C-441
First Session, Forty-first Parliament,
60-61 Elizabeth II, 2011-2012
HOUSE OF COMMONS OF CANADA
BILL C-441
An Act to amend the Canada Transportation Act (shippers' protection)
first reading, June 20, 2012
Ms. Chow
411532
SUMMARY
This enactment amends the Canada Transportation Act to add a requirement that notice be provided to stakeholders who would be directly affected by any proposed local rail service changes and to provide access to a dispute resolution process for disputes related to such a change. It also adds a provision to require railway companies to negotiate level of service agreements with stakeholders regarding the provision of services under section 113 of the Act and to give the railway company or stakeholder access to the dispute resolution process if no agreement is reached within the specified time. In addition, the enactment requires railway companies to report to their stakeholders and to the public on matters related to the level of service.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
1st Session, 41st Parliament,
60-61 Elizabeth II, 2011-2012
house of commons of canada
BILL C-441
An Act to amend the Canada Transportation Act (shippers' protection)
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 Rail Customer Protection Act.
1996, c. 10
CANADA TRANSPORTATION ACT
2. Section 53 of the Canada Transportation Act is amended by adding the following after subsection (2):
Rail service framework
(2.1) In addition to the matters assessed under subsection (2), the review shall include an assessment of the provisions and operation of Division IV.
3. The Act is amended by adding the following after section 113:
Definitions
113.1 (1) The following definitions apply in this section and in sections 113.2 and 113.3.
“operational relationship”« relation opérationnelle »
“operational relationship” includes a relationship between a railway company and a person or entity that receives, loads, carries, unloads, delivers or interswitches traffic for the railway company.
“stakeholder”« intervenant »
“stakeholder” means, in relation to a railway company, a person or an entity that has an operational relationship with, or is a shipper with, the railway company or that represents the interests of persons or entities that have an operational relationship with, or are shippers with, the railway company.
Notice of change
(2) Subject to subsection (6), if a railway company plans any change to its local rail service from the established practice, the company shall provide written notice of the planned change to the stakeholders that will be directly affected by the proposed change at least 10 working days before the change is made. For the purposes of this section, a change in local rail service includes a reduction in or discontin-uation of service.
No earlier change
(3) No change in local rail service shall be made by the railway company before the expiration of the notice period described in subsection (2) unless all stakeholders that will be directly affected by the proposed change agree to the proposed change.
Tariff commitment
(4) Every railway company shall include, in a tariff issued under section 118, a commitment to meet the requirements set out in subsection (2).
Dispute resolution process
(5) A railway company or a stakeholder that will be directly affected by the proposed change may refer any dispute relating to that change to the dispute resolution process established under paragraph 113.3(a).
Exception
(6) A railway company is not required to meet the notice requirement set out in subsection (2) if it is prevented from doing so by conditions that are outside its control and that could not be avoided by the exercise of due care, such as extreme weather events, terrorist activities or accidents.
Service level agreements
113.2 (1) At the request of a stakeholder, a railway company shall negotiate with the stakeholder in good faith for the purpose of establishing or renewing a level of service agreement that addresses the manner in which the service obligations under section 113 shall be fulfilled by the railway company and that includes the following elements:
(a) the obligations of the railway company and the obligations of the stakeholder;
(b) the communication protocol to be followed by both parties and the procedure that applies in the event of a disagreement; 
(c) the traffic volume limits; 
(d) the key indicators to be used for performance measurement; 
(e) the performance standards to be met;
(f) the consequences of the non-performance of the obligations, including penalties; 
(g) the requirement, in the event of a dispute, to use the resolution process established under paragraph 113.3(a); and 
(h) the circumstances in which the railway company's obligations cannot be met because of conditions that are outside its control and that could not be avoided by the exercise of due care, such as extreme weather events, terrorist activities or accidents.
Dispute resolution process
(2) If the railway company and the stakeholder fail to reach agreement on the establishment or renewal of the level of service agreement within 6 months after the stakeholder has requested negotiations under subsection (1), the railway company or the stakeholder may refer the matter for determination using the dispute resolution process established under paragraph 113.3(a).
Regulations
113.3 The Governor in Council shall, within one year after the coming into force of this Act, make regulations respecting 
(a) the establishment of a dispute resolution process for any matters in dispute under sections 113.1 and 113.2; and
(b) the provision, by each railway company, of 
(i) a confidential annual report that shall be issued to stakeholders with whom it has a level of service agreement and that contains information on the level of service provided, factors that influenced that level and any issues related to the level of service provided, and 
(ii) a quarterly public report that shall be posted on its website and that addresses service in each shipping sector on a general basis, including sector-specific information on its rolling stock, fulfilment of car orders and car movements, as well as service data.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada