provide the Minister the ability to seek a certificate when a person fails to pay the amount of a penalty set out in a notice of default issued under either of the two new compliance regimes.  

Paragraph 40.2 (b) is modified to include reference to paragraph 40.18 (d). This allows the Minister the ability to seek a certificate when a Tribunal review has confirmed the decision made by the Minister in a notice of default issued under an assurance of compliance and the person has not paid the amount set out in the notice of default.

Clause 23

This clause provides the express authority for the Governor in Council to make regulations respecting security management systems.

A security management system requires a systems approach to security to allow the Government to require the rail industry to proactively manage its security risks. Currently, the Act only has express authorities respecting safety management systems (SMS), but not security management systems. This amendment would address this gap.

Clause 24

This clause amends paragraph 47.2(1)(b) to extend  the Minister’s authority to make regulations prescribing fees or charges in relation to the filing of documents and the making of applications for and the issuance  transportation security clearances in addition to the other instruments already provided for in this paragraph.

This amendment would allow for flexibility of the fee/charge application of future cost-recovery regulations, including regulations for cost recovery associated with transportation security clearances.

Clause 25

Clause 25 amends section 51 to instruct that a review of the Act be commenced every five years.

In response to a recommendation of the 2018 Railway Safety Act Review, subsection 51(1) now requires the Act be reviewed on a regular basis, as opposed to a one-time review, which is reflected in the current wording.

Amendments to the Transportation of Dangerous Goods Act

Clause 26

Clause 26 (1)

This clause repeals the definition of “handling” in section 2 of the Transportation of Dangerous Goods Act, 1992.

A regulation making authority is added in Clause 42(1) that will enable the Governor in Council to make regulations defining, for the purposes of any provision of this Act that relates to dangerous goods, the words “import”, “offer for transport”, “handling” and “transport” and, for the purposes of any provision of this Act that relates to means of containment, the words “requalify”, “sell”, “offer for sale”, “deliver”, “distribute”, “import” and “use”.

Clause 26 (2)

The definition of “safety standard” in section 2 of the Transportation of Dangerous Goods Act, 1992, is being amended to replace “testing” with “requalification”.

The word “testing” is being changed throughout the act to requalifying or requalification to better reflect the activities being carried out.

Clause 26 (3)

The definition of “prescribed” in section 2 of the Transportation of Dangerous Goods Act, 1992, is amended by removing “of the Governor in Council”.

Clause 26 (4)

Paragraph (b) of the definition “safety requirement” in section 2 of the Transportation of Dangerous Goods Act, 1992 is being amended to replace “testing” with “requalification”.

The word “testing” is being changed throughout the act to requalifying or requalification to better reflect the activities being carried out.

Clause 26 (5)

The definition of “enforcement officer” is being added to section 2 of the Transportation of Dangerous Goods Act, 1992.

This change is being made to take in consideration the addition in Clause 47 of an Administrative Monetary Penalties regime.

Clause 27

This clause adds a new section after section 3 of Transportation of Dangerous Goods Act, 1992, to provide the Minister with the ability to authorize any person to exercise a power on the Minister’s behalf. Officials could include an executive or an enforcement officer.

Clause 28

This clause amends paragraph 5(a) of the Transportation of Dangerous Goods Act, 1992, to require that the person has, subject to the regulations, a registration number and adds paragraph 5(a.1) of the Transportation of Dangerous Goods Act, 1992, which reproduced the current paragraph 5(a) of the Transportation of Dangerous Goods Act, 1992.

Clause 29

This clause replaces “test” with “requalify” in Section 5.1 of the Transportation of Dangerous Goods Act, 1992.

The word “testing” is being changed throughout the act to requalifying or requalification to better reflect the activities being carried out.

Clause 30

This clause amends section 5.1 of the Transportation of Dangerous Goods Act, 1992 to adds a requirement that a person designing manufacturing, repairing, requalifying or equipping a means of containment used or intended to be used in importing, offering for transport, handling or transporting dangerous goods unless the person holds, subject to the regulations, a certificate of registration.

Clause 31

This clause replaces “testing” with “requalification” in Section 6 of the Transportation of Dangerous Goods Act, 1992.

The word “testing” is being changed throughout the act to requalifying or requalification to better reflect the activities being carried out.

Clause 32

This clause adds new section after 6.1 to the Transportation of Dangerous Goods Act, 1992, to establish the procedures regarding the issuance a registration number. It specifies that the Minister may collect any personal information or confidential business information that an applicant provides. It also includes a grandfather clause to allow persons to rely on their existing registration number.

Clause 33

This clause adds new section before section 7 of the Transportation of Dangerous Goods Act, 1992, to establish the procedures regarding the issuance, amendment, and suspension of certificate of registration. It also adds the ability for the Minister to collect any personal information or confidential business information.

The Minister’s ability to disclose or publish any information will not include personal information unless the person’s consent. It also includes a grandfather clause to allow persons to rely on their existing certificate of registration.

Clause 34

The clause amends paragraph 7.1(a) of the Transportation of Dangerous Goods Act, 1992, to provide that a direction may include terms and conditions as the Minister considers appropriate.

This clause also amends Paragraph 7.1(b) of the the Transportation of Dangerous Goods Act, 1992, to authorize any person with an approved ERAP to implement the plan in order to respond to an actual or anticipated release of dangerous goods.

Clause 35

This clause adds section 7.11 to the Transportation of Dangerous Goods Act, 1992, to require that every person who implements an Emergency Response Assistance Plan report it to the Minister and any other prescribed persons. 

Clause 36

This clause replaces “tested” and “testing” with “requalified” and “requalification” in subsection 9(3) of the Transportation of Dangerous Goods Act, 1992.

The word “tested”, and “testing” is being changed throughout the act to requalified or requalification to better reflect the activities being carried out.

Clause 37

This clause amends subsection 14(2) of the Transportation of Dangerous Goods Act, 1992, to add the term “enforcement officer” to this section of the Act.

This clause ensures an enforcement officer has the same powers as an inspector as it related to section 14(2) of the Transportation of Dangerous Goods Act, 1992.

Clause 38

This clause replaces “tested” with “requalified” in paragraph 15(1)(b) of the Transportation of Dangerous Goods Act, 1992.

The word “testing” is being changed throughout the act to requalifying or requalification to better reflect the activities being carried out.

Clause 39

This clause amends subsection 17(1) of the Transportation of Dangerous Goods Act, 1992, to clarify that an inspector can direct a person to so remove any dangerous goods or direct a person to detain, any dangerous goods, the means of containment being used to handle or transport them or a standardized means of containment.

This subsection has been reworded to provide clarity.

Clause 40

This clause amends subsection 18(1) in the Transportation of Dangerous Goods Act, 1992, to replace the expression “in excess of a quantity or concentration specified in regulation” with “subject to regulations”.

This clause clarifies and simplifies duty to report regulations by eliminating unnecessary reporting by making the duty to report conditional on precise factual circumstances, instead of on a fixed threshold based on quantities or concentrations of dangerous goods.

Clause 41

Clause 41 (1)

This clause amends paragraph 24(1)(a) of the Transportation of Dangerous Goods Act, 1992, to add information obtained by an enforcement officer.

This clause reflects the addition of enforcement officer into the Act.

Clause 41 (2)

This clause amends subsection 24(4) of the Transportation of Dangerous Goods Act, 1992, by adding add paragraph 24(4)(a.1) to the Transportation of Dangerous Goods Act, 1992.

This amendment adds an additional exception to the general prohibition against a person knowingly communicating privileged information (or allowing it to be communicated) to any other person or allowing any other person to have access to the information. This additional exception provides that information obtained under paragraph (1)(b) which is information in a record of communication between any person and the Canadian Transport Emergency Centre of the Department of Transport relating to an actual or anticipated release of dangerous goods can be disclosed for the purpose of the administration of the Act or in a record of communication.

Clause 41 (3)

This clause amends subsection 24(4) of the Transportation of Dangerous Goods Act, 1992, by adding paragraph 24(4)(d) to the Transportation of Dangerous Goods Act, 1992.

This was added to allow an additional exception to the prohibition against a person knowingly communicating privileged information or allowing it to be communicated to any other person to have access to the information. This exception relates to enforcement officer for the purpose of training of enforcement officers, in the case of information obtained in a record of a communication referred to in paragraph (1)‍(b). This reflects the addition of enforcement officer into the Act.

Clause 42

Clause 42 (1)

This clause amends subsection 27(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraph 27(1)(d.1).

This new paragraph provides the Governor in Council with regulatory authority to define handling, import, offer for transport, and transport as it relates to dangerous goods and deliver, distribute, import, offer for sale, sell and use as it relates to means of containment.

Clause 42 (2)

This clause amends subsection 27(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraphs 27(1)(j.3)and (j.4).

Paragraph (27(1)(j.3) provides the Governor in Council with regulatory authority to make regulations respecting the issuance, amendment, suspension, revocation and the terms and conditions of a certificate of registration.

Paragraph (27(1)(j.4) provides the Governor in Council with the authority to to exempt any person, class of persons or dangerous goods from the from the requirement of having a certificate of registration for the purposes of designing, manufacturing, repairing, requalifying or equipping a means of containment.

Clause 42 (3)

This clause amends subsection 27(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraph 27(1)(J.21).

 Paragraph 27(1) (j.21) provides the Governor in Council with the authority to make regulations exempting any person, class of persons or dangerous goods from the requirement of having a registration number for the purposes of importing, offering for transport, handling or transporting dangerous goods.

Clause 42 (4)

This clause amends subsection 27(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraphs 27(1)(K.11)(K.12) and (K.13).

Paragraph 27(1) (k.11) provides the Governor in Council with the authority to make regulations respecting the form and manner of making of the implementation report, and circumstances under which the report is required.

Paragraph 27(1) (k.12) provides the Governor in Council with the authority to make regulations exempting any person or class of persons from the reporting requirement following their implementation of an emergency response assistance plan.

Paragraph 27(1) (k.13) provides the Governor in Council with the authority to make regulations respecting the contents and implementation of emergency response assistance plans.

Clause 42 (5)

This clause amends paragraphs 27(1)(q) and (r) of the Transportation of Dangerous Goods Act, 1992.

Paragraph 27(1)(q) provides the Governor in Council with the authority to make regulations exempting any person or class of persons from the requirement to report a release or anticipated release of dangerous goods.

Paragraph 27(1)(r) provides the Governor in Council with the authority to make regulations respecting the manner of making the reports related to the release or anticipated release of dangerous goods and the circumstances in which they are required.

Clause 42 (6)

This clause amends subsection 27(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraphs 27(1)(w). 

Paragraph 27(1) (w) provides the Governor in Council with the authority to make regulations prescribing or providing anything else that by this Act is to be prescribed or provided for by the regulations.

Clause 43

Clause 43 (1)

This clause repeals paragraphs 27.1(1)(b) to (d) of the Transportation of Dangerous Goods Act, 1992.

This change is needed to take in consideration that as part of the 2022 Statutes Repeal Act, the not in force section 5.2 of the Transportation of Dangerous Goods Act, 1992 (TDGA) was repealed.

Clause 43 (2)

This clause amends paragraph 27.1(1)(j) of the Transportation of Dangerous Goods Act, 1992.

Paragraph 27.1(1)(j) provides the Governor in Council with the authority to make regulations respecting the circumstances under which these reports would be required.

Clause 43 (3)

This clause amends subsection 27.1(1) of the Transportation of Dangerous Goods Act, 1992, by adding paragraphs 27.1(1)(l). 

Paragraph 27.1(1) (l) provides the Governor in Council with the authority to make regulations prescribing or providing anything else that by this Act is to be prescribed or provided for by the regulations.

Clause 44

This clause amends paragraph 29(1)(b) of the Transportation of Dangerous Goods Act, 1992, to remove the reference to transportation security clearances.

This change is needed to take in consideration that as part of the 2022 Statutes Repeal Act, the not in force section 5.2 of the Transportation of Dangerous Goods Act, 1992 (TDGA) was repealed.

Clause 45

Clause 45 (1)

This clause amends subsections 31(2) and (2.1) of the Transportation of Dangerous Goods Act, 1992, to provide the Minister with the authority to issue an emergency certificate authorizing any activity to be carried on in a manner that does not comply with the Act if the Minister deems it necessary to deal with an emergency when there is danger to safety or to security.

This clause also provides the Minister with the authority to issue a temporary certificate authorizing any activity to be carried on in a manner that does not comply with the Act for the purposes of safety or security.

This change will clarify that the powers in subsections 31(2) and (2.1) Transportation of Dangerous Goods Act, 1992, can be used for security purposes.

Clause 45 (2)

This clause amends subsection 31(6) of the Transportation of Dangerous Goods Act, 1992, to include a reference to the Minister revoking an equivalency, emergency or temporary certificate as necessary, “as the case may be” or if the Minister is of the opinion that it is in the public interest to do so.

Clause 46

This clause amends subsections 32(1) and (2) of the Transportation of Dangerous Goods Act, 1992, to provide the Minister with the authority to direct a person engaged in importing, offering for transport, handling or transporting dangerous goods, or supplying or importing standardized means of containment, to cease that activity or to conduct other activities to reduce any danger to public safety or to security.

This clause also provides the Minister may not make a direction unless the Minister is satisfied that the direction is necessary to deal with an emergency that involves danger to public safety or to security and cannot be dealt with under any other provision of this Act.

This change will clarify that the powers in subsection 32 Transportation of Dangerous Goods Act, 1992, can be used for security purposes.

Clause 47

This clause adds a new section after section 32 of the Transportation of Dangerous Goods Act, 1992.  This clause introduces an administrative monetary penalty regime (AMPs) within the Transportation of Dangerous Goods Act, 1992.

• Section 32.1 amends the Transportation of Dangerous Goods Act, 1992, to add the definition for “tribunal”.
• Section 32.11 provides the Minister with the authority to make regulations designating any provision of the Act or regulations as violations. It establishes the maximum financial penalty for each violation for both individual and organization. It also creates the authority to establish the total maximum amount for a related series or class of violations
• Subsection 32.12(1) authorizes the Minister to designate persons or classes of persons as enforcement officers. Subsection 32.12(2) provide that enforcement officer shall receive a certificate of designation attesting of their designation.
• Section 32.13 provides enforcement officers with powers such as power of entry, powers to require the attendance of persons, and powers to require the production of documents.
• Sections 32.14 to 32.18 provide for the establishment of the form and contents of notices of violation, those sections also address related issues including continuing violations, the nature of violations, the issuance of notices of violation and the service of documents, and payment and options following the receipt of a notice of violation.
• Sections 32.19 to 32.2 provides that the Minister may enter into a compliance agreement with a person in receipt of a notice of violation, which may include conditions and may provide for the reduction of the amount of the penalty for the violation.
• Sections 32.21 to 32.26 provide for a mechanism for review of a notice of violation.
• Sections 32.27 to 32.28 provide for the procedures regarding the public posting of violations, as well as the appeal procedures regarding those postings.

Unlike legislation pertaining to other modes of transport within the purview of the Minister of Transport, the Transportation of Dangerous Goods Act, 1992, does not provide for AMPs as a means of enforcing the Act. The purpose of an AMPs scheme is to promote compliance and not to punish therefore AMPs are designed to increase compliance.

AMPs are not criminal sanctions and do not require the same burden of proof as criminal prosecution. This clause introduces an AMPs scheme whereby notices of violation will be issued by enforcement officers designated by the Minister and whereby these notices will be reviewable by the Transportation Appeal Tribunal of Canada.

Clause 48

Clause 48 (1)

This clause amends paragraph 33(1)(a) of the Transportation of Dangerous Goods Act, 1992. 

This clause clarifies that the punishment for obstruction of an enforcement is not as a punishable by summary conviction or indictment.

Clause 48 (2)

This clause amends paragraphs 33(2)(a) and (b) of the Transportation of Dangerous Goods Act, 1992, to increase the criminal fine amounts for any person or organization that contravenes a provision of the Act.

Increasing the fine amounts related to summary conviction and indictment modernizes the criminal fine amounts to align them to other Acts.

Clause 49

Clause 49 (1)

This clause would repeal subsection 34(3) of the Transportation of Dangerous Goods Act, 1992, to remove the monetary limit associated with any financial obligations related to a court order.

Clause 49 (2)

This clause amends paragraph 34(4)(a) of the Transportation of Dangerous Goods Act, 1992, to increase summary conviction and indictment fine amounts related to a breach of a court order.

Amendments to the Marine Transportation Security Act

Clause 50

50(1)

This clause amends the definitions of authorized screening and restricted area in subsection 2(1) of the Marine Transportation Security Act by adding interim order and emergency direction.

The changes to the definition of authorized screening are necessary to include anything authorized or required under any interim order or emergency direction.

The changes to the definition of restricted area are necessary to include a restricted area established under any interim order or emergency direction.

Clause 50(2)

This clause amends the definition of marine facility at subsection 2(1) paragraph (d) by replacing Canadian Laws Offshore Application Act with Oceans Act.

The change to the definition of marine facility is necessary to refer to the definitions established under the Oceans Act.

Clause 51

This clause amends paragraph 4(1)(c) by replacing the reference to sections 5 and 6 of the Canadian Laws Offshore Application Act with a reference to section 20 of the Oceans Act.

The change is necessary to establish a reference to the appropriate legislation.

Clause 52

This clause introduces section 4.1, which sets out the purpose of the Marine Transportation Security Act as promoting the security of marine transportation — including the security of people, goods, vessels and marine facilities — in particular by enhancing the resiliency of the marine transportation system, by taking measures, including developing a regulatory scheme, that deal with threats and reduces direct and indirect risks to the security of marine transportation and the health of persons involved in the marine transportation system and that prevent the unlawful interference with marine transportation; harmonizing marine practices and implementing Canada’s international obligations; and promoting cooperation with federal, provincial, foreign and international entities and organizations with respect to the security of marine transportation.

This clause gives the reader an understanding of the purpose of the Marine Transportation Security Act.

This clause introduces subsection 4.2(1), which allows the Minister of Transport to enter into agreements or arrangements with any person or agency to administer or enforce this Act or its regulations, or to perform the Minister’s duties or functions under this Act that are specified in the agreement or arrangement, with the exception of the power to make a regulation, an order, including an interim order, a security measure, a security rule or an emergency direction or the power to grant an exemption under section 12.

The clause provides the Minister of Transport with the ability to delegate the administration and enforcement of the Act to an organization or a person, with certain limitations.

This clause introduces subsection 4.2(2), which allows the Minister of Transport to furnish each authorized individual or organization with a certificate of authorization specifying the powers each authorized individual or organization may exercise, the duties and functions they may perform, and any restrictions or conditions on the exercise of those powers or the performance of those duties and functions.

The certificates furnished by the Minister serve to specify the powers, duties and functions each authorized individual or organization may exercise.

This clause introduces subsection 4.2(3), which outlines that the holder of a certificate of authorization is not personally liable for anything they do or omit to do in good faith under the Act.

This change is necessary to set out the immunity that applies to the holders of certificates.

Clause 53

Clause 53(1)

This clause, by creating paragraph 5(1)(a.1), introduces a new authority for the Governor in Council to make regulations respecting the security of marine transportation, including the establishment of exclusion zones for vessels.

This clause is necessary to provide the Governor in Council with the ability to make regulations respecting the establishment of exclusion zones for vessels, which currently does not exist in the Act.

Clause 53(2)

This clause replaces the existing subsection (2) with the new text that allows the Governor in Council to make regulations respecting threats or direct or indirect risks to the security of marine transportation, including the security of people, goods, vessels and marine facilities and the health of persons involved in the marine transportation system. This authority currently does not exist within the Act.

This clause also introduces subsection 5(3), which allows the Governor in Council to make regulations respecting fees and charges to be paid in relation to the administration and enforcement of this Act. It will create the ability for the Governor in Council to make regulations respecting fees and charges to be paid in relation to the administration and enforcement of this Act, which currently does not exist in the Act.

In addition, the clause introduces subsection 5(4), which sets out that:

1. every person who contravenes regulations made under subsections 5(1) or (2) is guilty of an offence and is:
   1. liable on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment of not more than five years, or to both; or

1. 2. on summary conviction to a fine of not more than $500,000 or to imprisonment for not more than two years less a day, or to both.

2. every corporation that contravenes regulations made under these subsections is guilty of an offence and liable on conviction on indictment to a fine of not more than $2,000,000, on summary conviction to a fine of not more than $1,000,000.

The existing subsection 5(2) makes a contravention of a regulation made under the existing subsection 5(1) an offence punishable on summary conviction, with fines of up to $5,000 for an individual, $100,000 for a corporation, and/or imprisonment for a term of up to 6 months for an individual. The fines and imprisonment terms are increased for those offences, which then could also be prosecuted on indictment at even higher fines and imprisonment terms.

The subsection will also apply to regulations made under newly created regulation making powers at subsections 5(1)(a.1) and 5(2).

Finally, this clause introduces subsection 5(5) which creates new offences for vessels that contravene regulations made under subsections 5(1) or (2), making every vessel that contravenes regulations made under subsection 5(1) or (2) guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

This is necessary to expand the Minister of Transport’s ability to enforce a contravention of a regulation on a vessel.

Clause 54

This clause introduces section 5.1, which allows for the Governor in Council to make regulations respecting the disclosure of information collected for the purposes of the Act by the Minister to departments or agencies of the federal government or members or agents of such departments. Information may also be disclosed to agencies or departments of the government of a province or to agencies of a municipality or members or agents or mandataries of such departments or agencies.

The changes will allow for the regulation of how information that is collected for the Act is shared with agencies and departments of the federal and/or provincial governments.

Clause 55

This clause introduces s. 6.1(1), which allows for the Minister of Transport to make an interim order that contains any provision that may be contained in a regulation made under this Act, if the Minister believes that immediate action is required to deal with a threat or to reduce a direct or indirect risk to the security of marine transportation or to the health of persons involved in the marine transportation system. This will provide the Minister with the ability to take immediate action to deal with an imminent threat or to address a direct or indirect risk to the security of marine transportation or to the health of persons involved in the marine transportation system.

This clause stipulates that an interim order ceases to have effect at the earliest of:

• • The day on which it is repealed;
  • The day on which a regulation made under section 5 that has the same effect as the interim order comes into force;
  • one year after the interim order comers into force or any shorter period that may be specified in the interim order, unless the effective period is extended by the Minister or the Governor in Council; or
  • the day that is specified in the order of the Minister or the Governor in Council, if the Minister or the Governor in Council extends the effective period of the interim order.

This amendment is necessary to specify when an interim order ceases to have effect.

This clause also specifies that the Minister may extend the effective period of an interim order for no more than one year after the end of its effective date and specifies that the Governor in Council may extend the effective period of an interim order for no more than two years after the end of its effective date. This is necessary to allow interim orders to be extended as necessary on a short-term basis.

This clause states that every person and vessel subject to an interim order must comply with it.

This clause also specifies that interim orders are not subject to the Statutory Instruments Act. However, it requires that the interim order must be published in the Canada Gazette within 23 days after the day on which it is made and tabled in each House of Parliament within 15 days of it being made, and that a copy of the interim order is to be sent to the Clerk of the House if the House is not sitting.

This clause introduces offences for persons who do not comply with an interim order. It sets out that every individual who does not comply with an interim order is guilty of an offence and liable on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; on summary conviction to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both.

The clause also stipulates that every corporation that does not comply with an interim order is guilty of an offence and liable on conviction on indictment to a fine of not more than $2,000,000; on summary conviction to a fine of not more than $1,000,000. The change is necessary to establish that a person who does not comply with an interim order is guilty of an offence, and to set out the appropriate fines and terms of imprisonment.

Additionally, it introduces offences for vessels that do not comply with an interim order. Every vessel that does not comply with an interim order is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

This clause states that a person or a vessel must not be found guilty of contravening an interim order if the interim order had not been published in the Canada Gazette at the time of the alleged contravention, unless it is proved that at the time of the alleged contravention, the person or vessel had been notified of the interim order or reasonable steps had been taken to bring the substance of the interim order to the notice of the person or vessel.

This clause is necessary to clarify what might happen if an interim order is contravened when it has not been published in the Canada Gazette and the person or vessel likely to be affected by it are not properly notified.

This clause specifies that if there is evidence that an interim order was given to the master or to any person on board who is, or appears to be, in command or charge of the vessel, other than the pilot, then its proof that it was given to the vessel. It is necessary in order to clarify what constitutes evidence that a vessel has been notified of the interim order.

Clause 56

Clause 56 (1)

This clause increases the amounts of fines related to not carrying out a security measure when liable on conviction on indictment. More specifically, every operator who does not carry out a security measure that they are required to carry out, and every person who wilfully obstructs a person who is carrying out security measures, is guilty of an offence and liable:  

1. 1. in case of an individual, on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both;

1. 2. in case of a corporation, on conviction on indictment to a fine of not more than $2,000,000.

This clause is necessary to increase the fines and terms of imprisonment for individuals and corporations that do not carry out security measures to better align with penalties in similar marine legislation and provide them with better incentives to comply.

Clause 56(2)

This clause amends the Act to increase the fines associated with not carrying out a security measure when liable on summary conviction. More specifically, every operator who does not carry out security measures that they are required to carry out, and every person who wilfully obstructs a person who is carrying out security measures, is guilty of an offence and liable:

1. 1. in case of an individual, on summary conviction to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day, or to both; or

1. 2. in case of a corporation, on summary conviction to a fine of not more than $1,000,000.

This clause is necessary to increase the fines and terms of imprisonment for individuals and corporations to better align with penalties in similar marine legislation and provide greater incentives to comply with mandated security measures.

Clause 57

Clause 57(1)

This clause amends the Act to increase the fines related to not carrying out a security rule when liable on conviction on indictment. Every operator who does not carry out security rules and conditions approved by the Minister in relation to the operator, and every person who wilfully obstructs a person who is carrying out security rules, is guilty of an offence and liable:

• • in case of an individual, on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; or
  • in case of a corporation, on conviction on indictment to a fine of not more than $2,000,000. This clause is necessary to increase the fines and terms of imprisonment for individuals and corporations that do not carry out a security rule.

This clause is necessary to increase the fines and terms of imprisonment for individuals and corporations to better align with penalties in similar marine legislation and provide incentives to comply with security rules.

Clause 57(2)

This clause increases the amounts of fines related to not carrying out a security rule when liable on summary conviction.

Every operator who does not carry out security rules and conditions approved by the Minister in relation to the operator, and every person who wilfully obstructs a person who is carrying out security rules, is guilty of an offence and liable:

• • in case of an individual, on summary conviction to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both; or
  • in case of a corporation, on summary conviction to a fine of not more than $1,000,000

This clause is necessary to increase the fines and terms of imprisonment for individuals and corporations to better align with penalties in similar marine legation and provide them with adequate incentive to comply with formulated security rules.

Clause 58

This clause amends section 12 and enables the Minister to exempt a person, vessel or marine facility from the application of an interim order, subject to any terms and conditions necessary, if the exemption is in the public interest and is not likely to affect marine security.

This clause is necessary to provide the Minister with the flexibility to exempt any person, vessel or marine facility from the application of an interim order and allow them to appropriately target the threat or risk.

Clause 59

This clause amends the Act to increase the fines related to the disclosure of a security measure, security rule or proposed security rule. More specifically, every person who discloses the substance of a security measure, security rule or proposed security rule unless the disclosure is authorized by the Minister, ordered by a court or other body under section 14 of the Act, required by any law, or necessary to give effect to the measure or rule, is guilty of an offence punishable on summary conviction and liable:

• in the case of an individual, to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both; or

• in the case of a corporation, to a fine of not more than $1,000,000.

This clause is necessary to increase the fines and terms of imprisonment to better align with penalties in similar marine legislation and provide the adequate disincentive regarding the disclosure of the substance of a security measure, security rule or proposed security rule.

Clause 60

This clause adds the heading ‘directions’ into the act before section 16

Clause 61

Clause 61(1)

This clause enables the Minister to give a direction to a vessel where he has reasonable grounds to believe that the vessel poses a direct or indirect risk to the security of marine transportation or to the health of persons involved in the marine transportation system, in addition to the existing powers set out in that subsection. The vessel may be directed to proceed to a specified place, to remain outside of a specified area, to proceed out of Canada, or to remain outside Canada.

This clause also enables the Minister to give a direction to vessels previously already captured by that subsection to remain outside of any area specified by the Minister.

This clause is necessary to extend the Minister’s power to give a direction to a vessel that poses a direct or indirect risk to the security of marine transportation or to the health of persons involved in the marine transportation system. It is also necessary to enable the Minister to give directions to vessels to remain outside of any area specified by the Minister.

Clause 61 (2)

This clause states that every vessel subject to a direction, and its operator, must comply with it and that that a direction issued under this section is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act.

Clause 62

This clause increases the fines for operators subject to directions and sets out that an operator of a vessel who is subject to a direction and does not comply with it is guilty of an offence and is liable

• • in case of an individual, on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; on summary conviction to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both; or
  • in case of a corporation, on conviction on indictment to a fine of not more than $2,000,000; on summary conviction to a fine of not more than $1,000,000.

It also introduces a contravention for a vessel subject to directions that do not comply with those directions. It stipulates that a vessel that is subject to a direction and does not comply with it is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

This is necessary to establish that a vessel that does not comply with a direction is guilty of an offence and to set out the appropriate fine.

This clause also states that an operator or vessel must not be found guilty of contravening a direction unless it is proved that, at the time of the alleged contravention, reasonable steps had been taken to bring the substance of the direction to the attention of the operator or vessel.

This is necessary to clarify that knowledge of the substance of the direction is a precondition for the contravention of the direction.

This clause establishes what constitutes sufficient evidence of reasonable steps taken to notify an operator or a vessel of a direction. It states that a certificate appearing to be signed by the Minister, stating that a notice containing the direction was given to the operator of the vessel, is evidence that reasonable steps were taken to bring its substance to the attention of the operator. It also states that a certificate appearing to be signed by the Minister, stating that a notice containing the direction was given to the master or to any person on board who is, or appears to be, in command or charge of the vessel, other than the pilot, is evidence that reasonable steps were taken to bring its substance to the attention of the vessel.

This clause also states that if a vessel has been directed to proceed to a port or a marine facility under paragraph 16(1)(a) of the Act, the Minister may direct the port authority or the person in charge of that port or marine facility to allow that vessel to proceed to, or to moor, anchor or remain at, the port or marine facility.

This clause states that every port authority and person subject to a direction issued under subsection 17.1(1) must comply with it and that a direction issued under subsection (1) is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act.

This clause states that a port authority or a person in charge of a port or a marine facility that contravenes subsection 17.1(2) is guilty of an offence and liable on summary conviction

• • in the case of an individual, to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day, or to both, or
  • in the case of a corporation, to a fine of not more than $1,000,000.

This clause is necessary to establish that a port authority or person in charge of a port or a marine facility that does not comply with a direction is guilty of an offence and to set out the appropriate fine and imprisonment term. It also states that a port authority or a person in charge of a port or a marine facility must not be found guilty of contravening a direction made pursuant to subsection 17.1(2), unless it is proved that, at the time of the alleged contravention, reasonable steps had been taken to bring the substance of the direction to the attention of the operator or vessel.

This clause is necessary to clarify that knowledge of the substance of the direction is a precondition for the contravention of the direction.

This clause states that a certificate appearing to be signed by the Minister, stating that a notice containing the direction was given to the port authority or the person in charge of a port or a marine facility, is evidence that reasonable steps were taken to bring its substance to the attention of the port authority or person.

This is necessary to stipulate what constitutes sufficient evidence of reasonable steps taken to notify a port authority or person of a direction.

This clause introduces definitions of port authority and port. In sections 17.1 and 17.2, port authority has the same meaning as in subsection 2(1) of the Canada Marine Act and port has the same meaning as in section 5 of that Act to provide the reader with clarity on the definitions of port authority and port.

This clause also introduces powers for the Minister to issue emergency directions.

This clause stipulates that if the Minister is of the opinion that there is an immediate threat to the security of marine transportation, including to any person, goods, vessel or marine facility or to the health of persons involved in the marine transportation system, the Minister may direct that any person or vessel do, or refrain from doing, anything that in his opinion is necessary to respond to the threat. This could include:

• • the evacuation of vessels and marine facilities, or portions of them;
  • the suspension of access to vessels and marine facilities, or portions of them;
  • the requirement for vessels to proceed to alternate mooring or anchorage sites;
  • the movement of persons on vessels or within marine facilities;
  • the carrying out of authorized screening;
  • the establishment of restricted areas or exclusion zones for vessels; and
  • the suspension of marine operations, including operations related to cargo, ships’ stores, and bunkering.

This clause is necessary to give the Minister the power to quickly take action to address immediate threats to the security of marine transportation.  

This clause stipulates that an emergency direction comes into force immediately when it is made but ceases to have force 72 hours after it is made, unless the Minister repeals it before the expiry of the 72 hours.  

This clause is necessary to set out the duration of emergency directions.

This clause specifies that an emergency direction may provide that it applies in lieu of or in addition to any regulation made under this Act, any interim order, any security measure or any security rule. It also specifies that if there is a conflict between an emergency direction and a regulation respecting the security of marine transportation, an interim order, a security measure, or a security rule made under this Act, the emergency direction prevails to the extent of the conflict.  

This is necessary to clarify the interaction between an emergency direction and regulations, interim orders, security measures and security rules made pursuant to this Act.

This clause states that every person or vessel subject to an emergency direction must comply with it and introduces contravention provisions for a person who does not comply with emergency directions.

It also specifies that an emergency direction is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act.

Every person who is subject to an emergency direction and does not comply with it is guilty of an offence and liable:

• • on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or
  • on summary conviction to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day, or to both.

Every corporation that is subject to an emergency direction and does not comply with it is guilty of an offence and liable:

• • on conviction on indictment to a fine of not more than $2,000,000; or
  • on summary conviction to a fine of not more than $1,000,000.

Every vessel that contravenes subsection 17.4(5) is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

This clause is necessary to establish the fines and terms of imprisonment for individuals, corporations, and vessels that violates emergency directions to better align with penalties in similar marine legislation and provide them with better incentives to comply.

This clause states that a person or a vessel must not be found to have contravened subsection 17.4(5) unless it is proved that, at the time of the alleged contravention, the person or vessel had been notified of the emergency direction or reasonable steps had been taken to bring its substance to the notice of those persons or vessels likely to be affected by it.

This clause is necessary to clarify that knowledge of the substance of the emergency direction is a precondition for the contravention of the emergency direction.

This clause also establishes what constitutes sufficient evidence of reasonable steps taken to notify a person or a vessel of an emergency direction. It states that a certificate appearing to be signed by the Minister, stating that a notice containing the emergency direction was given to persons likely to be affected by it, is evidence that reasonable steps were taken to bring its substance to the attention of those persons. It also states that a certificate appearing to be signed by the Minister, stating that a notice containing the emergency direction was given to the master or to any person on board who is, or appears to be, in command or charge of the vessel, other than the pilot, is evidence that reasonable steps were taken to bring its substance to the attention of the vessel.

This clause is necessary to stipulate what constitutes sufficient evidence of reasonable steps taken to notify a vessel of an emergency direction.

Clause 63

This clause amends the previously existing provision of suspending or cancelling the designation of a screening officer by adding that the Minister may suspend or cancel the designation of a person as a screening officer if the Minister is of the opinion that the person has contravened an interim order or an emergency direction.

It also amends the previously existing provision of suspending the designation of a screening officer by replacing immediate threat with threat, by replacing “constitutes, or is likely to constitute” with “may pose” and by adding the Minister may suspend the designation of a person as a screening officer if the Minister is of the opinion that the exercise by the person of the functions of a screening officer may pose a threat or a direct or indirect risk to the security of marine transportation.

This clause is necessary to stipulate that the Minister may take action if the Minister is of the opinion that a screening officer has contravened an interim order or emergency direction or pose a threat or direct or indirect risk to the security of marine transportation.

Clause 64

This clause amends the previously existing provision by stating that, in the case of a decision made under subsection 19.‍2(3), if the appeal panel has, on an appeal under section 19.‍6, dismissed the appeal or if the Minister has, after reconsidering the matter under paragraph 19.‍5(4)‍(a) or 19.‍6(3)‍(a), confirmed the suspension, the person affected by the decision may, in writing, request the Minister to reconsider whether the exercise by the person of the functions of a screening officer continues to pose, or is likely to continue to pose, a threat or a direct or indirect risk to the security of marine transportation

This clause replaces “constitute” with “pose”, replaces “immediate threat” with “threat”, and it adds that the Minister may reconsider whether the exercise by the person of the functions of a screening officer continues to pose, or is likely to continue to pose, a direct or indirect risk to the security of marine transportation.

Clause 65

Clause 65(1)

This clause amends the previously existing provision by increasing the penalty for providing false or misleading information to a screening officer. It stipulates that every person who knowingly makes any false or misleading statement to a screening officer, or knowingly provides false or misleading information to a screening officer, is guilty of an offence punishable on summary conviction and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both.

This clause is necessary to increase the fines and terms of imprisonment for persons to better align with penalties in similar marine legislation and provide incentives to comply with these requirements.

 Clause 65(2)

This clause amends the previously existing provision by increasing the penalty for not undergoing authorized screening on board a vessel or in a restricted area when required by a screening officer, or for not leaving the vessel or restricted area or not removing any goods as ordered by a screening officer, or for willfully circumventing authorized screening in any manner.

Every person who contravenes subsection (2) or who wilfully circumvents authorized screening in any manner is guilty of an offence and liable

• • on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; or
  • on summary conviction, to a fine not exceeding $500,000 or to imprisonment for a term of not more than two years less a day or to both.

This is necessary to increase the fines and terms of imprisonment for persons that contravene subsection 20(2) to better align with penalties in similar marine legislation and provide incentives to comply with these requirements.

Clause 66

This clause amends the previously existing provision by increasing the penalty for an operator of a vessel or a marine facility to post notices in both official language when authorized screening is required or authorized on the vessel or at a marine facility.  

Every person who contravenes this section is guilty of an offence punishable on summary conviction and liable, in the case of an individual, to a fine not exceeding $100,000; or, in the case of a corporation, to a fine not exceeding $1,000,000.

This clause is necessary to increase the fines for persons that contravene subsections 21(1) and (2) to better align with similar marine and legislation provide incentives to comply with these requirements.

Clause 67

Clause 67(1)

This clause amends subsection 23(1) by enabling a security inspector to, at any reasonable time, subject to subsection (3), board and inspect any vessel or enter and inspect any marine facility if the inspector is designated to inspect the vessel or facility for the purposes of ensuring compliance with the Act, any regulation, interim order, security measure, security rule or emergency direction.

This is necessary to stipulate that the security inspector may now board and inspect any vessel or enter and inspect any marine facility for the purposes of ensuring compliance with an interim order or emergency direction.

Clause 67 (2)

This clause amends paragraph 23(2)(b), by stating that when conducting the inspection, the security inspector may:

• • require any person to produce for inspection and copying any document that the inspector believes, on reasonable grounds, contains any information relevant to the administration of this Act or the regulation, interim order, security measure, security rule or emergency direction.

This clause is necessary to stipulate that the security inspector may now require any person to produce documents that the inspector believes contain information relevant to the administration of an interim order or emergency direction. Previously, interim orders and emergency directions were not included in this provision.  

Clause 68

Clause 68(1)

This clause amends the previously existing provision by increasing the penalties for contravening sections related to security inspections when liable on conviction on indictment.

Every person who contravenes section 25 is guilty of an offence and liable on conviction on indictment

• • in the case of an individual, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both, or
  • in the case of a corporation, to a fine of not more than $2,000,000; or

This is necessary to increase the fines and terms of imprisonment for persons that contravene section 25 to better align with penalties in similar marine legislation and provide incentives to comply with these requirements.

Clause 68(2)

This clause amends the previously existing provision by increasing the penalties for contravening sections related to security inspections when liable on summary conviction.

Every person who contravenes section 25 is guilty of an offence and liable

on summary conviction:

• • in the case of an individual, to a fine of not more than $500,000 or to imprisonment for a term of not more than two years less a day or to both, or
  • in the case of a corporation, to a fine of not more than $1,000,000.

This is necessary to increase the fines and terms of imprisonment for persons and corporations that contravene section 25 to better align with penalties in similar marine legislation and provide incentives to comply with these requirements.  

Clause 69

This clause stipulates that if an offence is committed or continued on more than one day, the person or vessel that committed it is liable to be convicted of a separate offence for each day on which the offence is committed or continued.

This cause is necessary to amend the previously existing provision on the English version of the Act by replacing when with if, and adding the word vessel.

Clause 70

This clause establishes that subsections 28(1) and (4) do not apply in respect of offences under subsection 20(4) and paragraphs 25(3)(a) to (c) and (e).

This clause also introduces a provision that allows a vessel to be liable if the offence was committed by the operator of the vessel or by any person on board, other than a security inspector, whether or not the person on board has been identified, prosecuted or convicted.

This clause is necessary establish when a vessel can be found liable to be convicted of the offence.

Clause 71

This clause amends the previous provision by stipulating that a person must not be found guilty of an offence under this Act other than the offence under subsection 20(4) or paragraph 25(3)(a), (b), (c), or (e), if they establish that they exercised due diligence to prevent its commission.

This clause also introduces a new provision regarding defence for vessels by stipulating that a vessel must not be found guilty of an offence under this Act if the person who committed the act or omission that constitutes the offence establishes that they exercised due diligence to prevent its commission.

Clause 72

This clause amends the previously existing provision by stipulating that if a fine imposed on a person or vessel convicted of an offence is not paid when required, the conviction may be registered in the superior court of the province in which the trial was held.  

When registered, the conviction has the same effect as if the conviction were a judgment of that court obtained by His Majesty in right of Canada against the convicted person or vessel for a debt in the amount of the fine.  

This clause is necessary to replace when with if, to replace Her Majesty with His Majesty, and to add vessel to the provision.

Clause 73

Clause 73(1)

This clause amends the previously existing provision of the English version of the Act by  stipulating that if the Minister has reasonable grounds to believe that a person or vessel has committed a violation, the Minister may enter into an assurance of compliance with the person or vessel that identifies the violation and provides that the person or vessel will comply with the provision to which the violation relates within the period, and be subject to the terms and conditions, specified in the assurance.

Clause 73(2)

This clause amends the previously existing provision of the English version of the Act by stipulating that if the Minister has reasonable grounds to believe that a person or vessel has committed a violation, the Minister may enter into an assurance of compliance with the person or vessel that sets out the penalty, fixed by or within the range fixed by the regulations, that the person or vessel would have been liable to pay for the violation if the assurance had not been entered into.

Clause 73(3)

This clause amends the previously existing provision of the English version of the Act by stipulating that if the Minister has reasonable grounds to believe that a person or vessel has committed a violation, the Minister may issue, and cause to be served on the person or vessel, a notice of violation that names the person or vessel, identifies the violation and sets out the penalty, fixed by or within the range fixed by the regulations, that the person or vessel is liable to pay for the violation.

Clause 73(4)

This clause amends the previously existing provision of the English version of the Act by stipulating that the Minister may extend the period specified under subparagraph (1)(a)(i) if the Minister is satisfied that the person or vessel is unable to comply with the assurance of compliance for reasons beyond the person or vessel’s control.

Clause 74

This clause amends the previously existing provision of the English version of the Act by stipulating that a person or vessel that enters into an assurance of compliance under paragraph 33(1)(a) is, unless a review is requested under subsection (2), deemed to have committed the violation in respect of which the assurance was entered into.

This clause also amends the previously existing provision of the English version of the Act by  stipulating that a person or vessel that enters into an assurance of compliance may, within forty-eight hours after the assurance is signed, unless a notice of default is served within that period under subsection 36(1), file a request with the Transportation Appeal Tribunal of Canada (Tribunal) for a review of the facts of the violation, in which case the assurance is deemed to be a notice of violation and a review under subsection 39(1) of the facts of the violation and of the amount of the penalty is deemed to have been requested.  

It also amends the previously existing provision of the English version of the Act by stipulating that if the Minister is satisfied that an assurance of compliance under paragraph 33(1)(a) has been complied with, the Minister shall cause a notice to that effect to be served on the person or vessel and, on the service of the notice, no further proceedings may be taken against the person or vessel with respect to the violation in respect of which the assurance was entered into; and any security deposited under subparagraph 33(1)(a)(ii) must be returned to the person or vessel.

Clause 75

Clause 75(1)

This clause amends the previously existing provision of the English version of the Act by  stipulating that if the Minister is of the opinion that a person or vessel that has entered into an assurance of compliance has not complied with it, the Minister may cause a notice of default to be served on the person or vessel to the effect that, unless a member determines under section 37, or an appeal panel decides under section 40, that the assurance has been complied with, the person or vessel is liable to pay double the amount of the penalty set out in the assurance.

This is necessary to enable the Minister to cause a notice of default to be served on a vessel that has entered into an assurance of compliance and not complied with it, unless a member determines under section 37, or an appeal panel decides under section 40, that the assurance has been complied with. In the notice of default the vessel might be liable to pay double the amount of the penalty set out in the assurance, or the security deposited under subparagraph 33(1)(a)(ii) is forfeited to Her Majesty in the right of Canada.

Clause 75(2)

This clause amends the previously existing provision of the English version of the Act by specifying that a vessel or a person, on the service of a notice of default, has no right of set-off or compensation against any amount spent by the person or vessel under the assurance of compliance.

Clause 76

Clause 76(1)

This clause amends the previously existing provision of the English version of the Act to specify that a vessel, or a person, that is served with a notice under subsection 36(1) may, on or before the date specified in the notice or within any further time that the Tribunal on application allows, file a written request for a review.

This clause also amends the previously existing provision of the English version of the Act by specifying that, on receipt of a request filed under subsection (1), the Tribunal must appoint a time and place for the review and must notify the Minister and the person or vessel that filed the request of the time and place in writing.

It amends the previously existing provision of the English version of the Act by specifying that, the member of the Tribunal assigned to conduct the review must provide the Minister and the person or vessel that filed the request with an opportunity consistent with procedural fairness and natural justice to present evidence and make representations.  

This clause also amends the previously existing provision of the English version of the Act by specifying that, the burden is on the Minister to establish that the person or vessel did not comply with the assurance of compliance referred to in the notice. The person or vessel is not required, and must not be compelled, to give any evidence or testimony in the matter.

Clause 76(2)

This clause amends the previously existing provision by specifying that, despite section 45, a person or vessel does not have a defence by reason that the person or vessel exercised all due diligence to comply with the assurance of compliance.

Clause 76(3)

This clause amends the previously existing provision of the English version of the Act by specifying that the member of the Tribunal may confirm the Minister’s decision or determine that the person or vessel has complied with the assurance of compliance.

Clause 77

This clause amends the previously existing provision of the English version of the Act by specifying that any security deposited under an assurance of compliance must be returned to the person or vessel if the person or vessel pays double the amount of the penalty set out in the assurance of compliance in accordance with a notice under subsection 36(1).

Clause 78

Clause 78(1)

This clause amends the previously existing provision of the English version of the Act by adding specifying that a person or vessel served with a notice of violation under paragraph 33(1)(b) must pay the amount of the penalty or file with the Tribunal a written request for a review of the facts of the violation or the amount of the penalty.

Clause 78(2)

This clause amends the previously existing provision of the English version of the Act by specifying that, if a review of the facts of the violation is not requested, the person or vessel is deemed to have committed the violation in respect of which the notice was served.  

This clause also amends the previously existing provision of the English version of the Act by adding vessel.  

This is necessary to specify that on receipt of a request filed with the Tribunal, the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person or vessel that filed the request of the time and place in writing.  

It also amends the previously existing provision of the English version of the Act by specifying that the member of the Tribunal assigned to conduct the review must provide the Minister and the person or vessel who filed the request with an opportunity consistent with procedural fairness and natural justice to present evidence and make representations.

Additionally, this clause amends the previously existing provision of the English version of the Act by specifying that the burden is on the Minister to establish that the person or vessel committed the violation referred to in the notice. The person or vessel is not required, and must not be compelled, to give any evidence or testimony in the matter.

Clause 79

This clause amends a portion of the previously existing provision of the English version of the Act by specifying that the Minister or the person or vessel that requested the review of the decision may appeal a determination made under subsection 37(6) or 39(6) to the Tribunal within 30 days after the determination.

Clause 80

This clause replaces the existing section 45 and specifies that a person must not be found to be liable for a violation if they establish that they exercised due diligence to prevent its commission.  

It also introduces a new provision that provides a defence for vessels if the person that committed the act or omission that constitutes the violation establishes that they exercised due diligence to prevent its commission.

Clause 81

Clause 81(1)

This clause amends a portion of the previously existing provision of the English version of the Act by specifying that a person is liable for a violation committed by their employee or agent or mandatary, whether or not the employee or agent or mandatary has been identified or proceeded against under sections 33 to 43.

Clause 81(2)

This clause amends a portion of the previously existing provision of the French version of the Act replacing reconnu with tenu thus specifying that the operator of a vessel is liable for a violation committed in relation to the vessel by another person, whether or not the other person has been identified or proceeded against under sections 33 to 43 unless, at the time of the violation, the vessel was in the possession of another person without the operator's consent.

This clause amends a portion of the previously existing provision of the French version of the Act replacing reconnu with tenu thus specifying that the operator of a marine facility is liable for a violation committed with their consent by another person in relation to the facility, whether or not the other person has been identified or proceeded against under sections 33 to 43.

Clause 81(3)

This clause amends a portion of the previously existing provision of the English version of the Act by  specifying that an officer, director or agent or mandatary of a corporation that commits a violation under this Act is a party to and liable for the violation if they directed, authorized, assented to, acquiesced in or participated in the commission of the violation, whether or not the corporation has been identified or proceeded against under sections 33 to 43.

Clause 82

This clause introduces a new provision that establishes what constitutes a proof of violation committed by a vessel. It specifies it is sufficient proof that a vessel has committed a violation to establish that the act or omission that constitutes the violation was committed by the operator of the vessel or by any person on board, other than a security inspector, whether or not the person on board has been identified or proceeded against under sections 33 to 43.  

This clause is necessary to establish what constitutes sufficient proof that a vessel has committed a violation.  

It also introduces a new provision that specifies when an operator of a vessel is party to violation committed by the vessel. It states that if a vessel commits a violation under this Act and the operator of the vessel directed, authorized, assented to, acquiesced in or participated in the commission of the violation, the operator is a party to and liable for the violation, whether or not the vessel has been proceeded against under sections 33 to 43.

Clause 83

Clause 83(1)

This clause amends a portion of the previously existing provision of the English version of the Act by adding vessel. It states that unless the Minister is of the opinion that it is not in the public interest to do so, five years after the events occur, the Minister is to remove any notation of violation or default.

This clause is necessary to specify that a vessel is subject to the same removal of notations of violation or default as a person.

Clause 83(2)

This clause amends a portion of the previously existing provision of the English version of the Act by adding must and vessel and specifying that when the Minister is of the opinion that removal of a notation is not in the public interest, the Minister must give notice of that fact to the person or vessel.

Clause 83(3)

This clause amends a portion of the previously existing provision of the English version of the Act by adding vessel. It states that the person or vessel may, within thirty days after a determination is made under subsection (5), appeal the determination to the Tribunal.  

This clause is necessary to specify that a vessel also has a right to appeal a determination made by the Tribunal.  

It also amends a portion of the previously existing provision of the English version of the Act by adding vessel. It states that if the person or vessel does not appear at the review hearing, the person or vessel is not entitled to appeal a determination unless they establish that there was sufficient reason to justify their absence.

Clause 84

This clause amends a portion of the previously existing provision of the Act by adding vessel. It states that the Minister must keep a public record of notations of violations or default that appear on any record that the Minister may keep respecting persons or vessels under this Act.

Clause 85

This clause amends the previously existing regulation making power enabling the Governor in Council to make regulations designating violations that may be proceeded with by issuing notices of violation and fixing a penalty or a range of penalties in respect of each violation, and the amount is increased from $25,000 to $250,000.  

It also introduces two new regulation making powers, one enabling the Governor in Council to make regulations respecting persons who can request a review on behalf of a vessel in relation to an alleged violation by the vessel, and the second enabling the making of regulations respecting the service of documents on vessels.

Clause 86

This clause establishes that in sections 39 to 42 other Act means the Marine Transportation Security Act, to allow for transitional provisions between the Act that is being amended and the Act is being proposed.

Clause 87

Clause 87(1)

This clause establishes that the contravention of an interim order created by these amendments is deemed as a violation for the purposes of sections 33 to 51, and the provisions of any regulations made under section 51.

Clause 87(2)

This clause establishes that the penalty range for a violation of an interim order is $260 to $250,000.

Clause 87(3)

This clause specifies that a violation of an interim order constitutes a separate violation for each day on which it is continued.

Clause 87(4)

This clause establishes the repeal of this provision when a regulation designating a violation of an interim order comes into force. This clause is necessary to designate the contravention of an interim order as a violation as soon as this Act comes into force.

Clause 88

Clause 88(1)

This clause establishes that the contravention of direction to a vessel created by these amendments is deemed as a violation for the purposes of sections 33 to 51 and the provisions of any regulations made under section 51.

Clause 88(2)

 This clause establishes that the penalty range for a violation of a direction to a vessel is $2,625 to $250,000.

Clause 88(3)

This clause specifies that a violation of a direction to a vessel constitutes a separate violation for each day on which it is continued.

Clause 88(4)

This clause establishes the repeal of this provision when a regulation designating a violation of a direction to a vessel comes into force.  

This clause is necessary to designate the contravention of a direction to a vessel as a violation as soon as this Act comes into force.

Clause 89

Clause 89(1)

This clause establishes that the contravention of a direction to accept a vessel created by these amendments is deemed as a violation for the purposes of sections 33 to 51 of the Act and the provisions of any regulations made under section 51.

Clause 89(2)

This clause establishes that the penalty range for a violation of a direction to accept a vessel is $1,300 to $250,000.

Clause 89(3)

This cause specifies that a violation of a direction to accept a vessel constitutes a separate violation for each day on which it is continued.

Clause 89(3)

This clause establishes the repeal of this provision when a regulation designating a violation of a direction to accept a vessel comes into force.  

This clause is necessary to designate the contravention of a direction to accept a vessel as a violation as soon as this Act comes into force.

Clause 90

Clause 90(1)

This clause establishes that the contravention of an emergency direction created by these amendments is deemed as a violation for the purposes of sections 33 to 51 of the Act and the provisions of any regulations made under section 51.

Clause 90(2)

This clause establishes that the penalty range for a violation of an emergency direction is $1,300 to $250,000.

Clause 90(3)

This clause specifies that a violation of an emergency direction constitutes a separate violation for each day on which it is continued.

Clause 90(4)

This clause establishes the repeal of this provision when a regulation designating a violation of an emergency direction comes into force.

This clause is necessary to designate the contravention of an emergency direction as a violation as soon as this Act comes into force.

Clause 91

Clause 91(1)

This clause establishes that in this section, the meaning of other Act as being the Protecting Canada’s Immigration System Act.  

The current Marine Transportation Security Act that is being amended contains provisions that are not in force. This clause is necessary to establish the meaning of the other Act to allow for coordination of coming into force between the proposed amendments to the Marine Transportation Security Act and the not-in-force provisions created under the Protecting Canada’s Immigration System Act.

Clause 91(2)

This clause establishes that if 53(2) of this Act comes into force before section 70 of the other Act (not-in-force provision), then that section 70 is deemed never to have come into force and is repealed.

Clause 91(3)

The clause states that if section 70 of the other Act (not-in-force provision) comes into force before subsection 53(2) of this Act, then that subsection 53(2) is deemed never to have come into force and is repealed; and on the day on which section 3 of this Act comes into force, subsections 5(2) and (3) of the Marine Transportation Security Act are replaced with three provisions outlining the regulations respecting the security of marine transportation.

Clause 91(4)

This clause establishes that if section 70 of the other Act comes into force on the same day as subsection 53(2) of this Act, then that section 70 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 70 the Protecting Canada’s Immigration System Act and the proposed provision related to regulations respecting the security of marine transportation.

Clause 91(5)

This clause establishes that if section 54of this Act comes into force before section 71 of the other Act (not-in-force provision), then that section 71 is deemed never to have come into force and is repealed.

Clause 91(6)

The clause states that if section 71 of the other Act (not-in-force provision) comes into force before section 54of this Act, then that section 54is deemed never to have come into force and is repealed; and on the day on which section 50of this Act comes into force, section 5.1 the Marine Transportation Security Act is replaced with a provisions outlining that the Governor in Council may make regulations respecting the disclosure of information.

Clause 91(7)

This clause establishes that if section 71 of the other Act comes into force on the same day as section 54of this Act, then that section 71 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 71 the Protecting Canada’s Immigration System Act and the proposed provision related to regulations respecting the disclosure of information.

Clause 91(8)

This clause establishes that if section 62 of this Act comes into force before section 72 of the other Act (not-in-force provision), then that section 72 is deemed never to have come into force and is repealed.

Clause 91(9)

This clause establishes that if section 72 of the other Act comes into force on the same day as section 62of this Act, then that section 72 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 72 the Protecting Canada’s Immigration System Act and the proposed provision related to offences relating to directions.

Clause 91(10)

This clause is necessary to establish that if section 68of this Act comes into force before section 73 of the other Act (not-in-force provision), then that section 73 is deemed never to have come into force and is repealed.

Clause 91(11)

The clause states that if section 73 of the other Act (not-in-force provision) comes into force before section 68of this Act, then on the day on which that section 68of this Act comes into force, the portion of paragraph 25(4) of the Marine Transportation Security Act before paragraph (a) is replaced with “every person who contravenes this section is guilty of an offence and liable”, and subsection 25(5) of the Marine Transportation Security Act is repealed.

Clause 91(12)

This clause establishes that if section 73 of the other Act comes into force on the same day as section 68 of this Act, then that section 73 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 73 the Protecting Canada’s Immigration System Act and the proposed provision related to offences relating to offence.

Clause 91(13)

This clause establishes that if section 21 of this Act comes into force before section 74 of the other Act (not-in-force provision), then that section 74 is deemed never to have come into force and is repealed.

Clause 91(14)

The clause states that if section 74 of the other Act (not-in-force provision) comes into force before section 69of this Act, then that section 69is deemed never to have come into force and is repealed.

Clause 91(15)

This clause states that if section 74 of the other Act comes into force on the same day as section 69 of this Act, then that section 74 is deemed never to have come into force and is repealed This clause provides for coordination of coming into force between not-in-force section 74 the Protecting Canada’s Immigration System Act and the proposed provision related to continuing offence.

Clause 91(16)

This clause establishes that if section 70 of this Act comes into force before section 75 of the other Act (not-in-force provision), then that section 75 is deemed never to have come into force and is repealed.

Clause 91(17)

The clause states that if section 75 of the other Act (not-in-force provision) comes into force before section 70 of this Act, then that section 70 is deemed never to have come into force and is repealed, and on the day on which section 3 of this Act comes into force, subsections 28(5) and (6) of the Marine Transportation Security Act are replaced with a provision relating to the proof of offence for a vessel.

Clause 91(18)

This clause is also necessary to establish that if section 75 of the other Act comes into force on the same day as section 70 of this Act, then that section 75 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 75 the Protecting Canada’s Immigration System Act and the proposed provision related to proof of offence for vessels.

Clause 91(19)

This clause establishes that if section 71 of this Act comes into force before section 76 of the other Act (not-in-force provision), then that section 76 is deemed never to have come into force and is repealed.

Clause 91(20)

This clause establishes that if section 76 of the other Act comes into force on the same day as section 71 of this Act, then that section 76 is deemed never to have come into force and is repealed.       

This clause provides for coordination of coming into force between not-in-force section 76 of the Protecting Canada’s Immigration System Act and the proposed provision related to due diligence defence.  

Clause 91 (21)

This clause is necessary to establish that if section 72 of this Act comes into force before section 77 of the other Act (not-in-force provision), then that section 77 is deemed never to have come into force and is repealed.

Clause 91(22)

This clause also establishes that if section 77 of the other Act (not-in-force provision) comes into force before section 72of this Act, then that section 72is deemed never to have come into force and is repealed and subsection 31(1) of the English version of the Act is replaced with a provision related to the recovery of fines.

Clause 91(23)

This clause establishes that if section 77 of the other Act comes into force on the same day as section 72 of this Act, then that section 77 is deemed never to have come into force and is repealed.

This clause provides for coordination of coming into force between not-in-force section 77 of the Protecting Canada’s Immigration System Act and the proposed provision related to due diligence defense.

Amendments to the Canada Transportation Act

Clause 92

This clause would clarify that an electronic system, including an automated system, may be used by the Minister, or a designated person, to make a decision or determination under the Canada Transportation Act or any other Act that the Minister administers or enforces.

The Government of Canada is increasingly looking to utilize technology and automated systems to make, or assist in making, administrative decisions to improve regulatory service delivery.

Making this amendment in the CTA would provide consistent authorities across all modes of transport for the use of automated systems in decision making.

Clause 93

This clause would clarify that, for a purpose related to verifying compliance, a person is considered to have entered a place when accessing it remotely by a means of telecommunications.

This clause includes limitations so that a person who remotely enters a place that is not accessible to the public must do so with the knowledge of the owner or person in charge of the place, and only for the period necessary for the purpose referred to in the authority to enter.

Making this amendment in the CTA would provide consistent authority across all the modes of transport respecting the use of telecommunications for enforcement activities.

Clause 94

Clause 94 (1)

This clause will require parties to a transaction involving a transportation undertaking at a port (within the meaning of section 5 of the Canada Marine Act) to notify the Minister of Transport and the Commissioner of Competition before the transaction is complete. This requirement will apply to transactions whose revenues and assets (as described in section 53.1(1.1)) exceed $10,000,000.

The new notification requirement does not apply to parties to a proposed transaction that are from the United Kingdom or the European Union.

When a party to a transaction is required to notify the Minister of Transport, the notice must contain the information required in section 114(1) of the Competition Act, and any information with respect to the public interest as it relates to national transportation that is required under the guidelines. Those guidelines are issued and published by the Minister. After the receipt of a notice, the Minister may require additional information.

Clause 94 (2)

This clause will amend the Canada Transportation Act to provide that any guidelines must be elaborated in consultation with the Competition Bureau and must include factors that can be used to determine whether a proposed transaction raises issues with respect to the public interest as they relate to national transportation. These guidelines are not statutory instruments within the meaning of the Statutory Instruments Act.

Clause 94 (3)

This clause will amend the Canada Transportation Act to provide that, if the Minister’s opinion is that a proposed transaction doesn’t raise issues with respect to the public interest (as related to national transportation), the Minister has 42 days to give notice to the person who made their notification of this opinion. If this is the case, the person is not prohibited from completing the transaction without the approval of the Governor in Council.

Clause 95

Clause 95(1)

This clause will amend the Canada Transportation Act to prohibit any proposed transactions that are notifiable under subsection 53.1(1) or 53.1(1.1) from being completed without the approval of the Governor in Council.

For a transaction notified under subsection 53.1(1), the Commissioner of Competition must provide a report to the Minister of Transport detailing any competition concerns within 150 days, though the Minister can choose to lengthen this timeframe. For transactions notified under subsection 53.1(1.1), the Commissioner of Competition’s decision to provide a report detailing any competition concerns within 150 days, or within a longer period as prescribed by the Minister, is voluntary.

Clause 95 (2)

This clause will amend the Canada Transportation Act to require that following a notification of a proposed transaction under subsection 53.1(1.1) the Minister will share any public interest issues raised with the parties to a proposed transaction, and request they seek to address those concerns. In return, the parties will share with the Minister any efforts they are willing to take to address the public interest concerns.

Should the Commissioner of Competition provide a report, the Commissioner is required to share any competition concerns with the parties and request they also address those concerns. In return, the parties will share with the Commissioner of Competition any efforts they are willing to take to address the competition concerns.

Clause 96

This clause will amend the Canada Transportation Act to allow the Governor in Council to make regulations with respect to the information required under subsection 53.1(1.1).  

Clause 97

This clause will amend the Canada Transportation Act to create an offence for a person who fails to comply with the new notification obligation set out in 53.1(1.1).

Clause 98

This clause will amend the Canada Transportation Act to clarify that transactions under subsection 53.1 (1) and the new subsection 53.1 (1.1) are to be excluded from the definition of arrangement under the Canada Transportation Act.

Clause 99

This clause will amend the Canada Transportation Act clarifies that terminals at port authorities are within the federal jurisdiction. It does so by declaring terminals situated within a port, within the meaning of section 5 of the Canada Marine Act, to be works for the general advantage of Canada.

Amendments to the Canada Marine Act

Clause 100

This clause will amend the purpose of the Canada Marine Act to include Indigenous peoples to acknowledge their distinct identities and distinguish them from other users and communities.

This clause will amend the purpose of the Canada Marine Act to identify the management of marine infrastructure and services through the participation of port authorities in a manner that maintains the security and enhances the resiliency of supply chains.

Further, this clause will identify traffic management as a key purpose of the Canada Marine Act, to promote the efficiency of supply chains.

Clause 101

Clause 101(1)

The Minister sets out the composition of the board of directors in each port authority’s letters patent, by specifying a number of directors to be appointed under section 14 of the Canada Marine Act, which will be amended by this clause to comprise between seven and 13 directors.

Clause 101(2)

Clause 101 (2) will amend the Canada Marine Act to provide that the municipalities mentioned in the letters patent may appoint up to two individuals to the board of directors.

This clause will allow the province in which a port is located to appoint up to two individuals to the board of directors, except for ports located in Thunder Bay and Prince Rupert, where one appointment will be made by the province in which the port is located and the second appointment will be made jointly by the provinces of Alberta, Saskatchewan, and Manitoba, as is already the case for Vancouver.

Clause 101(3)

Clause 101 (3) will amend the Canada Marine Act to indicate that the general principles and guidelines governing the advisory committees established under section 33.1, including advisory committee composition and administration, will be set out in the letters patent.

Clause 101(4)

This clause will amend the Canada Marine Act to indicate that the letters patent shall include the schedule for development of a port authority’s land-use plans, will set to intervals of no more than five years. This amendment will provide for the establishment of a schedule in the letters patent for when each port authority must develop its land use plan, at an interval of no more than every five years.

Clause 101(5)

Clause 101 (5) will amend the Canada Marine Act to indicate that the letters patent shall set out the schedule for the port authorities to submit borrowing plans in intervals of no more than three years. This clause will remove the reference to a code governing port authority borrowing power.

Clause 102

Clause 102 (1)

Clause 102 (1) will amend the Canada Marine Act to stipulate that the municipalities mentioned in the letters patent may appoint one or two individuals, as mentioned in the letters patent. This clause will amend the municipal appointment power to align with the amendments made in clause 101(2) to subparagraph 8(2)(f)(ii).

Clause 102(2)

This clause will amend the Canada Marine Act to set out that directors are to hold office for a renewable term of not more than three years and will remove the restriction renewing a director’s term of appointment only twice. 

Clause 103

This clause will amend the Canada Marine Act to require that directors appointed by the province or municipality undergo a Government of Canada security assessment and maintain the security certification obtained under that assessment.

Clause 104

Clause 104(1)

Clause 104(1) will amend the Canada Marine Act to modify the list of persons excluded from serving as directors on port authorities’ boards to permits officers or employees of the municipalities and provinces listed in the letters patent to serve on the board of directors, unless their employment would place them in a conflict of interest with the activities of the port authority.

Clause 104(2)

This clause will amend the Canada Marine Act to modify the list of persons excluded from serving as directors on a port authority’s board to permit officers and employees of federal Crown corporations to be eligible for appointment as board directors.

Clause 105

This clause will amend the Canada Marine Act to authorize the Minister to designate port authorities’ chairpersons from among the directors, in consultation with the board of directors, for a renewable term of up to two years.

This clause will amend the Canada Marine Act to enable the vice-chairperson, or a director designated by board resolution (in the absence of a vice-chairperson) to act as interim chairperson for a period no longer than 90 days without the Minister’s approval.

Clause 106

Clause 106 will amend the Canada Marine Act to add that a director of a port authority appointed by the province or municipality will cease to hold office when they no longer have a valid security certification. This is related to the amendment to clause 103 requiring a security assessment for provincial and municipal appointees by the Government of Canada.

Clause 107

Clause 107(1)

Clause 107(1) will amend the Canada Marine Act to include, under the Governor in Council regulation-making powers regarding governance matters, for example, specific regulations pertaining to the administrative requirements for a port authority's advisory committees, the governance assessment, and the information to be provided to the Minister as part of the report on that assessment, and the information to be included in the port authority's business plan under clause 114.

Clause 107(1.1)

Clause 107(1.1) will amend the Canada Marine Act to give the Governor in Council the power to make regulations regarding the impact of port operations on the environment, including climate change and the impact of climate change on the operation of a port.

Regulations may pertain to the establishment of greenhouse gas emission reduction targets related to the operation of a port; the contents of a five-year climate change plan; the contents of a five-year plan respecting climate change adaptation actions; the contents of the annual reports on those five-year plans; public participation in the development of each five-year plan; and the obligations on a port authority in respect of the climate change adaptation actions to be undertaken.

Clauses 107(2)

The provision under this clause will amend the Canada Marine Act to confirm that the new regulation making powers under clause 107 (1) and (1.1) may apply to only one port authority or wholly owned subsidiary.

Clauses 107(3)

This clause will amend the Canada Marine Act to specify that the new regulation making powers under clause 107(1) and (1.1) and may be made binding on His Majesty in right of Canada or a province.

 

Clause 108

Clause 108(1)

This clause will amend the Canada Marine Act to include to the list of allowable activities to port authorities, those activities in relation to real property and immovables that are not adjacent to navigable waters, to the extent that those activities are specified in the letters patent.

Clause 108(2)

This clause will repeal subsection 28(5.1) of the Canada Marine Act to align with the amendment to paragraph 8(2)(l), under clause 101 (5).

Clause 109

Clause 109 will amend the Canada Marine Act to require directors of port authorities to submit their borrowing plan to the Minister of Transport, within twelve months after the coming force of this clause and in accordance with the schedule set out in the letters patent thereafter.

Clause 110

Clause 110 will amend the Canada Marine Act to add a new provision requiring each port authority to establish three advisory committees: a community advisory committee, an Indigenous advisory committee, and a local government advisory committee, in accordance with its letters patent.

Clause 110 will amend the Canada Marine Act to add a new provision requiring that each port authority consult those advisory committees regularly with respect to issues relating to port activities.

Clause 110 will add a new provision requiring each port authority to conduct an assessment of its governance practices in accordance with the regulations provided under Clause 107 and submit a report to the Minister, at least once every three years.

Clause 111

Clause 111 will amend the Canada Marine Act to require each port authority, at least thirty days before the annual meeting, to publish a notice on its website and have a notice published in a major newspaper published or distributed in the municipalities where the port is located detailing the time and location of the meeting and that the port authority’s financial statements are available to the public on its website and at its office.

Clause 112

Clause 112 (1)

Clause 112(1) will amend the Canada Marine Act to require each port authority, at least thirty days before the annual meeting, to publish its audited annual financial statements, and those of its wholly-owned subsidiaries for the preceding fiscal year on its website and make them available publically at its office during normal business hours. The amendment will introduce a requirement for port authorities to publish financial statements on its website.

Clause 112(2)

This clause will amend the Canada Marine Act to require that port authority financial statements meet the International Financial Reporting Standards, adopted by the Accounting Standards Board and effective as of January 1, 2011. This amendment will standardize port authorities’ financial statements.

Clause 113

Clause 113 will amend the Canada Marine Act to add provisions requiring each port authority to prepare, for itself and its wholly-owned subsidiaries, quarterly financial reports for each of the first three quarters of the financial year in accordance with the International Financial Reporting Standards and publish them on their websites.

The quarterly financial report will be required to contain a financial statement for that quarter and for the period from the start of the financial year to the end of each quarter; comparative financial information for the preceding financial year; and a statement outlining the results, risks and significant changes in relation to operations, personnel, and programs.

Clause 114

Clause 114 will amend the Canada Marine Act to require a port authority to submit a five-year business plan for itself and each of its subsidiaries. The plan will have to be submitted within three months after the end of the fiscal year and will contain the information required by regulation, including material changes from the previous plan. Each of the financial statements and business plans submitted by a port authority for itself and its subsidiaries must clearly set out separately information about paragraph 28(2)(a) and paragraph 28(2)(b) activities.

Clause 115

Clause 115 will amend the Canada Marine Act to stipulate that a port authority, as soon as is practicable after it receives the special examination summary report, must provide a notice of the summary report on its website and in a major newspaper distributed in the municipalities in which it is situated. 

Clause 115 will amend the Canada Marine Act to provide the summary report must be published on the port authority’s website and be made available for the public at its office during normal business hours.

Clause 116

Clause 116 will amend the Canada Marine Act to add a new requirement for each port authority to prepare a five-year climate change plan for itself and each of its wholly-owned subsidiaries within one year of the later of coming in force of this section or the day on which the letters patent are issued and thereafter within five years of the previous plan.

Each climate change plan must contain a greenhouse gas emissions reduction target in respect to port operations, a description of actions to be taken to achieve the greenhouse gas emissions reduction target, information relating to any material changes in respect of information that was provided in the previous plan and any additional information prescribed in regulation.

Clause 116 will amend the Canada Marine Act to require each port authority to prepare, in respect to itself and each of its wholly-owned subsidiaries, a five-year plan on climate change adaptation actions. This plan must be prepared within two years of the later of the coming in force of this provision or the day on which the letters patent are issued and thereafter within five years of the previous plan.

Each climate change adaptation actions plan must contain a description of the current and anticipated impacts of climate change on the operation of the port and assets managed by the port authority and any adaptation actions to be taken to address those impacts; a description of current and future commercial opportunities for the port authority arising from the impacts of climate change on the operation of the port and on the assets managed by the port authority; information relating to any material changes in respect of information that was provided in the previous plan; and additional information as prescribed in regulations.

Clause 116 will amend the Canada Marine Act to set out that each five-year plan must be developed in a manner consistent with recognized international standards. Each port authority must publish each five-year plan on its website no later than three months after the end of the fiscal year in which the plan was prepared.

Clause 116 will amend the Canada Marine Act to require each port to report annually on its five-year plans and publish the report on its website within three months of the end of each fiscal year. The annual report must contain a greenhouse emissions inventory, set out in accordance with international standards, for emissions resulting from port operations; an update on the implementation of each five-year plan; and any prescribed information.

Clause 117

Clause 117 will amend the Canada Marine Act to permit a port authority situated in Quebec may, for the duration of a lease, to renounce the benefit of accession in respect of any construction or work built on a federal immovable that the port authority manages.

Clause 117 will amend the Canada Marine Act to specify that a port authority may exercise the powers under this clause at subsections (3) and (3.01) to the same extent as His Majesty and may deliver, instead of His Majesty, execute and deliver the documents required for that purpose.

Clause 118

Clause 118(1)

Clause 118 (1) will amend the Canada Marine Act to require that each port authority must, within twelve months after the issuance of its letters patent and after that in accordance with the schedule set out in its letters patent, develop a detailed land-use plan that contains objectives and policies for the physical development of the real property, considering relevant social, economic and environmental matters and zoning by-laws that apply to neighbouring lands.

Clause 118(2)

This clause will make a small change to the English version of this provision to reflect that port authorities will be required to develop a land use plan more than once.

Clause 118(3)

This clause will amend the Canada Marine Act to require that a port authority, at least 60 days before the coming into force of a land use plan, publish a notice of the proposed land use plan on its website, and have the notice published in a major newspaper published or distributed in the municipalities where the port is situated; and will publish the proposed land-use plan and any related documents necessary to understand it on its website.

Clause 118(3) will amend the Canada Marine Act to detail the information that must be included in a notice of a proposed land-use plan, including where a copy of the plan and any related documents necessary to understand it may be obtained. It will also include an invitation to any interested parties to make representation to the port authority with respect to the proposed plan within sixty days and to attend a public meeting mentioned in the notice.

Clause 118(3) will amend the Canada Marine Act to provide that after the port authority considers any representation made by interested persons with respect to a proposed land-use plan and making any amendments as it considers appropriate as a result of those representations, it may adopt the plan.

This clause will stipulate that the port authority must publish a notice of the adoption of the land-use plan that includes information as to where a copy of the plan may be obtained, on its website, and have that notice published in a major newspaper published or distributed in the municipalities where the port is situated; publish a summary of the representations it received on its website; and publish the land-use plan on its website.

 

Clause 119

This clause will amend the Canada Marine Act to make the fees fixed by a port authority subject to regulations made by the Governor in Council under section 62, including the new regulation making authorities introduced in clause 120.

Clause 120

Clause 120(1)

This clause will amend the Canada Marine Act to add two regulation making authorities.

It will provide the Governor in Council the authority to make regulations regarding the management of marine traffic, including mooring and anchorage, and the fees to be paid and the sharing of information and data by users and port authorities in support of that management.

It will provide the Governor in Council the authority to make regulations with regards to activities carried out on a vessel moored or at anchor in a port.

Clause 120(2)

This clause will provide the Governor in Council regulations-making authority respecting the information or documents that a port authority, a wholly-owned subsidiary of a port authority, a person in charge of a port facility or a port user must provide to the Minister.

Clause 121

This clause will amend the Canada Marine Act to specify that the Minister may fix fees by order.

Clause 122

This clause will amend the Canada Marine Act to provide the Minister with the authority to issue a Ministerial Order if the Minister is of the opinion there is a risk of imminent harm to national security, economic security, or competition, and which significantly threatens the safety and security of people, goods, ships or port facilities or threatens supply chain security. The Order may require a port authority or a person in charge of a port facility to take any measure, including corrective measures or stop any activity that the Minister considers necessary to prevent the harm. It also provides that port authorities and persons in charge of a port facility must comply with the Order once they have been notified of its substance.

This clause will exempt the Ministerial Order from sections 5, 6, 9, 11, 14, 17, 18 and 19 of the Statutory Instrument Act.

Finally, this clause will require the Minister to publish any order on Transport Canada’s website unless the Minister is of the opinion it contains confidential or privileged information or information that could pose a risk to national security, national economic security, or competition if it were published.

Amendments to the Transportation Appeal Tribunal of Canada Act