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Budget Implementation Act, 2001 (S.C. 2002, c. 9)

Assented to 2002-03-27

Budget Implementation Act, 2001

S.C. 2002, c. 9

Assented to 2002-03-27

An Act to implement certain provisions of the budget tabled in Parliament on December 10, 2001

SUMMARY

PART 1

Part 1 enacts the Canadian Air Transport Security Authority Act, which establishes the Canadian Air Transport Security Authority to carry out the mandate described therein, including taking actions for the effective and efficient screening of persons who access aircraft or restricted areas through screening points. The Authority is also responsible for ensuring consistency in the delivery of screening across Canada. The Authority is managed by a board of directors composed of eleven members appointed by the Governor in Council on the recommendation of the Minister of Transport. The Authority may authorize an operator of an aerodrome designated by regulation to deliver screening on its behalf at that aerodrome, subject to any terms and conditions that it establishes. The Authority is subject to Part X of the Financial Administration Act except for derogations set out in Part 1 of this enactment.

PART 2

Part 2 enacts the Air Travellers Security Charge Act, which implements the Air Travellers Security Charge announced in Budget 2001. The Charge will take effect on April 1, 2002 and apply in respect of emplanements in Canada. The Charge will be payable by purchasers of air travel and collected by registered air carriers or their agents at the time of sale.

PART 3

Part 3 amends the Employment Insurance Act and the Employment Insurance (Fishing) Regulations to extend the benefit period and the entitlement to special benefits for maternity claimants who, without the amendment, could not receive all of their special benefits. It also amends the Act and the Regulations to extend the benefit period and the period during which a claimant may receive parental benefits, if the claimant’s child is hospitalized. It also makes related amendments to the Canada Labour Code to give employees an option as to when their parental leave begins.

PART 4

Part 4 implements the Income Tax Act measures announced in the Budget of December 10, 2001. These include provisions that

  • — 
    allow apprentice vehicle mechanics to deduct a portion of the cost of new tools acquired after 2001
  • — 
    allow individuals to claim a deduction to offset the inclusion in income of tuition assistance for adult basic education received under certain government programs
  • — 
    extend the education tax credit to students who receive financial assistance for post-secondary education under certain government training programs
  • — 
    provide for tax-deferred intergenerational transfers of commercial woodlot operations that are farming businesses
  • — 
    make permanent the special tax assistance for donations of certain securities to public charities
  • — 
    make entitlements to the goods and services tax credit more responsive to changes in family circumstances
  • — 
    allow small businesses to defer for at least six months corporate tax instalments that would otherwise become payable in the first quarter of 2002
  • — 
    clarify the application of section 115.2 of the Act to partnerships and their members
  • — 
    allow full deductibility of the costs of meals provided at a temporary work camp established to provide room and board to employees at a construction work site

PART 5

Part 5 enacts the Canada Fund for Africa Act, which establishes a program to provide contributions for the economic and social development of Africa.

PART 6

Part 6 enacts the Canada Strategic Infrastructure Fund Act, which establishes a program. The object of the program is to provide contributions for the carrying out of large-scale strategic infrastructure projects that contribute to economic growth or quality of life in Canada and advance Canada’s objectives with respect to infrastructure.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Marginal note:Short title

 This Act may be cited as the Budget Implementation Act, 2001.

PART 1AIR TRANSPORT SECURITY

Canadian Air Transport Security Authority Act

 The Canadian Air Transport Security Authority Act is enacted as follows:

An Act to establish the Canadian Air Transport Security Authority

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Canadian Air Transport Security Authority Act.

INTERPRETATION

Marginal note:Definitions

2. The definitions in this section apply in this Act.

“Authority”

« Administration »

“Authority” means the Canadian Air Transport Security Authority established by subsection 5(1).

“authorized aerodrome operator”

« exploitant d’aérodrome autorisé »

“authorized aerodrome operator” means an operator of an aerodrome designated by the regulations who is authorized by the Authority under section 7 to deliver screening.

“board”

« conseil »

“board” means the board of directors of the Authority established by section 10.

“Minister”

« ministre »

“Minister” means the Minister of Transport.

“screening”

« contrôle »

“screening” means screening, including a search, performed in the manner and under the circumstances prescribed in the aviation security regulations or in security measures made under the Aeronautics Act.

“screening contractor”

« fournisseur de services de contrôle »

“screening contractor” means a contractor retained by the Authority or an authorized aerodrome operator to deliver screening.

“screening officer”

« agent de contrôle »

“screening officer” means a screening officer who is employed by the Authority, an authorized aerodrome operator or a screening contractor to perform screening.

“screening point”

« point de contrôle »

“screening point” means a point where screening is delivered, either directly or through a screening contractor, by or on behalf of the Authority in order to meet the requirements of the aviation security regulations or security measures made under the Aeronautics Act.

Marginal note:Interpretation
  • 3. (1) Unless the context otherwise requires, words and expressions used in this Act have the same meaning as in the Aeronautics Act and the aviation security regulations made under it.

  • Marginal note:Air transport security

    (2) Unless specifically provided for, nothing in this Act affects air transport security responsibilities imposed under the Aeronautics Act on persons other than the Authority.

  • Marginal note:Inconsistencies with other Acts

    (3) In the event of any inconsistency between the provisions of this Act and the provisions of Part X of the Financial Administration Act, the provisions of this Act prevail.

ROLE OF THE MINISTER

Marginal note:Minister responsible
  • 4. (1) The Minister is the appropriate minister for the Authority for the purposes of Part X of the Financial Administration Act.

  • Marginal note:Directions to the Authority

    (2) The Minister may issue a written direction to the Authority, addressed to the Chairperson, on any matter related to air transport security.

  • Marginal note:Directions binding

    (3) The Authority and its directors, officers and employees of the Authority must comply with a direction issued under this section.

  • Marginal note:Directions in Authority’s best interest

    (4) Compliance with the direction is deemed to be in the best interests of the Authority.

  • Marginal note:Directions not statutory instruments

    (5) A direction is not a statutory instrument for the purposes of the Statutory Instruments Act.

ESTABLISHMENT AND MANDATE OF THE AUTHORITY

Marginal note:Establishment
  • 5. (1) There is hereby established a body corporate to be called the Canadian Air Transport Security Authority.

  • Marginal note:Agent of Her Majesty

    (2) The Authority is for all purposes an agent of Her Majesty in right of Canada.

  • Marginal note:Headquarters

    (3) The headquarters of the Authority must be at such place in Canada as may be designated by the Governor in Council.

  • Marginal note:Financial year

    (4) The Authority’s financial year begins on April 1 of one year and ends on March 31 of the following year, unless the Governor in Council directs otherwise.

Marginal note:Mandate
  • 6. (1) The mandate of the Authority is to take actions, either directly or through a screening contractor, for the effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control and the belongings or baggage that they give to an air carrier for transport. Restricted areas are those established under the Aeronautics Act at an aerodrome designated by the regulations or at any other place that the Minister may designate.

  • Marginal note:Other responsibilities

    (2) The Authority is responsible for ensuring consistency in the delivery of screening across Canada and for any other air transport security function provided for in this Act. It is also responsible for air transport security functions that the Minister may assign to it, subject to any terms and conditions that the Minister may establish.

  • Marginal note:Carrying out mandate

    (3) The Authority must carry out its responsibilities under this section in the public interest, having due regard to the interest of the travelling public. Those responsibilities are a governmental function.

Marginal note:Authorizing aerodrome operators to deliver screening
  • 7. (1) The Authority may authorize the operator of an aerodrome designated by the regulations to deliver screening on its behalf at that aerodrome, either directly or through a screening contractor, subject to any terms and conditions that the Authority may establish.

  • Marginal note:Limitation

    (2) The Authority may not authorize the operator to deliver screening unless it is satisfied that the operator can meet the terms and conditions established by the Authority and deliver screening efficiently and effectively, having regard to the following factors:

    • (a) the cost and service advantages;

    • (b) the operator’s capability to deliver screening; and

    • (c) how screening, if done by the operator, would be integrated with other security functions at the aerodrome.

  • Marginal note:Payments

    (3) The Authority may, in the terms and conditions of an authorization, agree to make payments to the authorized aerodrome operator to compensate them for the reasonable costs incurred by them in delivering screening.

  • Marginal note:Not an agent of Her Majesty

    (4) An authorized aerodrome operator does not become an agent of Her Majesty by reason only of delivering screening under an authorization.

Marginal note:Criteria for screening contractors and officers
  • 8. (1) The Authority must establish criteria respecting the qualifications, training and performance of screening contractors and screening officers, that are as stringent as or more stringent than the standards established in the aviation security regulations made under the Aeronautics Act.

  • Marginal note:Certification

    (2) The Authority must certify all screening contractors and officers against the criteria established under subsection (1).

  • Marginal note:Varying, suspending or cancelling certification

    (3) If the Authority determines that a screening contractor or officer no longer meets the criteria in respect of which they were certified, the Authority may vary, suspend or cancel their certification.

  • Marginal note:Contracting

    (4) The Authority may establish contracting policies specifying minimum requirements respecting wages and terms and conditions of employment that persons must meet in order to be awarded a contract by or on behalf of the Authority for the delivery of screening. The Authority must establish such policies if required to do so by the Minister.

  • Marginal note:Contracts for services or procurement

    (5) The Authority must establish policies and procedures for contracts for services and for procurement that ensure that the Authority’s operational requirements are always met and that promote transparency, openness, fairness and value for money in purchasing.

LEGAL POWERS OF THE AUTHORITY

Marginal note:Legal powers

9. In carrying out its mandate, the Authority has, subject to this Act, the capacity, rights, powers and privileges of a natural person.

STRUCTURE OF THE AUTHORITY

Board

Marginal note:Establishment
  • 10. (1) There shall be a board of directors of the Authority consisting of eleven directors, including the Chairperson, appointed by the Governor in Council on the recommendation of the Minister.

  • Marginal note:Directors nominated by airline industry and aerodrome operators

    (2) Two of the directors must be nominees submitted by the representatives of the airline industry designated under section 11 whom the Minister considers suitable for appointment as directors, and two must be nominees submitted by the representatives of aerodrome operators designated under that section whom the Minister considers suitable for appointment as directors.

  • Marginal note:Tenure of directors

    (3) Each director holds office during pleasure for any term of not more than five years that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

  • Marginal note:Vacancy on board

    (4) If the Governor in Council has not appointed all of the directors referred to in subsection (1) but the number appointed constitutes a quorum, the directors who have been appointed may exercise all the powers of the board.

Marginal note:Designation

11. The Minister may designate representatives or classes of representatives of the airline industry and of aerodrome operators to propose nominees to the Minister for appointment to the board.

Marginal note:Qualifications of directors
  • 12. (1) The directors must be persons who, in the opinion of the Governor in Council, have the experience and the capacity required for discharging their duties and functions.

  • Marginal note:Persons not eligible for appointment

    (2) No person may be appointed or continue as a director of the Authority who

    • (a) is not a Canadian citizen or a permanent resident under the Immigration and Refugee Protection Act;

    • (b) is a member of the Senate or House of Commons or a member of a legislature;

    • (c) is employed on a full-time basis in the public service of Canada or of a province; or

    • (d) is a mayor, councillor, officer or employee of a municipality.

Marginal note:Renewal of term

13. The Governor in Council may renew the term of office of any director for a maximum of one further term of not more than five years.

Marginal note:Part-time office
  • 14. (1) The directors must carry out the duties and functions of their office on a part-time basis.

  • Marginal note:Directors’ fees

    (2) The directors must be paid by the Authority the remuneration fixed by the Governor in Council for each day that they attend meetings of the board or any of its committees or perform other duties required of them as directors of the Authority.

Marginal note:Expenses

15. The directors are entitled to be paid reasonable travel and living expenses incurred by them in the course of performing their duties while absent from their ordinary place of residence.

Chairperson

Marginal note:Powers, duties and functions

16. The Chairperson must preside at meetings of the board and exercise any powers and perform any duties and functions that are assigned by the by-laws of the Authority.

Chief Executive Officer

Marginal note:Appointment and tenure

17. The board may appoint the chief executive officer of the Authority to hold office during pleasure for a term of not more than five years. The appointment of the chief executive officer is renewable for one or more subsequent terms of not more than five years.

Marginal note:Role of chief executive officer

18. The chief executive officer is responsible for the day-to-day management of the Authority.

Marginal note:Incapacity or vacancy

19. In the event of the absence or incapacity of, or vacancy in the office of, the chief executive officer, the board may appoint an employee of the Authority to exercise the powers and perform the duties and functions of the chief executive officer.

Marginal note:Exclusion

20. The chief executive officer may not be appointed as a director.

Marginal note:Full-time office
  • 21. (1) The chief executive officer must carry out the duties and functions of his or her office on a full-time basis.

  • Marginal note:Remuneration

    (2) The Authority must pay the chief executive officer the remuneration fixed by the Governor in Council.

Marginal note:Expenses

22. The chief executive officer is entitled to be paid reasonable travel and living expenses incurred in the course of performing his or her duties while absent from his or her ordinary place of work.

ROLE OF THE BOARD

Marginal note:Role of the board

23. The board is responsible for the management of the activities and affairs of the Authority.

Marginal note:By-laws

24. The board may make by-laws respecting the management and conduct of the activities and affairs of the Authority and the carrying out of the duties and functions of the board, including by-laws establishing

  • (a) a code of ethics for the directors, officers and employees of the Authority;

  • (b) committees of the board, including a human resources committee and an audit committee; and

  • (c) contracting policies for the Authority.

STAFF

Marginal note:Staff

25. The Authority may employ any officers, employees or agents and retain the services of any technical or professional advisers that it considers necessary for the proper conduct of its activities and affairs and may fix the terms and conditions of their engagement.

Marginal note:Accident compensation

26. The Chairperson, the chief executive officer and the directors, officers and employees of the Authority are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the public service of Canada for the purposes of any regulations made under section 9 of the Aeronautics Act.

Marginal note:Safety of the public

27. The provision of screening at an aerodrome is conclusively deemed for all purposes to be a service that is necessary to prevent immediate and serious danger to the safety of the public.

CONTRACTS, AGREEMENTS AND ARRANGEMENTS

Marginal note:Contracts with Her Majesty
  • 28. (1) The Authority may enter into contracts, agreements or other arrangements with Her Majesty as if it were not an agent of Her Majesty.

  • Marginal note:Agreements

    (2) The Authority may enter into agreements with Her Majesty represented by the Solicitor General of Canada or by the Royal Canadian Mounted Police for the provision of services, including services on aircraft, and may make payments in respect of those services.

Marginal note:Policing

29. The Authority may, with the approval of the Treasury Board, enter into agreements with designated airport authorities as defined in the Airport Transfer Miscellaneous Matters Act, for the purposes of contributing to the costs of policing incurred by that airport authority in carrying out its responsibilities.

Marginal note:Provision of space

30. Every operator of an aerodrome designated by the regulations must provide to the Authority, and maintain free of charge, such space at the aerodrome with services reasonably required by the Authority as the Authority and the operator agree on or, in the absence of agreement, such space at the aerodrome with services reasonably required by the Authority as the Minister determines to be necessary to enable the Authority to carry out its mandate.

AUDIT

Marginal note:Audit

31. The Auditor General of Canada is the auditor of the Authority.

SECURITY-RELATED INFORMATION

Marginal note:Protection of information
  • 32. (1) Nothing in this Act, Part X of the Financial Administration Act or the Statutory Instruments Act shall be construed as requiring the tabling before either House of Parliament of any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security.

  • Marginal note:Requirement of confidentiality

    (2) The Authority, authorized aerodrome operators and screening contractors must keep confidential any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security, including financial and other data that might reveal such information.

FIVE-YEAR REVIEW

Marginal note:Review of Act in five years
  • 33. (1) A review of the provisions and the operation of this Act must be completed by the Minister during the fifth year after this section comes into force.

  • Marginal note:Tabling of report

    (2) The Minister must cause a report of the results of the review to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report has been completed.

REGULATIONS

Marginal note:Regulations by Governor in Council

34. The Governor in Council may make regulations

  • (a) designating aerodromes for the purposes of this Act; and

  • (b) requiring the Authority to provide to the Minister such information as the Minister may request.

TRANSITIONAL PROVISIONS

Marginal note:Initial powers

35. Despite any other provision of this Act, pending the initial appointment of the directors, the Chairperson and any directors who have been appointed have all the powers of the board even if their number does not constitute a quorum.

Marginal note:Transfer of screening equipment
  • 36. (1) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, good title in any or all screening equipment or other assets owned by the Corporation immediately before the coming into force of this section, free and clear of all liens and encumbrances, for such consideration as the Governor in Council may determine, having regard to the amount that the Corporation paid to acquire it as well as other relevant factors.

  • Marginal note:Other transfers to Authority

    (2) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, any rights, titles, interests or obligations under any contract entered into by the Corporation that is specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

  • Marginal note:Transfer to Authority from air carriers

    (3) The Governor in Council may require air carriers to transfer to the Authority, on such terms as the Governor in Council considers appropriate, their rights, titles, interests or obligations under any contract respecting screening specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

  • Marginal note:Transfer of contracts

    (4) The transfer to the Authority of responsibility for any existing contracts under this section does not affect any rights, responsibilities or obligations acquired under the Canada Labour Code by the contractors, their employees or any trade union certified to represent those employees.

  • Marginal note:Transfer of screening equipment

    (5) The Governor in Council may transfer to the Authority any screening equipment owned by Her Majesty, including explosive detection equipment, on such terms and conditions as the Governor in Council considers appropriate.

  • Marginal note:Transfer of Her Majesty’s rights, etc., under contract

    (6) The Governor in Council may transfer to the Authority, on such terms as the Governor in Council considers appropriate, Her Majesty’s rights, titles, interests or obligations under any contract entered into by the Minister before the coming into force of this section respecting a subject-matter that is within the mandate of the Authority.

  • Marginal note:Acceptance of transfers

    (7) The Authority must accept any transfer made under this section.

Marginal note:Appropriation

37. The amount of 340 million dollars is appropriated to the Minister from the Consolidated Revenue Fund for payment to the Authority for operating and capital expenditures incurred by it in the fiscal year 2002-2003 in carrying out its mandate, including payments made to authorized aerodrome operators and contributions made to designated airport authorities.

Marginal note:Agreements to continue delivering screening

38. The Authority may enter into an agreement with an air carrier in order to contribute to the costs of screening at an aerodrome designated by regulation, if the costs are incurred by the air carrier after the day on which this section comes into force and before the day on which the Authority is required under the Aeronautics Act to deliver that screening.

Marginal note:Financial documents
  • 39. (1) Despite the period prescribed for submitting a corporate plan, an operating budget and a capital budget under the Financial Administration Act, the Authority must, within six months after the coming into force of this section, submit to the Minister in accordance with that Act a corporate plan, an operating budget and a capital budget for its first financial year.

  • Marginal note:Expenditure of funds

    (2) Until the initial corporate plan, operating budget and capital budget for the Authority have been approved, the Authority may, despite sections 122 to 124 of the Financial Administration Act, expend funds, with the approval of the Minister, that the board considers to be essential for the Authority to become fully operational in a timely manner.

 

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