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House Government Bill
40th Parliament, 2nd Session
January 26, 2009 - December 30, 2009
Text of the Bill
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An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures
Short Title
Budget Implementation Act, 2009
Statute of Canada
2009, c. 2
Last Stage Completed
Royal Assent (2009-03-12)
Progress: Royal Assent
Legislative Summary
The Library of Parliament does not prepare Legislative Summaries for budget implementation bills. The following is a short summary:

On 6 February 2009, the Minister of Finance introduced Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, in the House of Commons and it was given first reading.

Part 1 implements income tax measures referred to in the 27 January 2009 budget. Among other things, it:

• increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets
• Increases by $1,000 the amount upon which the Age Credit is calculated.
• Introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds
• Extends certain Employment Insurance (EI) benefit entitlements
• Maintains the EI rate for 2010 at $1.73 per $100 of insurable earnings
• Extends the Wage Earner Protection Program to cover severance and termination pay owed to eligible workers when an employer does not pay due to its bankruptcy.
• Raises to $500,000 the amount of active business income eligible for the 11 per cent small business income tax rate.

Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses.
Part 3 amends the Customs Tariff to implement measures announced in the 2009 Budget to among other things, reduce Most-Favoured-Nation rates of duty.
Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks.
Part 5, among other things, amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada. It also
• amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years;
• amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower; and
• amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada.
• provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act.

Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing.
Part 7, among other things, amends and clarifies parts of the Navigable Waters Protection Act.
Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay. It also amends the Canada Student Financial Assistance Act to, among other things,
• authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance
• terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies;

Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on 1 April 1 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years.
Part 10 enacts the Expenditure Restraint Act.
Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts.
Part 12 amends the Competition Act. The amendments include, among other things,
• introducing a dual-track approach to agreements between competitors;
• providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders;
• repealing the provisions dealing with price discrimination and predatory pricing
• introducing an administrative monetary penalty for cases of abuse of dominant position; and
• introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period.
Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments.
Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%.
Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares.
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