Security Screening Services Commercialization Act (S.C. 2019, c. 29, s. 270)

Marginal note:Establish, revise or terminate charges

25 The designated screening authority may establish, revise or terminate charges.

Marginal note:Charging principles

• 26 (1) The designated screening authority must observe the following principles when it establishes, revises or terminates charges:

  • (a) that charges must not be set at levels that, based on reasonable and prudent projections, would generate revenues exceeding the designated screening authority’s current and future financial requirements related to security screening services made available or provided under section 18 at aerodromes designated by the regulations;

  • (b) that charges must be established, revised or terminated in accordance with an explicit methodology — that includes any conditions affecting the charges — that the designated screening authority has established and published;

  • (c) that, unless authorized by the Minister, charges imposed under paragraph 24(1)(a) must be the same in respect of all passengers, except that the designated screening authority may impose different charges based on whether passengers are travelling from an aerodrome within Canada to an aerodrome within Canada, from an aerodrome within Canada to an aerodrome within the United States or from an aerodrome within Canada to an aerodrome outside of Canada, other than an aerodrome in the United States;

  • (d) that charges may be used only to recover costs for security screening services made available or provided under section 18 at aerodromes designated by the regulations;

  • (e) that charges must be structured in a way that does not differentiate between Canadian air carriers and foreign air carriers, among Canadian air carriers or among foreign air carriers;

  • (f) that charges must be consistent with Canada’s international obligations in respect of aeronautics;

  • (g) that charges should be structured in a way that prioritizes aviation security and the competitiveness of the air transportation system.

• Marginal note:Financial requirements

  (2) For the purposes of paragraph (1)(a), financial requirements include the following:

  • (a) operations and maintenance costs;

  • (b) management and administration costs;

  • (c) debt servicing requirements and financial requirements arising out of contractual agreements relating to the borrowing of money;

  • (d) capital costs and depreciation costs on capital assets;

  • (e) financial requirements necessary for the designated screening authority to maintain an appropriate credit rating;

  • (f) tax liability;

  • (g) reasonable reserves for future expenditures and contingencies;

  • (h) other costs determined in accordance with accounting principles recommended by the Chartered Professional Accountants of Canada or its successor or assign.

• Marginal note:Deduction

  (3) For the purposes of paragraph (1)(a), an amount equal to the aggregate of the following amounts is to be deducted from the designated screening authority’s financial requirements:

  • (a) all grants and contributions received by the designated screening authority;

  • (b) all transition period payments referred to in section 59 received by the designated screening authority;

  • (c) all interest and investment income earned by the designated screening authority;

  • (d) all profits earned by the designated screening authority, other than in respect of security screening services made available or provided under section 18 at aerodromes designated by the regulations.

• Marginal note:Methodology

  (4) The methodology referred to in paragraph (1)(b) must include

  • (a) the amount of each charge;

  • (b) the circumstances in which each charge applies; and

  • (c) the formula or other method used to determine the amount of each charge.

Marginal note:Increase — Consumer Price Index

• 27 (1) The designated screening authority may increase a charge — annually or in respect of a period of more than one year but not more than five years after the day on which the charge took effect — in accordance with

  • (a) in the case of an annual increase, the percentage increase to the Consumer Price Index, rounded to the next 0.10%, for the previous year; or

  • (b) in the case of an increase in respect of a period, the aggregate of the annual percentage increases to the Consumer Price Index, rounded to the next 0.10%, for that period.

• Marginal note:Proposal submitted to Agency

  (2) The designated screening authority must submit a proposal to increase a charge in accordance with subsection (1) to the Agency for a determination of whether the proposed increase is in accordance with that subsection.

• Marginal note:Limit

  (3) In making a determination, the Agency may only consider whether the proposal is in accordance with subsection (1).

• Marginal note:Agency determination

  (4) The Agency must make a determination within 30 days after the day on which it receives the proposal and must notify the designated screening authority in writing of its determination.

• Marginal note:Publication

  (5) The designated screening authority must not publish a notice of the proposal under section 29 until after it is notified of the Agency’s determination. If the Agency does not make a determination within the 30-day period, the designated screening authority may publish the notice after the day on which that period expires.

• Marginal note:Definition of Consumer Price Index

  (6) In this section, Consumer Price Index means the annual average all-items Consumer Price Index for Canada (not seasonally adjusted) published by Statistics Canada.

Marginal note:Minister’s approval of charges

• 28 (1) The Minister may, on request of the designated screening authority, approve a proposal to establish or increase a charge if the Minister is of the opinion that

  • (a) implementing a direction issued under section 16 or complying with a new requirement in a security measure, emergency direction or interim order made under the Aeronautics Act has increased or will increase the designated screening authority’s costs related to security screening services made available or provided under section 18 at aerodromes designated by the regulations; and

  • (b) the designated screening authority observed the charging principles in its proposal to establish or increase the charge.

• Marginal note:Request before publication

  (2) The designated screening authority must make the request before it publishes a notice of the proposal under section 29.

• Marginal note:Minister’s decision

  (3) The Minister must make a decision within 30 days after the day on which he or she receives a request and must notify the designated screening authority in writing of his or her decision.

Marginal note:Notice of proposal

• 29 (1) The designated screening authority must publish a notice of any proposal to establish, revise or terminate a charge, including a proposal referred to in section 27 or 28. The designated screening authority must provide the Agency with a copy of the notice no later than the day on which it is published.

• Marginal note:Contents of notice

  (2) The notice must

  • (a) describe the proposal, including the methodology, the proposed amount of the charge and the circumstances in which the charge would apply;

  • (b) specify the date on which the charge or its termination would take effect;

  • (c) set out the designated screening authority’s reasons for establishing, revising or terminating the charge in relation to the charging principles;

  • (d) in the case of a proposal to increase a charge in accordance with section 27, indicate whether the Agency determined that the proposal is in accordance with subsection 27(1);

  • (e) in the case of a proposal referred to in section 28, indicate that the Minister approved the proposal; and

  • (f) in the case of a proposal in respect of which a person may file a notice of objection under subsection 31(1) or (2), indicate that a notice of objection may be filed under one of those subsections.

• Marginal note:Effective date

  (3) The date on which a charge or its termination would take effect must not be before

  • (a) in the case of a proposal in respect of which a person may file a notice of objection under subsection 31(1) or (2), the 121st day after the day on which the notice is published; and

  • (b) in the case of any other proposal, the 31st day after the day on which the notice is published.

• Marginal note:Duty to inform air carriers

  (4) The designated screening authority must, no later than the day on which a notice of a proposal is published, inform air carriers who are or will be required to collect charges under section 37.

Marginal note:Withdrawal of proposal

• 30 (1) The designated screening authority may withdraw a proposal to establish, revise or terminate a charge, other than a proposal referred to in any of sections 27, 28 and 60.

• Marginal note:Limitation

  (2) The designated screening authority may

  • (a) withdraw a proposal to establish or increase a charge no later than the earlier of

    • (i) the day on which the Agency makes a determination under section 32, and

    • (ii) the 30th day before the day on which the charge would take effect; and

  • (b) withdraw any other proposal no later than the 30th day before the day on which the charge or its termination would take effect.

• Marginal note:Notice of withdrawal

  (3) The designated screening authority must publish a notice of the withdrawal and provide the Agency with a copy. If the designated screening authority is withdrawing a proposal to revise or terminate a charge, the notice of withdrawal must include a statement that the amount of the charge that was in effect before the designated screening authority published a notice of the proposal under section 29 continues to be in effect and set out that amount.

• Marginal note:Effect of withdrawal

  (4) If the designated screening authority withdraws a proposal, the proposed charge or termination does not take effect.

Notice of Objection

Marginal note:Notice of objection — paragraph 24(1)(a)

• 31 (1) Any interested person may, within 30 days after the day on which the designated screening authority publishes a notice of a proposal to establish or increase a charge referred to in paragraph 24(1)(a), file a notice of objection with the Agency, in the form and manner determined by the Agency, on the grounds that the designated screening authority did not observe one or more of the charging principles.

• Marginal note:Notice of objection — paragraph 24(1)(b)

  (2) A person who will be required to pay a charge referred to in paragraph 24(1)(b) or a person in respect of whom the charge will be imposed may, within 30 days after the day on which the designated screening authority publishes a notice of a proposal to establish or increase a charge referred to in that paragraph, file a notice of objection with the Agency, in the form and manner determined by the Agency, on the grounds that the designated screening authority did not observe one or more of the charging principles.

• Marginal note:Exception

  (3) Subsections (1) and (2) do not apply in respect of a proposal to establish or increase a charge if the designated screening authority published a notice of the proposal in accordance with subsection 27(5) or the Minister approved the proposal under section 28 or 60.

• Marginal note:Contents of notice of objection

  (4) A notice of objection must include the reasons for which the person filing the notice considers that the designated screening authority did not observe the charging principles.

• Marginal note:Notification by Agency

  (5) As soon as feasible after beginning a review of a proposal, the Agency must notify the Minister and the designated screening authority that it is reviewing the proposal.

Marginal note:Determination by Agency

• 32 (1) If a notice of objection is filed with the Agency, the Agency must determine whether the designated screening authority observed all of the charging principles.

• Marginal note:Time limit

  (2) The Agency must make a determination as expeditiously as possible but no later than 90 days after the day on which the first notice of objection was filed.

• Marginal note:Proposal rejected

  (3) If the Agency determines that the designated screening authority did not observe the charging principles, the Agency must reject the proposal and the proposed charge does not take effect.

• Marginal note:Notice of rejection

  (4) As soon as feasible after it is informed that the Agency rejected a proposal, the designated screening authority must publish a notice indicating that the proposal has been rejected. If the proposal was to increase a charge, the notice must include a statement that the amount of the charge that was in effect before the designated screening authority published a notice of the proposal under section 29 continues to be in effect and set out that amount.

• Marginal note:Proposal approved

  (5) If the Agency determines that the designated screening authority observed the charging principles, the Agency must approve the proposal and the charge takes effect on the date specified in the notice published under section 29.

• Marginal note:Determination and reasons

  (6) The Agency must give its determination and the reasons for it in writing.

• Marginal note:Copy to Minister

  (7) The Agency must provide the Minister with a copy of its determination and the reasons for it immediately after the determination is made.

General Provisions

Marginal note:Confidential information

33 The Agency must take any measures necessary to maintain the confidentiality of any commercial, financial, scientific or technical information provided to the Agency in respect of a proceeding under this Act if the information has consistently been treated as confidential by any interested person or entity.

Marginal note:No mediation

34 Section 36.1 of the Canada Transportation Act does not apply to a proceeding before the Agency under this Act.

Marginal note:Determination final

35 A determination made by the Agency under this Act is final and sections 32, 40 and 41 of the Canada Transportation Act do not apply in respect of it.

Marginal note:No policy directions issued to Agency

36 Sections 24 and 43 of the Canada Transportation Act do not apply in respect of the powers, duties and functions of the Agency under this Act.

Collection and Remittance