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Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)

Assented to 2023-06-22

PART 4Various Measures (continued)

DIVISION 21Oceans Protection Plan (continued)

SUBDIVISION A2001, c. 6Marine Liability Act (continued)

 The Act is amended by adding the following after section 106:

Marginal note:Cessation of payments

  • 106.01 (1) Despite paragraph 106(3)(a), the Administrator may direct, at any time after the claimant accepts an offer of compensation, that some or all of the payments referred to in paragraph 105(1.1)(b) not be made to the claimant if

    • (a) a condition imposed on the claimant under subsection 105(1.2) is not met;

    • (b) the Administrator has reasonable grounds to believe that the claimant did not take reasonable measures to mitigate the loss for which a claim has been filed under subsection 103(1.2); or

    • (c) the Administrator has reasonable grounds to believe that the claimant’s loss has been mitigated.

  • Marginal note:Notice

    (2) If the Administrator directs under subsection (1) that a payment not be made to the claimant, the Administrator must, as soon as feasible, give the claimant notice in writing.

  • Marginal note:Appeal to Admiralty Court

    (3) A claimant may, within 60 days after receiving the notice, appeal the decision set out in the notice to the Admiralty Court.

Marginal note:Records — future loss

  • 106.02 (1) If the Administrator imposes a condition requiring the claimant to keep records under subsection 105(1.2), the Administrator may, within the following periods, request that the claimant provide the Administrator with the records:

    • (a) in the case of a payment made in accordance with an offer of compensation made under paragraph 105(1.1)(a), the period that ends on the later of

      • (i) one year after the day on which the payment was made, and

      • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim;

    • (b) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have ceased under subsection 106.01(1), the period that ends on the later of

      • (i) one year after the day on which the notice was sent by the Administrator under subsection 106.01(2), and

      • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim; or

    • (c) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have not ceased, the period that ends on the later of

      • (i) one year after the day on which the final payment was made, and

      • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim.

  • Marginal note:Period

    (2) If the Administrator requests records under subsection (1), the claimant must provide them to the Administrator within 30 days beginning on the day on which the claimant receives the request or within any longer period agreed to by the Administrator and the claimant.

  • Marginal note:Failure to provide records

    (3) If the claimant does not provide the Administrator with the records within the applicable period, the Administrator may give the claimant a notice that they are required to repay to the Administrator the amount or a portion of the amount of the payment made to them under paragraph 106(3)(a), in the manner and within the period set out in the notice.

Marginal note:Post-payment investigation and reassessment

  • 106.03 (1) The Administrator may, within the period referred to in subsection 106.02(1), investigate and reassess any claim under subsection 103(1.2) for which a payment was made under paragraph 106(3)(a).

  • Marginal note:Administrator’s powers

    (2) For the purpose of investigating and reassessing a claim, the Administrator has the powers of a commissioner under Part I of the Inquiries Act.

  • Marginal note:Factors to be considered

    (3) When investigating and reassessing a claim, the Administrator may consider only

    • (a) whether it is for loss, costs or expenses referred to in subsection 103(1.2) that the claimant has suffered or incurred;

    • (b) whether it resulted wholly or partially from

      • (i) an act done or omitted to be done by the claimant with intent to cause damage, or

      • (ii) the claimant’s negligence;

    • (c) whether it is for loss, costs or expenses for which another claim has been filed;

    • (d) whether the Administrator has reasonable grounds to believe that the claimant did not take reasonable measures to mitigate the loss for which the claim has been filed;

    • (e) whether the claimant’s loss has been mitigated; and

    • (f) whether the conditions imposed on the claimant under subsection 105(1.2), if any, have been met.

Marginal note:Result of investigation and reassessment

  • 106.04 (1) As soon as feasible after completing the investigation and reassessment, the Administrator must give the claimant notice that

    • (a) the Administrator will take no further action in respect of whatever portion of the claim was the subject of the investigation and reassessment;

    • (b) the claimant is required to pay to the Administrator the overpayment set out in the notice, in the manner and within the period set out in the notice; or

    • (c) an additional payment, equal to the amount of the loss, costs or expenses suffered or incurred by the claimant minus the sum of any amounts already paid to the claimant, is to be made to the claimant without delay out of the Ship-source Oil Pollution Fund.

  • Marginal note:Appeal to Admiralty Court

    (2) A claimant may, within 60 days after receiving a notice under paragraph (1)(b), appeal to the Admiralty Court the requirement to pay the overpayment set out in the notice.

Marginal note:Debts due to His Majesty

106.05 All amounts payable under subsection 106.02(3) and overpayments payable under paragraph 106.04(1)(b) constitute debts due to His Majesty in right of Canada that may be recovered in a court of competent jurisdiction from the person who is required to pay them.

 Paragraph 106.1(4)(a) of the English version of the Act is replaced by the following:

  • (a) if oil pollution damage occurs, within one year after the day of the occurrence that causes that damage; or

 The heading before section 107 and sections 107 and 108 of the Act are repealed.

  •  (1) Subsections 111.1(2) and (3) of the Act are replaced by the following:

    • Marginal note:Offer of compensation less than zero

      (2) If the offer of compensation made by the Administrator to the Minister of Fisheries and Oceans under paragraph 105(1)(a) is less than zero, then, unless that Minister appeals the offer under subsection 106(2), an amount equal to the amount of the offer is to be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, within six months after the day on which that Minister receives the offer or within any longer period agreed to by the Administrator and that Minister.

    • Marginal note:Offer of compensation refused

      (3) If the Minister of Fisheries and Oceans refuses the offer of compensation made under paragraph 105(1)(a), then, as soon as feasible after that Minister refuses the offer, an amount equal to the amount of the emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2) is to be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, less any unused portion of the emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1).

  • (2) The description of A in subsection 111.1(4) of the Act is replaced by the following:

    A
    is the portion of the claim that the Administrator finds to be established under subsection 105(1);
  •  (1) The portion of paragraph 116(2)(b) of the Act before subparagraph (i) is replaced by the following:

    • (b) if the claim is based on subsection 51(1) or 71(1) or paragraph 77(1)(b) or (c), or on Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention as they pertain to preventive measures,

  • (2) Subsection 116(2) of the Act is amended by adding “or” at the end of paragraph (a), by striking out “or” at the end of paragraph (b) and by repealing paragraph (c).

 Schedule 4 to the Act is repealed.

Transitional Provisions

Marginal note:Definitions

 The following definitions apply in sections 343 to 347.

former Act

former Act means the Marine Liability Act as it read immediately before the day on which section 338 comes into force. (ancienne loi)

new Act

new Act means the Marine Liability Act as it reads on the day on which section 338 comes into force. (nouvelle loi)

Ship-source Oil Pollution Fund

Ship-source Oil Pollution Fund has the same meaning as in subsection 91(1) of the Marine Liability Act. (Caisse d’indemnisation)

Marginal note:Claims for loss of income

 A claim filed under section 107 of the former Act is to be dealt with in accordance with sections 107 and 108 of the former Act.

Marginal note:Rights — limitation period

 Despite subsection 103(2) of the new Act, if an occurrence in respect of which a person may file a claim under section 107 of the former Act takes place on or before the day on which section 338 comes into force, and if the limitation periods set out in subsection 107(3) of the former Act have not expired on that day, that person has the right to file a claim under subsection 103(1.2) of the new Act within those limitation periods.

Marginal note:Fund — amounts directed to be paid

 Any amounts that are directed to be paid on or after the day on which subsection 332(2) comes into force, in respect of a claim filed under section 107 of the former Act, are to be charged to the Ship-source Oil Pollution Fund and they are deemed to be charged under paragraph 92(3)(a.1) of the new Act.

Marginal note:Fund — remuneration and expenses of assessors

 The remuneration and expenses of assessors appointed under paragraph 108(2)(a) of the former Act that are directed to be paid on or after the day on which subsection 332(3) comes into force are to be charged to the Ship-source Oil Pollution Fund and are deemed to be charged under subsection 92(3) of the new Act.

Marginal note:Interest

 If a payment is made to a claimant on or after the day on which subsection 340(2) comes into force, in respect of a claim filed under section 107 of the former Act, the claimant is entitled to the interest that accrues on a claim in accordance with subsection 116(1) of the Marine Liability Act from the time when the loss of income occurs.

Coordinating Amendments

Marginal note:2014, c. 29

  •  (1) In this section, other Act means the Safeguarding Canada’s Seas and Skies Act.

  • (2) On the first day on which both section 33 of the other Act and section 313 of this Act are in force, paragraph 33(1)(a.1) of the Marine Liability Act is replaced by the following:

    • (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund in respect of a maritime claim for oil pollution damage caused by bunker oil as defined in paragraph 5 of Article 1 of the Bunkers Convention as defined in subsection 47(1);

  • (3) On the first day on which both section 33 of the other Act and section 324 of this Act are in force, subsection 74.26(1) of the Marine Liability Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph:

    • (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund; and

  • (4) On the first day on which both section 33 of the other Act and section 325 of this Act are in force, subsections 74.27(1) and (2) of the Marine Liability Act are replaced by the following:

    Marginal note:Public notice

    • 74.27 (1) The person constituting the fund must, as soon as feasible, give notice of the fund’s constitution in

      • (a) the Canada Gazette;

      • (b) a newspaper in general circulation in the region where the incident occurred; and

      • (c) any other appropriate manner in the communities potentially affected by the incident.

    • Marginal note:Accessibility

      (1.1) Notices given under paragraphs (1)(b) and (c) are to be made accessible to the public for a period of at least 30 days.

    • Marginal note:Proof of accessibility

      (2) The person constituting the fund must, within 15 days after the 30th day of the period referred to in subsection (1.1), file evidence in the Admiralty Court that the notices have been made accessible to the public for a period of at least 30 days.

  • (5) On the first day on which both subsection 45(1) of the other Act and subsection 335(3) of this Act are in force, paragraph 106(3)(b) of the Marine Liability Act is replaced by the following:

    • (b) the claimant is then precluded from pursuing any rights that they may have had, other than in relation to damage as defined in paragraph 6(a) of Article 1 of the Hazardous and Noxious Substances Convention, against any person in respect of matters referred to in sections 51, 71, 74.24 and 77, Article III of the Civil Liability Convention, Article 3 of the Bunkers Convention and Article 7 of the Hazardous and Noxious Substances Convention in relation to the occurrence to which the offer of compensation relates, except that

      • (i) with respect to the acceptance of an offer of compensation made under paragraph 105(1)(a), the claimant may pursue any rights that they may have under subsection 103(1.2) in a single claim, and

      • (ii) with respect to the acceptance of an offer of compensation made under paragraph 105(1.1)(a) or (b), the claimant may pursue any rights that they may have under subsection 103(1) or (1.1) in a single claim;

  • (6) On the first day on which both subsection 49(2) of the other Act and subsection 340(1) of this Act are in force, the portion of paragraph 116(2)(b) of the Marine Liability Act before subparagraph (i) is replaced by the following:

    • (b) if the claim is based on subsection 51(1), 71(1) or 74.24(1) or paragraph 77(1)(b) or (c), or on Article III of the Civil Liability Convention, Article 3 of the Bunkers Convention or Article 7 of the Hazardous and Noxious Substances Convention as they pertain to preventive measures,

 

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