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Strengthening Motor Vehicle Safety for Canadians Act (S.C. 2018, c. 2)

Assented to 2018-03-01

Strengthening Motor Vehicle Safety for Canadians Act

S.C. 2018, c. 2

Assented to 2018-03-01

An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act

SUMMARY

This enactment amends the Motor Vehicle Safety Act for the purpose of strengthening the enforcement and compliance regime to further protect the safety of Canadians and to provide additional flexibility to support advanced safety technologies and other vehicle innovations. It provides the Minister of Transport with the authority to order companies to correct a defect or non-compliance and establishes a tiered penalty structure for offences committed under the Act. The enactment also makes a consequential amendment to the Transportation Appeal Tribunal of Canada Act.

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 Strengthening Motor Vehicle Safety for Canadians Act.

1993, c. 16Motor Vehicle Safety Act

 Section 2 of the Motor Vehicle Safety Act is amended by adding the following in alphabetical order:

Tribunal

Tribunal means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act; (Tribunal)

 The Act is amended by adding the following after section 2:

Exercise of Powers

Marginal note:Exercise of powers

2.1 The Minister may, in writing, authorize any person designated by the Minister to exercise any of the Minister’s powers and duties under this Act, either generally or as otherwise provided in the instrument of authorization.

Administrative Agreements

Marginal note:Administrative agreements

2.2 The Minister may enter into an agreement to further the purposes of this Act.

Contact Person

Marginal note:Contact person

2.3 A company designated by the Minister that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports into Canada any vehicle or equipment of a class for which standards are prescribed is required to provide the Minister, for a purpose related to verifying compliance with this Act, with the contact information for a person for the purpose of correspondence.

 Section 5 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Compliance by companies of prescribed class

    (2) No company of a prescribed class shall apply a national safety mark to any vehicle or equipment, sell any vehicle or equipment to which a national safety mark has been applied or import into Canada any vehicle or equipment of a prescribed class unless the company acquires and maintains, as provided for in the regulations and in relation to a vehicle or equipment that is substantially similar to that vehicle or equipment, records related to prescribed subject matters.

  • Marginal note:Regulations

    (2.1) The Governor in Council may make regulations defining, for the purposes of subsection (2), any term used in it.

Marginal note:2014, c. 20, s. 218

 Section 8 of the Act is replaced by the following:

Marginal note:Analytical aids

8 A company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed shall, on the Minister’s request, provide the Minister with the means to retrieve or analyze information created or recorded by the vehicle or equipment.

Marginal note:Power to order tests, analyses or studies

  • 8.1 (1) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to

    • (a) conduct tests, analyses or studies on the vehicle or equipment in order to obtain information related to defects, or to verify compliance with this Act, that the Minister considers necessary; and

    • (b) provide the results to the Minister in the time and manner that the Minister specifies.

  • Marginal note:Statutory Instruments Act

    (2) The Statutory Instruments Act does not apply to an order made under subsection (1).

Marginal note:1999, c. 33, s. 353; 2014, c. 20, s. 219

 Subsections 9(1) to (4) of the Act are replaced by the following:

Marginal note:Exemption from standards

  • 9 (1) On application by a company as provided for in the regulations, the Minister may, by order, grant an exemption for a specified period, in accordance with any conditions specified in the order, for any model of vehicle manufactured or imported by the company from conformity with any prescribed standard if the exemption from that standard would, in the opinion of the Minister, promote the development of

    • (a) new safety features that are equivalent to or superior to those that conform to prescribed standards; or

    • (b) new kinds of vehicles, technologies, vehicle systems or components.

  • Marginal note:Conditions for granting exemption

    (2) An exemption must only be granted for a model if the exemption would not substantially diminish the overall safety performance of the model.

  • Marginal note:Publication

    (3) Each exemption order must, as soon as feasible, be published through the Internet or by any other means that the Minister considers appropriate.

Marginal note:2014, c. 20, s. 220

 The heading before section 10 of the Act is replaced by the following:

Notices of Defect and of Non-Compliance and Orders

Marginal note:2014, c. 20, s. 222

 Subsection 10.1(7) of the English version of the Act is replaced by the following:

  • Marginal note:Power to order

    (7) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to give a notice of non-compliance in the manner specified in the order, if the Minister considers that it is in the interest of safety.

Marginal note:2014, c. 20, s. 222

 Section 10.3 of the Act is replaced by the following:

Marginal note:Make information available

10.3 A company designated by the Minister that gives notice to the Minister in respect of a vehicle or equipment shall, as provided for in the regulations, make information available for the vehicle or equipment in respect of which the notice was given.

Marginal note:Correction date

  • 10.4 (1) The notice given by a company under paragraph 10(1)(b) or 10.1(1)(b) shall specify the earliest date by which the parts and facilities that are necessary to correct the defect or non-compliance are expected to be available.

  • Marginal note:Notice

    (2) Despite subsection (1), if the company cannot reasonably specify the earliest date at the time the notice is sent, the company shall send the notice without that date. The company shall send a subsequent notice that provides the earliest date as soon as it has been determined.

  • Marginal note:Copy for Minister

    (3) The company shall immediately provide the Minister with a copy of any notice referred to in subsections (1) and (2).

  • Marginal note:Power to require information

    (4) The Minister may, by order, require a company to provide, in the manner and within the period specified in the order, any information or documents that the Minister considers necessary for verifying that the date specified by the company under subsection (1) or (2) is the earliest date by which the parts and facilities that are necessary to correct a defect or non-compliance are expected to be available.

Marginal note:Power to order correction of defect or non-compliance

10.5 The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to correct a defect or non-compliance, in accordance with any terms and conditions specified in the order, if a notice of defect or non-compliance has been given and the Minister considers that it is in the interest of safety.

Marginal note:Correction

10.51 A company that is subject to an order made under section 10.5 may correct a defect or non-compliance by doing one of the following:

  • (a) repairing the vehicle or equipment, including by adding to, removing anything from or modifying the vehicle or equipment, as the circumstances require;

  • (b) replacing the vehicle or equipment with a reasonable equivalent;

  • (c) reimbursing

    • (i) the reasonable cost of repairs to the vehicle or equipment that have already been undertaken before a notice of defect or non-compliance has been given, or

    • (ii) the sale price of the vehicle or equipment, less reasonable depreciation in the case where the vehicle or equipment has been sold to the first retail purchaser, on return of the vehicle or equipment.

Marginal note:Available measures and benefits

10.52 For greater certainty, any person, including an automobile dealer, may benefit from any measure referred to in section 10.51 and any payment of costs under subsection 10.6(1).

Marginal note:Agreement

10.53 For greater certainty, nothing prevents a company that is subject to an order under subsection 10.1(7) or 10.4(4), section 10.5 or subsection 10.6(1) from entering into an agreement with any person, including an automobile dealer, in respect of any matter related to the order — including, in the case of a vehicle or equipment that has not been sold to the first retail purchaser, in respect of the reimbursement of reasonable costs incurred — in addition to complying with any terms and conditions specified in the order.

Marginal note:Rights not affected

10.54 For greater certainty, a correction to a vehicle or equipment in accordance with section 10.51 does not affect the right of any person, including an automobile dealer, to exercise any other right or remedy available at law, including a right or remedy to recover reasonable costs incurred as a result of an order under section 10.5.

Marginal note:Power to order payment of costs

  • 10.6 (1) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to pay the costs of correcting a defect or non-compliance, in accordance with any terms and conditions specified in the order, if a notice of defect or non-compliance has been given.

  • Marginal note:Time limit

    (2) This section does not apply to any vehicle or equipment that was manufactured 15 years or more before the date of an order under subsection (1).

Marginal note:Power to prohibit offering for sale — defect or non-compliance

  • 10.61 (1) The Minister may, by order, require a company to ensure that any defect or non-compliance in a vehicle or equipment is corrected before the vehicle is offered for sale to the first retail purchaser, in accordance with any terms and conditions specified in the order.

  • Marginal note:For greater certainty

    (2) For greater certainty, a company is not prohibited from doing any promotion activities prior to offering for sale any vehicle or equipment under subsection (1).

Marginal note:Process

  • 10.7 (1) For the purposes of subsections 10(4) and 10.1(7) and sections 10.5 to 10.61, the Minister shall, before issuing any order,

    • (a) make a preliminary determination, on the basis of testing, analysis, inspection, examination or research that the Minister considers appropriate and in consultation with the company, that an order may be necessary in the interest of safety;

    • (b) notify the company of the preliminary determination, including the rationale on which it is based, and invite the company to provide information in writing, in the time and manner specified by the Minister; and

    • (c) publish a notice of preliminary determination and invite any person to make comments in writing, within the time that the Minister specifies.

  • Marginal note:Final decision

    (2) The Minister shall not make a final decision that an order is necessary unless the Minister has taken into account information that he or she considers relevant.

  • Marginal note:Notice to company

    (3) After making a final decision, the Minister shall notify the company of the decision and the rationale on which it is based.

  • Marginal note:Publication

    (4) After making a final decision, the Minister shall publish a notice of it through the Internet or by any other means that he or she considers appropriate.

Marginal note:Power to vary or revoke order

10.8 The Minister may vary or revoke an order if new relevant information becomes available.

Marginal note:Statutory Instruments Act

10.9 The Statutory Instruments Act does not apply to an order made under section 10.4, 10.5, 10.6 or 10.61.

 
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