Bill C-4

Keeping Canada’s Economy and Jobs Growing Act

95. (1) Paragraph 64(6)(a) of the Keeping Canada’s Economy and Jobs Growing Act is replaced by the following:

(a) after 2021 in relation to a swap transaction undertaken to remove a property from a RRIF or RRSP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if

(i) that Part were read without reference to subsection 207.05(4) of the Act, and

(ii) the property were retained in the RRIF or RRSP; and

(2) Subsection (1) is deemed to have come into force on December 15, 2011.

Income Tax Regulations

96. (1) Section 201 of the Income Tax Regulations is amended by adding the following after subsection (5):

(5.1) Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if

(a) the insurer is notified in writing — before the end of the calendar year and by, or on behalf, of the policyholder — that the policy is an LIA policy; or

(b) it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

97. (1) The portion of subsection 306(1) of the Regulations before paragraph (a) is replaced by the following:

306. (1) For the purposes of this Part and subsection 12.2(11) of the Act, “exempt policy” at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time:

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

98. (1) Paragraph 600(b) of the Regulations is replaced by the following:

(b) subsections 13(4), (7.4) and (29), 14(6), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

99. (1) The portion of section 806.2 of the Regulations before paragraph (a) is replaced by the following:

806.2 For the purposes of the definition “participating debt interest” in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is

(2) Subsection (1) is deemed to have come into force on January 1, 2008.

100. (1) Paragraph 1100(1)(a) of the Regulations is amended by adding the following after subparagraph (xxvii.1):

(xxvii.2) of Class 41.2, 25 per cent,

(2) Subparagraph 1100(1)(w)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(3) Subparagraph 1100(1)(x)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(4) Subparagraph 1100(1)(y)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(5) Subparagraph (i) of the description of A in paragraph 1100(1)(y.1) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(6) The description of B in paragraph 1100(1)(y.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) 0%, if one or more days in the year are after 2014;

(7) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (y.1):

(y.2) such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formula

A × B

where

A      is the lesser of

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

(A) without reference to subsection (2),

(B) after making any deduction under paragraph (a) for the year, and

(C) before making any deduction under this paragraph, and

B      is the percentage that is the total of

(i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

(ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

(iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

(iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

(v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

(vi) 0%, if one or more days in the year are after 2020;

(8) Subparagraph (i) of the description of A in paragraph 1100(1)(ya.1) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(9) The description of B in paragraph 1100(1)(ya.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) 0%, if one or more days in the year are after 2014;

(10) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (ya.1):

(ya.2) such additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formula

A × B

where

A      is the lesser of

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

(A) without reference to subsection (2),

(B) after making any deduction under paragraph (a) for the year, and

(C) before making any deduction under this paragraph, and

B      is the percentage that is the total of

(i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

(ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

(iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

(iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

(v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

(vi) 0%, if one or more days in the year are after 2020;

(11) Paragraph 1100(12)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(12) Paragraph 1100(16)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(13) Subparagraph 1100(25)(b)(iv) of the Regulations is replaced by the following:

(iv) a partnership each member of which was

(A) a corporation described in subparagraph (iii) or paragraph (26)(a), or

(B) another partnership described in this subparagraph.

(14) Paragraph 1100(26)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(15) Subsections (1) to (10) apply to taxation years that end after March 20, 2013.

(16) Subsections (11) to (14) apply to fiscal periods that end after October 2010.

101. (1) Section 1101 of the Regulations is amended by adding the following after subsection (4f):

(4g) If one or more properties of a taxpayer are described in paragraph (a) of Class 41.2 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (in this subsection referred to as “single mine properties”), a separate class is prescribed for the single mine properties that

(a) were acquired for the purpose of gaining or producing income from that mine;

(b) would otherwise be included in Class 41.2 because of paragraph (a) of that class; and

(c) are not included in a separate class because of subsection (4h).

(4h) If more than one property of a taxpayer is described in paragraph (a) of Class 41.2 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (in this subsection referred to as “multiple mine properties”), a separate class is prescribed for the multiple mine properties that

(a) were acquired for the purpose of gaining or producing income from the particular mines; and

(b) would otherwise be included in Class 41.2 because of paragraph (a) of that class.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

102. (1) Paragraph 1102(8)(d) of the Regulations is replaced by the following:

(d) Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.

(2) Paragraph 1102(9)(d) of the Regulations is replaced by the following:

(d) Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.

(3) Subsection 1102(10) of the Regulations and the heading before it are repealed.

(4) The portion of subsection 1102(14) of the Regulations that is before paragraph (a) is replaced by the following:

(14) Subject to subsections (14.11) and (14.12), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayer

(5) Section 1102 of the Regulations is amended by adding the following after subsection (14.11):

(14.12) If, after March 20, 2013, a taxpayer acquires a property (other than an oil sands property) in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a) or (a.1) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply:

(a) there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; and

(b) there shall be included in Class 41.2 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a).

(6) Subsections (1), (2), (4) and (5) apply to property acquired after March 20, 2013.

(7) An election referred to in paragraph 1102(8)(d) or (9)(d) of the Regulations, as enacted by subsections (1) and (2), made by a taxpayer in respect of a property is deemed to have been filed in the manner described in those paragraphs for the taxation year in which the property was acquired if

(a) the election is filed with the Minister in writing on or before the day that is 180 days after the day on which this Act receives royal assent; and

(b) the property is

(i) an eligible mine development property as defined in subsection 1104(2) of the Regulations, as amended by subsection 103(1), or

(ii) described in Class 41.2 in Schedule II to the Regulations, as enacted by subsection 118(1).

(8) Subsection (3) applies in respect of expenditures incurred in taxation years that begin after December 21, 2012.

103. (1) Subsection 1104(2) of the Regulations is amended by adding the following in alphabetical order:

“eligible mine development property” means a property acquired by a taxpayer after March 20, 2013 and before 2018 for the purpose of gaining or producing income

(a) from a new mine or an expansion of a mine, if the property was acquired under a written agreement entered into by the taxpayer before March 21, 2013,

(b) from a new mine, if

(i) the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(ii) the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(c) from an expansion of a mine, if

(i) the construction for the expansion of the mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(ii) the engineering and design work for the construction of the expansion of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities); (bien admissible à l’aménagement d’une mine)

(2) The portion of subsection 1104(5) of the Regulations before paragraph (a) is replaced by the following:

(5) For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and Classes 10, 28 and 41 to 41.2 of Schedule II, a taxpayer’s “income from a mine”, or any expression referring to a taxpayer’s income from a mine, includes income reasonably attributable to

(3) The portion of subsection 1104(5.1) of the Regulations before paragraph (a) is replaced by the following:

(5.1) For the purposes of Classes 41 to 41.2 of Schedule II, a taxpayer’s “gross revenue from a mine” includes

(4) The portion of subsection 1104(7) of the Regulations before paragraph (a) is replaced by the following:

(7) For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 to 41.2 of Schedule II,

(5) Subsection 1104(8.1) of the Regulations is replaced by the following:

(8.1) For greater certainty, for the purposes of paragraphs (c) and (e) of Class 28 and paragraph (a) of Classes 41 to 41.2 in Schedule II, “production” means production in reasonable commercial quantities.

(6) The definition “biogas” in subsection 1104(13) of the Regulations is replaced by the following:

“biogas” means the gas produced by the anaerobic digestion of organic waste that is food and animal waste, manure, plant residue, pulp and paper by-product, separated organics, wood waste or sludge from an eligible sewage treatment facility. (biogaz)

(7) Paragraphs (a) and (b) of the definition “food and animal waste” in subsection 1104(13) of the Regulations are replaced by the following:

(a) generated during the preparation or processing of food or beverage for human or animal consumption;

(b) food or beverage that is no longer fit for human or animal consumption; or

(8) Subsection 1104(13) of the Regulations is amended by adding the following in alphabetical order:

“pulp and paper by-product” means tall oil soaps and crude tall oil that are produced as by-products of the processing of wood into pulp or paper and the by-product of a pulp or paper plant’s effluent treatment or its de-inking processes. (sous-produit d’usine de pâtes ou papiers)

“separated organics” means organic waste (other than waste that is considered to be toxic or hazardous waste under any law of Canada or a province) that could, but for its use in a system that converts biomass into biogas, be disposed of in an eligible waste management facility or eligible landfill site. (matières organiques séparées)

(9) Subsections (1) to (5) and (8) are deemed to have come into force on March 21, 2013.

(10) Subsections (6) and (7) apply in respect of property acquired after March 20, 2013 that has not been used or acquired for use before March 21, 2013.

104. (1) Paragraph 3003(c) of the Regulations is replaced by the following:

(c) Individual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children.

(2) Subsection (1) is deemed to have come into force on January 1, 2007.

105. Part XXX of the Regulations, as amended by section 104, is repealed.

106. (1) Paragraph 4600(1)(b) of the Regulations is replaced by the following:

(b) that is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.

(2) Paragraph 4600(2)(j) of the Regulations is replaced by the following:

(j) a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II;

(3) Subsections (1) and (2) apply to property acquired after March 20, 2013.

107. (1) The headings before section 4900 of the Regulations are replaced by the following:

PART XLIX

REGISTERED PLANS — INVESTMENTS

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

108. (1) Section 4900 of the Regulations is amended by adding the following after subsection (14):

(15) For the purposes of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii).

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

109. (1) Part L of the Regulations is repealed.

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

110. The portion of the definition “gross cost” in section 5204 of the Regulations after paragraph (b) is replaced by the following:

and, for the purposes of paragraph (a), if the partnership acquired the property from a person who was a majority-interest partner of the partnership immediately after the property was acquired, the capital cost to the partnership of the property is to be computed as if the property had been acquired at a capital cost equal to the gross cost to the person of the property, except that if the property was partnership property on December 31, 1971, its gross cost is its capital cost to the partnership as determined under subsection 20(3) or (5) of the Income Tax Application Rules. (coût brut)

111. (1) Section 5600 of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (c):

(d) the distribution by Fiat S.p.A., on January 1, 2011 to its common shareholders, of common shares of Fiat Industrial S.p.A;

(e) the distribution by Foster’s Group Limited, on May 9, 2011 to its common shareholders, of common shares of Treasury Wine Estates Limited; and

(f) the distribution by Telecom Corporation of New Zealand Limited, on November 30, 2011 to its common shareholders, of common shares of Chorus Limited.

(2) Subsection (1) is deemed to have come into force on January 1, 2011.

112. The Regulations are amended by adding the following before section 6501:

6500. For the purposes of paragraph 241(4)(j.2) of the Act, the following are prescribed laws of the Province of Quebec:

(a) An Act respecting the Québec Pension Plan, R.S.Q., c. R-9; and

(b) Individual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children.

113. (1) The Regulations are amended by adding the following after section 6701:

6701.1 Notwithstanding section 6701, a corporation that applies after March 20, 2013 for registration under a provincial act listed in that section is not a prescribed labour-sponsored venture capital corporation for the purposes of the definition “approved share” in subsection 127.4(1) of the Act and the definition “eligible investment” in subsection 204.8(1) of the Act.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

114. (1) Section 8200.1 of the Regulations is replaced by the following:

8200.1 For the purposes of subsection 13(18.1), the definition “Canadian renewable and conservation expense” in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, “prescribed energy conservation property” means property described in Class 43.1 or 43.2 in Schedule II.

(2) Subsection (1) is deemed to have come into force on December 21, 2012.

115. (1) The portion of subsection 8900(1) of the Regulations before paragraph (a) is replaced by the following:

8900. (1) For the purposes of subparagraph 110(1)(f)(iii) and paragraph 126(3)(a) of the Act, the following international organizations are prescribed:

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

116. (1) The portion of Class 10 in Sched- ule II to the Regulations after paragraph (f.2) and before paragraph (g) is replaced by the following:

and property (other than property included in Class 41, 41.1 or 41.2 or property included in Class 43 that is described in paragraph (b) of that Class) that would otherwise be included in another Class in this Schedule, that is

(2) Subsection (1) applies to property acquired after March 20, 2013.

117. (1) The portion of Class 41 in Sched- ule II to the Regulations before paragraph (a) is replaced by the following:

Property (other than property included in Class 41.1 or 41.2)

(2) Subsection (1) applies to property acquired after March 20, 2013.

118. (1) Schedule II to the Regulations is amended by adding the following after Class 41.1:

Property, other than an oil sands property or eligible mine development property,

(a) that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; or

(b) that is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

119. (1) Subparagraph (d)(viii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(viii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchang- ers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,

(2) The portion of subparagraph (d)(xiii) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following:

(xiii) property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, including equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a fan, a compressor, a heat exchanger, a biogas storage tank and equipment used to remove non-combustibles and contaminants from the gas, but not including

(3) Subsections (1) and (2) apply in respect of property acquired after March 20, 2013 that has not been used or acquired for use before March 21, 2013.

Coordinating Amendment

120. If this Act receives royal assent on or before January 1, 2014, then subsection 9(5) of the Jobs and Growth Act, 2012 is deemed never to have come into force and is repealed.

PART 2

EXCISE TAX ACT

121. (1) The Excise Tax Act is amended by adding the following after section 285:

285.01 (1) The following definitions apply in this section.

“electronic cash register” means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system.

“electronic suppression of sales device” means

(a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or

(b) a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that

(i) may be used to create a virtual second till, or

(ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent the actual or manipulated record of transactions in the electronic cash register.

(2) Every person that uses, or that knowingly, or under circumstances attributable to neglect, carelessness or wilful default, participates in, assents to or acquiesces in the use of, an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.

(3) Every person that acquires or possesses an electronic suppression of sales device or a right in respect of an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.

(4) Every person that designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person, or that supplies installation, upgrade or maintenance services for, an elec- tronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) or (c) applies, $10,000;

(b) unless paragraph (c) applies, $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 163.3(2) or (3) of the Income Tax Act; or

(c) $100,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 163.3(4) of the Income Tax Act.

(5) Despite section 296, if at any time the Minister assesses a penalty payable by a person under this section, the Minister is not to assess, at or after that time, another penalty payable by the person under this section that is in respect of an action of the person that occurred before that time.

(6) Except as otherwise provided in subsection (7), a person does not have a defence in relation to a penalty assessed under this section by reason that the person exercised due diligence to prevent the action from occurring.

(7) A person is not liable for a penalty under subsection (3) or (4) in respect of an action of the person if the person exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the action from occurring.

(8) For the purposes of this section, if an assessment of a penalty under this section is vacated, the penalty is deemed to have never been assessed.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

122. (1) Paragraph 298(1)(e) of the Act is replaced by the following:

(e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285, 285.01 or 285.1, more than four years after the person became liable to pay the penalty;

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

123. (1) The Act is amended by adding the following after section 327:

327.1 (1) The definitions in subsection 285.01(1) apply in this section.

(2) Every person that, without lawful excuse, the proof of which lies on the person,

(a) uses an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286,

(b) acquires or possesses an electronic suppression of sales device, or a right in respect of an electronic suppression of sales device, that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286,

(c) designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286,

(d) supplies installation, upgrade or maintenance services for an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286, or

(e) participates in, assents to or acquiesces in the commission of, or conspires with any person to commit, an offence described in any of paragraphs (a) to (d),

is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $10,000 and not more than $500,000 or to imprisonment for a term not exceeding two years, or to both.

(3) Every person that is charged with an offence described in subsection (2) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

(4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 285.1 or under a regulation made under this Part for the same action unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

(5) If, in any appeal under this Part, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and upon that filing the proceedings before the Tax Court are stayed pending final determination of the outcome of the prosecution.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

124. (1) Section 10 of Part VI of Schedule V to the Act is replaced by the following:

10. A supply made by a public sector body of any property or service if all or substantially all of the supplies of the property or service by the body are made for no consideration, but not including a supply of

(a) blood or blood derivatives; or

(b) a parking space if the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the body.

(2) Subsection (1) is deemed to have come into force on December 17, 1990.

PART 3

VARIOUS MEASURES

Division 1

Employment Insurance

Employment Insurance Act

125. (1) Paragraph 4(2)(a) of the Employment Insurance Act is replaced by the following:

(a) the average for the 12-month period ending on April 30 in the preceding year of the Average Weekly Earnings for each month in that period

(2) Paragraph 4(2)(b) of the Act is replaced by the following:

(b) the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

(3) Subsection 4(3) of the Act is replaced by the following:

(3) For years subsequent to the year in which the maximum yearly insurable earnings exceeds $39,000, before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under that subsection, multiplied by the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

126. (1) Subsection 66(1) of the Act is replaced by the following:

66. (1) Subject to subsection (7) and section 66.32, the Commission shall set the premium rate for each year in order to generate just enough premium revenue to ensure that, at the end of the seven-year period that commences at the beginning of that year, the total of the amounts credited to the Employment Insurance Operating Account after December 31, 2008 is equal to the total of the amounts charged to that Account after that date.

(2) Subsection 66(1.1) of the Act is replaced by the following:

(1.1) Despite subsection (1), the premium rate for the years 2015 and 2016 is 1.88%.

(1.2) Sections 66.1 to 66.31 apply in the years 2014 and 2015 even though the premium rates for the years 2015 and 2016 are set under subsection (1.1).

(3) Subsections 66(1.1) and (1.2) of the Act are repealed.

(4) The portion of subsection 66(2) of the Act before paragraph (a) is replaced by the following:

(2) The Commission shall set the premium rate based on

(5) Subsection 66(2) of the Act is amended by adding the following after paragraph (a):

(b) the actuary’s report provided under section 66.3 for that year;

(6) Paragraph 66(2)(e) of the Act is replaced by the following:

(e) any changes, announced by the Minister on or before July 22 in a year, to payments to be made under paragraph 77(1)(a), (b) or (c) during the following year; and

(7) Paragraph 66(2)(f) of the Act is replaced by the following:

(f) any other information that the Commission considers relevant.

(8) Section 66 of the Act is amended by adding the following after subsection (7):

(7.1) Despite subsection (7), the premium rate may be decreased by more than five one-hundredths of one per cent (0.05%) from 2016 to 2017.

(9) Subsection 66(7.1) of the Act is repealed.

(10) Subsection 66(9) of the Act is replaced by the following:

(9) On or before September 14 in a year, the Commission shall set the premium rate for the following year.

127. (1) The portion of subsection 66.1(1) of the Act before paragraph (a) is replaced by the following:

66.1 The Minister shall, on or before July 22 in a year, provide the actuary with the following information:

(2) Subsection 66.1(2) of the Act is repealed.

(3) Section 66.1 of the Act is replaced by the following:

66.1 (1) The Minister shall, on or before July 22 in a year, provide the actuary and the Commission with the following information:

(a) if the Minister has made an announcement referred to in paragraph 66(2)(e), the forecast change in the amount of the payments to be made during each of the following seven years under paragraph 77(1)(a), (b) or (c), as the case may be;

(b) the forecast costs to be paid under paragraphs 77(1)(d), (d.1) and (g) during each of the following seven years, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (a);

(c) the total of the amounts charged to the Employment Insurance Operating Account as of the last day of the most recent month for which that total is known by the Minister; and

(d) any prescribed information.

(2) On the recommendation of the Minister, the Governor in Council may make regulations prescribing information referred to in paragraph (1)(d).

128. (1) The portion of subsection 66.2(1) of the Act before paragraph (a) is replaced by the following:

66.2 (1) The Minister of Finance shall, on or before July 22 in a year, provide the actuary with the following information:

(2) Subsections 66.2(2) and (3) of the Act are replaced by the following:

(3) When a joint recommendation is made under subsection 66(1) in a year, the Minister of Finance shall provide the Governor in Council with the information that was provided to the actuary under subsection (1).

(3) Section 66.2 of the Act is replaced by the following:

66.2 (1) The Minister of Finance shall, on or before July 22 in a year, provide the actuary and the Commission with the following information:

(a) the most current available forecast values of the economic variables that are relevant to the determination under section 66 of a premium rate for the following year;

(b) the amounts forecast under subparagraphs 77.1(a)(i) and (ii) and the total estimated under subparagraph 77.1(a)(iii); and

(c) any prescribed information.

(2) On the recommendation of the Minister of Finance, the Governor in Council may make regulations prescribing information referred to in paragraph (1)(c).

129. The portion of section 66.3 of the Act before paragraph (a) is replaced by the following:

66.3 The actuary shall prepare actuarial forecasts and estimates for the purposes of sections 4, 66 and 69 and shall, on or before August 22 in a year, provide the Commission with a report that sets out

130. Section 66.31 of the Act is replaced by the following:

66.31 (1) The Commission shall, on or before September 14 in a year, make available to the public the report referred to in section 66.3 and a summary of that report.

(2) After the report and its summary are made available to the public, the Minister shall cause them to be laid before each House of Parliament on any of the next 10 days during which that House is sitting.

131. Sections 66.31 to 67 of the Act are replaced by the following:

66.31 (1) The Commission shall, on or before August 31 in a year, provide the Minister and the Minister of Finance with the report referred to in section 66.3 and a summary of that report.

(2) The Commission shall, on the day on which a premium rate is set under section 66 or 66.32, make available to the public the report and its summary.

(3) After a premium rate is set, the Minister shall cause the report and its summary to be laid before each House of Parliament on any of the next 10 days during which that House is sitting.

66.32 (1) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before September 30 in a year,

(a) if the Governor in Council considers it to be in the public interest, substitute a premium rate for the following year that is different from the one set by the Commission under section 66; or

(b) if the Commission has not set a premium rate under that section by September 14 in the year, set one for the following year.

(2) Subsection 66(7) does not apply to the setting of the premium rate under subsection (1).

66.4 If the calculation of a premium rate under section 66 or 66.32 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

66.5 As soon as possible after a premium rate is set under section 66 or 66.32, the Commission shall publish it in Part I of the Canada Gazette.

66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.32 or the premiums determined under sections 67 and 68.

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.32, as the case may be.

132. Section 66.5 of the Act is repealed.

133. Section 67 of the Act is replaced by the following:

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66.

134. The portion of section 77.1 of the Act before paragraph (a) is replaced by the following:

77.1 On or before July 22 in a year,

135. (1) Section 96 of the Act is amended by adding the following after subsection (8.93):

(8.94) If an employer’s premium is $15,000 or less for 2012, the Minister shall refund to the employer a portion of the premium for 2013 determined by the following formula if that amount is more than $2:

P2 – P1

where

P1       is the amount of the employer’s premium in 2012; and

P2       is the amount of the employer’s premium in 2013.

(8.95) For the purposes of subsection (8.94), P1 is equal to zero if a person was not required to pay an employer’s premium in 2012.

(8.96) A refund under subsection (8.94) shall not exceed $1,000.

(2) Subsection 96(13.1) of the Act is replaced by the following:

(13.1) Despite subsection (13), no interest shall be paid on refunds payable under subsection (8.7), (8.91) or (8.94).

136. Subsection 152.21(1) of the Act is replaced by the following:

152.21 (1) Every self-employed person who has entered into an agreement referred to in subsection 152.02(1) that has not been terminated or that is not deemed to have been terminated shall, in respect of every year, pay a self-employment premium equal to the amount determined under subsection (2) multiplied by the premium rate set under section 66 or 66.32, as the case may be.

Canada Employment Insurance Financing Board Act

137. The Canada Employment Insurance Financing Board Act is repealed.

Consequential Amendments

Canada Not-for-profit Corporations Act

138. Section 348 of the Canada Not-for-profit Corporations Act is repealed.

Jobs, Growth and Long-term Prosperity Act

139. (1) Subsection 609(2) of the Jobs, Growth and Long-term Prosperity Act is repealed.

(2) Subsection 609(6) of the Act is repealed.

140. Subsection 610(2) of the Act is repealed.

141. Subsection 611(2) of the Act is repealed.

142. Subsection 619(3) of the Act is repealed.

Jobs and Growth Act, 2012

143. (1) Subsection 433(2) of the Jobs and Growth Act, 2012 is repealed.

(2) Subsection 433(4) of the Act is repealed.

144. Subsection 434(2) of the Act is repealed.

145. (1) Subsection 435(3) of the Act is repealed.

(2) Subsection 435(5) of the Act is repealed.

(3) Subsection 435(7) of the Act is repealed.

(4) Subsection 435(9) of the Act is repealed.

146. (1) Subsection 436(2) of the Act is repealed.

(2) Subsection 436(6) of the Act is repealed.

(3) Subsection 436(8) of the Act is repealed.

147. (1) Subsection 437(2) of the Act is repealed.

(2) Subsection 437(4) of the Act is repealed.

(3) Subsection 437(6) of the Act is repealed.

148. Subsection 438(2) of the Act is repealed.

149. Subsections 439(2) and (3) of the Act are repealed.

150. (1) Subsection 440(2) of the Act is repealed.

(2) Subsection 440(4) of the Act is repealed.

151. Subsection 441(2) of the Act is repealed.

152. Subsection 442(2) of the Act is repealed.

153. Subsection 443(2) of the Act is repealed.

154. Sections 448 and 449 of the Act are repealed.

155. Subsection 461(2) of the Act is repealed.

156. Subsections 463(2) to (4) of the Act are repealed.

Employment Insurance (Fishing) Regulations

157. Subsection 13(1) of the Employment Insurance (Fishing) Regulations is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

(b) if the date of delivery of a catch falls within the qualifying period described in section 8 of the Act, the earnings of the fisher from employment as a fisher, as determined in accordance with subsections 5(2) and (3), shall be allocated equally to each day of the fishing trip; and

(c) the earnings allocated under paragraph (b) to any day falling within the qualifying period are deemed, for the purposes of subsection 14(2) of the Act, to be insurable earnings in the calculation period but are not to be used to determine the calculation period under subsection 14(4) of the Act.

Coming into Force

158. (1) Subsections 126(1), (4), (5), (7), (8) and (10), 127(3) and 128(3) and sections 131 and 136 come into force on April 1, 2016.

(2) Subsection 126(3) comes into force on January 1, 2017.

(3) Subsection 126(9) comes into force on January 1, 2018.

(4) Section 157 is deemed to have come into force on April 7, 2013.

Division 2

Financial Institutions (Conflicts of Interest)

Office of the Superintendent of Financial Institutions Act

159. Section 20 of the Office of the Superintendent of Financial Institutions Act is repealed.

Trust and Loan Companies Act

160. Paragraph 164(g) of the Trust and Loan Companies Act is repealed.

Bank Act

161. Paragraph 160(g) of the Bank Act is repealed.

162. Section 160.1 of the Act is repealed.

163. Paragraph 750(g) of the Act is repealed.

Insurance Companies Act

164. (1) Paragraph 168(1)(g) of the Insurance Companies Act is repealed.

(2) Subsection 168(3) of the Act is repealed.

165. Paragraph 797(g) of the Act is repealed.

Financial Consumer Agency of Canada Act

166. Section 15 of the Financial Consumer Agency of Canada Act is repealed.

Division 3

Financial Institutions (Investments)

Trust and Loan Companies Act

167. Section 451 of the Trust and Loan Companies Act is amended by adding the following after subsection (5):

(5.1) No company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 453(1)(j).

(5.2) If a company holds a substantial investment in an entity referred to in paragraph 453(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the company may continue to hold that substantial investment.

Bank Act

168. Section 466 of the Bank Act is amended by adding the following after subsection (5):

(5.1) No bank shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 468(1)(j).

(5.2) If a bank holds a substantial investment in an entity referred to in paragraph 468(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the bank may continue to hold that substantial investment.

169. Section 928 of the Act is amended by adding the following after subsection (4):

(4.1) No bank holding company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 930(1)(j).

(4.2) If a bank holding company holds a substantial investment in an entity referred to in paragraph 930(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the bank holding company may continue to hold that substantial investment.

Insurance Companies Act

170. Section 493 of the Insurance Companies Act is amended by adding the following after subsection (5):

(5.1) No company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 495(1)(j).

(5.2) If a company holds a substantial investment in an entity referred to in paragraph 495(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the company may continue to hold that substantial investment.

171. Section 552 of the Act is amended by adding the following after subsection (4):

(4.1) No society shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 554(1)(c).

(4.2) If a society holds a substantial investment in an entity referred to in paragraph 554(1)(c) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the society may continue to hold that substantial investment.

172. Section 969 of the Act is amended by adding the following after subsection (4):

(4.1) No insurance holding company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 971(1)(j).

(4.2) If an insurance holding company holds a substantial investment in an entity referred to in paragraph 971(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the insurance holding company may continue to hold that substantial investment.

Cooperative Credit Associations Act

173. Section 388 of the Cooperative Credit Associations Act is amended by adding the following after subsection (5):

(5.1) No association shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 390(1)(h).

(5.2) If an association holds a substantial investment in an entity referred to in paragraph 390(1)(h) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the association may continue to hold that substantial investment.

Division 4

Passports

Criminal Code

174. Subsection 57(5) of the Criminal Code is replaced by the following:

(5) In this section, “passport” has the same meaning as in section 2 of the Canadian Passport Order.

Amendment to the Department of Foreign Affairs, Trade and Development Act

175. Paragraph 11(1)(a) of the Department of Foreign Affairs, Trade and Development Act is replaced by the following:

(a) documents issued by the Minister of Citizenship and Immigration for travel purposes for which fees are payable; and

Division 5

Canada Labour Code

Amendments to the Act

176. (1) The definitions “health and safety officer” and “regional health and safety officer” in subsection 122(1) of the Canada Labour Code are repealed.

(2) The definition “danger” in subsection 122(1) of the Act is replaced by the following:

“danger” means any hazard, condition or activity that could reasonably be expected to be an imminent or serious threat to the life or health of a person exposed to it before the hazard or condition can be corrected or the activity altered;

177. (1) The portion of paragraph 125(1)(d) of the Act before subparagraph (i) is replaced by the following:

(d) post in a conspicuous place accessible to every employee

(2) Subparagraph 125(1)(d)(iii) of the Act is replaced by the following:

(iii) any other printed material related to health and safety that is prescribed or that may be directed by the Minister;

(3) Paragraph 125(1)(x) of the Act is replaced by the following:

(x) comply with every oral or written direction given to the employer by the Minister or an appeals officer concerning the health and safety of employees;

178. Paragraph 126(1)(i) of the Act is replaced by the following:

(i) comply with every oral or written direction of the Minister or an appeals officer concerning the health and safety of employees; and

179. The portion of subsection 127(1) of the Act before paragraph (a) is replaced by the following:

127. (1) Subject to subsection (2), if an employee is killed or seriously injured in a work place, no person shall, unless authorized to do so by the Minister, remove or in any way interfere with or disturb any wreckage, article or thing related to the incident except to the extent necessary to

180. (1) Subsection 127.1(7) of the Act is repealed.

(2) The portion of subsection 127.1(8) of the Act before paragraph (a) is replaced by the following:

(8) The employee or employer may refer a complaint that there has been a contravention of this Part to the Minister in the following circumstances:

(3) Subsection 127.1(9) of the Act is replaced by the following:

(9) The Minister shall investigate the complaint referred to in subsection (8).

(4) The portion of subsection 127.1(10) of the Act before paragraph (a) is replaced by the following:

(10) On completion of the investigation, the Minister

(5) Paragraphs 127.1(10)(b) and (c) of the English version of the Act are replaced by the following:

(b) may, if in the Minister’s opinion it is appropriate, recommend that the employee and employer resolve the matter between themselves; or

(c) shall, if the Minister concludes that a danger exists as described in subsection 128(1), issue directions under subsection 145(2).

(6) Subsection 127.1(11) of the Act is replaced by the following:

(11) For greater certainty, nothing in this section limits the Minister’s authority under section 145.

181. (1) Subsection 128(8) of the Act is replaced by the following:

(7.1) The employer shall, immediately after being informed of a refusal under subsection (6), investigate the matter in the presence of the employee who reported it. Immediately after concluding the investigation, the employer shall prepare a written report setting out the results of the investigation.

(8) If, following its investigation, the employer agrees that a danger exists, the employer shall take immediate action to protect employees from the danger. The employer shall inform the work place committee or the health and safety representative of the matter and the action taken to resolve it.

(2) Subsection 128(10) of the Act is replaced by the following:

(10) If the work place committee receives a report under subsection (9), it shall designate, to investigate the matter immediately in the presence of the employee who reported it, two members of the committee, namely, one employee member from those chosen under paragraph 135.1(1)(b) and one employer member who is not from those chosen under that paragraph. If the health and safety representative receives a report under subsection (9), they shall immediately investigate the matter in the presence of the employee who reported it and a person who is designated by the employer.

(10.1) Immediately after concluding the investigation, the members of the work place committee designated under subsection (10) or the health and safety representative shall provide a written report to the employer that sets out the results of the investigation and their recommendations, if any.

(10.2) After receiving a report under subsection (10.1) or under this subsection, the employer may provide the members of the work place committee or the health and safety representative with additional information and request that they reconsider their report taking into consideration that additional information. If the work place committee members or the health and safety representative considers it appropriate, they may provide a revised report to the employer.

(3) Subsection 128(11) of the English version of the Act is replaced by the following:

(11) If more than one employee has made a report of a similar nature, those employees may designate one employee from among themselves to be present at the investigation.

(4) Subsections 128(12) to (14) of the Act are replaced by the following:

(12) The employer, the members of a work place committee or the health and safety representative may proceed with their investigation in the absence of the employee who reported the matter if that employee or a person designated under subsection (11) chooses not to be present.

(13) After receiving a report under subsection (10.1) or (10.2) and taking into account any recommendations in it, the employer, if it does not intend to provide additional information under subsection (10.2), shall make one of the following decisions:

(a) agree that a danger exists;

(b) agree that a danger exists but consider that the circumstances provided for in paragraph (2)(a) or (b) apply;

(c) determine that a danger does not exist.

(14) If the employer agrees that a danger exists under paragraph (13)(a), the employer shall take immediate action to protect employees from the danger. The employer shall inform the work place committee or the health and safety representative of the matter and the action taken to resolve it.

(15) If the employer makes a decision under paragraph (13)(b) or (c), the employer shall notify the employee in writing. If the employee disagrees with the employer’s decision, the employee is entitled to continue the refusal, subject to subsections 129(1.2), (1.3), (6) and (7).

(16) If the employee continues the refusal under subsection (15), the employer shall immediately inform the Minister and the work place committee or the health and safety representative of its decision and the continued refusal. The employer shall also provide a copy of the report on the matter prepared under subsection (7.1) to the Minister along with a copy of any report referred to in subsection (10.1) or (10.2).

182. (1) Subsection 129(1) of the Act is replaced by the following:

129. (1) If the Minister is informed of the employer’s decision and the continued refusal under subsection 128(16), the Minister shall investigate the matter unless the Minister is of the opinion that

(a) the matter is one that could more appropriately be dealt with, initially or completely, by means of a procedure provided for under Part I or III or under another Act of Parliament;

(b) the matter is trivial, frivolous or vexatious; or

(c) the continued refusal by the employee under 128(15) is in bad faith.

(1.1) If the Minister does not proceed with an investigation, the Minister shall inform the employer and the employee in writing, as soon as feasible, of that decision. The employer shall then inform in writing, as the case may be, the members of the work place committee who were designated under subsection 128(10) or the health and safety representative and the person who is designated by the employer under that subsection of the Minister’s decision.

(1.2) On being informed of the Minister’s decision not to proceed with an investigation, the employee is no longer entitled to continue their refusal under subsection 128(15).

(1.3) If the Minister proceeds with an investigation, the employee may continue to refuse, for the duration of the investigation, to use or operate the machine or thing, to work in the place or to perform the activity that may constitute a danger.

(1.4) If the Minister proceeds with an investigation, the Minister may do so in the presence of the employer, the employee and one other person who is

(a) an employee member of the work place committee;

(b) the health and safety representative; or

(c) if a person mentioned in paragraph (a) or (b) is not available, another employee from the work place who is designated by the employee.

(2) Subsection 129(2) of the French version of the Act is replaced by the following:

(3) Subsections 129(3) and (4) of the Act are replaced by the following:

(3) The Minister may proceed with an investigation in the absence of any person mentioned in subsection (1.4) or (2) if that person chooses not to be present.

(3.1) During the Minister’s investigation, the Minister shall verify if there are previous or ongoing investigations in relation to the same employer that involve substantially the same issues and may

(a) if there was a previous investigation, rely on the findings of that investigation to decide whether a danger exists; or

(b) if there is an ongoing investigation, combine that investigation with the investigation the Minister is conducting and issue a single decision.

(4) The Minister shall, on completion of an investigation made under subsection (1), make one of the decisions referred to in paragraphs 128(13)(a) to (c) and shall immediately give written notification of the decision to the employer and the employee.

(4) The portion of subsection 129(5) of the Act before paragraph (a) is replaced by the following:

(5) If the employee has exercised their right under subsection (1.3), the employer may, during the investigation and until the Minister has issued a decision, require that the employee concerned remain at a safe location near the place in respect of which the investigation is being made or assign the employee reasonable alternative work, and shall not assign any other employee to use or operate the machine or thing, work in that place or perform the activity referred to in subsection (1) unless

(5) Subsections 129(6) and (7) of the Act are replaced by the following:

(6) If the Minister makes a decision referred to in paragraph 128(13)(a), the Minister shall issue the directions under subsection 145(2) that the Minister considers appropriate, and an employee may continue to refuse to use or operate the machine or thing, work in that place or perform that activity until the directions are complied with or until they are varied or rescinded under this Part.

(7) If the Minister makes a decision referred to in paragraph 128(13) (b) or (c), the employee is not entitled under section 128 or this section to continue to refuse to use or operate the machine or thing, work in that place or perform that activity, but the employee, or a person designated by the employee for the purpose, may appeal the decision, in writing, to an appeals officer within 10 days after receiving notice of the decision.

183. Subsection 133(3) of the Act is replaced by the following:

(3) A complaint in respect of the exercise of a right under section 128 or 129 may not be made unless the employee has complied with subsection 128(6) or the Minister has received the reports referred to in subsection 128(16), as the case may be, in relation to the matter that is the subject-matter of the complaint.

184. Paragraph 134.1(4)(f) of the Act is replaced by the following:

(f) shall cooperate with the Minister;

185. (1) The portion of subsection 135(6) of the Act before paragraph (b) is replaced by the following:

(6) If, under a collective agreement or any other agreement between an employer and the employer’s employees, a committee of persons has been appointed and the committee has, in the opinion of the Minister, a responsibility for matters relating to health and safety in the work place to such an extent that a work place committee established under subsection (1) for that work place would not be necessary,

(a) the Minister may, in writing, exempt the employer from the requirements of subsection (1) in respect of that work place;

(2) Paragraph 135(7)(h) of the Act is replaced by the following:

(h) shall cooperate with the Minister;

186. (1) Subsection 135.1(4) of the Act is replaced by the following:

(4) If a trade union fails to select a person under subparagraph (1)(b)(ii), the Minister may notify in writing the local branch of the trade union, and shall send a copy of any such notification to the trade union’s national or international headquarters and to the employer, indicating that the committee is not established until a person is selected in accordance with that subparagraph.

(2) Subsection 135.1(9) of the Act is replaced by the following:

(9) A committee shall ensure that accurate records are kept of all of the matters that come before it and that minutes are kept of its meetings. The committee shall make the minutes and records available to the Minister at the Minister’s request.

187. (1) Subsection 136(3) of the Act is replaced by the following:

(3) If a trade union fails to select a person under subsection (2), the Minister may so notify in writing the local branch of the trade union. The Minister shall send a copy of the notification to the trade union’s national or international headquarters and to the employer.

(2) Paragraph 136(5)(h) of the Act is replaced by the following:

(h) shall cooperate with the Minister;

188. Section 137 of the Act is replaced by the following:

137. Despite sections 135 and 136, if an employer controls more than one work place or the size or nature of the operations of the employer or those of the work place precludes the effective functioning of a single work place committee or health and safety representative, as the case may be, for those work places, the employer shall, subject to the approval or in accordance with the direction of the Minister, establish or appoint in accordance with section 135 or 136, as the case may be, a work place committee or health and safety representative for the work places that are specified in the approval or direction.

189. Subsection 137.1(5) of the Act is replaced by the following:

(5) No person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), is eligible to be appointed to the Commission or as alternate chairperson under subsection (2.1), or to be designated for the purposes of subsection 137.2(1) or (2).

190. Section 140 of the Act and the heading before it are replaced by the following:

Exercise of Minister’s Powers in Relation to Health and Safety

140. (1) Subject to any terms and conditions specified by the Minister, the Minister may delegate to any qualified person or class of persons any of the powers, duties or functions the Minister is authorized to exercise or perform for the purposes of this Part.

(2) Subject to subsection (3), the Minister may, with the approval of the Governor in Council, enter into an agreement with any province or any provincial body specifying the terms and conditions under which the Minister may delegate to a person employed by that province or provincial body the powers, duties or functions that the Minister is authorized to exercise or perform for the purposes of this Part.

(3) The powers, duties or functions of the Minister provided for in section 130, subsections 135(3), 137.1(1) to (2.1), and (7) to (9), 137.2(4), 138(1) to (2) and (4) to (6), 140(1), (2) and (4), 144(1) and 149(1), sections 152 and 155 and subsections 156.1(1), 157(3) and 159(2), shall not be the subject of an agreement under subsection (2).

(4) The Minister may provide any person to whom powers, duties or functions have been delegated under subsection (1), or under an agreement entered into under subsection (2), with a certificate of authority and, when exercising those powers or performing those duties or functions, that person shall show the certificate to any person who asks to see it.

(5) A person to whom powers, duties or functions have been delegated under subsection (1), or under an agreement entered into under subsection (2), is not personally liable for anything done or omitted to be done by them in good faith in the actual or purported exercise of those powers or performance of those duties or functions.

(6) Despite subsection (5), and for greater certainty, Her Majesty in right of Canada is not relieved of any civil liability to which Her Majesty in right of Canada may otherwise be subject.

191. (1) The portion of subsection 141(1) of the Act before paragraph (a) is replaced by the following:

141. (1) Subject to section 143.2, the Minister may, in carrying out the Minister’s duties and at any reasonable time, enter any work place controlled by an employer and, in respect of any work place, may

(2) Paragraph 141(1)(c) of the English version of the Act is replaced by the following:

(c) be accompanied or assisted by any person and bring any equipment that the Minister deems necessary to carry out the Minister’s duties;

(3) Paragraphs 141(1)(f) to (j) of the English version of the Act are replaced by the following:

(f) direct the employer to ensure that any place or thing specified by the Minister not be disturbed for a reasonable period pending an examination, test, inquiry, investigation or inspection in relation to the place or thing;

(g) direct any person not to disturb any place or thing specified by the Minister for a reasonable period pending an examination, test, inquiry, investigation or inspection in relation to the place or thing;

(h) direct the employer to produce documents and information relating to the health and safety of the employer’s employees or the safety of the work place and to permit the Minister to examine and make copies of or take extracts from those documents and that information;

(i) direct the employer or an employee to make or provide statements, in the form and manner that the Minister may specify, respecting working conditions and material and equipment that affect the health or safety of employees;

(j) direct the employer or an employee or a person designated by either of them to accompany the Minister while the Minister is in the work place; and

(4) Subsection 141(2) of the Act is replaced by the following:

(2) The Minister may issue a direction under subsection (1) whether or not the Minister is in the work place at the time the direction is issued.

(5) Subsection 141(3) of the English version of the Act is replaced by the following:

(3) On request by the person from whom material or equipment was taken or removed for testing under paragraph (1)(d), the Minister shall return that material or equipment to the person after testing is completed unless it is required for the purposes of a prosecution under this Part.

(6) Subsections 141(4) to (9) of the Act are replaced by the following:

(4) The Minister shall investigate every death of an employee that occurred in the work place or while the employee was working, or that was the result of an injury that occurred in the work place or while the employee was working.

(5) If the death results from a motor vehicle accident on a public road, as part of the investigation the Minister shall obtain a copy of any police report as soon as possible after the accident.

(6) Within 10 days after completing a written report on the findings of an inquiry or investigation, the Minister shall provide the employer and the work place committee or the health and safety representative with a copy of the report.

192. (1) The portion of subsection 141.1(1) of the Act before paragraph (a) is replaced by the following:

141.1 (1) If the Minister conducts an inspection of the work place at the work place, it shall be done in the presence of

(2) Paragraphs 141.1(1)(a) and (b) of the French version of the Act are replaced by the following:

(3) Subsection 141.1(2) of the Act is replaced by the following:

(2) The Minister may proceed with an inspection in the absence of any person mentioned in subsection (1) if that person chooses not to be present.

193. Sections 142 to 143.1 of the Act are replaced by the following:

142. The person in charge of a work place and every person employed at, or in connection with, a work place shall give all reasonable assistance to

(a) every appeals officer and the Minister to enable them to carry out their duties under this Part; and

(b) every person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

143. No person shall obstruct or hinder, or make a false or misleading statement either orally or in writing to

(a) an appeals officer or the Minister engaged in carrying out their duties under this Part; or

(b) any person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

143.1 No person shall prevent an employee from providing information to

(a) an appeals officer or the Minister engaged in carrying out their duties under this Part; or

(b) any person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

194. (1) Subsection 144(1) of the Act is replaced by the following:

144. (1) No person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), and no person who has accompanied or assisted that person in exercising those powers or performing those duties or functions may be required to give testimony in a civil suit with regard to information obtained in exercising those powers or performing those duties or functions, except with the written permission of the Minister.

(1.1) The Minister shall not be required to give testimony in a civil suit with regard to information obtained in the exercise of powers or the performance of duties or functions the Minister is authorized to exercise or perform under this Part, except for those powers, duties or functions that shall not be the subject of an agreement entered into under subsection 140(2).

(2) Subsections 144(3) to (5) of the Act are replaced by the following:

(3) Subject to subsection (4), none of the Minister, an appeals officer who is admitted to a work place under the powers conferred by section 141 and a person who is admitted to a work place under the powers conferred by section 141 that are delegated to them under subsection 140(1), or under an agreement entered into under subsection 140(2), and no person accompanying them, shall disclose to any person any information obtained in the work place by the Minister, officer or person with regard to any secret process or trade secret, except for the purposes of this Part or as required by law.

(4) All information that, under the Hazard- ous Materials Information Review Act, an employer is exempt from disclosing under paragraph 125.1(d) or (e) of this Act or under paragraph 13(a) or (b) or 14(a) or (b) of the Hazardous Products Act and that is obtained in a work place under section 141 is privileged and, notwithstanding the Access to Information Act or any other Act or law, shall not be disclosed to any other person except for the purposes of this Part.

(5) No person shall, except for the purposes of this Part or for the purposes of a prosecution under this Part, publish or disclose the results of an analysis, examination, testing, inquiry, investigation or sampling made or taken under section 141.

195. (1) The portion of subsection 145(1) of the Act before paragraph (a) is replaced by the following:

145. (1) If the Minister is of the opinion that a provision of this Part is being contravened or has recently been contravened, the Minister may direct the employer or employee concerned, or both, to

(2) The portion of subsection 145(1.1) of the English version of the Act before paragraph (a) is replaced by the following:

(1.1) If the Minister has issued a direction orally, the Minister shall provide a written version of it

(3) The portion of subsection 145(2) of the Act before paragraph (a) is replaced by the following:

(2) If the Minister considers that the use or operation of a machine or thing, a condition in a place or the performance of an activity constitutes a danger to an employee while at work,

(4) The portion of paragraph 145(2)(a) of the English version of the Act before subparagraph (i) is replaced by the following:

(a) the Minister shall notify the employer of the danger and issue directions in writing to the employer directing the employer, immediately or within the period that the Minister specifies, to take measures to

(5) Paragraph 145(2)(b) of the English version of the Act is replaced by the following:

(b) the Minister may, if the Minister considers that the danger or the hazard, condition or activity that constitutes the danger cannot otherwise be corrected, altered or protected against immediately, issue a direction in writing to the employer directing that the place, machine, thing or activity in respect of which the direction is issued not be used, operated or performed, as the case may be, until the Minister’s directions are complied with, but nothing in this paragraph prevents the doing of anything necessary for the proper compliance with the direction.

(6) Subsections 145(2.1) to (4) of the Act are replaced by the following:

(2.1) If the Minister considers that the use or operation of a machine or thing by an employee, a condition in a place or the performance of an activity by an employee constitutes a danger to the employee or to another employee, the Minister shall, in addition to the directions issued under paragraph (2)(a), issue a direction in writing to the employee to discontinue the use, operation or activity or cease to work in that place until the employer has complied with the directions issued under that paragraph.

(3) If the Minister issues a direction under paragraph (2)(a), the Minister shall affix or cause to be affixed to or near the place, machine or thing in respect of which the direction is issued, or in the area in which the activity in respect of which the direction is issued is performed, a notice of danger in the form and containing the information that the Minister may specify, and no person shall remove the notice unless authorized to do so by the Minister.

(4) If the Minister issues a direction under paragraph (2)(b) in respect of a place, machine, thing or activity, the employer shall cause the use of the place, the use or operation of the machine or thing or the performance of the activity to be discontinued, and no person shall use or operate the machine or thing, work in that place or perform the activity until the measures directed by the Minister have been taken.

(7) The portion of subsection 145(5) of the Act before paragraph (b) is replaced by the following:

(5) If the Minister issues a direction in writing under subsection (1) or (2) or makes a report in writing to an employer on any matter under this Part, the employer shall without delay

(a) cause a copy or copies of the direction or report to be posted in a conspicuous place accessible to every employee;

(8) Subsections 145(6) to (8) of the Act are replaced by the following:

(6) If the Minister issues a direction under subsection (1), (2) or (2.1) or makes a report referred to in subsection (5) in respect of an investigation made by the Minister following a complaint, the Minister shall immediately provide a copy of the direction or report to each person, if any, whose complaint led to the investigation.

(7) If the Minister issues a direction to an employee under subsection (1) or (2.1), the Minister shall immediately provide a copy of the direction to the employee’s employer.

(8) If the Minister issues a direction under subsection (1), (2) or (2.1) or makes a report referred to in subsection (5), the Minister may require the employer or the employee to whom the direction is issued or to whom the report relates to respond in writing to the direction or report, within the time that the Minister may specify. The employer or employee shall provide a copy of the response to the policy committee and a copy to the work place committee or the health and safety representative.

196. Subsection 145.1(2) of the Act is replaced by the following:

(2) For the purposes of sections 146 to 146.5, an appeals officer has all of the powers, duties and functions of the Minister under this Part, except for those referred to in subsection (1), section 130, subsections 135(3), 137.1(1) to (2.1), and (7) to (9), 137.2(4), 138(1) to (2) and (4) to (6), 140(1), (2) and (4), 144(1) and 149(1), sections 152 and 155 and subsections 156.1(1), 157(3) and 159(2).

(3) An appeals officer is not personally liable for anything done or omitted to be done by the officer in good faith under the authority or purported authority of this Part.

197. Subsection 146(1) of the Act is replaced by the following:

146. (1) An employer, employee or trade union that feels aggrieved by a direction issued by the Minister under this Part may appeal the direction in writing to an appeals officer within 30 days after the date of the direction being issued or confirmed in writing.

198. Subsection 157(6) of the Act is replaced by the following:

(6) Regulations made under this section that prescribe or incorporate a standard but that require the standard to be complied with only to the extent that compliance is practicable or reasonably practicable in circumstances governed by the standard may require the employer to report to the Minister the reason that full compliance is not practicable or reasonably practicable in particular circumstances.