C-300
Second Session, Fortieth Parliament,
57-58 Elizabeth II, 2009
HOUSE OF COMMONS OF CANADA
BILL C-300
An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries
first reading, February 9, 2009
NOTE
3rd Session, 40th Parliament
This bill was introduced during the Second Session of the 40th Parliament. Pursuant to the Standing Orders of the House of Commons, it is deemed to have been considered and approved at all stages completed at the time of prorogation of the Second Session. The number of the bill remains unchanged.
Mr. McKay
402168
SUMMARY
The purpose of this enactment is to promote environmental best practices and to ensure the protection and promotion of international human rights standards in respect of the mining, oil or gas activities of Canadian corporations in developing countries. It also gives the Minister of Foreign Affairs and Minister of International Trade the responsibility to issue guidelines that articulate corporate accountability standards for mining, oil or gas activities and it requires the Ministers to submit an annual report to both Houses of Parliament on the provisions and operation of this Act.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-300
An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act.
INTERPRETATION
Definitions
2. (1) The following definitions apply in this Act.
“corporation”« société »
“corporation” includes any company or legal person incorporated by or under an Act of Parliament or of any province.
“developing countries”« pays en développement »
“developing countries” means countries and territories named in the list of countries and territories eligible for Canadian development assistance established by the Minister of International Cooperation.
“gas”« gaz »
“gas” has the same meaning as in section 2 of the Canada Oil and Gas Operations Act.
“IFC”« SFI »
“IFC” means the International Finance Corporation affiliated with the World Bank Group.
“international human rights standards”« normes internationales en matière de droits de la personne »
“international human rights standards” means standards that are based on international human rights conventions to which Canada is a party and on international customary law.
“mineral resources”« ressources minérales »
“mineral resources” means all naturally occurring minerals, but does not include peat, petroleum, natural gas, bitumen, oil shales, limestone, marble, clay, gypsum, earth, ash, marl, gravel, sand or any element that forms part of the agricultural surface of the land.
“mining, oil or gas activities”« activités minières, pétrolières ou gazières »
“mining, oil or gas activities” means the exploration and drilling for, and the production, conservation, processing or transportation of, mineral resources, oil or gas in the territory of a developing country or on the high seas where such activities are controlled directly or indi- rectly by a Canadian corporation. 
“oil”« pétrole »
“oil” has the same meaning as in section 2 of the Canada Oil and Gas Operations Act.
“Voluntary Principles on Security and Human Rights”« Principes volontaires sur la sécurité et les droits de l’homme »
“Voluntary Principles on Security and Human Rights” means the set of principles announced in December 2000 by the governments of the United States and the United Kingdom to guide companies in maintaining the safety and security of their activities within an operating framework that ensures respect for human rights and fundamental freedoms.
Meaning of “Ministers” and “either Minister”
(2) Where the word “Ministers” is used in this Act, it refers to both the Minister of Foreign Affairs and the Minister of International Trade, and where the expression “Minister” or “either Minister” is used in this Act, it refers to either the Minister of Foreign Affairs or the Minister of International Trade.
PURPOSE
Purpose
3. The purpose of this Act is to ensure that corporations engaged in mining, oil or gas activities and receiving support from the Government of Canada act in a manner consistent with international environmental best practices and with Canada’s commitments to international human rights standards.
POWERS AND FUNCTIONS
Complaints
4. (1) In carrying out their responsibilities and powers under this Act, the Ministers shall receive complaints regarding Canadian companies engaged in mining, oil or gas activities from any Canadian citizen or permanent resident or any resident or citizen of a developing country in which such activities have occurred or are occurring.
Content of a complaint
(2) The complaint shall be in writing, shall identify the provisions of section 5 alleged to have been contravened, and shall set out reasonable grounds for the belief that a contravention has occurred.
Frivolous or vexatious complaint
(3) If the Minister who receives the complaint determines that the request is frivolous or vexatious or is made in bad faith, he or she may decline to examine the matter. Otherwise, he or she shall examine the matter described in the complaint and assess compliance with the guidelines set out in section 5.
Information to consider
(4) In conducting an examination, the Minister who receives the complaint may consider information from the corporation or from the public, including evidence from witnesses outside of Canada.
Own initiative
(5) If the Ministers have reason to believe that a company has contravened a guideline set out in section 5, they may examine the matter on their own initiative.
Publication of results
(6) The Ministers shall publish in the Canada Gazette the results of any examination undertaken pursuant to this section within eight months following receipt of the complaint.
Publication
(7) If a complaint is determined to be frivolous or vexatious or made in bad faith as provided for in subsection (3), the Minister shall provide reasons for this determination and publish these reasons in the Canada Gazette. 
Notification
(8) The Ministers shall notify the President of Export Development Canada and the Chairperson of the Canada Pension Plan Investment Board where they determine that a corporation’s mining, oil or gas activities are inconsistent with the guidelines set out in section 5.
Notification
(9) The Ministers shall notify the Governor in Council of any inconsistency with the guidelines set out in section 5 that has or may give rise to a grave breach of international peace and security or international human rights within the meaning of section 4 of the Special Economic Measures Act.
Information and advice
(10) The Ministers may prepare, compile, publish and distribute information on mining, oil or gas activities and on international human rights standards and provide advice to Canadian corporations concerning the latter.
GUIDELINES
Issuance of guidelines
5. (1) Within 12 months of the coming into force of this Act, the Ministers shall issue guidelines that articulate corporate accountability standards for mining, oil or gas activities.
Content of guidelines
(2) The guidelines shall incorporate:
(a) the IFC's Policy on Social & Environmental Sustainability, Performance Stand- ards on Social & Environmental Sustainability, Guidance Notes to those standards, and Environmental, Health and Safety General Guidelines;
(b) the Voluntary Principles on Security and Human Rights;
(c) human rights provisions that ensure corporations operate in a manner that is consistent with international human rights standards; and
(d) any other standard consistent with international human rights standards.
Consultation
(3) In carrying out their duties under subsection (1), the Ministers shall offer to consult with government departments or agencies, represent- atives of the mining, oil and gas industries, non-governmental organizations, and other interested persons in or outside Canada as they may see fit.
Notice
(4) Guidelines issued under this section shall be made available to the public, and the Ministers shall give notice of them in the Canada Gazette and in any other manner that the Ministers consider appropriate.
REVIEW AND REPORT
Annual report
6. (1) Within three years after the coming into force of this Act and each year thereafter,
the Ministers shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any recommendations for amendments to this Act.
Review of report
(2) A committee of the House of Commons as may be designated or established by the House of Commons for that purpose shall review the report and submit a report on the review to the House of Commons within 60 days.
Review of the Act
7. (1) Five years after the coming into force of this Act, a review of the operation of this Act shall be undertaken by such committee of the House of Commons as may be designated or established by the House for that purpose.
Report
(2) The committee referred to in subsection 6(2) shall, within one year after a review is undertaken pursuant to that subsection or within such further time as the House of Commons may authorize, submit a report on the review to the House of Commons.
CONSEQUENTIAL AMENDMENTS
R.S., c. E-20; 2001, c. 33, s. 2(F)
Export Development Act
8. The Export Development Act is amended by adding the following after section 10.1:
Mining, oil or gas activities
10.2 (1) In the exercise of its powers under subsection 10(1.1), the Corporation shall not enter into, continue or renew a transaction related to mining, oil or gas activities, as that term is defined in the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, unless these activities are consistent with the guidelines issued under section 5 of that Act.
Continued compliance
(2) Continued compliance with the guidelines issued under section 5 of the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act shall be a condition in any contract entered into by the Corporation related to mining, oil or gas activities within the meaning of that Act.
R.S., c. E-22; 1995, c.5, s.2
Department of Foreign Affairs and International Trade Act
9. Section 10 of the Department of Foreign Affairs and International Trade Act is amended by adding the following after subsection (3):
Mining, oil or gas activities
(4) In carrying out his or her duties and functions under paragraphs 2(d) and (e) and 3(a) that relate to mining, oil or gas activities, as that term is defined in the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, the Minister shall ensure that these activities are consistent with the guidelines issued under section 5 of that Act.
Undertaking
(5) For greater certainty, with the exception of ordinary consular services available to all Canadian citizens, no undertaking made through a program developed by the Minister in the exercise of his or her powers under this section shall promote or support mining, oil or gas activities, as that term is defined in the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, that are inconsistent with the guidelines issued under section 5 of that Act. 
1997, c. 40 
Canada Pension Plan Investment Board Act
10. Section 36 of the Canada Pension Plan Investment Board Act is renumbered as subsection 36(1) and is amended by adding the following:
Consideration
(2) In taking into consideration the standards and procedures that a person of ordinary prudence would exercise, every investment manager who invests the assets of the Board shall take into consideration the provisions of section 5 of the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act.
Inconsistent activities
(3) Every investment manager who invests the assets of the Board shall ensure that the assets are not invested in any corporations whose activities have been found by either Minister, as that term is defined in the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, to be inconsistent with the guidelines referred to in section 5 of the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act.
1992, c. 17
SPECIAL ECONOMIC MEASURES ACT
11. Subsection 4(1) of the Special Economic Measures Act is replaced by the following:
Orders and regulations
4. (1) The Governor in Council may make such orders and regulations with respect to the restriction or prohibition of any of the activities referred to subsection (2) in relation to a foreign state
(a) where the Governor in Council deems it necessary for the purpose of implementing a decision, resolution or recommendation of an international organization, of which Canada is a member, that calls on its members to take economic measures against a foreign state;
(b) where the Governor in Council is of the opinion that a grave breach of international peace and security has occurred that has resulted, or is likely to result, in a serious international crisis; and
(c) where the Governor in Council is of the opinion that grave breaches of human rights have occurred in the foreign state and continue or are likely to continue.
For greater certainty
(1.1) For greater certainty, “grave breaches of human rights” means “crime against humanity”, “genocide” or “war crime” as defined in the Crimes Against Humanity and War Crimes Act.
COMING INTO FORCE
Coming into force
12. This Act comes into force 30 days after the day on which it receives royal assent. 
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