Security Screening Services Commercialization Act (S.C. 2019, c. 29, s. 270)
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Act current to 2024-11-26
Security Screening Services (continued)
Marginal note:Criteria
- The following provision is not in force.
22 (1) The designated screening authority must establish criteria respecting the qualifications, training and performance of screening contractors and screening officers and that criteria must be as stringent as or more stringent than the standards established in aviation security regulations and security measures made under the Aeronautics Act.
- The following provision is not in force.
Marginal note:Certification
(2) The designated screening authority must certify all screening contractors and screening officers against the criteria established under subsection (1).
- The following provision is not in force.
Marginal note:Varying, suspending or cancelling certification
(3) If the designated screening authority determines that a screening contractor or screening officer no longer meets the criteria in respect of which they were certified, the designated screening authority may vary, suspend or cancel their certification.
Marginal note:Prohibition
23 It is prohibited for any person, other than the designated screening authority or a person or entity authorized by the designated screening authority, to provide security screening services referred to in section 18.
Charges
Imposition and Establishment
Marginal note:Imposition of charges
- The following provision is not in force.
24 (1) The designated screening authority may impose charges for security screening services that it makes available or provides under section 18 at aerodromes designated by the regulations that are to be paid by or in respect of
- The following provision is not in force.
(a) passengers who are required to undergo screening under the Aeronautics Act; and
- The following provision is not in force.
(b) persons, other than passengers, who are required to undergo screening under that Act.
- The following provision is not in force.
Marginal note:Exception — paragraph (1)(a)
(2) A charge must not be imposed under paragraph (1)(a) in respect of the following passengers:
- The following provision is not in force.
(a) a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act;
- The following provision is not in force.
(b) a child under the age of two years, unless that child has been issued a ticket that entitles them to occupy a seat;
- The following provision is not in force.
(c) a passenger who is transported on a state aircraft of a foreign country, unless the foreign country is designated under subsection (5);
- The following provision is not in force.
(d) any other person prescribed by regulation.
- The following provision is not in force.
Marginal note:Exception — paragraph (1)(b)
(3) A charge must not be imposed under paragraph (1)(b) in respect of a person prescribed by regulation.
- The following provision is not in force.
Marginal note:Charges collected by air carrier
(4) A charge imposed under paragraph (1)(a) may be collected only in accordance with section 37, unless the charge is to be paid by or in respect of a passenger who is transported on a state aircraft of a foreign country that is designated under subsection (5).
- The following provision is not in force.
Marginal note:Designation
(5) The Governor in Council may, by order, designate any foreign country for the purposes of paragraph (2)(c) and subsection (4).
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.
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