Issue 04

REPORT TO THE HOUSE

Friday, April 26, 1996

The Standing Committee on Human Resources Development has the honour to present its

THIRD REPORT

In accordance with its Order of Reference of Friday, March 7, 1996, your Committee has considered Bill C-12, An Act respecting employment insurance in Canada (previously Bill C-111, 1st Session, 35th Parliament).

Clause 2

In the English version only, strike out line 25, on page 2, and substitute the following therefor:

``5(1)(e), it includes that individual;''

Strike out line 23, on page 3, and substitute the following therefor:

````regular benefits'' means benefits payable under Part I and Part VIII, but does not include special''

Clause 3

Strike out lines 10 to 22, on page 4, and substitute the following therefor:

``3. (1) The Commission shall monitor and assess

(a) how individuals, communities and the economy are adjusting to the changes made by this Act to the insurance and employment assistance programs under the Unemployment Insurance Act;

(b) whether the savings expected as a result of the changes made by this Act are being realized; and

(i) how the benefits and assistance are utilized by employees and employers, and

(ii) the effect of the benefits and assistance on the obligation of claimants to be available for and to seek employment and on the efforts of employers to maintain a stable workforce.

(2) The Commission shall report to the Minister on its assessment annually from 1997 to 2001 no later than December 31 each year and shall make any additional reports at any other times, as the Minister may request.''

Clause 4

Strike out line 32, on page 4, and substitute the following therefor:

``4. For the purposes of subsection 14(1.1), section 17, subsec-''

New Clause 7.1

Add immediately after line 20, on page 11, the following:

``7.1 (1) The number of hours that an insured person, other than a new entrant or re-entrant to the labour force, requires under section 7 to qualify for benefits is increased to the number provided in the following table if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefit:

INSERT TABLE

(2) The number of hours that an insured person who is a new entrant or re-entrant to the labour force requires under section 7 to qualify for benefits is increased if, in the 260 weeks before making their initial claim for benefit, the person accumulates

(a) a minor violation, in which case the number of required hours is increased to 1,138 hours;

(b) a serious violation, in which case the number of required hours is increased to 1,365 hours; or

(3) A violation may not be taken into account under subsection (1) or (2) in more than two initial claims for benefits if the insured person qualified for benefits with the increased number of hours in each of those claims.

(4) An insured person accumulates a violation if in any of the following circumstances the Commission issues a notice of violation to the person:

(a) one or more penalties are imposed on the person under section 38, 39, 41.1 or 65.1, as a result of acts or omissions mentioned in section 38, 39 or 65.1;

(b) the person is found guilty of one or more offences under section 135 or 136 as a result of acts or omissions mentioned in those sections; or

(c) the person is found guilty of one or more offences under the Criminal Code as a result of acts or omissions relating to the application of this Act.

(5) Except for violations for which a warning was imposed, each violation is classified as a minor, serious, very serious or subsequent violation as follows:

(a) if the value of the violation is

(i) less than $1,000, it is a minor violation,

(ii) $1,000 or more, but less than $5,000, it is a serious violation, or

(iii) $5,000 or more, it is a very serious violation; and

(b) if the notice of violation is issued within 260 weeks after the person accumulates another violation, it is a subsequent violation, even if the acts or omissions on which it is based occurred before the person accumulated the other violation.

(6) The value of a violation is the total of

(a) the amount of the overpayment of benefits resulting from the acts or omissions on which the violation is based, and

(b) if the claimant is disqualified or disentitled from receiving benefits, or the act or omission on which the violation is based relates to qualification requirements under section 7, the amount determined, subject to subsection (7), by multiplying the claimant's weekly rate of benefit by the average number of weeks of regular benefits, as determined under the regulations.

(7) The maximum amount to be determined under paragraph (6)(b) is the amount of benefits that could have been paid to the claimant if the claimant had not been disentitled or disqualified or had met the qualification requirements under section 7.''

Clause 9

Strike out line 5, on page 13, and substitute the following therefor:

``under section 7 or 7.1 makes an initial claim for''

Clause 14

Add immediately after line 34, on page 18, the following:

``(1.1) The maximum weekly insurable earnings is

(a) $750 if the claimant's benefit period begins during the years 1997 to 2000; and

(b) if the claimant's benefit period begins in a subsequent year, the maximum yearly insurable earnings divided by 52.''

Strike out lines 27 and 28, on page 19, and substitute the following therefor:

``(3) Insurable earnings in the rate calculation period shall be established and calculated in accordance with the regulations and include earnings from any insura-''

Strike out lines 41 to 45, on page 19, and substitute the following therefor:

``(5) For the purpose of achieving a uniform divisor of 22 in subsection (2), the Minister may, with the approval of the Governor in Council, by regulation amend the table in that subsection by increasing to a maximum of 22''

Clause 15

Strike out lines 1 and 2 on page 21, and substitute the following therefor:

``claimant was paid more than 20 weeks of regular benefits:''

Clause 19

Strike out lines 32 to 35, on page 22, and lines 1 to 5, on page 23, and substitute the following therefor:

``(3) If the claimant has failed to declare all or some of their earnings to the Commission for a period, determined under the regulations, for which benefits were claimed,

(a) the following amount shall be deducted from the benefits paid to the claimant for that period:

(i) the amount of the undeclared earnings, if, in the opinion of the Commission, the claimant knowingly failed to declare the earnings, or

(ii) in any other case, the amount of the undeclared earnings less the difference between

(A) all amounts determined under paragraph (2)(a) or (b) for the period,

and

(B) all amounts that were applied under those paragraphs in respect of the declared earnings for the period; and

(b) the deduction shall be made

(i) from the benefits paid for a number of weeks that begins with''

Clause 25

Strike out line 7, on page 27, and substitute the following therefor:

``25. (1) For the purposes of this Part, a claim-''

Add immediately after line 23, on page 27, the following:

``(2) A decision of the Commission about the referral of a claimant to a course, program or other employment activity mentioned in subsection (1) is not subject to appeal under section 114 or 115''.

Clause 27

Strike out line 5, on page 28, and substitute the following therefor:

``of obtaining that employment; or''

Strike out lines 14 to 25, on page 28, and substitute the following therefor:

``employment assistance.

(1.1) A claimant is disqualified from receiving benefits under this Part if

(a) the Commission or an authority that the Commission designates has, with the agreement of the claimant, referred the claimant to a course or program of instruction or training or to any other employment activity for which assistance has been provided under employment benefits; and

(b) the Commission has terminated the referral because

(i) without good cause, the claimant has not attended or participated in the course, program or employment activity and, in the opinion of the Commission, it is unlikely that the claimant will successfully complete the course, program or employment activity,

(ii) without good cause, the claimant has withdrawn from the course, program or employment activity, or

(iii) the organization providing the course, program or employment activity has expelled the claimant.''

Clause 28

Strike out lines 19 and 20, on page 29, and substitute the following therefor:

``tion arising under paragraph 27(1)(c) or (d) or subsection 27(1.1) shall be not more than 6.''

Clause 29

Strike out lines 15 to 18, on page 30, and substitute the following therefor:

``(a) ``employment'' refers to any employment of the claimant within their qualifying period or their benefit period;''

Strike out line 25, on page 30, and substitute the following therefor:

``(b.1) voluntarily leaving an employment includes

(i) the refusal of employment offered as an alternative to an anticipated loss of employment, in which case the voluntary leaving occurs when the loss of employment occurs,

(ii) the refusal to resume an employment, in which case the voluntary leaving occurs when the employment is supposed to be resumed, and

(iii) the refusal to continue in an employment after the work, undertaking or business of the employer is transferred to another employer, in which case the voluntary leaving occurs when the work, undertaking or business is transferred; and''

Clause 30

Strike out lines 22 to 32, on page 31, and substitute the following therefor:

``ceiving any benefits if the claimant lost any employment because of their misconduct or voluntarily left any employment without just cause, unless

(a) the claimant has, since losing or leaving the employment, been employed in insurable employment for the number of hours required by section 7 or 7.1 to qualify to receive benefits; or

(b) the claimant is disentitled under sections 31 to 33 in relation to the employment.''

Strike out lines 5 to 15, on page 32, and substitute the following therefor:

``(6) If a claimant who has lost or left an employment as described in subsection (1) makes an initial claim for benefits, the following hours may not be used to qualify under section 7 or 7.1 to receive benefits:

(a) hours of insurable employment from that or any other employment before the employment was lost or left; and

(b) hours of insurable employment in any employment that the claimant subsequently loses or leaves, as described in subsection (1).''

Strike out lines 17 and 18, on page 32, and substitute the following therefor:

``any employment that a claimant''

Add immediately after line 23, on page 32, the following:

``(8) For greater certainty, but subject to paragraph (1)(a), a claimant may be disqualified under subsection (1) even if the claimant's last employment before their claim for benefits was not lost or left as described in that subsection and regardless of whether their claim is an initial claim for benefits.''

Clause 31

Strike out line 29, on page 32, and substitute the following therefor:

``the employment; or''

Strike out line 33, on page 32, and substitute the following therefor:

``surable employment required by section 7 or 7.1''

Clause 32

In the English version only, strike out line 4, on page 33, and substitute the following therefor:

``(b) loses or voluntarily leaves the em-''

Strike out line 9, on page 33, and substitute the following therefor:

``ment required by section 7 or 7.1 to qualify to''

Clause 38

Strike out lines 18 and 19, on page 35, and substitute the following therefor:

``ings for a period determined under the regulations for which the claimant claimed benefits;''

Strike out lines 3 and 4, on page 36, and substitute the following therefor:

``(i) three times the amount of the deduction from the claimant's benefits under''

Strike out line 9, on page 36, and substitute the following therefor:

``deduction had not been made under sub-''

Add immediately after line 16, on page 36, the following:

``(3) For greater certainty, the repayment of benefits overpaid as a result of an act or omission mentioned in subsection (1) does not affect the determination, for the purposes of section 15 or subsection 145(2) or (3), of the number of weeks of regular benefits paid to a claimant.''

Clause 39

Strike out line 2, on page 37, and substitute the following therefor:

``effect when the penalty is imposed.

``(3) If the Commission becomes aware of facts that in its opinion establish that a corporation has committed an act described in subsection (1) and that any officer, director or agent of the corporation has directed, authorized, assented to, acquiesced in or participated in the act, the Commission may impose a penalty on the officer, director or agent, whether or not a penalty has been imposed on the corporation.

(4) Notwithstanding subsection (2), if the act involves the provision of information about any matter on which the fulfilment of conditions for the qualification and entitlement for receiving or continuing to receive benefits depends, the Commission may set the amount of the penalty at not more than the greater of

(a) $12,000, and

(b) the amount of the penalty imposed under section 38 on any person who made a claim for benefits based on the information provided.

(5) Notwithstanding subsection (2), the Commission may set the amount of the penalty at an amount required or authorized by the regulations if the act is a major contravention, as defined under the regulations.''

New Clause 41.1

Add immediately after line 16, on page 37, the following:

``41.1 (1) The Commission may issue a warning instead of setting the amount of a penalty for an act or omission under subsection 38(2) or 39(2).

(2) Notwithstanding paragraph 40(b), a warning may be issued within 72 months after the day on which the act or omission occurred.''

Clause 42

Strike out the heading immediately before Clause 42, on page 37, and substitute the following therefor:

``Non-assignment of Benefits and Liability to Return Benefits and Pay Penalties''

Clause 45

Strike out lines 17 to 19, on page 38, and substitute the following therefor:

``employer, a trustee in bankruptcy or any other person subsequently becomes liable to pay earnings, including damages for wrongful dismissal or proceeds realized from the property of a bankrupt, to the claim-''

Clause 46

Strike out lines 28 to 30, on page 38, and substitute the following therefor:

``employer, a trustee in bankruptcy or any other person becomes liable to pay earnings, including damages for wrongful dismissal or proceeds realized from the property of a bankrupt, to a claimant for a period and has''

New Clause 46.1

Add immediately after line 10, on page 39, the following:

``46.1 (1) If a penalty is imposed on a corporation under section 38 or 39 for an act or omission, the directors of the corporation at the time of the act or omission are, subject to subsections (2) to (7), jointly and severally liable, together with the corporation, to pay the amount of the penalty.''

(2) A director is not liable unless

(a) a certificate for the amount of the corporation's liability for the penalty has been registered in the Federal Court under section 126 and execution for that amount has been returned unsatisfied in whole or in part;

(b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of its liability has been proved within six months after the date of commencement of the proceedings or the date of the dissolution, whichever is earlier; or

(c) the corporation has made an assignment or a receiving order has been made against it under the Bankruptcy and Insolvency Act and a claim for the amount of its liability has been proved within six months after the date of the assignment or receiving order.

(3) A director is not liable if the director exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the act or omission for which the penalty is imposed.

(4) No action or proceedings to recover any amount payable by a director shall be commenced more than six years after the occurrence of the act or omission for which the penalty is imposed.

(5) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

(6) If a director pays an amount in respect of a corporation's liability that is proved in liquidation, dissolution or bankruptcy proceedings,

(a) the director is entitled to any preference that Her Majesty in right of Canada would have been entitled to if that amount had not been paid; and

(b) if a certificate that relates to that amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director's payment and the Commission shall make the assignment.

(7) A director who has satisfied a claim under this section is entitled to contribution from the other directors who are liable for the claim.''

Clause 47

Strike out line 12, on page 39, and substitute the following therefor:

``38, 39, 43, 45, 46, 46.1 are debts due to Her''

Clause 54

In the English version only, strike out line 19, on page 43, and substitute the following therefor:

``is to be considered to have worked or not worked a full work-''

Add immediately after line 20, on page 43, the following:

``(c.1) for determining the average number of weeks of regular benefits for the purposes of paragraph 7.1(6)(b);''

Add immediately after line 25, on page 43, the following:

``(d.1) determining for the purposes of subsection 19(3) the period for which benefits were claimed;''

In the English version only, strike out line 27, on page 43, and substitute the following therefor:

``tion 19 of earnings and allowances''

Add immediately after line 36, on page 43, the following:

``(g.1) for defining as a major contravention for the purposes of subsection 39(5) anything that constitutes an act mentioned in subsection 39(1) or (3) and for setting or calculating the amount or maximum amount of the penalty for the major contravention, up to a maximum of $25,000;''

Strike out lines 24 and 25, on page 44, and substitute the following therefor:

``penalties under section 38, 39 or 65.1 and amounts owing under section 43, 45, 46, 46.1 or''

Strike out lines 40 to 42, on page 45, and substitute the following therefor:

``geographical units established or used by Statistics''

Strike out lines 12 to 15, on page 46, and substitute the following therefor:

``(z) for carrying out the purposes and provisions of section 14, including regulations

(i) respecting the circumstances under which, the criteria by which and the manner in which

(A) weeks are to be considered as weeks for which a claimant has insurable earnings during a rate calculation period, including the number of those weeks to be considered in that period, and

(B) amounts are to be considered as the insurable earnings for any week or number of weeks in that period, and

(ii) for allocating insurable earnings to a rate calculation period, for example by including them in that period or excluding them from that period;''

Clause 57

Add immediately after line 3, on page 48, the following:

``(d.1) availability of assistance under the benefits and measures in either official language where there is significant demand for that assistance in that language;''

Clause 58

Strike out line 30, on page 48, and substitute the following therefor:

``58. (1) In this Part, ``insured participant''

Add immediately after line 9, on page 49, the following :

``(2) For the purposes of subsection (1), ``benefit period'' includes a benefit period established under the Unemployment Insurance Act and ``special benefits'' includes benefits under sections 18 and 20 of that Act.''

Clause 60

Strike out lines 22 and 23, on page 50, and substitute the following therefor:

``(b) employers, employee or employer associations, community groups and communities in developing''

Clause 63

Strike out lines 8 to 13, on page 52, and substitute the following therefor:

``of contributions for all or a portion of

(a) any costs of benefits or measures provided by the government, government agency or organization that are similar to employment benefits or support measures under this Part and are consistent with the purpose and guidelines of this Part; and

(b) any administration costs that the government, government agency or organization incurs in providing the benefits or measures.''

Clause 64

Strike out line 16, on page 52, and substitute the following therefor:

``measures, other than a decision under section 65.1 is not subject to appeal under sec-''

Clause 65

Strike out line 18, on page 52, and substitute the following therefor:

``65. A person is liable to repay the fol-''

Strike out line 20, on page 52, and substitute the following therefor:

``(a) principal and interest on a loan to the person;''

Add immediately after line 24, on page 52, the following:

``65.1 (1) The Commission may impose on a person to whom financial assistance has been provided under section 61 a penalty for each of the following acts or omissions if the Commission becomes aware of facts that in its opinion establish that the person has

(a) in relation to an application or request for the assistance,

(i) made a representation that the person knew was false or misleading, or

(ii) made a declaration that the person knew was false or misleading because of the non-disclosure of facts; or

(b) without good cause failed to attend, carry out or complete the course, program or activity for which the assistance was provided or was expelled from it.

(2) The Commission may set the amount of the penalty for each act or omission at not more than the amount of the financial assistance that was provided.

(3) The penalty shall not be imposed if

(a) a prosecution for the act or omission has been initiated against the person; or

(b) 36 months have passed since the day on which the act or omission occurred.

(4) The Commission may rescind the imposition of the penalty, or reduce the penalty, on the presentation of new facts or on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact.''

Strike out line 25, on page 52, and substitute the following therefor:

``65.2 (1) Amounts repayable under section 65 and penalties under section 65.1 are debts due to''

Strike out line 30, on page 52, and substitute the following therefor:

``(2) If an amount becomes payable to the''

Add immediately after line 33, on page 52, the following:

``(3) No amount due under this section may be recovered more than 72 months after the day on which the liability arose.''

Clause 75

Strike out lines 8 to 11, on page 56, and substitute the following therefor:

``imposed under section 38, 39 or 65.1 and repayments of overpaid benefits, except interest and penalties on benefit repayment;''

Strike out line 21, on page 56, and substitute the following therefor:

``sures authorized by Part II;''

Strike out line 24, on page 56, and substitute the following therefor:

``ments entered into under section 63; or

(f) received as interest under section 80.1.''

Clause 77

Strike out lines 1 to 3, on page 57, and substitute the following therefor:

``(c) all amounts paid under paragraph 63(a); and

(d) the costs of administering this Act, including administration fees or costs paid under section 62 or paragraph 63(b).''

New Clause 80.1

Add immediately after line 5, on page 58, the following:

``80.1 (1) The Commission may, with the approval of the Governor in Council, make regulations respecting the payment of interest on amounts owing to Her Majesty under this Act, other than Parts IV and VII, including regulations prescribing

(a) rates of interest, or the manner of calculating rates of interest, payable;

(b) terms and conditions for the imposition and payment of interest; and

(2) Interest payable under this section is a debt due to Her Majesty and may be recovered in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act, including the manner in which an amount owing under Part I may be recovered under subsection 47(2) or section 126.

(3) No interest due under this section may be recovered more than 72 months after the day on which the liability to pay it arose.

(4) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Act, other than Parts IV and VII.''

Clause 88

Strike out lines 5 to 7, on page 67, and substitute the following therefor:

``(12) If a document is inspected, audited, examined or provided in accordance with this section,

(a) the person by whom it is inspected, audited, or''

Clause 96

In the English version only, strike out line 2, on page 72, and substitute the following therefor:

``is payable only if an application is made in''

Clause 111

Strike out lines 29 and 30, on page 86, and substitute the following therefor:

``quorum;

(a.1) respecting the practice and procedure for proceedings before a board of referees, including authorizing the chairperson of a board of referees to determine the practice and procedure;''

Clause 115

In the French version only, strike out line 3, on page 89, and substitute the following therefor:

``devant un''

Clause 135

Add immediately after line 28, on page 104, the following:

``(b.1) knowingly fails to declare to the Commission all or some of their earnings for a period determined under the regulations for which they claimed benefits;''

Strike out line 7, on page 105, and substitute the following therefor:

``38, 39 or 65.1''

Strike out lines 11 to 15, on page 105, and substitute the following therefor:

``more than $5,000 plus,

(i) in a case mentioned in paragraph (1) (b.1), an amount of not more than double the total of the amount by which the person's benefits were reduced under subsection 19(3) and the amount of the benefits that would have been paid to the claimant for the period mentioned in that paragraph if the benefits had not been reduced or the claimant had not been disentitled or disqualified from receiving benefits, or

(ii) in any other appropriate case, an amount of not more than double the amount of any benefits that may have been paid as a result of committing the offence; or''

Clause 145

In the French version only, strike out line 37, page 110, and substitute the following therefor:

``régulières lui ont été versées à l'égard de plus de''

In the English version only, strike out line 30, on page 111, and substitute the following therefor:

``(6) Regular benefits paid for weeks beginning before''

Clause 159

Strike out line 23, on page 116, and substitute the following therefor:

``dealt with under that Act, including any amendments that may be made by Bill C-31, introduced in the second session of the 35th Parliament and entitled An Act to implement certain provisions of the budget tabled in Parliament on March 6, 1996.''

Add immediately after line 23, on page 116, the following:

``(1.1) Subsection 19(3) of this Act applies to claimants who fail to declare all or some of their earnings in a period determined under the regulations beginning on or after January 5, 1997, but the Commission may make deductions under subparagraph 19(3) (a)(i) on or after that date in respect of any failure to declare earnings for such a period beginning after June 30, 1996.

(1.2) Subsection 19(4) of this Act applies to claimants who begin attending a course or program after the former Act is repealed.''

Clause 169

In the English version only, strike out line 27, on page 119, and substitute the following therefor:

``section 71 of the Employment Insurance Act''

New Clause 172.1

Add immediately after line 28, on page 120, the following:

``172.1 Paragraph 60(n) of the Act is amended by adding the word ``or'' at the end of subparagraph (ii.1), by striking out the word ``or'' at the end of subparagraph (iii) and by repealing subparagraph (iv).''

Clause 173

Strike out line 29, on page 120, and substitute the following therefor:

``173. (1) Paragraph (a) of the definition''

Add immediately after line 33, on page 120, the following:

``(2) Paragraph (b) of the definition ``earned income'' in subsection 63(3) of the Act is replaced by the following:

(b) all amounts that are included or that would, but for paragraph 81(1)(a), be included because of section 6 or 7 or paragraph 56(1)(n>) or (o), in computing a taxpayer's income,''

Clause 174

Strike out line 34, on page 120, and substitute the following therefor:
``174. (1) Subparagraph 64(a)(i) of the Act is''

Add immediately after line 37, on page 120, the following:
``(2) Subparagraph 64(b)(ii) of the Act is replaced by the following:

(ii) an amount included by reason of paragraph 56(1)(n) or (o) in computing a taxpayer's income for the year, or''

Clause 187

Strike out line 14, on page 124, and substitute the following therefor:
``and 60(n)(iii) and (o)(ii),''

Clause 188

Strike out lines 33 to 39, on page 124, and substitute the following therefor:
``188. On the later of the coming into force of this section and subsection 6(1) of An Act to amend the Cultural Property Export and Import Act, the Income Tax Act and the Tax Court of Canada Act, chapter 38 of the Statutes of Canada, 1995,''

Clause 189

Strike out line 13, on page 125, and substitute the following therefor:
``189. If Bill C-11, introduced in the second''

Strike out lines 11 and 12, on page 126, and substitute the following therefor:
``available to the Canada Employment Insurance Commission, or to an officer, clerk''

Strike out line 25, on page 126, and substitute the following therefor:
``(x) to the Canada Employment In-''

Strike out line 31, on page 127, and substitute the following therefor:
``ment Insurance Commission;''

Clause 190

Strike out lines 37 and 38, on page 127, and substitute the following therefor:
``paragraphs 90(1)(d), (h) and (i), section 95 and subsections 96(4) and (5) come into force on January 1, 1997.''

Strike out line 10, on page 128, and substitute the following therefor:
``(h) paragraph 30(1)(a) and subsections 30(6) and (7);''

Add immediately after line 12, on page 128, the following:
``(j.1) subsection 38(3);''

Add immediately after line 15, on page 128, the following:
``(3.1) Subsections 7.1(1) to (3) come into force on January 5, 1997, but in applying them the Commission may take into account notices issued under subsection 7.1(4) on or after June 30, 1996.''

(3.2) Subsection 19(3) comes into force on January 5, 1997, but the Commission may make deductions under subparagraph 19(3)(a)(i) on and after that date in respect of any failure to declare earnings for a period beginning after June 30, 1996.''

Add immediately after line 25, on page 128, the following:
``(6) Sections 172 to 175 come into force on January 1, 1998.''

Your Committee has ordered a reprint of Bill C-12, as amended as a working copy for the use of the House of Commons, at the Report Stage.
A copy of the relevant Minutes of Proceedings relating to this Bill (Issues Nos. 75 and 76 of the First Session of the Thirty-Fifth Parliament and Issues Nos. 1 to 4 of the Second Session of the Thirty-Fifth Parliament which includes this Report) is tabled.
Respectfully submitted,
MAURIZIO BEVILACQUA,
Chair.