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Table of Contents
Summary
Table of Provisions
Part 1 - Conflicts of Interest, Election Financing, Lobbying and Ministers' Staff
Part 2 - Supporting Parliament
Part 3 - Office of the Director of Public Prosecutions, Administrative Transparency and Disclosure Wrongdoing
Part 4 - Administrative Oversight and Accountability
Part 5 - Procurement and Contracting
Schedule

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, Canada's New Government - Federal Accountability Act and Action Plan,

Federal Accountability Act - Text of Bill C-2,

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288. Section 6 of the Act is replaced by the following:
Absence or incapacity
6. In the event of the absence or incapacity of the Chairperson or the Chief Executive Officer or of a vacancy in either office, the Board shall authorize another member to act as such, but no person may act as such for a period exceeding sixty days without the approval of the Governor in Council.
Clause 288: Existing text of section 6:
6. (1) The Chairperson is the chief executive officer of the Commission.
(2) If the Chairperson is absent or unable to act or the office is vacant, the Vice-Chairperson has all the powers and may perform all the functions of the Chairperson.
(3) The Commission may authorize one of its members to act as Chairperson for the time being in the event that the Chairperson and Vice-Chairperson are absent or unable to act or the offices of the Chairperson and Vice-Chairperson are vacant.
1995, c. 29, s. 55(E)
289. Subsections 7(1) and (2) of the Act are replaced by the following:
Salary of Chief Executive Officer
7. (1) The Chief Executive Officer shall be paid a salary to be fixed by the Governor in Council.
Remuneration of other members
(2) The Governor in Council may authorize the payment of allowances or other remuneration to the Chairperson and to any other member having special duties.
Clause 289: Existing text of subsections 7(1) and (2):
7. (1) The Chairperson shall be paid a salary to be fixed by the Governor in Council.
(2) The Governor in Council may authorize the payment of allowances or other remuneration to the Vice-Chairperson and to any other member having special duties.
1995, c. 29, s. 55(E)
290. Subsection 9(1) of the Act is replaced by the following:
Executive Committee
9. (1) There shall be an Executive Committee of the Commission consisting of the Chairperson, the Chief Executive Officer and three other members to be appointed by the Commission, at least one of whom shall be from the Province of Quebec.
Clause 290: Existing text of subsection 9(1):
9. (1) There shall be an Executive Committee of the Commission consisting of the Chairperson, the Vice-Chairperson and three other members to be appointed by the Commission, at least one of whom shall be from the Province of Quebec.
1995, c. 29, s. 55(E)
291. Section 22 of the Act is replaced by the following:
Evidence
22. In a prosecution for the contravention of any regulation made under subsection 20(1), a certificate stating that any property described in it is under the control of the Commission and purporting to be certified by the Commission or the Chief Executive Officer, General Manager, Chief Engineer, or Secretary of the Commission shall be admitted in evidence without proof of the signature or official character of the person appearing to have signed the certificate and without further proof and, in the absence of evidence to the contrary, is proof that the property is under the control of the Commission.
Clause 291: Existing text of section 22:
22. In a prosecution for the contravention of any regulation made under subsection 20(1), a certificate stating that any property described therein is under the control of the Commission and purporting to be certified by the Commission or the Chairperson, General Manager, Chief Engineer, or Secretary of the Commission shall be admitted in evidence without proof of the signature or official character of the person appearing to have signed the certificate and without further proof thereof, and is proof, in the absence of evidence to the contrary, that the property is under the control of the Commission.
R.S., c. P-14
Pilotage Act
292. (1) Subsection 3(3) of the Pilotage Act is replaced by the following:
Other members
(3) Each of the other members of an Authority shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding four years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.
Pilotage Act
Clause 292: (1) and (2) Existing text of subsections 3(3) and (3.1):
(3) Each member, other than the Chairman, of an Authority shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for such term, not exceeding three years, as will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one-half of the members of the Authority.
(3.1) The Chairman and the Vice-Chairman may be appointed to serve full-time or part-time.
1998, c. 10, s. 145(2)
(2) Subsection 3(3.1) of the English version of the Act is replaced by the following:
Full- or part-time
(3.1) The Chairperson and the Vice-Chairperson may be appointed to serve full-time or part-time.
293. Section 10 of the English version of the Act is replaced by the following:
Vice-Chairperson
10. The Governor in Council may appoint one of the members, other than the Chairperson, of an Authority to be Vice-Chairperson.
Clause 293: Existing text of section 10:
10. The Governor in Council may appoint one of the members, other than the Chairman, of an Authority to be Vice-Chairman thereof.
294. Subsection 13(2) of the English version of the Act is replaced by the following:
When Vice-Chairperson to act
(2) In the event of the absence or incapacity of the Chairperson of an Authority, or if the office of Chairperson is vacant, the Vice-Chairperson, if any, of the Authority shall act as Chairperson.
Clause 294: Existing text of subsection 13(2):
(2) In the event of the absence or incapacity of the Chairman of an Authority, or if the office of Chairman is vacant, the Vice-Chairman, if any, of the Authority shall act as Chairman.
295. Subsections 14(1) and (2) of the English version of the Act are replaced by the following:
Remuneration
14. (1) The Chairperson and Vice-Chairperson of an Authority shall be paid remuneration to be fixed by the Governor in Council.
Members' allowances
(2) A member, other than the Chairperson or Vice-Chairperson, of an Authority shall be paid a daily allowance to be fixed by the Governor in Council for each day that the member is engaged on the business of the Authority.
Clause 295: Existing text of subsections 14(1) and (2):
14. (1) The Chairman and Vice-Chairman of an Authority shall be paid such remuneration as may be fixed by the Governor in Council.
(2) A member, other than the Chairman or Vice-Chairman, of an Authority shall be paid such daily allowance as may be fixed by the Governor in Council for each day that the member is engaged on the business of the Authority.
Replacement of references
296. The English version of the Act is amended by replacing "Chairman" with "Chairperson" wherever it occurs in the following provisions:
(a) subsections 3(1) and (2);
(b) subsections 13(1) and (1.1);
(c) subparagraph 17(1)(b)(i);
(d) subsections 27(1) to (3); and
(e) subsection 27(5).
1999, c. 34
Public Sector Pension Investment Board Act
2005, c. 30, s. 47
297. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:
Financial Administration Act
(6) Part X of the Financial Administration Act, except for sections 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.
Public Sector Pension Investment Board Act
Clause 297: Existing text of subsection 3(6):
(6) Part X of the Financial Administration Act, except for sections 132 to 147, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.
298. Subsection 9(1) of the Act is replaced by the following:
Appointment of directors
9. (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for a term, not exceeding four years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.
Clause 298: Existing text of subsection 9(1):
9. (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for the term, not exceeding three years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.
299. Section 27 of the Act is amended by adding the following after subsection (1):
Restriction - audit committee
(1.1) None of the members of the audit committee may be officers or employees of the Board or any of its affiliates, within the meaning of section 83 of the Financial Administration Act.
Clause 299: New.
R.S., c. R-9
Royal Canadian Mint Act
R.S., c. 35 (3rd Supp.), s. 9
300. Section 11 of the Royal Canadian Mint Act is replaced by the following:
Appointment of directors
11. Each director, other than the Chairperson and the Master of the Mint, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.
Royal Canadian Mint Act
Clause 300: Existing text of section 11:
11. Each director, other than the Chairman and the Master of the Mint, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for such term not exceeding three years as will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one-half of the directors.
R.S., c. S-16
Standards Council of Canada Act
301. Subsection 6(1) of the Standards Council of Canada Act is replaced by the following:
Appointment of members
6. (1) Each member of the Council, other than the persons referred to in paragraphs 3(b) and (c), shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.
Standards Council of Canada Act
Clause 301: Existing text of subsection 6(1):
6. (1) Each member of the Council, other than the persons referred to in paragraphs 3(b) and (c), shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during pleasure for such term not exceeding three years as will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members.
R.S., c. C-16; 2002, c. 17, s. 6
Telefilm Canada Act
302. Subsection 4(1) of the Telefilm Canada Act is replaced by the following:
Appointment and tenure of office
4. (1) Each of the members of the Corporation other than the Government Film Commissioner shall be appointed to hold office for a term of four years.
Telefilm Canada Act
Clause 302: Existing text of subsection 4(1):
4. (1) Each of the members of the Corporation, other than the Government Film Commissioner, shall be appointed to hold office for a term of five years, except that, of those members first appointed, three shall be appointed for a term of three years and three shall be appointed for a term of five years.
Coming into Force
Order in council
303. (1) Subject to subsection (2), sections 241 to 244, 246, 248 to 255 and 263, subsections 264(1) and (3) and sections 265 to 268, 271, 285 to 291 and 297 come into force on a day or days to be fixed by order of the Governor in Council.
Order in council
(2) Subsection 264(2) comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.
PROCUREMENT AND CONTRACTING
R.S., c. A-17
Auditor General Act
2005, c. 30, s. 32
304. (1) The definitions "not-for-profit corporation" and "recipient corporation" in section 2 of the Auditor General Act are repealed.
Auditor General Act
Clause 304: (1) and (2) Existing text of the definitions:
"funding agreement", in respect of a corporation, means an agreement in writing under which the corporation receives funding from Her Majesty in right of Canada, either directly or through an agent or mandatary of Her Majesty, including by way of a loan, but does not include a construction contract, a goods contract or a service contract;
"not-for-profit corporation" means a corporation no part of whose income is payable to or otherwise available for the personal benefit of any of its members or shareholders;
"recipient corporation" means any not-for-profit corporation, or any corporation without share capital, that has, in any five consecutive fiscal years, received a total of $100,000,000 or more under one or more funding agreements, but does not include any such corporation that is
(a) a Crown corporation,
(b) a departmental corporation as defined in section 2 of the Financial Administration Act,
(c) a municipality,
(d) a cooperative, other than a non-profit cooperative,
(e) a corporation that receives, on an ongoing basis, at least half of its funding from a municipality or the government of a province or of a foreign state, or from any agency of a municipality or any such government,
(f) a corporation that is controlled by a municipality or a government other than the Government of Canada, or
(g) an international organization;
2005, c. 30, s. 32
(2) The definition "funding agreement" in section 2 of the Act is replaced by the following:
"funding agreement"
« accord de financement »
"funding agreement" has the meaning given to that expression by subsection 42(5) of the Financial Administration Act;
(3) Section 2 of the Act is amended by adding the following in alphabetical order:
"recipient"
« bénéficiaire »
"recipient" has the meaning given to that expression by subsection 42(5) of the Financial Administration Act;
(3) New.
2005, c. 30, s. 33
305. (1) The portion of subsection 2.1(1) of the Act before paragraph (a) is replaced by the following:
Control
2.1 (1) For the purpose of paragraph (d) of the definition "recipient" in subsection 42(5) of the Financial Administration Act, a municipality or government controls a corporation with share capital if
Clause 305: (1) Relevant portion of subsection 2.1(1):
2.1 (1) For the purpose of paragraph (f) of the definition "recipient corporation" in section 2, a municipality or government controls a corporation with share capital if
2005, c. 30, s. 33
(2) Subsection 2.1(2) of the Act is replaced by the following:
Control
(2) For the purpose of paragraph (d) of the definition "recipient" in subsection 42(5) of the Financial Administration Act, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so.
(2) Existing text of subsection 2.1(2):
(2) For the purpose of paragraph (f) of the definition "recipient corporation" in section 2, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so.
306. The heading before section 5 of the Act is replaced by the following:
POWERS AND DUTIES
Clause 306: Existing text of the heading:
DUTIES
2005, c. 30, s. 34
307. Subsection 7.1(1) of the Act is replaced by the following:
Inquiry and report
7.1 (1) The Auditor General may, with respect to any recipient, inquire into its use of funds received from Her Majesty in right of Canada and inquire into whether
(a) the recipient has failed to fulfil its obligations under any funding agreement;
(b) money the recipient has received under any funding agreement has been used without due regard to economy and efficiency;
(c) the recipient has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement;
(d) the recipient has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or
(e) money the recipient has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development.
Clause 307: Existing text of subsection 7.1(1):
7.1 (1) The Auditor General may, with respect to any recipient corporation, inquire into its use of funds received from Her Majesty in right of Canada and inquire into whether
(a) the corporation has failed to fulfil its obligations under any funding agreement;
(b) money the corporation has received under any funding agreement has been used without due regard to economy and efficiency;
(c) the corporation has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement;
(d) the corporation has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or
(e) money the corporation has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development.
308. The Act is amended by adding the following after section 18:
IMMUNITIES
Immunity as witness
18.1 The Auditor General, or any person acting on behalf or under the direction of the Auditor General, is not a competent or compellable witness - in respect of any matter coming to the knowledge of the Auditor General or that person as a result of performing audit powers, duties or functions under this or any other Act of Parliament during an examination or inquiry - in any proceedings other than a prosecution for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made under this Act.
Protection from prosecution
18.2 (1) No criminal or civil proceedings lie against the Auditor General, or against any person acting on behalf or under the direction of the Auditor General, for anything done, reported or said in good faith in the course of the performance or purported performance of audit powers, duties or functions under this Act.
Defamation
(2) For the purposes of any law relating to defamation,
(a) anything said, any information supplied or any document or thing produced in good faith by or on behalf of the Auditor General, in the course of the performance or purported performance of audit powers, duties or functions under this Act, is privileged; and
(b) any report made in good faith by the Auditor General in the course of the performance or purported performance of audit powers, duties or functions under this Act, and any fair and accurate account of the report made in good faith in a newspaper or any other periodical publication or in a broadcast, is privileged.
Clause 308: New.
1996, c. 16
Department of Public Works and Government Services Act
309. The Department of Public Works and Government Services Act is amended by adding the following after section 22:
PROCUREMENT AUDITOR
Appointment
22.1 (1) The Governor in Council may appoint a Procurement Auditor for a term of not more than five years.
Remuneration and expenses
(2) The Procurement Auditor shall be paid the remuneration and expenses that may be fixed by the Governor in Council.
General duties and functions
(3) The Procurement Auditor shall, in accordance with the regulations,
(a) review the practices of departments for acquiring materiel and services to assess their fairness, openness and transparency and make any appropriate recommendations to the relevant department for the improvement of those practices;
(b) review any complaint respecting the compliance with any regulations made under the Financial Administration Act of the award of a contract for the acquisition of materiel or services by a department to which the Agreement, as defined in section 2 of the Agreement on Internal Trade Implementation Act, would apply if the value of the contract were not less than the amount referred to in article 502 of that Agreement;
(c) review any complaint respecting the administration of a contract for the acquisition of materiel or services by a department; and
(d) ensure that an alternative dispute resolution process is provided, on request of each party to such a contract.
Other duties and functions
(4) The Procurement Auditor shall also perform any other duty or function respecting the practices of departments for acquiring materiel and services that may be assigned to the Procurement Auditor by order of the Governor in Council or the Minister.
Person who may complain
22.2 (1) A person may only file a complaint referred to in paragraph 22.1(3)(b) or (c) if that person is a Canadian supplier within the meaning of article 518 of the agreement referred to in paragraph 22.1(3)(b) and meets any requirements prescribed by the regulations.
Timing of complaint
(2) The complaint may only be filed after the award of the contract to which the complaint relates.
Findings and recommendations
(3) The Procurement Auditor shall, within the period after the complaint is filed that may be established by the regulations, provide the complainant, the relevant minister and the Minister with the Procurement Auditor's findings and any recommendations.
Limitation
(4) The Procurement Auditor may not recommend the cancellation of the contract to which the complaint relates.
Annual Report
22.3 (1) The Procurement Auditor shall, within four months after the end of each fiscal year, deliver a report respecting the activities of the Procurement Auditor in that year to the Minister.
Annual report to be laid
(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report.
Department of Public Works and Government Services Act
Clause 309: New.
310. The Act is amended by adding the following after section 23:
Regulations
23.1 The Governor in Council may make regulations respecting
(a) the performing of the duties and functions of the Procurement Auditor referred to in subsection 22.1(3), including the departments in respect of which those duties and functions shall not be performed;
(b) the filing of complaints referred to in paragraphs 22.1(3)(b) and (c), including any conditions that must be met before a complaint may be filed and the manner in which it must be filed; and
(c) the types of recommendations that the Procurement Auditor may make in response to the complaints and the time within which they must be made.
Clause 310: New.
R.S., c. F-11
Financial Administration Act
Amendments to Act
311. The Financial Administration Act is amended by adding the following after section 39:
PART III.1
CONTRACTS
Financial Administration Act
Clause 311: New.
1991, c. 24, s. 50 (Sch. II, item 10)(F)
312. (1) Section 40 of the French version of the Act is replaced by the following:
Clause automatique des contrats
40. Tout contrat prévoyant des paiements à effectuer par Sa Majesté est censé comporter une clause qui les subordonne à l'existence d'un crédit particulier ouvert pour l'exercice au cours duquel des engagements découlant du contrat sont susceptibles d'arriver à échéance.
Clause 312: Existing text of section 40:
40. The registered parties that have the right to provide the returning officer with lists of names of suitable persons to be appointed as election officers for the purposes of a by-election under subsection 29(1.1) of the Parliament of Canada Act because of an equality of votes are the same registered parties as those who had that right for the purposes of the election that resulted in the equality of votes.
1991, c. 24, s. 50 (Sch. II, item 10)(F)
(2) Section 40 of the Act is renumbered as subsection 40(1) and is amended by adding the following:
Public opinion research
(2) It is a term of every contract for public opinion research entered into by any person with Her Majesty that a written report will be provided by that person.
(2) New.
313. The Act is amended by adding the following after section 40:
Commitment
40.1 The Government of Canada is committed to taking appropriate measures to promote fairness, openness and transparency in the bidding process for contracts with Her Majesty for the performance of work, the supply of goods or the rendering of services.
Clause 313: New.
1991, c. 24, s. 50 (Sch. II, item 11)(F)
314. Subsection 41(1) of the French version of the Act is replaced by the following:
Règlements sur les contrats
41. (1) Le gouverneur en conseil peut, par règlement, régir les conditions de passation des contrats. Il peut en outre, par dérogation aux autres lois fédérales :
a) ordonner l'interdiction ou l'invalidation des contrats prévoyant un paiement qui dépasse un plafond fixé par lui sans que lui-même ou le Conseil du Trésor ait approuvé leur passation;
b) prendre par règlement des mesures touchant les cautionnements à fournir à Sa Majesté et au nom de celle-ci en garantie de la bonne exécution des contrats.
Clause 314: Existing text of subsection 41(1):
41. (1) When a new electoral district is established, the Chief Electoral Officer shall transpose the results from the previous general election to the polling divisions that are in the new electoral district in order to determine which registered parties' candidates have the right to provide the returning officer with lists of persons to be appointed as election officers.
315. The Act is amended by adding the following after section 41:
Regulations - deemed terms of contracts
42. (1) The Governor in Council may make regulations fixing terms that are deemed to be expressly set out in contracts, or classes of contracts, that provide for the payment of any money by Her Majesty - or in documents, or classes of documents, relating to such contracts and their formation - including terms
(a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbyists Registration Act applies;
(b) respecting corruption and collusion in the bidding process for contracts for the performance of work, the supply of goods or the rendering of services;
(c) requiring that a bidder on a contract for the performance of work, the supply of goods or the rendering of services make a declaration that the bidder has not committed an offence under section 121, 124 or 418 of the Criminal Code; and
(d) respecting the provision of information or records to enable the Auditor General of Canada to inquire into the use of funds provided under funding agreements.
Powers of Auditor General
(2) Regulations made under subsection (1) may not infringe on the powers of the Auditor General under section 7.1 of the Auditor General Act.
Regulations - public opinion research
(3) The Governor in Council may, in respect of contracts for public opinion research, make regulations
(a) prescribing the form and content of the term of the contract and of the written report referred to in subsection 40(2); and
(b) requiring the report to be made available to the public in the manner, and subject to the conditions, specified in the regulations.
Definitions
(4) The following definitions apply in this section.
"funding agreement"
« accord de financement »
"funding agreement", in respect of a recipient, means an agreement in writing under which the recipient receives funding from Her Majesty in right of Canada or a Crown corporation, either directly or through an agent or mandatary of Her Majesty, including by way of loan, but excludes contracts for the performance of work, the supply of goods or the rendering of services.
"recipient"
« bénéficiaire »
"recipient" means an individual, body corporate, partnership or unincorporated organization that has, in any five consecutive fiscal years, received a total of one million dollars or more under one or more funding agreements, but does not include
(a) a Crown corporation;
(b) a departmental corporation;
(c) the government of a foreign state, a provincial government, a municipality or an aboriginal body named in Schedule VII, or any of their agencies;
(d) a corporation that is controlled by a municipality or a government other than the Government of Canada; or
(e) an international organization.
Clause 315: New.
Coordinating Amendment
316. On the day on which section 66 of this Act comes into force, paragraph 42(1)(a) of the Financial Administration Act is replaced by the following:
(a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbying Act applies;
Coming into Force
Order in council
317. (1) Sections 309 and 310 come into force on a day or days to be fixed by order of the Governor in Council.
Order in council
(2) Notwithstanding subsection 114(4) of the Canada Pension Plan, section 315 comes into force on the day on which this Act is assented to, but that section does not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds of the included provinces, within the meaning of subsection 114(1) of that Act, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment made by that section.

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