Canadian Dairy Commission Act

This Act may be cited as the Canadian Dairy Commission Act.

In this Act,

Board means a body that is constituted under the laws of a province for the purpose of regulating the production for marketing, or the marketing, in intraprovincial trade of any dairy product; (office)

Commission means the Canadian Dairy Commission continued by section 3; (Commission)

cream means cream derived from milk; (crème)

dairy product means milk, cream, butter, cheese, condensed milk, evaporated milk, milk powder, dry milk, ice-cream, malted milk or any other product manufactured wholly or mainly from milk and includes sherbet; (produits laitiers)

market means to market in interprovincial or export trade; (commercialisation)

milk means milk from cows; (lait)

Minister means the Minister of Agriculture and Agri-Food; (ministre)

place includes any vehicle, vessel, railway car or aircraft; (lieu)

regulated product means a dairy product the marketing of which is regulated or prohibited by regulations made under this Act. (produits réglementés)

The Canadian Dairy Commission is continued as a corporation consisting of a Chairperson, a Chief Executive Officer and one other member.

Notwithstanding section 105 of the Financial Administration Act, each member of the Commission shall be appointed by the Governor in Council to hold office during pleasure for such term as the Governor in Council considers appropriate.

[Repealed, 2009, c. 2, s. 379]

[Repealed, 2006, c. 9, s. 240]

Each member of the Commission shall be paid such salary or other remuneration, and may be paid such travel and living expenses incurred in connection with the performance of his duties, as are fixed by the Governor in Council.

A member of the Commission ceases to hold office on reaching the age of seventy years.

If any member of the Commission is absent or unable to act, the Governor in Council may appoint a temporary substitute member for such term and on such conditions as the Governor in Council prescribes.

The head office of the Commission shall be in the city of Ottawa, but meetings of the Commission may be held at such other places as the Commission may decide.

The Commission is for all purposes of this Act an agent of Her Majesty in right of Canada.

The Minister shall appoint a Consultative Committee consisting of a chairperson and eight other members.

Each member of the Consultative Committee shall be appointed for a term not exceeding three years, except that of those members first appointed three shall be appointed for a term of two years, three shall be appointed for a term of three years and three shall be appointed for a term of four years.

The Consultative Committee shall meet at such times as are fixed by the Commission and shall advise the Commission on such matters relating to the production and marketing of dairy products as are referred to it by the Commission.

The members of the Consultative Committee may be paid for their services such remuneration and expenses as are fixed by the Governor in Council.

The Commission may appoint such officers and employees as are necessary for the proper conduct of the work of the Commission and prescribe their duties and, subject to the approval of the Treasury Board, the conditions of their employment.

The officers and employees of the Commission appointed as provided in subsection (1) shall be paid such salaries and expenses as are fixed by the Commission with the approval of the Treasury Board.

The objects of the Commission are to provide efficient producers of milk and cream with the opportunity of obtaining a fair return for their labour and investment and to provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality.

The Commission may

purchase any dairy product and sell, or otherwise dispose of, any dairy product purchased by it;

package, process, store, ship, insure, import or export any dairy product purchased by the Commission;

make payments for the benefit of producers of milk and cream for the purpose of providing protection for the income of those producers from the sale of those products, which payments may be made on the basis of volume, quality or on any other basis that the Commission deems appropriate;

make investigations into any matter relating to the production, processing or marketing of any dairy product, including the cost of producing, processing or marketing that product;

undertake and assist in the promotion of the use of dairy products, the improvement of the quality and variety of and the publication of information in relation to those products;

establish and operate a pool or pools in respect of the marketing of milk or cream, including

distributing money to producers of milk or cream received from the marketing of any quantity of milk or cream, or any component, class, variety or grade of milk or cream from the pool or pools, and

deducting from the money distributed under subparagraph (i) any necessary and proper expenses of operating the pool or pools;

establish the price, or minimum or maximum price, paid or to be paid to the Commission, or to producers of milk or cream, the basis on which that payment is to be made and the terms and manner of payment that is to be made in respect of the marketing of any quantity of milk or cream, or any component, class, variety or grade of milk or cream;

collect the price paid or to be paid to the Commission, or to any producer in respect of the marketing of any quantity of milk or cream, or any component, class, variety or grade of milk or cream, or recover that price in a court of competent jurisdiction;

subject to an agreement entered into under section 9.1, establish and operate a program in respect of the quantities and prices of milk or cream, or of any component, class, variety or grade of milk or cream, necessary for the competitive international trade in, and the promotion and facilitation of the marketing of, dairy products, including

distributing money for the purpose of the equalization of returns to producers in respect of that milk or cream, or that component, class, variety or grade, from which those dairy products are made, and

deducting from the money distributed under subparagraph (i) any necessary and proper expenses of operating the program; and

do all acts and things necessary or incidental to the exercise of any of its powers or the carrying out of any of its functions under this Act.

For the purpose of carrying out any investigation under paragraph (1)(d), the Commission has all the powers of a commissioner appointed under Part I of the Inquiries Act.

The Commission may make the rules it deems necessary for the regulation of its proceedings, for the fixing of a quorum for any of its meetings and generally for the conduct of its activities under this Act.

The Commission may, with the approval of the Governor in Council, enter into an agreement with a province or a Board, providing for the coordinated marketing of dairy products, including the granting of authority for the performance

by the Board of any powers of the Commission set out in paragraphs 9(1)(f) to (i);

by the Commission of any similar powers that the Board is authorized by the laws of a province to exercise; or

by the Commission of any similar powers that it is authorized to exercise by the lieutenant governor in council of a province.

Each year, following determination by the Governor in Council pursuant to the Farm Income Protection Act of the total amount to be paid by the Minister to the Commission for the purpose of providing protection for the income of producers of milk and cream from the sale of those products, the Commission shall submit to the Minister an outline of the program by which it proposes to carry out its functions under this Act for the following fiscal year.

The Commission shall carry out its functions under this Act in a manner that will achieve its objects and meet its obligations from the moneys available to it under this Act.

In exercising its powers under this Act or the regulations in relation to the importation or exportation of any dairy product, the Commission shall comply with any directions from time to time given to it by the Minister.

Subsections 89(2) to (6) and section 153 of the Financial Administration Act apply, with such modifications as the circumstances require, to a direction given under subsection (1) as though it were a directive referred to in those provisions.

The Governor in Council may make regulations regulating the marketing of any dairy product, including regulations

providing for the marketing of any dairy product on a quota basis;

designating the agencies through which any regulated product shall be marketed;

providing for the issue of licences to persons engaged in the production or processing of a regulated product for market, prescribing the fees for those licences and providing for their cancellation or suspension;

prohibiting persons from engaging in the marketing of any dairy product, or any class, variety or grade of such a product, in whole or in part, except under the authority of a licence;

prescribing the books and records to be kept by persons engaged in the production or processing of a regulated product for market and the information to be furnished by those persons;

authorizing the Commission to fix, impose and collect levies or charges from persons engaged in the marketing of any dairy product or the production or processing of a regulated product for market and for those purposes to classify those persons into groups, fix the levies or charges payable by the members of the different groups and to use those levies or charges for the purpose of carrying out its functions under this Act;

providing for the seizure and disposal of any regulated product marketed in contravention of any regulation made under this section; and

generally, for carrying out the purposes and provisions of this Act.

A regulation made under subsection (1) may be general or restricted to a specific dairy product, area, or group or class of persons.

The Governor in Council may make regulations requiring the registration of producers of milk and cream as a condition of the making of any payment under paragraph 9(1)(c) for the benefit of those producers and prescribing the books and records to be kept and the information to be furnished to the Commission by or on behalf of those producers.

All expenditures for salaries, travel expenses and expenses of administration shall be paid out of moneys appropriated by Parliament for the purpose, other than

expenditures that in the opinion of the Minister are directly attributable to action taken by the Commission to provide protection for the income of producers of any dairy product from the sale of that product; and

necessary and proper expenses incurred by the Commission in exercising any of its powers set out in paragraphs 9(1)(f) to (i).

There shall be established in the accounts of Canada a special account to be known as the Canadian Dairy Commission Account, in this section called the “Account”.

There shall be credited to the Account

all moneys received by the Commission from its operations described in paragraphs 9(1)(a) and (b);

all licence fees, levies and charges paid to the Commission;

all loans made to the Commission by the Minister of Finance pursuant to section 16; and

all amounts paid to the Commission by the Minister under the Farm Income Protection Act for the purpose of providing protection for the income of producers of any dairy product from the sale of that product.

There shall be paid out of the Consolidated Revenue Fund and charged to the Account

all expenditures under this Act, except those to be paid pursuant to section 14;

all amounts paid to the Minister of Finance in repayment of loans made to the Commission pursuant to section 16 or as interest on those loans; and

any excess licence fees, levies and charges paid to the Commission.

No payment shall be made out of the Consolidated Revenue Fund under this section in excess of the amount of the balance to the credit of the Account.

At the request of the Commission, the Minister of Finance may, out of the Consolidated Revenue Fund, make loans to the Commission on such terms and conditions as are approved by the Governor in Council for the purpose of exercising any of the powers of the Commission described in paragraphs 9(1)(a) and (b).

The total aggregate amount outstanding at any time of loans made under subsection (1) and amounts drawn under subsection 16.1(2) shall not exceed five hundred million dollars.

The Commission may establish an account with any member of the Canadian Payments Association for the purpose of, and may deduct from the account any necessary and proper expenses incurred in, exercising any of its powers set out in paragraphs 9(1)(f) to (i).

The Commission may, with the approval of the Minister of Finance, establish and use a line of credit with any member of the Canadian Payments Association for the purpose of exercising any of its powers set out in paragraphs 9(1)(f) to (i).

The Commission may appoint or designate any person as an inspector for the purposes of this Act.

The Commission shall furnish every inspector with a certificate of appointment or designation and on entering any place under subsection 18(1) an inspector shall, if so required, produce the certificate to the person in charge of that place.

Subject to subsection (1.1), an inspector may at any reasonable time

enter any place in which the inspector believes on reasonable grounds there is any regulated product; and

require any person to produce for inspection, or for the purpose of obtaining copies thereof or extracts therefrom, any books, records or documents relating to that product.

Where any place referred to in paragraph (1)(a) is a dwelling-house, an inspector may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant issued under subsection (1.2).

Where on ex parte application a justice of the peace is satisfied by information on oath the justice of the peace may issue a warrant under his hand authorizing the inspector named therein to enter that dwelling-house subject to such conditions as may be specified in the warrant.

that the conditions for entry described in paragraph (1)(a) exist in relation to a dwelling-house,

that entry to the dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act, and

that entry to the dwelling-house has been refused or that there are reasonable grounds for believing that entry thereto will be refused,

In executing a warrant issued under subsection (1.2), the inspector named therein shall not use force unless the inspector is accompanied by a peace officer and the use of force has been specifically authorized in the warrant.

The owner or persons in charge of any place referred to in subsection (1) and every person found in that place shall give the inspector all reasonable assistance to enable the inspector to carry out his duties and functions under this Act and shall furnish the inspector with any information he may reasonably require with respect to any regulated product found in that place.

No person shall obstruct or hinder, or make any false or misleading statement either orally or in writing to, an inspector engaged in carrying out his duties or functions under this Act or any regulation made under this Act.

Every person who, or whose employee or agent, contravenes or fails to comply with any provision of this Act or any regulation made under this Act is guilty of an offence and liable

on summary conviction to a fine not exceeding five hundred dollars or to imprisonment for a term not exceeding six months or to both; or

on conviction on indictment to a fine not exceeding two thousand dollars or to imprisonment for a term not exceeding one year or to both.

In a prosecution for an offence under this section it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused, whether or not the employee or agent is identified.

Where it is established in any prosecution for an offence under this section that the offence was committed by an employee or agent of the accused, it is a defence to the accused that he exercised all due diligence to prevent the commission of the offence.

The Commission may, with the approval of the Attorney General of Canada, seek injunctive relief in any court of competent jurisdiction, where the Commission believes on reasonable grounds that a person or their employee or agent has failed to comply with any provision of this Act or any regulation.

The Governor in Council may include on the Import Control List established under the Export and Import Permits Act any dairy product the import of which the Governor in Council deems it necessary to control for the purpose of implementing any action taken under this Act to support the price of that dairy product or that has the effect of supporting the price of that dairy product.

On the day on which this section comes into force, the person occupying the position of Chairman of the Canadian Dairy Commission ceases to occupy that position and becomes the Chief Executive Officer of the Commission as if appointed to that position under section 3 of the Canadian Dairy Commission Act for a period equal to the remainder of the person’s term of office as Chairman.