Canada Grain Act (R.S.C., 1985, c. G-10)

Prohibitions, Offences and Punishment

Marginal note:Prohibition respecting grade names

• 102 (1) No person shall, in the purchase or sale of grain, use a grade name established by or under this Act in any record or acknowledgement of the receipt or discharge of grain unless the person is licensed under this Act.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply to a sale of grain by a producer who produced the grain.

Marginal note:Prohibition respecting forms

103 No person other than a licensee shall issue a cash purchase ticket, an elevator receipt or a grain receipt or any other document that so closely resembles one of them that confusion may be caused.

• (2) [Repealed, R.S., 1985, c. 37 (4th Supp.), s. 26]

Marginal note:Prohibitions respecting elevator operations

104 No operator of a licensed elevator shall

• (a) issue a cash purchase ticket acknowledging the purchase of any grain or an elevator receipt or other document purporting to acknowledge the receipt of any grain if the grain has not been purchased or received into the elevator;

• (b) permit to be outstanding in respect of a quantity of grain in the elevator more than one cash purchase ticket or more than one elevator receipt or other document acknowledging receipt of the grain;

• (c) except under the regulations or an order of the Commission, receive into or discharge from the elevator any grain, grain product or screenings that is infested or contaminated or that may reasonably be regarded as being infested or contaminated; or

• (d) except with the permission of the Commission, mix with any grain in the elevator any material other than grain.

Marginal note:General prohibitions

105 No person shall

• (a) use any grade name established by or under this Act in dealing in, handling or describing any grain that does not possess the characteristics of grain of that grade;

• (b) use any name, or name and number, so nearly resembling any grade name as to be calculated or likely to cause confusion with that grade name;

• (c) offer for sale or storage or submit for official inspection grain that has been so treated, mixed or dealt with as to conceal its true characteristics; or

• (d) except under the regulations or an order of the Commission, deliver to or receive from an elevator any grain, grain product or screenings that is infested or contaminated or that may reasonably be regarded as being infested or contaminated.

105.1 [Repealed, 2011, c. 25, s. 31]

Marginal note:Fraudulent or false acts

106 No person shall

• (a) make such representation in respect of grain, or so handle grain, that the representation or handling might reasonably be regarded as being a misleading representation made for the purpose of obtaining the issuance of an incorrect inspection certificate;

• (b) represent any grain inspection certificate or end-use certificate as relating to any grain other than grain to which it properly relates; or

• (c) being the operator of an elevator or an inspector or a weigher,

  • (i) knowingly state an incorrect weight in respect of any grain delivered into or discharged from an elevator, or

  • (ii) knowingly take or claim excessive dockage from grain received into an elevator.

Marginal note:Offence and punishment

• 107 (1) Every operator of an elevator who contravenes or fails to comply with section 72 is guilty of an offence and

  • (a) if an individual, is liable

    • (i) on summary conviction, to a fine not exceeding nine thousand dollars or to imprisonment for a term not exceeding two years, or to both, or

    • (ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars or to imprisonment for a term not exceeding four years, or to both; or

  • (b) if a corporation, is liable

    • (i) on summary conviction, to a fine not exceeding thirty thousand dollars, or

    • (ii) on conviction on indictment, to a fine not exceeding sixty thousand dollars.

• (1.1) [Repealed, 2011, c. 25, s. 32]

• Marginal note:Idem

  (2) Every person who contravenes any provision of this Act, other than section 72, or of the regulations or any order of the Commission, other than an order for the payment of any money or apportionment of any loss, is guilty of an offence and

  • (a) if an individual, is liable

    • (i) on summary conviction, to a fine not exceeding six thousand dollars or to imprisonment for a term not exceeding one year, or to both, or

    • (ii) on conviction on indictment, to a fine not exceeding twelve thousand dollars or to imprisonment for a term not exceeding two years, or to both; or

  • (b) if a corporation, is liable

    • (i) on summary conviction, to a fine not exceeding nine thousand dollars, or

    • (ii) on conviction on indictment, to a fine not exceeding eighteen thousand dollars.

Marginal note:Offence by manager, employee, agent or mandatary

• 108 (1) Any manager of an elevator, or any other employee, or agent or mandatary, of the operator or licensee of an elevator, who does any act or thing directed to the commission of an offence under this Act by the operator or licensee of the elevator is a party to and guilty of the offence.

• Marginal note:Party to offence

  (2) Any employee, or agent or mandatary, of a licensed grain dealer who does any act or thing directed to the commission of an offence under this Act by the licensed grain dealer is a party to and guilty of the offence.

Marginal note:Documentary evidence

109 In any prosecution for an offence under this Act, a document purporting to have been signed by a commissioner or any officer or employee of the Commission in the course of the performance of his duties is evidence of the facts stated in the document without proof of the signature or of the official character of the person appearing to have signed the document.

Marginal note:Time for commencing proceedings

• 110 (1) Any proceedings by way of summary conviction in respect of an offence under this Act may be instituted at any time within two years after the time when the subject-matter of the prosecution arose.

• Marginal note:Trial of offences

  (2) A complaint or an information in respect of an offence under this Act may be heard, tried or determined by a court if the accused is resident or carrying on business within the territorial jurisdiction of that court although the matter of the complaint or information did not arise in that territorial jurisdiction.

PART VIIGeneral

Cash Purchase Tickets and Elevator Receipts

Marginal note:Transfer from holder to holder

• 111 (1) A cash purchase ticket or elevator receipt in prescribed form entitling the holder named in that document to the payment of money or delivery of grain in accordance with the terms of the document, and the rights arising under the document, may be transferred from holder to holder by the endorsement and delivery of the document to the endorsee.

• (2) [Repealed, 2012, c. 31, s. 385]

Marginal note:Restriction on creation of charge, interest or right

112 Despite anything in the Bank Act, no charge on or interest or right in grain referred to in an elevator receipt that affects the interest or right of the holder of the receipt may be created by the holder, or by the operator of a licensed elevator who issued the receipt, other than by the endorsement or delivery of the receipt to the person in whose favour the charge, interest or right is created.

113 [Repealed, 2012, c. 31, s. 386]

114 [Repealed, 2012, c. 31, s. 386]

Regulations and Orders

Marginal note:Orders of the Governor in Council

115 The Governor in Council may, by order,

• (a) where the Governor in Council considers it necessary in the public interest to do so, require a railway company to supply railway cars for the carriage of grain and place them at any point at which the railway company supplies a service;

• (b) despite anything in this Act, authorize and direct any minister of the Crown or any agency of the Government of Canada to exercise the powers in respect of the allocation of available railway cars contained in any provision of this Act, other than paragraph (a);

• (c) direct that any allocation of railway cars be guided by the principle that the producer or producers should have the right to select such elevator as the producer or producers may choose or to load directly;

• (d) direct that any grade established under this Act be assigned only to grain being officially inspected on discharge from a terminal elevator;

• (e) vary the period of a crop year to another period of not less than three hundred and sixty-five days;

• (f) direct the Commission as to the manner in which any of its operations, powers and duties shall be conducted, exercised or performed; and

• (g) provide for any other matter necessary to give effect to this Act.

Marginal note:Regulations

• 116 (1) The Commission may, with the approval of the Governor in Council, make regulations

  • (a) designating any seed as a grain for the purposes of this Act;

  • (b) prohibiting for any period of time or regulating the delivery of grain to elevators, the discharge of grain from elevators, the handling and treating of grain in elevators and the shipping of grain to or from elevators for the purpose of ensuring the orderly movement of grain;

  • (b.1) governing the handling and treatment of grain in elevators;

  • (c) prescribing, in respect of samples of grain, the circumstances and manner in which they may be taken;

  • (c.1) prescribing circumstances in which an inspector, under paragraph 32(1)(b), is to assign a grade to imported grain and to state the dockage that is to be separated from it;

  • (d) specifying the procedure to be followed by the parties to any contract for special binning for the purpose of ensuring the preservation of the identity of specially binned grain;

  • (e) prescribing the returns to be made for dockage;

  • (e.1) determining what constitutes a hazardous substance and governing the use, handling and storage of hazardous substances by licensed elevator operators;

  • (f) fixing the maximum shrinkage allowance that may be made on the delivery of grain to an elevator;

  • (g) governing the sale of grain by sample;

  • (h) respecting the receipt, inspection, handling and storage at elevators of imported grain and prescribing the period of time that it may remain in storage at any elevator;

  • (i) prescribing the procedure to be followed on appeals as to grades of grain;

  • (j) specifying the information required to be furnished by applicants for licences, including information relating to the applicant’s finan- cial situation, and the conditions on which licences may be issued;

  • (k) respecting the security to be obtained, by way of bond, suretyship, insurance or otherwise, for the purposes of subsection 45.1(1);

  • (k.1) specify the person or class of persons who may realize on or enforce security obtained by a licensee;

  • (k.2) specify conditions related to realizing on or enforcing security obtained by a licensee;

  • (k.3) exempt a licensee from the requirement to obtain security;

  • (l) prescribing any records to be kept by a licensee, the reports to be made by a licensee, the system of transmission or communication of those reports and the times the reports are to be made;

  • (m) fixing, or prescribing the manner for determining, the maximum charges for services to be made by licensees under this Act and prescribing the manner in which those charges are to be published;

  • (n) prescribing the form of cash purchase tickets and elevator receipts and prescribing other forms to be used pursuant to this Act and the manner in which those forms are to be used, transmitted and related to each other;

  • (o) prescribing the use of any system of keeping and issuing cash purchase tickets and elevator receipts;

  • (p) requiring licensees to submit to the Commission such information relating to the conduct and management of their affairs as the regulations may specify;

  • (q) respecting the circumstances and manner in which inspection certificates are to be cancelled;

  • (r) fixing, or prescribing the manner for determining, the fees for any service performed by or on behalf of the Commission and the fees for any licence issued by the Commission and prescribing the time and manner of payment of those fees;

  • (s) specifying the standards to be complied with in the construction, alteration and maintenance of any elevator and the installation and maintenance of any equipment therein;

  • (s.1) governing the disposal of contaminated grain;

  • (s.2) respecting provisions to be included in specified classes of contracts relating to grain, including provisions respecting compensation or penalties for breaches of those provisions;

  • (s.3) respecting arbitration for the purposes of section 92.1, including rules of procedure, eligibility requirements for requests for arbitration, the qualifications required of third parties to act as arbitrators, the rules of confidentiality and the reporting of decisions;

  • (t) prescribing any matter that under this Act is to be prescribed; and

  • (u) generally for carrying into effect the purposes and provisions of this Act.

• Marginal note:Forms and systems other than prescribed

  (2) The Commission may, in writing, permit a licensee to use any form or any system of keeping or issuing cash purchase tickets, elevator receipts or any other document designated by the Commission in addition to or in place of a prescribed form or system.

• Marginal note:Storage premises

  (3) The Commission may, by regulation made with the approval of the Governor in Council, establish a list of premises in the Eastern Division used either in whole or in part for the storage of grain.