Bill 39 2008

An Act to promote the purchase of mass transit vehicles that are made in Canada

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Purpose

   1.  The purpose of this Act is to enact the principle that when mass transit vehicles are purchased, public authorities achieve the best possible outcome for every dollar spent by assessing the costs and benefits to government and the people of Canada, rather than selecting solely on the basis of the lowest purchase price. 

Definition

   2.  In this Act,

"mass transit vehicles" include passenger commuter rail cars, subway cars, light rail vehicles, street cars and diesel multiple units, airport people movers and buses.

Purchase of mass transit vehicles

   3.  A municipality that receives a grant, loan or other financial assistance from the Province for the purchase of mass transit vehicles shall require that the mass transit vehicles have minimum Canadian content in accordance with section 4.

Preference

   4.  (1)  In the purchase of mass transit vehicles, a municipality shall require that a bid on a contract that is to receive financial assistance from the Province be eligible for consideration only if the bid provides for a minimum of 60 per cent Canadian content.   

Canadian content

   (2)  For the purpose of this section, Canadian content includes final assembly and testing of the mass transit vehicles in Canada and may include manufacturing, labour, overhead, materials, engineering and methods, commissioning support, prototypes, warranty support and administrative support provided in Canada.

Audit

   (3)  The municipality granting the contract shall audit the production of the mass transit vehicles for compliance with the requirement for Canadian content.    

Conditions to be met

   (4)  To be eligible for consideration for the granting of a contract under subsection (1), a bid shall meet the following conditions:

    1.  The bid for the manufacturing in Canada of the mass transit vehicles must be a compliant bid and conform to the rules and procedures applicable to the purchase process.

    2.  The mass transit vehicles that are manufactured in Canada under the bid shall be at least equal in quality and design to similar vehicles in use outside Canada.

    3.  At least 60 per cent of the part of the bid price relating to materials, overhead, labour and profit shall be on account of materials, overhead, labour and profit originating in Canada.

    4.  Final assembly of the mass transit vehicles, which includes but is not limited to the following elements, shall take place in Canada:  

            i.  Installation and interconnection of propulsion control equipment, propulsion cooling equipment, braking equipment, heating and air conditioning equipment, communications equipment, motors, wheels and axles, suspensions and frames, and energy sources for auxiliaries and controls.

           ii.  Inspection and verification of all installation and interconnection work.

          iii.  Testing and verification of all functions of the stationary, fully assembled vehicles in the assembly plant.

Commencement

   5.  This Act comes into force on the day it receives Royal Assent.

Short title

   6.  The short title of this Act is the Buy in Canada for Mass Transit Vehicles Act, 2008.

EXPLANATORY NOTE

The Bill requires 60 per cent Canadian content, including final assembly in Canada for the purchase of mass transit vehicles that are made in Canada, if the municipality making the purchase receives funds from the Province for the purchase.