Regulations Amending the Canada Grain Regulations (Miscellaneous Program): SOR/2021-124

Canada Gazette, Part II, Volume 155, Number 13

Registration
SOR/2021-124 June 10, 2021

CANADA GRAIN ACT

P.C. 2021-519 June 10, 2021

The Canadian Grain Commission, pursuant to section 83.2 footnote a and subsection 116(1) footnote b of the Canada Grain Act footnote c, makes the annexed Regulations Amending the Canada Grain Regulations (Miscellaneous Program).

Winnipeg, May 14, 2021

Doug Chorney
Chief Commissioner

Patty Rosher
Assistant Chief Commissioner

Lonny McKague
Commissioner

His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to section 83.2 footnote a and subsection 116(1) footnote b of the Canada Grain Act footnote c, approves the making of the annexed Regulations Amending the Canada Grain Regulations (Miscellaneous Program) by the Canadian Grain Commission.

Regulations Amending the Canada Grain Regulations (Miscellaneous Program)

Amendments

1 (1) Subsection 21(1) of the Canada Grain Regulations footnote 1 is replaced by the following:

21 (1) Each applicant for a licence shall submit to the Commission, no later than the 15th day of the month prior to the commencement date of the licence period, specimens of all tickets, receipts, reports of sales and any other forms to be used by the licensee under its licence.

(2) Subsection 21(3) of the Regulations is replaced by the following:

(3) Each applicant for a licence shall submit to the Commission, no later than the 15th day of the month prior to the commencement date of the licence period, the licence fee set out in Schedule 1 and the security fixed by the Commission under section 45 of the Act.

2 Section 24 of the Regulations is replaced by the following:

24 Every month, each licensed grain dealer shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the grain dealer's operations during the preceding month.

3 Section 25 of the Regulations is replaced by the following:

25 Every week, each process elevator licensee shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the licensee's operations during the preceding week.

4 Section 26 of the Regulations is replaced by the following:

26 Each primary elevator licensee shall submit to the Commission

5 Section 27 of the Regulations is replaced by the following:

27 Every day, the operator of a terminal elevator shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the elevator's operations during the preceding day.

6 Subsection 33(1) of the Regulations is replaced by the following:

33 (1) Every cash purchase ticket or primary elevator receipt issued by the operator of a licensed primary elevator shall be set out in accordance with the document entitled Cash Purchase Ticket or Combined Primary Elevator Receipt, as appropriate, published by the Commission, as amended from time to time.

7 Subsection 39(1) of the Regulations is replaced by the following:

39 (1) If, in accordance with section 63 of the Act, grain is lawfully offered for storage at a licensed primary elevator and a request is made that it be cleaned, the elevator receipt that is required to be issued under that section shall be a combined primary elevator receipt set out in accordance with the document entitled Combined Primary Elevator Receipt, published by the Commission, as amended from time to time, and endorsed as follows:

“To be cleaned before being shipped or settled for.”

8 Section 44 of the Regulations is replaced by the following:

44 A grain receipt or a cash purchase ticket that is required by subsection 78(2) of the Act to be issued by the operator of a licensed process elevator on the receipt of grain from a producer into the elevator shall be issued on delivery of the grain by the producer and shall be set out in accordance with the document entitled Grain Receipt or Cash Purchase Ticket, as appropriate, published by the Commission, as amended from time to time.

9 Subsection 45(2) of the Regulations is replaced by the following:

(2) A grain receipt or a cash purchase ticket that is required by subsection 81(1) of the Act to be issued by a licensed grain dealer shall be issued on receipt of western grain delivered by a producer or on being entitled to western grain delivered to an elevator by a producer, and shall be set out in accordance with the document entitled Grain Receipt or Cash Purchase Ticket, as appropriate, published by the Commission, as amended from time to time.

10 Subparagraph 57(a)(i) of the Regulations is replaced by the following:

11 Section 58 of the Regulations is replaced by the following:

58 A terminal elevator receipt shall be set out in accordance with the document entitled Terminal Elevator Receipt, published by the Commission, as amended from time to time.

12 Subsection 65(4) of the Regulations is replaced by the following:

(4) The declaration must be made and provided at least once for every crop year, no later than the date of the first delivery of grain to which the declaration applies.

13 Subsection 68(1) of the Regulations is replaced by the following:

68 (1) One or more producers of grain who wish to apply for a railway car under section 87 of the Act shall send to the Commission a completed application in the document entitled Application for Producer to Obtain Railway Cars, published by the Commission, as amended from time to time.

14 Schedule 4 to the Regulations is repealed.

Coming into Force

15 These Regulations come into force on August 1, 2021, but if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

On July 1, 2020, the Canada Grain Act (the CGA) was amended to establish the authority, and its associated requirements, for the Canadian Grain Commission (the CGC) to incorporate by reference any document. Subsection 118.1(1) of the CGA states that a regulation made by the Commission under the CGA may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time. This authority improves flexibility and facilitates the CGC's responsiveness to grain sector needs. Given this authority, amendments were made to the Canada Grain Regulations (the CGR) to incorporate by reference a “Declaration Form” for persons who sell or deliver grain, including CGC licensees. Additionally, the CGC incorporated by reference two forms in Schedule 4 of the CGR, Form 12 (Certificate for Canadian Grain) and Form 13 (Certificate Final for Canadian Grain).

Stemming from these amendments, the remaining six forms in Schedule 4 will be repealed, and modernized forms that reflect current industry and CGC operational practices and improve clarity will be incorporated by reference.

In addition, several minor technical amendments to the Regulations are being proposed to clarify and reflect current operational, administrative, and reporting practices for CGC-licensed grain companies.

Objectives

The amendments have the following objectives:

Description and rationale

Forms in Schedule 4

The forms in Schedule 4 will be repealed and updated forms will be incorporated by reference for Grain Receipt, Cash Purchase Ticket, Combined Primary Elevator Receipt, Terminal Elevator Receipt, Application for Producer to Obtain Railway Cars, and Special Bin Agreement. Amendments will also be made to the CGR to replace all references to Schedule 4 forms with references to the appropriate incorporated by reference documents.

Repealing Schedule 4 and incorporating by reference updated forms will improve flexibility and facilitate the CGC's responsiveness to grain sector needs while ensuring that the forms reflect current industry and CGC operational practices, are user-friendly, and easy to understand. Updates to forms will remove outdated fields; add an option for electronic signature; provide for the inclusion of a licensee email address; clarify wording of existing fields (e.g. change “location” to “delivery location”); and make minor formatting improvements. All fields on the forms will continue to be mandatory as per current licensing requirements, but licensees will have the flexibility to customize the forms to add additional information based on their business needs.

Application for a licence

Subsections 21(1) and 21(3) will be amended to replace the phrase “Each applicant for a licence shall submit to the Commission, at least 10 days before the commencement date of the licence period …” with “Each applicant for a licence shall submit to the Commission, on or before the 15th of the month prior to the commencement date of the licence period …”. This amendment aligns the Regulations with long-standing industry and CGC operational practices and provides greater clarity for licensing applicants on the submission requirements.

In addition, subsection 21(1) will be amended to remove the requirement for licence applicants to submit “notes” and “waivers” to the Commission as part of the licensing process. As the requirement to submit these documents is operationally obsolete, this change updates the Regulations to reflect current requirements.

Licensee reports

Sections 24, 25, 26 and 27 will be amended to make the language consistent across all sections with respect to reporting instructions on acceptable format and manner. Specifically,

Declaration respecting grain

In addition, subsection 65(4) will be amended by removing the phrase “… and no earlier than the start of the crop year during which the grain to which the declaration applies is harvested.” Removing the requirement that a declaration be completed no earlier than the start of the crop year aligns this section with current operational grain delivery and contracting practices. In practice, licensees often set up grain delivery contracts with producers and obtain declarations prior to the start of a crop year. This change responds to a concern raised by licensees when the declaration requirement came into effect in 2020.

One-for-one rule and small business lens

The one-for-one rule does not apply to these amendments, as these forms already exist and accordingly there is no change in administrative costs or burden to businesses. Analysis under the small business lens determined that the amendments will not impact small businesses in Canada.

Contact

Melanie Gustafson
Acting Manager
Policy and Planning
Canadian Grain Commission
303 Main Street
Winnipeg, Manitoba
R3C 3G8
Telephone: 204‑292‑5721